Question

Jon,

I owe a lot of money, over £15,000 and it is all on credit cards. I just kept taking card after card out and using them to their limit spending mostly online. I had deliveries almost everyday for a long time. My flat looks great, and I have more than I need, but I also am struggling now to pay even just the minimum payments each month. I was working as much over time as I could get, but that has stopped at my job now. I just don’t know what to do? Any advice?

Terry

Answer

Terry,

Being in debt and struggling to make the payments is stressful, but you do have options.

Do you own any property, your flat, or have any other assets?

Are the credit cards all in just your name?

Your starting point is to speak to the credit card companies and make them aware of your situation, they may have some in house payment programmes that can help you. They may also offer you a “breathing space” of time where you don’t have to make payments.

This is only a temporary fix, as in time you will be expected to make full payments again.

Your other options are a Debt Management Plan, or some form of insolvency, such as an IVA/Individual Voluntary Arrangement, or DRO/Debt Relief Order.

Any option you choose will affect your credit and credit score, but that is secondary to getting out of debt.

You can read more about Bankruptcy, IVA’s and DRO’s here.

Regards,

Jon

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