Debt Advise

[Wu Banger]

Hi. I got myself into debt when i was about 20 and can't seem to shake it. I owe �11,000 across two loans and �6,000 on two credit cards. I live on my own in rented accomodation and can just afford rent/bills whilst making my loan repayments and paying the minimum on my credit cards. I realise that making minimum payments will take forever so i wondered if anyone had any advise for me what i can/should do. I have missed a couple of repayments so i don't think my credit rating is too good. Is debt consolidation the way forward or can i not get that anyway due to not having a mortgage? Any advise would be greatly apprieciated!

[lynlockwood]

Could you take on a second job and put that money to debt repayment? If you're not intending to buy a house or look for further credit in the near future what about declaring yourself bankrupt- although I'm not exactly sure how that works. Why not visit a local free debt advice bureau or the Citizen's Advice- they could help you make the big decisions. Your circumstances are probably common to a lot of people unfortunately and you've taken the right step by trying to sort it out now before it gets worse. Good luck.

[pagey3]

are you able to get some interest free balance transfer credit cards? at least this would mean that your minimum repayments on your credit cards would be paying off more than just interest.

a second job is a good idea - even 2 shifts a week in a pub is �50 a week, in a restaurant you get tips too - its not much but if you put all of that on your credit cards they'll soon start dropping. I did this out of uni and used my pub wages as my 'fun' wages, and my full time pay packet basically all went on bills and debts.

even for just a year it makes quite a dent in that debt.

missed payments can count towards a bad credit rating, but try not to do this again and you should quickly build up better credit.

I wouldn't reccommend going bankrupt, and only consolidate your debts if the interest is going to be less than you are paying now.

good luck

[alunrw]

Why not have a word here, there seems to be real friendly people who might be able to point you in the right direction
http://www.debtquestions.co.uk/debt_forum/

[cosyrosy]

my daughter got herself into real grief with debt - i eventually persuaded her to go to a debt counsellor- who explained all the options and negotiated with the credit card companies on her behalf - it's been 18 months of beans on toast for dinner, but she can definitely see the light at the end of the tunnel- can't hurt just to discuss your options with one

[myvesta-sean]

Try speaking with a Myvesta advisor. Myvesta is a not for profit debt help organisation.

http://myvesta.org.uk