Too much credit card debt

Hi,

I am drowning in credit card debt and I am seriously struggling to make my minimum monthly payments. Up until now, my credit rating has been eprfect, but I have gotten in way over my head.


Is anyone aware of anything I can do for some help/advice? Something like the Consumer Credit groups in the US that help you consolidate your debts and make 1 lower monthly payment?

And yes,

I've already cut the cards up!  :\\\'(

Thank you.

I'm really hoping to find a way to pay off my debts and stop accumulating more.

There is the Consumer Credit Counselling Service.

http://www.cccs.co.uk/

There should be some helpful information within this site: http://www.moneysavingexpert.com/
The forum is full of useful information and plenty of people going through this very same thing!

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/index.htm

The links provided are all good ones!  Also Citizens Advice Bureau:  http://www.adviceguide.org.uk/index/life/debt.htm

There is the Consumer Credit Counselling Service.

http://www.cccs.co.uk/

I have it on really good authority that CCCS here is not only a good service, but is essentially the same type of service as its counterpart in the US.  In fact, it was set up using the US CCCS as its model.

They also have an online service on the website which is easy to use & you can do it yourself in your own time - particularly if you feel nervous about speaking with someone.  Then if you decide to use their services further, you'd end up talking to someone eventually.  Or you can just ring and make a (telephone) appointment from the get-go.

Lastly, beware of fee-charging debt management companies here in the UK - why would you want to pay for them to manage your debts (and they take a cut of the money you have available to pay your debts), when you can get a reputable service for free (and all the available funds go to service your debts)?  Not to mention there is a problem in this country with the mis-selling of IVAs (Individual Voluntary Arrangements) so if you're going to go that route, be very careful too.

Good luck!

There is a book called Financial Peace by Dave Ramsey. I'd recommend reading it! It's helped me alot. He was a millionaire and lost everything because he was in so much debt. He and his wife were able to rebuild their lives and now live debt-free. http://www.daveramsey.com/

Thank you all so much for your replies.

Now comes the hard part......

 

Motley Fool www.fool.co.uk has a "Dealing with debt" forum on their message board where they will give you advice on making and sticking to a budget as well as probably much-needed moral support 

I'd recommend Alvin Hall's Your Money or Your Life re: UK finances or Dave Chilton's The Wealthy Barber (there are US and Canadian versions) to help with money management.

Can I suggest another option...your bank?  I had a couple of credit crads which were getting a bit silly, so the bank lent me enough to cover all of one and most of the other, and with a minimum payment which we all agreed I could make.

Vicky

Can I suggest another option...your bank?  I had a couple of credit crads which were getting a bit silly, so the bank lent me enough to cover all of one and most of the other, and with a minimum payment which we all agreed I could make.

A reasonable suggestion, particularly if one is seeking to preserve one's 'good' credit rating and the bank is offering reasonable terms on the loan - as debt management plans & IVAs etc will have a negative impact. (Good being in quotes because I've seen far too many people with too much of a 'good' thing with their 'good' credit, to the point where it'd probably be better if they didn't have such 'good' credit. )  However, consolidation loans really only work as a viable solution if the person involved cuts up the credit cards, stops using them & ceases to take out further credit - while concentrating on paying the loan off.  Unfortunately, a whole lot of people (not saying you, Vicky, or anyone else in particular at all) fail to do this, and then the debt situation is only further compounded by A) the consolidation loan and then B) starting to run up credit card debt yet again - so the person ends up paying for both, and more!  This is very very common.

I agree with Mrs. R. You not only need to pay off your current debt; you need to learn how to avoid getting into debt again.

I agree with Sweetpeach and Mrs R.  My US credit card got way out of control after I moved here.  DH and I took out a loan with his UK bank and paid it off completely (the great GBP to USD rate really helped).  I've cut up the card and have vowed NEVER to have a credit card again.  Yes, it's difficult living on a strict budget but it's well worth it to not have nightmares about debt anymore!  Also, I've reduced my overdraft allowance to £10 to further guard against temptation....

I have a good amount of CC debt and I have made a commitment to pay off £300 a month, I made an agreement with my husband about reducing my portion of the mortgage and cutting down on some other costs. So I am 3 months in to this commitment and I have paid off £900, its feels like a huge accomplishment.

I looked into getting a loan, but the %age to pay is high unless you need to borrow £17k, after that amount it goes lower, so the credit card payment plan was the best option for me. I don't want to take out a loan.

Once I get a nice big chunk paid off, we can have another baby. Thats a goal I set myself....so the incentive is there!

Good Luck!!