Help needed on first debt free move

[sortoutdebt]

Hi

 

I was hoping to get some advice on what to do about my debt.

 

I have:

 

Card 1 £6200

Card 2 £4900

Card 3 £790

Overdraft £2500

Loan 1 £2310

Loan 2 £4500

 

Total: £21200

 

I can afford £500 per month towards the debt and have not missed any payments. However, the interest and overdraft charges are taking the minimum payments above what I can afford.

 

How can I sort this mess out? Would I need to write to each creditor to attempt to freeze interest and charges?

 

Any help appreciated.

[renegadeimp]

Can you post as much info as you can about each debt? We can then check for any charges etc that can be reclaimed and even if the debt is enforceable.

[Desperate Daniella]

Hi sortoutdebt, and Welcome to CAG!

 

As renegadeimp says above, please give specific details of the debts and we'll try to help you.

 

DD

[silverfox1961]

Hi and welcome to CAG

 

I suggest starting a thread for each debt rather than deal with all on one thread.

 

I suggest leaving this thread for the overdraft only as (although none of these debts are a priority) the main one is the overdraft.

 

Start by doing a personal income and expenditure form to see what you have to play with.

 

In the library are some letters to help you get the charges and interest frozen.

 

If the overdraft is eating into your budget, set up a new account with a different bank and have all monies paid into that one.

 

Have you told your bank you are in financial strife.

 

Do you own any property?

[dx100uk]

and go get your credit report too!!

 

dx

[sortoutdebt]

Thanks for the fast replies and help, feels good to have it all listed out! I will get onto posting the details soon.

 

I don't own any property and haven't told the bank as i have been able to keep up with payments so far, but I will not be able to this month and the payments are due over the next 2 weeks.

 

Do I start threads for each debt in this sub forum or another one?

[silverfox1961]

As you are attempting to sort the debts out before it all goes t*ts up, I suggest this forum for now. Once we get an idea of what is what, the site team can move them if another forum is more appropriate.

 

Have a look at the Nationl debline website as well. They give good advice.

 

https://www.nationaldebtline.org/EW/Pages/default.aspx

 

I wouldn't suggest bankruptcy as yet although that is a route you could go down. There is less stigma attached than there used to be. Let's see what issues you have first.

[sortoutdebt]

The background is that I started gambling in 2012 and won at first, but then lost it all and tried to win it back as well as switching it to cards and loans (bad move). I have been seeking help for gambling and have self-excluded from all accounts and put in a filter. So as I have started to sort out the gambling, i now realise how stupid I have been, and feel I can now start to focus on repaying and sorting out this mess.

 

Thanks for all the help you are giving me.

 

Debts

 

Overdraft - Halifax Current Account - Fees £1 a day 0-1999, £2 a day over £2000 - Maxed to limit of £2500 - £53 charges this month

 

Card 1 - Barclaycard - £6200 - Opened 12/2013 - Some is at 0% and some is charged at 27.9% APR - 3% of balance is minimum

 

Card 2 - Virgin Money Card - £4888 - Opened 12/2013 - Ranging between 18.9% - 27.9% APR (This month, due to interest it has gone over credit limit and £12.00 has been charged) - was 1% of balance but not this month as over the limit so £140 this month

 

Card 3 - Halifax Student Mastercard - £793 Opened 12/2009 - 23.95% APR (still called student, but I have already graduated) - payment is £38 this month

 

Loan 1 - Co-operative Loan - £2310 - Opened 10/2012 - 9.9% APR - ends 10/2016 - payment is £88.11

 

Loan 2 - Hitachi Personal - £4500 - Opened 11/2013 - 10.5% APR - ends 11/2016 - payment is £129.13

 

This is as much information as I could find. Is this ok? What would be the best advice of what to do next? They are due in the next couple of weeks.

 

I am moving banks so will have salary paid into that.

[renegadeimp]

Make sure you move to a bank that is in a different banking group to your current one. And can i say, well done on getting a level head and wanting to get a handle on your debts before they spiral out of control. A lot of people bury their head in the sand and it gets worse.

[sortoutdebt]

Thanks for the support, I feel very stupid but know that I should face up to and take control of the debt. I am starting to see that there may be light at the end of a long tunnel so to speak!

[renegadeimp]

Just make sure you don't fall back to how it was before.