About to lose income - How to manage my credit card debt without getting bad credit,

Hi Folks,

Here's the thing..

I have 13,500 on a credit card. I started back to college from scratch in 2005 as a mature student (27) and I graduate with my PhD in September 2012.

When I went back to college, I worked part time but any huge purchases like college fee's etc, but put on my credit card so the balance slowly got bigger over time.

In 2005, I had high hopes of getting a job, but having looked at the jobs market out there, I am scared.

I have never missed a payment. I've always tried to pay off more than the minimum amount.

I am 35 now and when I do get a job, I'd like to be able to save for a deposit for a place but my capacity to save anything is substantially muted if I have to come up with 320 E a month to cover the minimum on the card.

I would love to get a longer term loan to cover it but I don't think any of the banks will touch me seeing as I could possibly be on the dole for the foreseeable future.

I have no idea what to do about it. I don't want to get a bad credit rating for missing a few months payments as I want to buy a place within the next few years. Though in the short term, I'm just trying to avoid getting bad credit.

Do you know of any banks/credit unions who might have a product which would deal with my sort of problem?

I don't have any savings at present and my monthly outgoings are as follows.

Health Insurance 54
dog insurance 13
Car insurance 19
Car tax 40
vodafone (phone and internet) about 90
rent 250
utility bills 40
credit card min is 320 but i usually try to pay 100 extra.

My goodness.. 93 views and no suggestions..


Is there really nothing out there for me? :-/

Hi threadsown, are you still working parttime at the moment and if so what is your income? I think you will find it difficult for your bank to issue you with a loan to cover the credit card debt with no real means of supporting it and if the credit card is with a different institution they will not touch it.
Best thing is contact the credit card company and see if they are willing to engage in some arrangement, good luck and congrats on the phd.

Dump the Health Insurance and Dog Insurance. Do you really need the car? Could you cope with public transport? Do something about your phone bills they're way too high.

I would think it's impossible for you to get a loan to pay off your debt to be honest.

It's unsecured debt and you haven't listed any income so why would any Bank give you a loan? What's in it for them?

Really cut down on your expenditure and try to make more serious inroads into your credit card debt. Do you have any family members who could loan you a lump sum that you could offer the credit card company, they could accept a lower amount than that outstanding.

Maybe just change the high charge for Phone/Internet by using pay-as-u-go mobile and less than €16 a month for mobile broadband (O2). I have to agree with previous poster about paying so much for pet insurance, with so many people giving up health insurance at the moment. I think if someone like me went through you regular outgoings, we could make a big dent in them.

Hmm as someone who has regularly had to claim off pet insurance I'm not sure I could recommend cancelling it. If I hadn't had it I was facing bills of €7k upwards or having my dog put down. That's just another angle on it when you're deciding what to cancel or keep

cashier said:

All that's left is the rent maybe he should just go buy a tent and live in the woods

Click to expand...

Any chance of a suggestion from you rather than just mocking my suggestion?

If the OP wants to cut down on expenditure given the list of expenses s/he gave what else could be cut out other than those I suggested?

Does anyone think the bank would freeze the credit card interest for the OP? I assume he would have to stop using the card, but that might not be a problem. If he is only paying the minimum (or +€100) the interest must be adding up

Stephync, it would seem reasonable for the OP to ask though it would probably reflect on a credit record.

OP it will not be feasible to save enough to purchase a house unless your employment situation improves - it may be better marking it a long-term dream and looking to focus on resolving your current debt predicament by the most expeditious means.

Oh and I would second working mam on the pet insurance, you are covered by public health so it makes more sense to consider dropping your health insurance.