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  • FIRST POST
    • Sophia1108
    • By Sophia1108 17th Jul 17, 10:12 PM
    • 6Posts
    • 1Thanks
    Sophia1108
    Some credit card/loan advice pls!
    • #1
    • 17th Jul 17, 10:12 PM
    Some credit card/loan advice pls! 17th Jul 17 at 10:12 PM
    Hi,
    I'm after some advice please if that's ok to post here..
    Basically I have 7.8k on my virgin credit card interest free runs out in Jan 18. & 2.8k debt on my Barcley card. That one has a monthly interest fee. My debts mounted after visiting family on two occasions in Australia not cheap! But my heart ruled my head and was desperately missing them so put the flights on my cards & Xmas, birthdays etc you know the score...
    I have a joint account with my partner between us we earn 47k but have a lot of outgoings we currently renting paying £800 rent. Also he pays child support. And car loan (3 biggest outgoing) I pay £310 a month in repayment between the 2 credit cards. Also we've gone into a spiral with out overdraft its current set at 2.6k but each month we go over this and get a daily charge of £5 from HSBC. I've never been good with money I used to save but not for years now. What I'd like to do is get a loan for 15k pay off the two cards I've checked and for 335 a month I can pay back in 4 years with £957 interest. I also want to put the rest into our current account (2.6k) so we can start fresh every month and the rest into an savings account and add to it every month (£130) roughly. I have my fortieth bday in a couple of yrs and like to go to turkey or Greece for few weeks so that would go towards it every month. Plus there's a back up fund incase of car repairs or other issues. Do you think I'm doing the best thing here to clear debt? As my cc don't ever seem to go down! At least with a loan that's it pay back for 4 yrs and gone. I did try moving all onto virgin cars but wasn't allowed to up my limit to move all of it over from barclaycard hence the two outgoings on the cards plus my interest free ends jan on the virgin one so that will again take forever to pay off. God they are so helpful sometimes but !!!!!es to pay off. It's like this devil constantly on your shoulder poking you. I wished I could tell my younger self to carry on saving & don't stop!! Thank you for any advice or suggestions in advance best regards Sophia
Page 1
    • zippygeorgeandben
    • By zippygeorgeandben 17th Jul 17, 10:36 PM
    • 599 Posts
    • 690 Thanks
    zippygeorgeandben
    • #2
    • 17th Jul 17, 10:36 PM
    • #2
    • 17th Jul 17, 10:36 PM
    People will ask you to post an SOA so we can see where your money goes. However, no one here will recommend consolidation, i.e. taking out another loan. Despite whatever your best intentions are, you've proven that in the past you cannot control impulse spending. Knuckle down and pay these debts off. You say you're 40 in a couple of years but want to get a 4 year loan which would take you past being 40. Throw in that you're wanting to go away for 'a few weeks' and I'd advise against all of this.
    Others will be along shortly with advice.
    End Sep 2016 End July 2017
    £8236.57 £5766.93
    (Tesco 4.8%) £222.61pcm
    £6185.75 £900.33 (Zopa 4.0%) £50.08pcm

    £5344.50
    £3030.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £1600.01 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £12,861.43 Original DFD May 2019.
    • venison
    • By venison 17th Jul 17, 11:37 PM
    • 1,084 Posts
    • 1,136 Thanks
    venison
    • #3
    • 17th Jul 17, 11:37 PM
    • #3
    • 17th Jul 17, 11:37 PM
    OP you are talking about borrowing money to pay off debt, then in the next breath talking about going to Greece or Turkey for a few weeks.
    You can see I assume why your plan won't work, and why borrowing money to finance debt is NEVER a good idea can't you ?
    #WeStandTogether
    • Sophia1108
    • By Sophia1108 18th Jul 17, 9:21 AM
    • 6 Posts
    • 1 Thanks
    Sophia1108
    • #4
    • 18th Jul 17, 9:21 AM
    • #4
    • 18th Jul 17, 9:21 AM
    I know it's never good idea to borrow money to pay money but my cards never seem to go down at least my £310 a month card payments will go to pay the loan back. I tried to move all my cc money onto one interest free card but the amount wasn't enough to transfer all my Barclay card onto it hence why I'm paying two cards atm but none seem to be going down as each month around 5 days before payday I get texts to say I've got no money in our account so I use my virgin card to pay for things. It's a vicious circle and hate having this debt...
    • zx81
    • By zx81 18th Jul 17, 9:24 AM
    • 12,678 Posts
    • 12,935 Thanks
    zx81
    • #5
    • 18th Jul 17, 9:24 AM
    • #5
    • 18th Jul 17, 9:24 AM
    I wished I could tell my younger self to carry on saving & don't stop!!
    Originally posted by Sophia1108
    You can't do that, but you can tell your current self to not book holidays you don't have the money for.

    Will you do that?
    • The_Analyst
    • By The_Analyst 18th Jul 17, 9:49 AM
    • 16 Posts
    • 13 Thanks
    The_Analyst
    • #6
    • 18th Jul 17, 9:49 AM
    • #6
    • 18th Jul 17, 9:49 AM
    What I'd like to do is get a loan for 15k pay off the two cards I've checked and for 335 a month I can pay back in 4 years with £957 interest. I also want to put the rest into our current account (2.6k) so we can start fresh every month and the rest into an savings account
    Originally posted by Sophia1108
    If you do do this, then I'd urge you to do the following:
    1. Only borrow what you need to pay off your Credit Cards and Overdraft
    2. Cut up your credit cards
    3. Reduce your overdraft to nil

    This way, you remove the temptation to spend money you don't have. I did this for years - run up a credit card to the limit, take out a loan to clear it, then carry on spending on the credit card. It's a vicious cycle.

    Once you have secured this loan and have paid off your debts, then I'd suggest a simple monthly budget to ensure you can meet all of your outgoings before you start thinking about holidays and savings
    • Sophia1108
    • By Sophia1108 18th Jul 17, 11:20 AM
    • 6 Posts
    • 1 Thanks
    Sophia1108
    • #7
    • 18th Jul 17, 11:20 AM
    • #7
    • 18th Jul 17, 11:20 AM
    Thanks the analyst that's exactly what I was going to do 👍🏼 Cut cards up and reduce overdraft to nil. Then at least I won't be tempted to buy things on cc
    Thanks
    • EssexHebridean
    • By EssexHebridean 18th Jul 17, 11:45 AM
    • 7,556 Posts
    • 39,405 Thanks
    EssexHebridean
    • #8
    • 18th Jul 17, 11:45 AM
    • #8
    • 18th Jul 17, 11:45 AM
    Thanks the analyst that's exactly what I was going to do 👍🏼 Cut cards up and reduce overdraft to nil. Then at least I won't be tempted to buy things on cc
    Thanks
    Originally posted by Sophia1108
    Cut up the cards anyway. And just stop "buying things on CC".

    You need a working budget, NOT a consolidation loan. Without that working budget (which as someone else said you can put together via the SOA we direct people to on here - the link is in the "sticky" post at the top of this board) then what will happen is that you will get that loan, but you will still be spending above your means. Give it two years and you'll still be paying off that loan, but will have added another card and probably more overdraft debt too.

    Get back to basics - put together an honest budget based on what you actually spend currently - from there you can work out a) whether there should be a surplus left over at the end of each month that is currently getting frittered, and b) where you can cut back on spending to give yourself more money to pay off the debts.

    As for things like going on holiday - that comes in with the budget. Work out the cost, and set aside the relevant proportion each month to be able to pay for it. Nice things like holidays are great, but you shouldn't be relying on other peoples money to pay for it. Similarly once the debt is gone you will be able to start saving to buy things like a replacement car when it's needed without needing to resort to a loan for that, too.

