09 Mar 2015

A question about : Credit Card debt

Hi,

Ive got about Ј7500 of credit card debt, on different cards.

I'm struggling to pay the minimum amounts at the moment.

Ive tried getting another card to put all the debt onto to get lower interest but with no joy.

Ive tried getting a debt consolidation loan, but no joy.

What are my options? Bankrupt? If I could just find a way of lowering payments. Its my debt and I have no issues.

(I'm in Scotland if that affects things as we have alot of different laws)

Best answers:

  • Hi DukeLeith,
    Welcome to the forum.
    First thing I would advise is to do a SOA, once you details are in black & white it is easier to see what disposable income you have left. You haven't got to post it on here if you don't want to but doing it is cerainly worthwhile.
    The other thing I would do is the debt remedy tool on the Stepchange website. Here is the link. This will give you options going forward. You can ring them then if you wanted to speak to someone or seek help from another debt charity. Do NOT pay for a debt management company EVER. There are a number of FREE charities, Stepchange being one of them.
    All the best.
    DB
  • Going bankrupt should be your last resort as you're going to struggle to get credit for 6 years afterwards.
    Just try to pay the minimum for each card now and get it to them on time.
    If you are going to try to shift the debt to a lower interest rate you really need to keep your credit report as clean as possible with no late or missed payment markers.
    What's the total amount of money you need each month to keep up with the minimum payments on your Ј7.5k debt?
    See if you can reduce your monthly outgoings, increase your income and maybe sell some possessions to get you through this tough time in your life.
    Good luck!
  • I am in a similar position. Credit unions are worth a try - they might advise you and also provide a low cost loan if you save a small amount with them.
    I have just been approved for a Capital One card - 0% for 6 months. It isn't long but I couldn't get one at 0% for a while and I still have Ј9k credit card debt which I am paying off slowly at the moment. You might be eligible for lower interest rates now or in the near future so I wouldn't consider bankruptcy or anything drastic. It's very difficult I know but keep trying to pay off a bit more than the minimum and you might get reasonable balance transfers in the future, depending on your credit rating.
    I have also contacted StepChange and they seem helpful and it is good to talk it over with someone.
  • Tacking the debt is certainly a good thing and you need to follow the advice already give re looking at your SOA. BUT - it is important that you also understand why you incurred this debt in the first place. Unless the underlying cause is addressed your situation will never change.
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