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I'm in a total mess. Debt holiday payment?

(12 Posts)
Debtdrowning Thu 29-Sep-16 13:08:19

There is so much I could say but I don't have long to write this thread.

Suffice to say, I am £11k in debt, credit cards, overdraft and a loan.

I have been paying off £300 a month for the past year, but I lost my job in March, tried to get another and ended up temping whilst I was looking. Temp contract ended, no perm job to go to so I set up self-employed. I am lucky in that when I lost my job I moved back in with my parents and they aren't charging me anything ATM. This isn't a long term solution though.

I am honestly drowning in debt and whilst my self employed business is building slowly, I'm not going to have enough income to pay all my outgoings and debt this month. Looking at my 'forecast' I should be fine for November. I have never before missed a payment for my CC and always pay over the minimum payment for it.

Is there any way I can ask the bank if I can pay a more nominal sum this month? I know it will affect my credit rating but if I haven't physically got it there isn't much I can do.

Please no abuse,I really am feeling so low today, I don't think I can take much more. I just want to give up on life to be honest.

Bearbehind Thu 29-Sep-16 18:51:10

It's very difficult to comment without details of your income/ outgoings.

Ruining your credit rating by asking for reduced payments should be a last resort.

You mention you pay over the minimum each month; you'd be better paying the minimum and keeping the extra back to pay next months minimum if you're reaching crisis point.

This is obviously a very short term solution but it's silly to overpay one month and be unable to meet the minimum the next month.

If you really can't meet even the minimum payments after considering all possible ways to reduce your out-goings/ increase your income then the not for profit debt support agencies would be your best option.

Ta1kinpeece Fri 30-Sep-16 17:37:39

Work out EXACTLY what you owe on each card.
Look at the statements and see what the minimum payment on each is for next month.
Round that amount up to the nearest £5
Set up a standing order for each card to pay that amount on the day before the due date.

Now ignore the cards as they will all be paid off in two years.

Next, look at what got you into this mess - there is a big debt thread on this board with loads of advice and really helpful people who will get you through this. I'll bump it for you.

ImperialBlether Fri 30-Sep-16 17:40:43

But the OP is saying she hasn't got the money to pay her credit cards!

ImperialBlether Fri 30-Sep-16 17:41:27

And why would it be paid off in two years if she's only making the minimum payment?

AndNowItsSeven Fri 30-Sep-16 17:43:22

Phone cap they are a Christian debt charity, they help anyone in a no judgemental way.
My friend was taken to a supermarket for a free shop when she was first helped. They also sent her whole family to Disney land Paris.

AndNowItsSeven Fri 30-Sep-16 17:43:56

melibu84 Fri 30-Sep-16 17:48:13

Just call your debtors and explain the situation. Ask them if you can pay a reduced amount this month. From my experience (I have a lot of debt too), most companies are more accepting and helpful if you tell them there is an issue straight away. If you come to an agreement with them, this should not affect your credit rating, but you should confirm this with them.

I wish you all the best of luck smile

Ta1kinpeece Fri 30-Sep-16 17:51:37

The standing order trick on credit cards is a thing of wonder - several of the posters on the big debt thread have used it to clear tens of thousands of pounds of debt in surprisingly short spaces of time.

Justaboy Fri 30-Sep-16 18:01:52

melibu84 is advising you quite well there most debtors will think a lot more of you if you keep in touch with them and stick to what you can afford.

Best bet generally speaking is to pay of the ones with the highest interest charges that's usually the credit card/s

Don't fret, your not the only person the UK in debt. Can you ask the bank of mum and dad if they can support you with a loan to help pay off some of it I'm sure their interest "rates" will be lower. OK don't suppose your feeling that good having to rely on them for a roof over your herd but these days younger people are finding it ever harder to survive financially. as to the credit rating i expect it has taken a dent but they can be recovered.

Bit of a bummer re loosing the job but it seems to me your fighting back which is a good thing at least!

Hey! don't give up, to have started your own self employment is no mean feat either not many have the guts or gumption to do that!

Ta1kinpeece Fri 30-Sep-16 18:07:30

Logically, phoning each of the creditors in turn, telling them that you have set up standing orders and offering to send them your cashflow projections should do the trick.

What lenders hate is "head in the sand" types
if you are willing to work with them, they will work with you.

but genuinely, the standing order trick works on ANY card that has a proportional minimum repayment
and the maths means that it whumps all interest rates at nearly the same speed
(spreadsheet thread should be near the top of the board, the maths is there to see)

Poocatcherchampion Sat 01-Oct-16 17:30:31

Are you still looking for employed work?
Are you sure self employed is the answer?

Good advice above

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