In Debt.

[121517]

I am slowly drowning in debt.

Have a �3000 personal loan, a �2500 Credit card, �300 overdraft and about �500 personal debts.And a �400 outstanding phone.

I only earn �1300

I have just contacted the consumer credit council for advice and help. Is this the right way to start sorting my life out or do I need to do more.

[andy hughes]

That's a good way to start. Your local Citizens' Advice Bureau will give you free solid advice as well, but you may have to wait.

The essence of getting out of debt is structure NOT borrowing more, never mind what Carol Vorderman says!

You should contact all your creditors and advise them that you have debt problems, but want to sort them out. Suggest a m onthloy payment which you can make every month, and see if they'll accept it. Don't get creative - the whole point is showing that you can, and will, repay the money.

Most companies are used to debtors, and what they want is to see your intention to pay - it saves them the tirsome and expensive business of taking you to court.

Make a plan - tell the people you owe money to, and stick to your payments.

Good luck.

[121517]

Thanks Andy.

Is the Consumer Credit Council the same or better than the CAB.

I have a telephone appointment with them next week.

Do you know if they deal with debts or will they contact them on my behalf.

[Bobble17]

A close relative of mine got seriously into debt and it can be very demoralising.  It's great that you are trying to do something about it.  What about consolidating the debt to which ever has the smallest interest rate?  Or you could transfer your credit card onto a 0% interest card (or just a card with a lower interest rate).  I'm sure the CCC and CAB will suggest other stuff.  How about selling something?  And have a serious look at your utility bills too - could you get them cheaper through another provider?  Christmas is round the corner - don't get sucked in - make presents for everyone!  There is a post on AB about doing that.  Good luck.

[WendyS]

And hard though it may be, get a pair of scissors, cut up your credit card and don't apply for another one until you have cleared your debts.    Knowing that you can't buy anything more on credit may help to motivate you in keeping control of your budget.   Your phone bill debt does seem very high  Do you really need to make so many calls or are you using your phone to keep in touch for social or self-eteem reasons? Would a Pay As You Go system help you keep your phone spending in check?  Good Luck and stick at it.  . It may be hard work but you'll feel great when you see the debts coming down.  

[Hermia]

I agree with andy hughes re: contacting the companies you are in debt to. When I was a student I worked in the debt recovery department of an electricity supplier. We didn't really mind how little people paid off each month as long as they did pay it and didn't mess us around. The people we cracked down on were those who didn't keep us up to date with their circumstances or who missed or were late with payments.

[Peahead66]

Hello, there is a debt forum here http://www.debtquestions.co.uk/debt_forum/ that you might find helpful.

[twiglet4frog]

just call all u owe and badger them to set up a monthly repayment/interest free period, to allow u time to catch up to date a bit on the debts. they might be a bit hard nosed but u should keep demanding to speak to a manager etc. Eventually u will get a compromise.

Same with the phone debt, use the phone less if u can and ring whoever u are with and explain that u cant afford it all but u will like to pay so much per month to stretch the debt out. Dont accept the girl on the line saying its not possible, instead get her to put the manager on (takes some demanding that does) who has the authority to set up repayments that most call staff cant.

Best thing u can do is to get the little ones that dont charge interest such as the phone bill onto a monthly repayment, so that u can pump as much money into repaying the ones with the high interest so that u are not racking up more debt by not paying them. Consider selling things for cash too, its a great time when the weather is bad to go through the house deciding to declutter and have a minimilistic lifestyle by getting rid of the portable telly in the bedroom, that video recorder u never watch videos on now, all the cd's and dvds u have seen, and raising money from cash converters or eBay. Dont spend the money raised, pay it straight on to the debts, preferably the higher interest ones. Its tough but u dont owe that much compared to a lot of people so consider yourself lucky u have realised that things are going out of control and that u have to cut back on luxuries now in the event of being completely debt free within a couple of years or so. Good luck!

[petroneva]

I have �30.000 in debt, my only way out was to use a debt consolidation company they have arranged for me to pay �107 per month to my debitors but, it looks like for life, unless I can pay off my debts sooner, it's an option but it takes the pressure off in the short term, now I am working to pay off my debts ASAP