Debt Advice!

[leedsforever]

OK....

I owe on 2 credit cards... about £3,500
then my student overdraft which is £1,600

ATM I dont seem to be getting anywhere with paying it off... but Im going to CUT the blasted credit cards up... now if I dont have the money we DONT get it!!

Anyways I was wondering whether I should go to a debt management company or even just the bank for a loan to pay it off! Although dont think Id get accepted for the bank loan! At least that way I know where I stand... pay an amount each month and wont have to worry about minimum payments and constantly being in the red with my student account...!!

Anyone have any experiences on this??
Thanks!!

 

[jillypoop]

go to the moneysavingexpert forums and post in the "debt free wannabe" bit.

A debt management company charges you stupid amounts for something you can do for free (with a bit of help from MSE!).

I love the site, am on it all the time. Whatever you do, don't get a loan, you are just adding to your debts and moving them around, it doesn't work.

Speak to CCCS or the National Debtline. I think they both have websites...

hope that helps hun
xxx

 

[leedsforever]

Thanks hun Im registering now....

thats what I thought about those companies... they add £1000s on but I was willing to do that to just stop being in the red all the time

 

[lozzy21]

Being sorted out by a debt managment company can affect your credit rating as it shows you cant manage your money on your own. I was told to pay of as much as i can and not just the minimum repayments.

 

[Sarahkka]

Check out Gail Vaz-Oxlade and her Til Debt Do Us Part site. She is absolutely awesome and has great budget worksheets and all sorts of very straightforward advice. Part of geting out of debt is identifying the spending habits that got you there in the first place. That whole "penny saved" idea really does work. You're doing the right thing by cutting up those cards.
I agree with the others to avoid the debt management companies. If you can find a not-for-profit credit counselling service, that might be helpful. They don't charge you anything.

 

[aimee-lou]

Write to the credit card companies and ask for your balance to be frozen. This will hopefully mean that the interest will either stop completely #or they will just put a small amount on compared to the normal amount. This will give you a chance to start paying off some of the capital.

Cut the cards up and don't use them!

Your overdraft.....how old is it? Are you still in your 0% period or has that finished? If you speak to your bank and say that you are having trouble paying it off they may transfer the balance to a managed loan (I have one of these!) which will mean that you will have a payment plan and be able to see it going down rather than beign stung for chanrges etc with an overdraft.

Speak to the suppliers first and see what they can offer you before speaking to anyone from a DCA. Also, try calling CCCS (Nmber is on Moneysavingexpert.com as they give free, independent advice.

Lastly, don't let it get on top of you. Credit cards and overdrafts are not secured so they cannot take anything off you. As long as you are paying SOMETHING off, they will be paid off eventually.

HTH! x

 

[leedsforever]

Thanks guys... Im feeling much better about it and I really think it is more to do with managing my money better....

i will check those sites out thanks sarrahkka my overdraft is interest free for £1000 of so Im paying interest on the £600... come july though its going to decrease even more!!

x

 

[polo_princess]

Personally i would see what your bank have to offer, we have just taken out a loan with the bank to pay off our credit cards as the interest rate was lower, so we are now paying £150 a month on the loan instead of £250 odd on the credit card.

I wouldnt go with a debt management company, theyre charging you for stuff you can easily do yourself.

Do you have any insurance at all on the 3 debts?

 

[leedsforever]

no i dont take out insurance... and I have considered a loan to pay them off holly but I wonder whether Ill get accepted for a loan?! I think with my OD Ill leave it until the interest free bit decreases again then go to the bank

 

[candeur]

I've recently had the same problem, I owed £3000 on one credit card and could only afford to pay the minimum payment, so was paying back £60 a month, and getting charged £54 interest, so only paying back £6 a month! I rung a debt management company and spoke to them, but had a change of heart, they can get you debt free, but it's a black mark on your file, my mum did it, and even after you have paid everything off, she still can't get credit.
Instead I rung my bank, they extended my existing loan to cover pay off my credit card, and took away my overdraft aswell.
I was already paying £150 a month on an existing loan, but now I pay £190 a month and the credit card is cancelled! Best thing I have done.
Please make the debt management companies a last resort only!

 

[Vickie]

we had debt on three credit cards at one point and this is what we did. First we paid on the card with the highest interest rate first. We set up an automatic withdrawal from our checking account to X card so we never even really noticed the money. That card we would also, at the end of the month, pay as much as we could on. The others we paid minimum balances on. Once one card was paid off we moved to the next, doing basically the same thing (set up the automatic withdrawal weekly etc.) It took a while but it worked well for us

 

[leedsforever]

yeah thanks vickie... I have 2 credit cards... 1 has 0% for the time being so im going to work at paying the other one first plus its the credit card associated to my current account so I can just pay online, as soon as I get paid Im going to pay some off...
I just need to stop spending

 

[leedsforever]

I've recently had the same problem, I owed £3000 on one credit card and could only afford to pay the minimum payment, so was paying back £60 a month, and getting charged £54 interest, so only paying back £6 a month! I rung a debt management company and spoke to them, but had a change of heart, they can get you debt free, but it's a black mark on your file, my mum did it, and even after you have paid everything off, she still can't get credit.
Instead I rung my bank, they extended my existing loan to cover pay off my credit card, and took away my overdraft aswell.
I was already paying £150 a month on an existing loan, but now I pay £190 a month and the credit card is cancelled! Best thing I have done.
Please make the debt management companies a last resort only!

yeah i think ive been told enough to stay away from debt management companies

great news your getting it sorted .. I dont think Id get a loan right now, I did get declined a couple of months back, so Im going to wait and try and pay of as much as I can of the credit card which im paying interest on...(Its at £14 atm so as long as I pay a big chunk its not toooo bad)!! Ill never learn though... well I think I FINALLY have... lol!!

 

[FEDup1981]

it prob doesnt seem it, but you have a relatively low debt, so going to a debt management company really should be the last resort. You could consolidate with a loan, but make sure the interest rate is low. Or you could try and transfer the debt to a 0% credit card, so that ur just paying the balance, and when the 0% runs out, change again.
Concentrate on ur credit cards if ur overdraft doesnt need paying yet. Always pay the minimal payment at least, if not more, and always on time.

Like i said, ur debt is low, and you dont want to ruin ur credit rating for such a low debt.

Im not an expert, but ive been as far as you can go with debt if you get what i mean.

Also, i know ur a spec constable, but you cannot go into the police force if your bankrupt.

Good luck xxx

 

[Vickie]

If you can set up an automatic withdrawal that really helped us. The money wasn't there so we didn't spend it!