Advice needed please regarding credit rating & downward spiral

[nodisposableincome]

Please help...
Had to resort to credit cards just to get by (food, travelling expenses to interviews etc) upon being made redundant.

My new job brings in only 70% of my old income & my shortfall with the outgoings/expenses is £400 every month. I have cut back on everything that I can, I even resorted to asking the council tax people to extend the direct debit over the full 12 months rather then their standard 10 just to eek it out.

My 0% credit cards are due to expire just after Xmas. So far I have just about managed to pay the minimum of £40 a month but there is still a few thousand pounds outstanding.

I don't have any savings now as I used them to try & avoid using the cards but now I am being refused for all 0% balance transfer cards. As I see it, I can only stick with the ones I have which are soon going to see me struggling further with an interest rate of £27%.

I have looked at www.moneysavingexpert.com & checked my credit history. I have 999 out of 1000 & am apparently according to Experian seen as having "excellent" lending capacity. I won't be spending/buying on the cards.

I don't know where to go from here I have no disposable income.

[fergoose]

I think the 0% credit card deals are a lot harder to come by now than they used to be

Wouldn't a bank loan be cheaper than the cards?

[1catherine1]

The fact you have now applied for a number of credit cards could affect your ability to obtain credit from companies that don't "know" you, including any loans you might apply for. A loan might be your best option now though anyway, look here

I suppose the real question is, are you breaking even each month at the moment? You say the shortfall is £400 each month, is this money you are spending over what you are earning? If this is the case then no loan or credit card is going to help you. You need to fix that asap.

I know Martin Lewis says that borrowing to pay off debts is a bad idea and it is better to get credit card loans as they are free but they're hard to come by. Not too long ago I was forced to do the same. I had an overdraft at 25% interest + £5 usage fee and a very hefty credit card that was over 25%. It was killing me. I am much better off now they're gone and I have 1 debt I'm paying off rather than just paying the interest each month.

Good luck, money is quite a stressful business. I get very stressed about it.

[uggmum]

If you are experiencing financial difficulties consider calling the Consumer Credit Counselling Service, www.cccs.co.uk.
They are a charity and are completely free and will be able to give you advice on your financial situation.

[RedHelenB]

See if you can get a loan, then cut up your cards DONT start adding to them again or you will end up in a deeper mess.

[uggmum]

Contacting cccs and asking for advice will not affect your credit history. They do not update your credit file. However, if you go into a debt management plan this will affect your credit rating.

If you are experiencing financial difficulties to the extent that you cannot afford to maintain your commitments it will only get worse. A debt management plan can be a positive solution. It won't be suggested unless it is the best option for you.

[Bossybritches22]

I was in your position & got a loan from the Co-op bank to consolidate my debts. Only having one lump sum going out each month was a relief, the interest was/is less then credit cards & I have the ability to overpay when I want to as & when I can to reduce the balance.

Not ideal but it made me feel more in control.