Clearing debt...best way to do it..loan refused

koe_182 · 10 August 2005 at 3:12PM

OK i have the following debts that i would like to clear asap.

credit card1 : £2250
credit card2: £1250
credit card 3: £500
Overdraft: £1600

im currently earning around £1000 a month, so obviously never really get out of my overdraft. ive tried applying for a loan to consolidate all this debt into one payment, but unfortunately struggling to find anyone to take it.

i also have £60 car insurance, £40 phone, £100 rent, £30 gym fee's a month to come from that.

im not a home owner and currently living with parents.

any ideas?

tinalives · 10 August 2005 at 3:17PM

Well, I love the gym myself - but that's £30 a month that could potentially go off the debt.

Louise20000 · 10 August 2005 at 3:39PM

Okay - how about getting a part time job in addition to your main job - like working in a bar/club etc just a couple of nights a week - it will get you out of the house and you will earn extra money.

All the best Louise

rchddap1 · 10 August 2005 at 3:44PM

Two main ways to 'clear a debt'...ie, spend less, or earn more.
By trying to get a loan you are attempting to 'move' it not clear it. One thing that would be useful for people on these boards is to find out the interest rates and the minimum payments on each of the cards.

BWZN93 · 10 August 2005 at 3:45PM

Posting your APR's would be a good idea, and how much you currently pay each month.

There is a budget planner at the top of this thread, and thats a good way of working out your income and outgoings, and finding where money could be saved. Snowballing is a good method of clearing your debts (paying the highest apr off first, i.e - chuck more money at that than anything else, so that interest payments are kept to a minimum), and im sure someone else more knowledgeable will be along shortly to explain more, but it would definately be helpful to know APR's and how much you are paying back each month.

I also recommend having a good look at your bank/credit statements, to see if you can identify areas where you overspend, and how much cash you take out each month. One thing I will say, is that if you are determined to clear this debt as quickly and painlessly as possible, then you need to stop using the cards and the luxuries need to be cut back as far as possible.

Sorry this is a little vague, if you post everything in full we will be able to help you better!

Jo xx

P.S - Welcome to MSE! The Oldstyle board is also very freindly and have great tips for cooking, shopping, and making things to cut costs back even further.

crazyhazy · 10 August 2005 at 3:47PM

what interest rates are you paying on your debts, the best way is to pay the most you can to the highest rate and the minimums to everything else, then when that's paid off start on the next highest.

koe_182 · 10 August 2005 at 3:48PM

thanks so far ill give you the APRs later, but at the moment im paying back the minimums, i know most of my money goes on going out drinking etc..spending about £100 a week doing that, which i guess could be cut down.

crazyhazy · 10 August 2005 at 3:49PM

according to what you posted you should have £770 a month to pay off the debts so it shouldn't take that long, however I have a feeling that is not all your outgoings you have listed, is there anyhting else, like money for going out etc?

koe_182 · 10 August 2005 at 3:55PM

yeah theres probably at least £100 a week which i spend on going out/football etc...

nelly_2 · 10 August 2005 at 4:44PM

do a list of your out goings and then in big red marker highlight the stuff that you dont NEED.

IE £400 a month on the p*ss.

If you stayed in for 2 months and binned the gym thats your overdraght sorted right there and then, dead easy if you really want too! If you have a problem then you need to sacrifice things to sort it out.

Pay off the bill thats cost the most in interest first, every quid you pay in interest is a complete waste of the time you spent earning it.

val22erie · 10 August 2005 at 4:50PM

Not sure if this is the right way to do it but I need some advice.

I have just been refused a loan with a company (recommended on martin's tips) who is affiliated to the same mortgage company who two day's previously had agreed to remortgage me.

Firstly my little beef - it is not until you actually submit your information that you find out they are affiliated, if I had known i wouldn't have approached them!

Secondly, I have a 999 out of 1000 credit rating according to creditexpert, so am really purplexed why i was turned down unless it was simply that when they credit searched they found the previous search for the mortgage?

lastly, would it be a good idea to leave it a month and then try and apply to 2 different loan co's in succession (same day) for a smaller amount each application in the hope that this would go through before information is recorded?

Need your help and advice please

Many thanks

Clearing debt...best way to do it..loan refused

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