# Please someone help - Credit Card debts



## Chucks (21 Oct 2007)

Hello - I am hoping somebody can give me some advice please see below financial situation:

Gross Annual Income: 35,000 (After tax 2,500 per month)

Debts:  
Credit Union          15,000 (Pay off 400 per month)
MBNA Credit Card   3,000 (Pay off 100 per month)
BOI Credit Card      5,500 (Pay off 300 per month)
Overdraft              2,000

Should I get another Credit Union loan to pay off Credit Cards?? and then obviously cut them up!!! I am currently in a situation with a low rent of 200 euros a month and I have a company car so no fuel costs or car loans etc.... 

Also I know from the above it would be impossible to get a mortgage and again this is a big worry....

Thank you in advance for any replies.


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## GeneralZod (21 Oct 2007)

Wow you've got a lot of debt. On the plus side you don't seem to have many essential outgoings besides the debt repayments. 

Clearly you need to start living within your means. As you observe you will not get a mortgage in your current position. You've got a lot of hard saving ahead of you if you want to turn things around.

Apply for a Halifax or Ulster Bank CC to avail of the introductory 0% interest on balance transfers (6 and 9 months respectively). Once the balances are transfered repay the overdraft first and then move onto the CCs. 

When the introductory periods run out get a personal loan to repay the remainder.

Try contacting the Money Advice and Budgeting service MABS.


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## ClubMan (21 Oct 2007)

Have you spoken to MABS about this?


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## Chucks (21 Oct 2007)

Hi GeneralZod - Thanks for you advice unfortunately already gone down that route and I was refused! I missed a couple of payments on the MBNA credit card so that probably didn't help!

So you think it would be better to get a personal loan rather than approach the Credit Union again?


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## Chucks (21 Oct 2007)

Hi Clubman, no I haven't spoken to them but have taken down their number and will be making a call next week!!


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## ClubMan (21 Oct 2007)

Make the call *tomorrow*!


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## GeneralZod (21 Oct 2007)

Chucks said:


> So you think it would be better to get a personal loan rather than approach the Credit Union again?



Chucks you might have difficulty getting a personal loan if you've already been refused for CCs.   

As Clubman suggests your case is screaming for MABS. Get a real person to give you some advice/encouragement.


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## Bob the slob (22 Oct 2007)

Chucks when I worked in a bank and people got into debt with a huge overdraft we asked them would they like us to do a staggered reduction each month of say €200.  It means each month your od would be reduced by €200.  I would ask your bank about doing this for you.

Also dont be afriad to talk to MBNA, and BOI and tell them the situation.  Most people dont talk to their lenders about times like this.  Even go and meet your bank manager and see if they can do anything for you.  You would be surprised what they can and will do for you sometimes.


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## Bronte (23 Oct 2007)

Bob, what is a staggered reduction?  How does it work?  Do you mean that if you pay in 200 it comes off the capital ?


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## pinkyBear (23 Oct 2007)

Reducing the Overdraft by €x every month - 1000 moth 1, 900 month 2 - I presume..


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## csirl (23 Oct 2007)

Ok, the good news is that you've no transport costs and your rent is only €200 per month.

You're income AFTER rent and transport taken care of is €2,300 per month.

Have you any dependents? Is it possible for you to live on less than €1,000 per month (food/entertainment) and put over €1,300 per month into debt repayments?

The other thing you need to consider is increasing your income by either (i) trying to get a higher paid job, (ii) doing overtime if available to you or (iii) get a part time job for a short while.


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## Bronte (23 Oct 2007)

Re the overdraft, I am now assuming the OP is making no payments at all on it and he ought to be.  Isn't the overdraft being charged hefty interest, how does this interest get paid? Or does it just go to increase the overdraft.


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## ClubMan (23 Oct 2007)

So - did the original poster contact _MABS _yet?


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