    First step is the SOA (budget) - that gives you the key to sorting your situation out.
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£450.55 (14/08/17)
    • MallyGirl
    • By MallyGirl 18th Jul 17, 1:57 PM
    • 1,821 Posts
    • 6,180 Thanks
    MallyGirl
    • #9
    • 18th Jul 17, 1:57 PM
    • #9
    • 18th Jul 17, 1:57 PM
    I also want to put the rest into our current account (2.6k) so we can start fresh every month and the rest into an savings account and add to it every month (£130) roughly.
    Originally posted by Sophia1108
    it would be madness to borrow money in order to put it into a savings account. The loan interest will be more than the savings interest.

    Yes, open a savings account and start putting something in there so that you have a buffer in case you need money - much better than putting more on the cards - just don't borrow to do it.
    • Sophia1108
    • By Sophia1108 18th Jul 17, 2:38 PM
    • 6 Posts
    • 1 Thanks
    Sophia1108
    I will do my SOA this evening, to give you all a bit of an idea of our outgoings. another thing which has cropped up is that my partners son has decided in March to marry this year, date is booked end of Oct! so my partner wants to give him 1K towards their wedding... so annoyed as I've asked him where this 1K is coming from?? thin air.. I've asked him to tell son because of our financial situation we cant afford to give him any..but he doesn't want to tell him we have money issues (I think its pride or ashamed) It doesn't help because in Feb the couple told us they we'rent getting married for at least couple of years... so this is very last minute and not planned into our budget at all. Another thing which I am more annoyed/angry about is that his son & partner both live with her parents so no rent/c.tax etc to pay, obviously they put some of their wage to the household but no where near the amount if you were to have your own place and all the bills that ensure....
    • Sophia1108
    • By Sophia1108 19th Jul 17, 2:37 PM
    • 6 Posts
    • 1 Thanks
    Sophia1108
    [font=courier new]Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 2 wknd
    Number of cars owned.................... 2

    Monthly Income Details

    Monthly income after tax................ 1315
    Partners monthly income after tax....... 2149
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 3464


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 795
    Management charge (leasehold property).. 0
    Council tax............................. 145
    Electricity............................. 27
    Gas..................................... 40
    Oil..................................... 0
    Water rates............................. 32
    Telephone (land line)................... 0
    Mobile phone............................ 95
    TV Licence.............................. 12
    Satellite/Cable TV...................... 65
    Internet Services....................... 15
    Groceries etc. ......................... 400
    Clothing................................ 30
    Petrol/diesel........................... 240
    Road tax................................ 19
    Car Insurance........................... 90
    Car maintenance (including MOT)......... 30
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 20
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 7
    Life assurance ......................... 27
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 50
    Haircuts................................ 8
    Entertainment........................... 70
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 2217



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 6000
    Other assets............................ 0
    Total Assets............................ 6000


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    virgin ........................7800......170.......0
    Barclay card ..................2800......140.......0
    car loan ......................3400......200.......0
    Total unsecured debts..........14000.....510.......-



    Monthly Budget Summary

    Total monthly income.................... 3,464
    Expenses (including HP & secured debts). 2,217
    Available for debt repayments........... 1,247
    Monthly UNsecured debt repayments....... 510
    Amount left after debt repayments....... 737


    Personal Balance Sheet Summary
    Total assets (things you own)........... 6,000
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -14,000
    Net Assets.............................. -8,000
    • MallyGirl
    • By MallyGirl 19th Jul 17, 3:04 PM
    • 1,821 Posts
    • 6,180 Thanks
    MallyGirl
    [font=courier new]Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 2 wknd
    Number of cars owned.................... 2

    Monthly Income Details

    Monthly income after tax................ 1315
    Partners monthly income after tax....... 2149
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 3464


