Wednesday, December 16th, 2009

credit card debt problem, Help?

credit debt problem
fluff asked:


I am very embarrassed to say once again, that I have fallen into credit debt to the tune of £35,000! Two years ago I took out a loan with my mortgage company to clear one set of CC debts. Two years later, I have been ****** in again and feel rotten about it. Can anyone here please give me advice on what to do? Should I take out another loan with the same company and consolidate my CC’s. Or should I go back to the credit card companies? If I can clear this debt, I will try everything in my power not to make the same mistake again. Fluff with sleepless nights again! Please help!
I am single with no dependants. I know this is all my fault and do feel guilty. I have a generous heart and have given away too many cash gifts and taken too many holidays. Spent heavily on gadgets etc. I will cancel all credit cards and seek advice, will probably take another loan to consolidate and then keep a tight reign on all future spending, no more borrowing on cards ever again! I mean it this time. Thanks for all tips and comments, I can see light at the end of the tunnel, long trip but worth it.

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18 Responses to “credit card debt problem, Help?”

turg143 Says:
December 17th, 2009 at 8:04 pm

First thing First. Cut credit cards now! Now that you have cut your credit cards, try to consolidate you dour debts to pay less interest. Finally, don’t replace your credit cards, save up and pay cash!

Emma W Says:
December 18th, 2009 at 11:53 pm

Firstly you need to look atw hy you are running up these debts. (my problem was a shopping addiction – you might say every woman has this, but this is no joke)
When you can really see what the problem is and how you can deal with it, then I would go back to the loan company and discuss your options. You may need to speak to a financial adviser to ensure you get on the right path.
Think carefully before signing up to debt reduction companies as this will cause problems with getting credit in the future, but it may be your only option.
Speak to the loan company first, as I am sure they would be only too happy to help you out, and if you need to, speak to a financial adviser.
Good Luck!!!

southamptonkitty Says:
December 19th, 2009 at 2:43 am

Mortgage rates are significantly lower than CC rates. I would borrow against my home and pay off the credit cards, and CANCEL THEM! You’re going to have the pay the money one way or another- its best to pay with a lower rate.

Seek credit counseling too- there are places to get help to curb your overspending.

Knownow't Says:
December 19th, 2009 at 8:49 am

You really need some professional counselling from a debt counsellor, not taking advice from anyone, including me, on here…how much are you paying each month??? Must be horrendous…but if you’ve done it before, you WILL do it again, do get help now…..

junglejungle Says:
December 22nd, 2009 at 12:48 am

speak to the citizens advice bureu

a lot of these companies who help with such things are business’s and aren’t doing it to help you, more to line their own pocket..

I would speak to the company involved. as they would rather get some money than nothing at all.. it disguists me companies let you get into that much debt anyway… yes its business but they should have more moral responsibility

I would also deal with a bank, NOT a tv advertised consolidation loan company as the rates maybe good in the first year, but hike up after.

you can either consolidate it or declare yourself bankrupt..

cutting up the credit cards also will help.. if you can’t use them , you can’t spend..

rainy-h Says:
December 24th, 2009 at 1:37 pm

Contact the CCCS – the Consumer Credit Counselling Service, they are a charity who will give you debt support and management FOR FREE, and have lots of experts who can help you get the best solution. Their website is

Buffy Says:
December 25th, 2009 at 2:20 am

Whenever i am down in the dumps about money i go to this website and order a spell to bring me luck.

I know its probably not your cup of tea but its what works for me.

dels replies Says:
December 27th, 2009 at 3:06 am

Don’t know your family circumstances or who is dependent on you. If it is just you, sell the house and move into one room. Destroy your credit cards. Do not have any loans whatsoever. Alter your life style for two or three years. Live like a pauper.You can not spend 10p on anything that is strictly budgeted for. Only when you are debt free can you live a bit more,but not beyond your means,ever. If you have a family it is more difficult. But do not borrow any more. It will have to be all work and no play whatsoever for you. It is your own fault for being so irresponsible.in the past.

creative_brush Says:
December 29th, 2009 at 10:05 am

It is important that you start by looking at your debt situation as a whole.
There is no point making arrangements to pay one of your creditors without dealing with all the other debts you have too
.
I would suggest you start by working out a personal budget.
This should list your monthly income from all sources and the ordinary essential monthly outgoings you need to pay to keep the roof over your head.
These include mortgage or rent, fuel, council tax, water, telephone, TV licence, insurance, housekeeping, clothes, travel,etc

National Debtline (0808 808 4000): Free confidential helpline to those in debt
Consumer Credit Counselling Service (0800 1381111): The service offers free advice and information to those affected by debt.

