£28k in debt.....Need help

[NorthernBinder]

Hi,

 

I've been pointed to this site by a friend who suggested I look into other options of dealing with my £28k worth of debt other than just paying off the minimum each month.

 

Basically, as a result of a divorce I managed to put myself in a situation where my monthly pay-check for the past 5 years has gone towards paying off my credit cards rather than spending any money on my 2 children or recently my new arrival. I'm looking for help. I'm paying off all my debt at the moment and I will probably be able to continue doing so for a long time. But I'm unable to be able to reduce the debt I owe so each month the cash I earn drains out of my account.

 

Is there any sensible way out of this situation without damaging my credit rating? My debt is currently (roughly) as follows:

 

1. £12k Lloyds unsecured personal bank loan @ £289 / month which I've had for 4 years. 3 years still left to pay;

2. £9.5k Virgin credit card @ £202 / month which I'm basically only able to pay the interest off each month;

3. £4.3k Lloyds Bank credit card @ 88 / month which I've been paying off and adding to for about 3 years which I'm paying off at slightly over the monthly interest repayments;

4. £3.2 Egg credit card @ £77 / month which was used for cash withdrawals that I've been paying off for about 6 years;

5. £800 / month Lloyds overdraft

6. £500 / month going to the ex wife

7. £243 / month going to childcare vouchers

8. £127 / month mobile phone, gas insurance, life/car insurance

9. £250 / month food shop

10. £200 / month fuel

 

Out of a £2.1k wage into my pocket per month, that leaves me £150, any help gratefully received.

[gezwee]

Hi NB

 

Welcome to Cag, to be perfectly honest I would look toward CCCS in your position and enter a DMP for the short term, if nothing else they should be able to cease interest on the majority of the accounts so at least the balances are reducing.

 

As soon as you have this sorted get a CCA in to each of the creditors and post a new thread for each for advice.

 

Its not a quick process and you will get sh*tty calls for a while but refuse to answer personal details and ignore any template letters, they are only presented to p you off and get you on the phone

 

Gez

[BankFodder]

Additionally, you should calcaulte how much you have paid in credit card charges over the years. If you have been paying charges of more than £12 each time then you can claim them back plus the interes which has been chalked up on them.

 

You should definitely look at the DMP options as well as advised b ut they won't want to advise you about actually recovering excessive charges. You will have to do that with our help here.

[BankFodder]

Please start threads in the appropriate forums to continue

[gezwee]

Hi NB

 

Sorry, just read my response again and its not really all that helpful if you don't know what the acronyms refer to

 

CCCS - Consumer credit counselling service

 

You'll find them here CCCS | Free debt help and debt advice from the UK's leading debt charity

 

DMP - Debt management plan

 

They'll help you work out a budget and approach your creditors in an effort to cease interest charges. It should also give you plenty of breathing space as the creditors are obliged to respond to them once appointed.

 

Get this out of the way first and then start the ball rolling with reclaiming charges etc.

 

Most who come to Cag are already in default positions, being chased by DCA's or through the court - in your case you have an opportunity to come to amicable arrangements with a third party taking the strain (so to speak).

 

I noticed you posted again in the debt section, I could be wrong but I understood BF to mean start a new thread in the relevant section for each of your creditors if/when you start any reclaim process.... you'll get plenty of help with this

 

Best of luck

 

Gez

[mangle101]

1. £12k Lloyds unsecured personal bank loan @ £289 / month which I've had for 4 years. 3 years still left to pay;

 

Do you have loan protection? If so was it mis-sold?

 

 

 

 

Debt Free Since 1st September 2009:grin:

 

Target Savings For 2010 = £1000:-)

 

Savings So Far = £450:lol: