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    • asoe209
    • By asoe209 11th Oct 16, 9:48 AM
    • 316Posts
    • 166Thanks
    asoe209
    Advice on my debt please
    • #1
    • 11th Oct 16, 9:48 AM
    Advice on my debt please 11th Oct 16 at 9:48 AM
    Morning, just looking for some advice really as I seem to be at a sticking point in repaying my debts.


    A friend advised that I should look at getting a loan. but there are a couple of different factors involved.


    So the break down is,
    I owe a total of £16,252
    to over draft - £1450
    Online Retailer - £7950
    Credit Cards 0% - £2954
    Credit Card - 0% - £3898


    I'm paying about £510 a month on all.


    I take Home £1800 a month and I am about to take in a lodger that will pay 365 per month.


    All my other outgoings total approx £950 per month.


    I had a look a getting a loan for the full 16k but that is not likely, but I could get one to pay off the retailer as this I the most and the highest interest.


    This difficult bit is I need to also get a new car, this is due to work and the car allowance policy which I have put off for a year now but my current car is has been braking down a fair bit this year so its getting to the point where I need to change it soon any way.


    My salary is due to go up I would estimate in the next 4 months, if all goes to plan.


    so can any one give there suggestions on what may be the best solution?
Page 3
    • MEM62
    • By MEM62 13th Oct 16, 10:07 AM
    • 964 Posts
    • 631 Thanks
    MEM62
    Not really... New polo with £2k towards a deposit is about £188 per month - allow say £40 on top of that for insurance and it's perfectly reasonable. They haven't stipulated a Mercedes or Audi, A car under 5 years with a car allowance of £300 after tax is perfectly reasonable.

    Obviously there are also way cheaper options out there - I just picked a fairly mid market brand new car.
    Originally posted by MrsTinks
    I would not consider a Polo as suitable for company use. (Too small) For business use most companies would want Golf / Focus sized at least. Also, if the OP is racking up any kind of mileage he won't want to be doing that in a small car. In my industry, if you were taking an allowance instead of a car, the base level allowance would be £6K.
    • EssexHebridean
    • By EssexHebridean 13th Oct 16, 10:22 AM
    • 6,353 Posts
    • 35,097 Thanks
    EssexHebridean
    I would not consider a Polo as suitable for company use. (Too small) For business use most companies would want Golf / Focus sized at least. Also, if the OP is racking up any kind of mileage he won't want to be doing that in a small car. In my industry, if you were taking an allowance instead of a car, the base level allowance would be £6K.
    Originally posted by MEM62
    The OP's current car IS a Polo - which is why that was used as an example. They are also not doing high mileage - the car is 11 years old and has only done 56k IIRC from the early posts. My Clio did that and more inside its first 3 years!
    MORTGAGE FREE 30/09/2016
    • asoe209
    • By asoe209 13th Oct 16, 10:26 AM
    • 316 Posts
    • 166 Thanks
    asoe209
    The OP's current car IS a Polo - which is why that was used as an example. They are also not doing high mileage - the car is 11 years old and has only done 56k IIRC from the early posts. My Clio did that and more inside its first 3 years!
    Originally posted by EssexHebridean


    at present I am doing between 500 - 800 miles per month, but that is depended on where I will be traveling.
    • EssexHebridean
    • By EssexHebridean 13th Oct 16, 10:33 AM
    • 6,353 Posts
    • 35,097 Thanks
    EssexHebridean
    at present I am doing between 500 - 800 miles per month, but that is depended on where I will be traveling.
    Originally posted by asoe209
    Yes that doesn't classify as high mileage at all. My fairly standard 40 mile commute if I was doing it full time would rack up over 800 in a month without any additional driving at weekend etc.

    I take it you've checked that your car insurance mileage is correct - ie low enough? Don;t change the policy specifically on that basis as they'll charge you a fee to amend it but it would be worth checking when next you renew. I take it also that your policy is including Business Class 1 use?
    MORTGAGE FREE 30/09/2016
    • sugarcube84
    • By sugarcube84 13th Oct 16, 11:03 AM
    • 487 Posts
    • 503 Thanks
    sugarcube84
    [QUOTE=asoe209;71445547]Morning all sorry was not able to log on yesterday.


    I believe they understand about the car as im not at full pay, and I have made it clear that until I am sorted and on full money I wont be getting a new car as I can afford it or justify it. but every now and again they do ask have you been looking etc.

