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Credit card debt advice - cant keep with just minimum payments

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Hey guys.

 

Looking for some general advice with regards to clearing my debt.

 

I am 29 years old and have been in debt since I was 18 (since uni days).

 

Ever since, I have always paid and still continue to pay the minimum payment toward my credit cards each month and have rarely defaulted on payments but all my cards are maxed out and I am just scraping the barrel each month to keep up with these payments and my rent etc.

 

I have checked my credit rating and its poor due to the amount of debt I have although I have not had any serious issues regarding my credit rating as I have always paid every month without fail (however I may have defaulted a handful of times through forgetfulness for example)

 

1: - 6000

2: - 6000

3: - 3000

4: - 500

5: - 675

6: - o/d - 1650

 

TOTAL - £17825

 

my minimum payments are currently totalling roughly £400 every month.

 

My Rent is £675 a month so with this, my credit card debt and other living expenses (petrol, council tax, etc etc) I am left with little disposable expenditure every month and as a result often find myself having to use my cards that I have just paid off to get petrol, food etc - jus cant seem to make a dent in clearing the amount owed #viciouscycle

 

I appreciate my circumstances maybe quite typical for an average man of my age but I am tired of continuing to just pay the minimum payment as I have been doing this for as long as I have been in debt and I now just want to get out of this.

 

The only solution I can think of is getting a loan to consolidate my debt and I have tried to apply for unsecured loans (I am a private tenant in full time work) but have been declined each time.

 

What can I do to help start clearing this off without damaging my credit rating any further.

 

Is it worth speaking with my bank? Would they help? Or what about these debt management companies I have heard about... is it worth enquiring about what they can do for me?

 

Thanks for any advice in advance.

Edited by citizenB

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First thing to do is to contact each company in writing and explain you are having difficulties, and would like to reduce the min payment for a small period of time, and for them to cease interest on the account, to allow you to get back on track.

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?387346-Ask-Creditor-to-Accept-Pro-Rata-Payments Have a good read of that.

 

Just remember, do EVERYTHING in writing, so you have a clear paper trail showing all correspondence to the accounts.

 

 

If any creditor refuses the info that is in that link, use http://www.consumeractiongroup.co.uk/forum/showthread.php?387349-Creditor-Refusal-of-Pro-Rata-Payments


Any advice i give is my own and is based solely on personal experience. If in any doubt about a situation , please contact a certified legal representative or debt counsellor..

 

 

If my advice helps you, click the star icon at the bottom of my post and feel free to say thanks

:D

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One thing to add to my above post, make sure you reclaim any insurances and unfair/unlawful penalty charges on the accounts. You can use The interest rate they charged you to calculate the amount they owe you.


Any advice i give is my own and is based solely on personal experience. If in any doubt about a situation , please contact a certified legal representative or debt counsellor..

 

 

If my advice helps you, click the star icon at the bottom of my post and feel free to say thanks

:D

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You might want to have a look at your credit file to see what it looks like at the present time. If you have defaulted at any time then this will be reported to the CRAs.

 

If you are making minimum payments, this will also be obvious :(

 

As your debts are over £15,000 you will not be able to take advantage of the current level of indebtedness for a Debt Relief Order. However in October 2015 these are set to increase to £20,000 - you will receive more information about this from National Debtline.

 

Meanwhile IMHO, you should write to all your creditors. Advise that you are struggling at the moment and would like them to accept reduced payments for say a period of 6 months - ask them to cease adding interest and charges so that you can get back on track.

 

You can ask them to accept pro rata payments using the letter linked below.

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?387346-Ask-Creditor-to-Accept-Pro-Rata-Payments-**Correct-as-at-October-2013**

 

Or,

 

Ask them to accept £1.00 token payments

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?387358-Request-to-make-£1-token-payments-for-X-Months-**Correct-as-at-October-2013**

 

Either way, this will be reflected on your credit files.


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Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

 

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I noticed you have a o/d I would open a parachute account to have your wages paid into not connected with any of your creditors. Also do a income and expenditure sheet to see what disposable income you have afterwards and that's the mximun amount you pay towards the debts , when I did it it was pro rata . ir biggest debt got the biggest slice of the cake not who shouts the loundest . I personally would not get another load since all you would be doing is adding on another load of interest thereby increasing the debt by a lot . if you credit rating is not very good get yourself sorted out now and then if you keep your new bank account in order they will bring it up

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