OMG Just added up my debts

mrs_magoo

And I owe over £1800 in catalogues.
Is it a good idea to apply for a loan from the bank and pay them all off?

skylight

Probably not, no.

Do you pay interest on the catalogues debts? If so, what is the interest rate? Compare that to what you will get in a loan. If your debts are interest free, then getting a loan to pay them off is a daft thing to do as you would be paying more over a longer period of time - and most catalogues are interest free (unless you pick certain "offers" of products that you pay a longer period of time plus interest).

Consolidation is not the best thing to do for most people. It can be the start of the downward spiral ie. you don't cancel the catalogues, or you re-order from them in 6 months time and you are then paying the loan and the new debt = twice as much as before.

mrs_magoo

One of the catalouges is 39% apr if you only pay the minimum payment. I was charged £19 yesterday in interest

Keeping_Positive

Hi Try this calculator to see how long its likely to take to pay off.

http://www.whatsthecost.com/snowball.aspx

consolidation rarely works there was a thread a couple of months ago asking who it had worked for and I dont think there was any that it had. Possibly 1-2 out of the posts max.

jenjade

why don't you apply for a credit card at 0% for a year of what every you can get that will knock the interest off. then you could pay a little more a month?
how much do you pay a month? can you pay extra?
why don;t you join a challange on here i am on moneymabels challange to be debt free by x mas time great for motervation and we work out how much extra we need a month etc! all helps
might be worth looking at the up my income board for ideas to make more money

OberonSH

Don't forget to post up your SOA (Statement of Affairs) so we can see if we can help you save some moey in other areas to pay it off.

But yes, if you can get a 0% transfer card, that will at least stop you paying out cash on the interest. If not, then you need to get rid of this ASAP!

Pop up a full SOA and hopefully we can point out some areas for savings.

Numpty_Monkey

Consilidation very rarley works due to the underlying problems, a great link from Keeping Positive
Adding to what Oberon has said a link to an SOA calculator
http://www.makesenseofcards.com/soacalc.html

mrs_magoo

Okay so here is a break dow of the debts

Home Shopping Direct (there are three separate debts with these) - £412.33 I currently pay Reliable Collections £20 per month, this is no interest.

JD Williams - £561.42 charged at 39.6% :eek: I pay £30 per month

Fashion World £105.86 I pay £12 per month

Vertbaudet -£277.10 I pay £15 per month

Studio - £304.55 I pay £12 per month

Montage £255.48 I pay £12.50 per month

Kaleidoscope £25 I pay £5 per month

Plus a Tax Credit Overpayment :mad: £32.50 per month due to end december 09

mrs_magoo

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 820
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 820

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 50
Gas..................................... 30
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 11.95
Satellite/Cable TV...................... 0
Internet Services....................... 18
Groceries etc. ......................... 400
Clothing................................ 40
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 50
Total monthly expenses.................. 669.95

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

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 820
Expenses (including secured debts)....... 669.95
Available for debt repayments........... 150.05
Monthly UNsecured debt repayments....... 0
Surplus(deficit if negative)............ 150.05

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -0
Net Assets.............................. 0

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

======== Enter any other useful information below ========

e.g. the number of adults & children in the household, the number

of cars included in the SOA or anything else that may be useful.

Andympgs

could someone tell me about settlement figures, i have a car on hp finance, but i really need to get this paid its crippling me at 250pcm, i still just over £7000 but i dont totally understand what would happen to that figure if i asked which i have done as advised to take a settlement figure.also interested in the 0% interest credit card any details please?

Barneysmom

mrs_magoo wrote: »

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 820
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 820

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 50
Gas..................................... 30
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 11.95
Satellite/Cable TV...................... 0
Internet Services....................... 18
Groceries etc. ......................... 400
Clothing................................ 40
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 50
Total monthly expenses.................. 669.95

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

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 820
Expenses (including secured debts)....... 669.95
Available for debt repayments........... 150.05
Monthly UNsecured debt repayments....... 0
Surplus(deficit if negative)............ 150.05

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -0
Net Assets.............................. 0

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

======== Enter any other useful information below ========

e.g. the number of adults & children in the household, the number

of cars included in the SOA or anything else that may be useful.

Thanks for putting this on, but it seems strange your grocery is so high, yet no rent/mortgage?
Does that mean your spouse/partner pays that bill?
I'd certainly try and reduce the food bill, and concentrate on getting rid of that JD Williams bill, even if it means paying slightly less on the others for a while. A 0% credit card is goo but only if you cut it up straight away and don't use it again. It's too tempting to use if it's in your purse.