Consolidating credit card debt

[IHopeYouStepOnALegPiece]

I owe £2500 on a credit card that I can’t get on top of, I can’t sleep for worrying about it. A move to a new country mid pandemic and losing job after job due to the pandemic means after rent/ bills I have barely £150 for food and travel. I cannot get on top of this CC debt or see a way out.

Someone told me to take out a loan to consolidate it and then pay the loan off instead (LOQBOX was recommended?)

I don’t know what this means. Won’t I just end up paying interest to someone else?!

I honestly don’t know what to do

The loan may be on lower interest rate so you pay back less in total. Might be able to pay it off over a longer period too. Only works if you don't run the credit card back up.

It will depend on the loan term and interest rate compared to the card interest rate and how much you're paying off the card a month. Are you able to maybe transfer to a new credit card with a transfer deal/0% offer?

Can I be really stupid and ask, how do I transfer to a new CC?

I don’t even know the I treat rate, I’ve got myself in such a state over this. I can’t think about it without crying, it feels like such a mess.

Once I’ve got rid of the debt then I would immediately close the account so I couldn’t use it again,

Thank you btw

@IHopeYouStepOnALegPiece

Can I be really stupid and ask, how do I transfer to a new CC?

I don’t even know the I treat rate, I’ve got myself in such a state over this. I can’t think about it without crying, it feels like such a mess.

Read this link. Do you have a credit card statement? That will tell you your APR%.

If you do a credit card balance transfer they ask for the provider and the card number, what the balance is and it's done when the card is activated. Then during the 0% interest period all payments you make go to the card.

Have you reviewed your budget?

When you say 'after rent/ bills I have barely £150 for food and travel' is this before or after the credit card payment?

You shouldn't be missing essentials like food and travel to work to pay unsecured debt. If you're in that position, where you can't manage a sustainable budget including all annual and irregular expenses, including a small emergency fund, and pay the credit card bill, that's a trigger for a more formal solution.

In the first instance, you might want to ask for 'breathing space' which allows a couple of months to seek advice as to what is the best plan of action.

Have a look at the MSE budgeting advice and signposting to ways to increase income, reduce expenses and deal with debts, as to what you need to do.

www.moneysavingexpert.com/loans/debt-help-plan/

Thank you.

£150 is before CC repayment. There is literally no cuts to be made, I have no Netflix etc, my phone is £15pm and can’t be reduced. I don’t buy clothes or anything.

I was hoping this was just temporary but it is turning longer term then I thought - I’ve had 8 job interviews since Xmas and 6 rejections so far, I’m trying but failing. It’s broken me if I’m honest.

Think first port of call is calling the CC company