Best of luck in these trouble times, trust me you can get your life back

Montgomery B Says:
January 1st, 2010 at 5:15 am

Having been a finance broker for several years, now retired, I cannot count how many people say, as you have done, that you will not make the same mistake again.
In my experience, anyone who wants money will say and do anything to get it with no thought to the consequences – until it`s pay-back time, then they realise they are in the ess aich eye tee once again.
Your best bet would be to go bankrupt.
In my experience, you will never learn. When you want money, you will do as I forecast, do and say anything to get it. Then you spend it, then the halcyon days are over and off we go again!
Good luck – you`ll need it.

micky b Says:
January 3rd, 2010 at 5:21 pm

Hi.
This site is well recommended for consolidation loans, Free debt management advice and loans :

happy chappy Says:
January 4th, 2010 at 8:57 pm

it took me 7 years to clear my credit card debt. after so long I thought I`d never finish it but when the final payment was over the feeling of relief was so great I had a bottle of wine. it`s not the debt that’s worse it`s the interest so don`t borrow any thing just keep payments up and it sorts itself out eventually

pollywallydoodle Says:
January 6th, 2010 at 4:53 pm

Fluff
Get some help, as suggested try cccs or talk to a good insolvency practioner who will give you good advice as to the best thing to do and all options. Dont try to consolidate it just makes it worse.
I dont entirely agree with montgomery, some do learn, but just the hard way.
If you want to deal with this you have to be comitted to making an end to it all. No more credit.
Options an iva, look it up, pay a reasonable amount for five years the rest written off. creditor protection.
Bankrupcy all written off but may have to make payments for three years, car worth over 3000 will have to downgrade if you own property will lose it. Can affect some jobs so check your contract. creditor protection.
Dmp debt management negotiate with creditors to make lower payments, but can take years to pay off. creditors can still chase you or change their mind at any time.
Think carefully in any of these you will damage your credit rating, but if its what you really want that wont matter.
I hope you get sorted. All the best.

Richard B Says:
January 9th, 2010 at 5:28 pm

You have a number of options.

1) Review your finances, locate any unnecessary expenditures and create a monthly budget that will allow you to repay the debt.

2) A Debt Management Plan. Either use a Debt Management Company or contact the credit card companies yourself and try to negotiate a better arrangement i.e. a cut in the interest on the debt

3) Debt Consolidation Loan. If you’ve tried this before and it worked then this might be your best option.

4) An Individual Voluntary Arrangement. If accepted can result in a significant portion of your debts being written off. An IVA will however require you to make a commitment of around five years. If the IVA fails in this time then most likely you will be made bankrupt.

5) Bankruptcy. Offers a guarantee that your debts will be cleared but will likely lose any valubale assets that you have.

The best thing to do is to speak to one or more professional debt advisors. There are many that will provide advice for free. You should do this before you commit to any single course of action.

Matt R Says:
January 13th, 2010 at 2:43 am

I would get in touch with a debt advice specialist. I know of two with no axe to grind. They are the Debt Advice Trust and the CCCS.

Both are ‘Not For Profit’ and should give you some good advice.

baz Says:
January 14th, 2010 at 4:09 am

you abused the trust you put in yourself,you deserve to lose.
easy come easy go ehhhhh.

mia170107 Says:
January 15th, 2010 at 7:46 pm

hi it may be worth you looking at all your debt inc mortgage to look at all options and save you max money.

i work for a mortgage broker and would be happy to show you some options email me on

o and cut up cards but don’t beat urself up its the norm these days.

SAPPER Says:
January 17th, 2010 at 8:38 am

£35,000 God that’s more than I earn in a week, Having spoken to my team of advisers reckon you had better go Bankrupt, stay indoors and await the bailiffs who will clear you of all the goodies you have squandered the money on and adopt the motto “I will not spend what I ain’t got”

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