How can i get out of this mess?

Question

i have £5000 of debt through holidays, credit cards, and £2000 overdraft.

Hows the best way to pay it all off, i am currently paying minimum payment mainly on all although i do try to pay more if i can. I know its going to take me forever to pay it all off paying minimum payment.

I do not want a bad credit history from my silly mistakes.

Whats the best way to deal with this.

I have no mortgage but am hoping to in the future.

I have never missed a payment as all on any of my debt.

Answer 1

Gosh When?  Judge much?  She came here asking advice on a problem, not for a lecture.

Answer 2

From what you are saying, you are talking about credit cards... which have high interest rates.

Get a competitive loan to pay off your credit cards....this should help.

http://www.financecomparator.co.uk/compa...

Otherwise: groceries at LIDL, ALDI, TESCO Value, ASDA own brand....

Transport: Walk, cycle...

All the best

Regards

J

Answer 3

The problem with that kind of debt is that it may all be in various high-interest areas. You could try to consolidate to a personal loan or balance transfer to a interest free or low rate card. You could try borrowing money from family for zero interest and just pay it back to them quickly. Remember to always spend less than you earn.

Answer 4

"....my silly mistakes....." A bit of an understatement don't you think so? Pay as much as you can, get an extra job, cut up your credit card because you won't be able to use it in the near future. Skip your holidays until you have paid off all your debts and live sober (see New Oxford Dictionary for the definition)

Answer 5

Whatever you do, don't stop paying, at least the minimum - you could also get in touch with the Citizens Advice Bureau and tell them it is about debt - they have advisers qualified in debt management.  When you see them, take along all details of your income, debts and expenditure and they may be able to work with you and your creditors to realise a better payment plan for you.  By the way, all a consolidating loan will do is increase the time that you are in debt - ask yourself if this is what you really want...

Answer 6

There is only one way out and you are already doing it.

You just have to pay off your debts as quickly as you can.

Well done for getting started and making the effort.

Answer 7

Get in touch with your creditors ask them to freeze interest and discuss a repayment plan

Answer 8

if you have never missed a payment on any of them then you have not got bad credit, in fact you will have a very good credit history.

This will make it easier to get more credit, funnlly enough.  What I suggest (this is the point people go NO NO NO, but for 5000 I would definately consider) taking out a loan to pay them all off.  The loan will be a much better interest rate.

The only problem you will have is if you then go out and use the cards / overdraft again.  Providing you can control your urge to spend on them then a consolidating loan will be the easiest way out.  Talk to your bank manager.  He would prefer you to have a loan than an overdraft.

Answer 9

Try and get a loan from your bank, if you can, to pay off the credit card, because the interest rate on a loan will be lower than the interest rate on your credit card which will make it slightly easier to pay off.

If you only pay off minimum payments each month then to pay off your whole debt you are basically paying a LOT more money in total than somebody who pays it off more quickly.

Sorry if this is patronising but if you want to keep a decent credit rating and not lose money hand over fist then it's really important you start paying off more than the monthly minimum, even if it means you have to cut down on monthly luxuries or going out etc.