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 795
    Management charge (leasehold property).. 0
    Council tax............................. 145
    Electricity............................. 27
    Gas..................................... 40
    Oil..................................... 0
    Water rates............................. 32
    Telephone (land line)................... 0
    Mobile phone............................ 95 seems high
    TV Licence.............................. 12
    Satellite/Cable TV...................... 65 can you cancel?
    Internet Services....................... 15
    Groceries etc. ......................... 400high
    Clothing................................ 30
    Petrol/diesel........................... 240
    Road tax................................ 19
    Car Insurance........................... 90
    Car maintenance (including MOT)......... 30
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 20
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 7
    Life assurance ......................... 27
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 50 cut back for a bit till you are out of debt
    Haircuts................................ 8
    Entertainment........................... 70cut back for a bit till you are out of debt
    Holiday................................. 0
    Emergency fund.......................... 0 should have something here
    Total monthly expenses.................. 2217



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 6000
    Other assets............................ 0
    Total Assets............................ 6000


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    virgin ........................7800......170.......0 what APR will it revert to in Jan 18?
    Barclay card ..................2800......140.......0APR?
    car loan ......................3400......200.......0 APR?
    Total unsecured debts..........14000.....510.......-



    Monthly Budget Summary

    Total monthly income.................... 3,464
    Expenses (including HP & secured debts). 2,217
    Available for debt repayments........... 1,247
    Monthly UNsecured debt repayments....... 510
    Amount left after debt repayments....... 737
    do you really have this left - if so, where is it?

    Personal Balance Sheet Summary
    Total assets (things you own)........... 6,000
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -14,000
    Net Assets.............................. -8,000
    Originally posted by Sophia1108
    there are certainly some areas you could make savings
    • Sophia1108
    • By Sophia1108 19th Jul 17, 3:54 PM
    • 6 Posts
    • 1 Thanks
    Sophia1108
    it missed out a few lines for some reason...
    [font=courier new]Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 2 wknd
    Number of cars owned.................... 2

    Monthly Income Details

    Monthly income after tax................ 1315
    Partners monthly income after tax....... 2149
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 3464


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 795
    Management charge (leasehold property).. 0
    Council tax............................. 145
    Electricity............................. 27
    Gas..................................... 40
    Oil..................................... 0
    Water rates............................. 32
    Telephone (land line)................... 0
    Mobile phone............................ 95
    TV Licence.............................. 12
    Satellite/Cable TV...................... 65
    Internet Services....................... 15
    Groceries etc. ......................... 400
    Clothing................................ 30
    Petrol/diesel........................... 240
    Road tax................................ 19
    Car Insurance........................... 90
    Car maintenance (including MOT)......... 30
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 20
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 7
    Life assurance ......................... 27
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 50
    Haircuts................................ 8
    Entertainment........................... 70
    Holiday................................. 0
    Emergency fund.......................... 0
    the national trust ..................... 10
    national lottery........................ 40
    maintenance ............................ 250
    Total monthly expenses.................. 2517



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 6000
    Other assets............................ 0
    Total Assets............................ 6000


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    virgin ........................7800......170.......0
    Barclay card ..................2800......140.......0
    car loan ......................3400......200.......0
    Total unsecured debts..........14000.....510.......-



    Monthly Budget Summary

    Total monthly income.................... 3,464
    Expenses (including HP & secured debts). 2,517
    Available for debt repayments........... 947
    Monthly UNsecured debt repayments....... 510
    Amount left after debt repayments....... 437


    Personal Balance Sheet Summary
    Total assets (things you own)........... 6,000
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -14,000
    Net Assets.............................. -8,000
    • EssexHebridean
    • By EssexHebridean 19th Jul 17, 4:37 PM
    • 7,556 Posts
    • 39,405 Thanks
    EssexHebridean
    OK - comments in red as usual:

    it missed out a few lines for some reason...
    [font=courier new]Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 2 wknd
    Number of cars owned.................... 2

    Monthly Income Details

    Monthly income after tax................ 1315
    Partners monthly income after tax....... 2149
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 3464