    I do get mileage which is 10p per mile. Last year I I did claim the rest up to the 45p and got about £200. I never quite understood why it was so low as im sure the from state it was £800-£1000 but I believe it was only 20% of that that was returned.


    QUOTE]


    Well done for making an argument about the new car when do you do your final exam?


    as for the mileage rate being low it's because you receive a car allowance as well which is deemed to include the wear and tear on the vehicle. The 45p/mile is for business use when not receiving an allowance. When I was a graduate I used my own car and got the 45p/mile then I jumped up a level and got a car allowance and the (I think) 11p/mile.


    Well done for claiming back the tax on the difference not everyone knows that.
    Target DFD January 2017- Only 2 payments to go!!!

    Amount Paid off 69.38%
    • asoe209
    • By asoe209 13th Oct 16, 11:08 AM
    • 316 Posts
    • 166 Thanks
    asoe209
    Yes my insurance is all in order mileage and class type.


    no its not really that high, but a lot more than what I previously drove as you can tell will my cars mileage.


    I have workout that my online retail account has £3101.92 that is still interest free but that will be changing over the coming months.


    and £4694 has the remainder of the items which needs to be paid and the interest has been applied.


    Looked at a 36 month load for at £6000 that is working out to about £180 monthly repayments.


    The remainder of the items I can pay off before the interest is applied.
    • asoe209
    • By asoe209 13th Oct 16, 11:12 AM
    • 316 Posts
    • 166 Thanks
    asoe209
    [QUOTE=sugarcube84;71446291]
    Morning all sorry was not able to log on yesterday.


    I believe they understand about the car as im not at full pay, and I have made it clear that until I am sorted and on full money I wont be getting a new car as I can afford it or justify it. but every now and again they do ask have you been looking etc.

    I do get mileage which is 10p per mile. Last year I I did claim the rest up to the 45p and got about £200. I never quite understood why it was so low as im sure the from state it was £800-£1000 but I believe it was only 20% of that that was returned.


    QUOTE]


    Well done for making an argument about the new car when do you do your final exam?


    as for the mileage rate being low it's because you receive a car allowance as well which is deemed to include the wear and tear on the vehicle. The 45p/mile is for business use when not receiving an allowance. When I was a graduate I used my own car and got the 45p/mile then I jumped up a level and got a car allowance and the (I think) 11p/mile.


    Well done for claiming back the tax on the difference not everyone knows that.
    Originally posted by asoe209


    Well looking like the 28th of November and the results take 2-3 months to come back. So I would be looking at April for pay rise if all goes well.


    But I may ask if I can get half of the new pay before that as that is what they did for my college who is doing the same position as me and also a trainee. he is also retaking the same exam.
    • EssexHebridean
    • By EssexHebridean 13th Oct 16, 11:19 AM
    • 6,353 Posts
    • 35,097 Thanks
    EssexHebridean
    Have you cleared that overdraft yet? Or at least taken it to below the £1000 level? I take your point about the savings, but at the moment the savings are actually COSTING you money. Long term you need to build an emergency pot, but for now, the most important thing is to put a proper budget in place - that actually balances - and to reduce the amount your debt is increasing each month. The budget will stop the "emergencies" from occurring in part - as almost always these "emergencies" are actually costs that could have been budgeted and saved for.

    There is a difference between having savings in place budgeted for upcoming expenses, and simply having savings in place doing nothing. At the moment you are paying your bank to save money - that's not a good deal.

    The two days you've hesitated about reducing that overdraft has just increased it by another £1 remember - that doesn't sound like much, but at the level it is at currently your OD is costing you nearly £550 a year. To me that sounds like a heck of a lot of money!
    MORTGAGE FREE 30/09/2016
    • asoe209
    • By asoe209 13th Oct 16, 11:29 AM
    • 316 Posts
    • 166 Thanks
    asoe209
    I have reduced by £200, and will do some more when I am next paid. would do more but I want to pay my renewed insurance in full and I also have a couple other things to come out this month still.
    • Bedsit Bob
    • By Bedsit Bob 13th Oct 16, 1:25 PM
    • 9,311 Posts
    • 48,764 Thanks
    Bedsit Bob
    For business use most companies would want Golf / Focus sized at least.
    Originally posted by MEM62
    A 2.0 diesel Focus can be had for less that £200 pm.

    The only tricky part, is the several thousand pound deposit.
    My job is Top Secret. Even I don't know what I'm doing.

    Amount I have so far denied the BBC - £1015-50
    • asoe209
    • By asoe209 14th Oct 16, 8:37 AM
    • 316 Posts
    • 166 Thanks
    asoe209

    I have workout that my online retail account has £3101.92 that is still interest free but that will be changing over the coming months.


    and £4694 has the remainder of the items which needs to be paid and the interest has been applied.


    Looked at a 36 month load for at £6000 that is working out to about £180 monthly repayments.


    The remainder of the items I can pay off before the interest is applied.
    Originally posted by asoe209

    What do you think?
    • Bedsit Bob
    • By Bedsit Bob 14th Oct 16, 9:37 AM
    • 9,311 Posts
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    Bedsit Bob
    What do you think?
    Originally posted by asoe209
    £6,000 at £180 pm, over 36 months, is 5.1% APR.

    Just make sure to check, if there's any penalties for early settlement, of the Online Retailer account.
    My job is Top Secret. Even I don't know what I'm doing.

    Amount I have so far denied the BBC - £1015-50
    • asoe209
    • By asoe209 16th Oct 16, 12:07 PM
    • 316 Posts
    • 166 Thanks
    asoe209
    £6,000 at £180 pm, over 36 months, is 5.1% APR.

    Just make sure to check, if there's any penalties for early settlement, of the Online Retailer account.
    Originally posted by Bedsit Bob


    Hi yes there are no penalties for early settlement. So judging by that I think I will try.
    • Bedsit Bob
    • By Bedsit Bob 16th Oct 16, 12:43 PM
    • 9,311 Posts
    • 48,764 Thanks
    Bedsit Bob
    Hi yes there are no penalties for early settlement. So judging by that I think I will try.
    Originally posted by asoe209
    Just make sure to close the Online Retailer account, as soon as it is paid off, so there's no temptation to use it again.
    My job is Top Secret. Even I don't know what I'm doing.

    Amount I have so far denied the BBC - £1015-50
    • asoe209
    • By asoe209 16th Oct 16, 12:53 PM
    • 316 Posts
    • 166 Thanks
    asoe209
    100% will be as don't need to use it any longer.
    • asoe209
    • By asoe209 28th Oct 16, 8:52 AM
    • 316 Posts
    • 166 Thanks
    asoe209
    Morning, just following up with another question really.


    Can anyone recommend a place that Is likely to provide a loan with someone with a medium/low credit rating?


    Also when taking a loan is it better to say its being used for repayments. or for something like a car, home improvements etc?
    • chevalier
    • By chevalier 29th Oct 16, 11:35 PM
    • 7,686 Posts
    • 17,796 Thanks
    chevalier
    bit late to the thread, but you mentioned that the online shopping was done with a now ex partner. Can they not contribute something to this debt?
    chev
    I want a job that is less than an hour driving away from my house! Are you listening universe?
    • Bedsit Bob
    • By Bedsit Bob 30th Oct 16, 8:45 AM
    • 9,311 Posts
    • 48,764 Thanks
    Bedsit Bob
    Can anyone recommend a place that Is likely to provide a loan with someone with a medium/low credit rating?
    Originally posted by asoe209
    And the purpose of this loan?
    My job is Top Secret. Even I don't know what I'm doing.

    Amount I have so far denied the BBC - £1015-50
    • enthusiasticsaver
    • By enthusiasticsaver 30th Oct 16, 9:23 AM
    • 2,561 Posts
    • 4,373 Thanks
    enthusiasticsaver
    Presumably the loan is to get rid of the online retailer loan which is charging 39% interest. Normally I would not suggest more borrowing to get rid of existing borrowing but on that interest rate I think it would be sensible to try and restructure it SO LONG AS YOU DON'T PUT YOUR 0% credit cards on it. Try the MSE loan eligibility tool or see if you can get a low percentage loan or better still a 0% credit card to get rid of it.
    Debt and mortgage free and saving for early retirement
    • cms-help
    • By cms-help 30th Oct 16, 2:20 PM
    • 92 Posts
    • 101 Thanks
    cms-help
    Morning all sorry was not able to log on yesterday.

    Well in terms of the car, the policy state 5 years and has to be a 5 door, I did question that and my Director did say that the door number is not so much a problem.

    The position I am in is a trainee so im not up to the full salary for the job that I do yet, this will increase once I past my final exam. so at present the terms I moved on where staying on my previous departments pay.
    Originally posted by asoe209
    Can I just clarify something? In your SOA you stated the salary figure included the car allowance from your company? Is this the case or is your salary actually lower at present?
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