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 795
    Management charge (leasehold property).. 0
    Council tax............................. 145
    Electricity............................. 27
    Gas..................................... 40
    Oil..................................... 0
    Water rates............................. 32 Might be worth you looking into a water meter
    Telephone (land line)................... 0
    Mobile phone............................ 95 HOW much?!!! Ouch! Look to switch to SIM only as soon as you possibly can - you will definitely get cheaper
    TV Licence.............................. 12 £12.12 - beware of rounding up/down on an SOA
    Satellite/Cable TV...................... 65 See if you can drive this and the internet down a bit
    Internet Services....................... 15
    Groceries etc. ......................... 400 This is high. Two adults should be able to manage really well on half of that - add in another £50 - £75 tops to account for having the kids about at weekends
    Clothing................................ 30 You need to cut this down to essentials only for a while at least to make an impact on the debt
    Petrol/diesel........................... 240 Read Martin's guide to cutting petrol use -
    some good tips in there!

    Road tax................................ 19 Do you actually pay this out monthly? If so look to set the money aside to pay it in 6 monthly instalments instead as they charge a fee for monthly DD - if you're not paying it monthly where are you saving it as you don't show any cash assets?
    Car Insurance........................... 90 Worth you shopping around throroughly when renewals come up but you probably won't save enough to make it worth cancelling an existing policy.
    Car maintenance (including MOT)......... 30 For two cars this probably isn't enough - particularly when you're doing pretty high mileages. Budget £50 each car for MOT
    £150 each for a service a year plus the cost of at least two tyres per car per year and then add on a bit for random odds and ends. Divide by 12 and set aside that amount monthly - again though where is this currently being saved? No cash assets?

    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 20
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 7
    Life assurance ......................... 27
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 50 Honestly - this is high bearing in mind the debt. And assuiming you don;t spend that every single month - it's that question again ,
    where are you saving it?

    Haircuts................................ 8
    Entertainment........................... 70
    Holiday................................. 0
    Emergency fund.......................... 0 You need something here - aim to set aside £500 initialy to cover an unexpectedly heavy car repair bill or an appliance going wrong. Look to set aside £50 a month for this to start you off.
    the national trust ..................... 10
    national lottery........................ 40 You know what I'm going to say here,
    don't you? It needs to go - just think "It could be you" who gets debt free but it's highly unlikely to be you who wins a million!

    maintenance ............................ 250
    Total monthly expenses.................. 2517



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 6000
    Other assets............................ 0
    Total Assets............................ 6000


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    virgin ........................7800......170.......0
    Barclay card ..................2800......140.......0
    car loan ......................3400......200.......0 I suspect this is not interest free,
    is it!

    Total unsecured debts..........14000.....510.......-



    Monthly Budget Summary

    Total monthly income.................... 3,464
    Expenses (including HP & secured debts). 2,517
    Available for debt repayments........... 947
    Monthly UNsecured debt repayments....... 510
    Amount left after debt repayments....... 437 Do you have this amount left over each month?


    Personal Balance Sheet Summary
    Total assets (things you own)........... 6,000
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -14,000
    Net Assets.............................. -8,000
    Originally posted by Sophia1108
    OK - there's definitely scope for savings there. I'm guessing that a spending diary might be a good way forwards for you too as I just bet that £437 surplus isn't still in the bank at the end of the month, is it! That's the first thing you need to track down - that's over £5,000 a year you need to find where it's going.

    Check when your o% interest deals on the cards end and plan paying off accordingly. Even if you can just make savings of £100 a month on those SOA figures, plus that surplus and you'll be making a really good impact on those figures.

    On the cards - set your direct debits to their current levels rather than just leaving it at "minimum payment" - that way they maintain a level rather than falling over time, so you make more impact without even noticing it, plus there's not extra money being left in the bank that you end up frittering because you forget it's there. This only works for cards you don't spend on - but as you're cutting up those cards that shouldn't matter, should it!
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£450.55 (14/08/17)
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