Advice please-

SM1974

Hi peoples-

Firstly I feel very foolish for the position im In, but I suppose being in a position of knowing I have a big problem is better than ignoring one & letting it get worse-

I want to get out of debt in the quickest time possible, I appreciate that that could be over 10 years- however I understand I brought this on myself-

I wont go into the particlulars of how I got where I am, but ask what people / experts if there are any see as the best way out-

Position/ debt-
to clear my name of debt totally would require 28k-

This is broken down into the following- with the amount I repay on the loans on the right & the amount on the credit card based on 3%

11k secured loan ( first Plus) £167
11.5 k unsecured loan- ( halifax) £229
4k Credit card £120
3k over drawn --

total monthly repayments- excluding overdraft is £516

My monthly income After tax is £1800

My monthly outgoings are-£1400 ( calculated via SOA) without ANY money attributed to socialising- So lets say £1550 + 516 PCM = £2016-
I am going to be getting further into debt each month-

Assets-
theoretically I have around 15k in the flat - can that be released??- would I have to remorgage?-
Can I take out 28k on top of valuation & start in negative equity??

So my initial logic would be to to consolidate all 28 k & take a longer term out- However the charges incurred on this on the BEST LOAN @6.6% IS STUPIDLY high at something around 15k across a 17 year term-


The logic says thats obviously the wrong way out- but what is the best way out....

Who can help me...
Thanks for any decent assistence-
Steve

GeorgeUK

Did you use the SOA calculator to work this out? If so can you post it here so we can see if there is anywherewe can find savings for you?

You've taken the first step which is the hardest. Now we just need to find a path to set you on. Welcome to the journey.

SM1974

GeorgeUK wrote: »

Did you use the SOA calculator to work this out? If so can you post it here so we can see if there is anywherewe can find savings for you?

You've taken the first step which is the hardest. Now we just need to find a path to set you on. Welcome to the journey.

I cant copy & paste it so....
Annual bills I have calculated as PCM also I get paid 4 weely- so 13 times per yr-

mortgage £900
Ground rent &
Maintenaince £15 ..... £200 PA
Council tax £91 ...........Only 10 months per yr
Electricity ~ £15
GAS ~ £5
Water £15 .................£200 PA
Mobile £35 ............. Just renewed contract
TV licence £10
Tv& internet £35 .............Just renewed to better contract
Groceries ~ £60 ..............(based on me being currently single)
Petrol ~ £80
Socialising £150
Car tax + ins £50 ~ £600 PA
Personal insurance £75

total = £1530

cheers-

GeorgeUK

I cant copy & paste it so....

?? Did you use the calculator? If not - that's ok but just wondered why you couldn't copy and paste if you did use it.
http://www.makesenseofcards.com/soacalc.html

Council tax - can you ask to pay this over 12 months?
Socialising - need to cut right down until the debts are under control.

Can't really see much else from what you've put up. Having half your income swallowed by the mortgage is going to be hard though.

Have a look at your credit file (free at experian if you cancel within 30 days), and see how many credit checks have been done recently. If you don't have any late payments or defaults then it may be possible for you to get some other creditcards that you can use to reduce the amount of interest you are paying and possibly also the monthly payments.

Then again if you can't cut back any more or get 0% or life of balance cards with which to sort out the debt you may be better going on a Debt Management Program. With a DMP you will pay the same % to all your creditors from your available income. There are free debt charities that can help and advise with this including possibly stopping the interest on your account. The downside to this is that your credit score is messed up and can be a pain getting a remortgage at a decent rate.

I'll come back to this tomorrow and see if there are any other comments.

George

SM1974

GeorgeUK wrote: »

?? Did you use the calculator? If not - that's ok but just wondered why you couldn't copy and paste if you did use it.
http://www.makesenseofcards.com/soacalc.html

Council tax - can you ask to pay this over 12 months?
Socialising - need to cut right down until the debts are under control.

Can't really see much else from what you've put up. Having half your income swallowed by the mortgage is going to be hard though.

Have a look at your credit file (free at experian if you cancel within 30 days), and see how many credit checks have been done recently. If you don't have any late payments or defaults then it may be possible for you to get some other creditcards that you can use to reduce the amount of interest you are paying and possibly also the monthly payments.

Then again if you can't cut back any more or get 0% or life of balance cards with which to sort out the debt you may be better going on a Debt Management Program. With a DMP you will pay the same % to all your creditors from your available income. There are free debt charities that can help and advise with this including possibly stopping the interest on your account. The downside to this is that your credit score is messed up and can be a pain getting a remortgage at a decent rate.

I'll come back to this tomorrow and see if there are any other comments.

George

Cheers I will have a look into these- DMP's-

What about the equity in my property- any use there?

Steve

LilacPixie

Personally i would not touch the equity in your property. switching unsecured debt to being secured is never a good idea. Also with the uncertain financial climate many banks will only give a 90% mortgage so the 15k equity depending on property value may be untouchable anyway.

SM1974

Afternoon All-

I just wanted to check via here that the phone call I got earlier was actually via money expert ( I did put an enquiry in)
although Theres so many websites out there they may have been from Moneysavings etc-


Anyway the advisor put me through to I think they were called Kingsgate / Churchwood consultants-

Of course I havent signed anything yet- However They did comment on an IVA being the best course of action rather than a DMP-

Any comments anyone??

Cheers
Steve

rayday2

Please speak to a debt charity who offer you impartial advice (not based on making money from you!) which is in your interests and you will pay your debts off quicker too, do it now!

martin has a guide to IVA if you search they are very over sold, too many people having them when they are not suitable.

SM1974

rayday2 wrote: »

Please speak to a debt charity who offer you impartial advice (not based on making money from you!) which is in your interests and you will pay your debts off quicker too, do it now!

martin has a guide to IVA if you search they are very over sold, too many people having them when they are not suitable.

I will have a look- although what was on the table (£210 over 5 years seemed pretty good)

S

rayday2

I have never done an IVA but I have seen so many posts on here where they have gone wrong, people saying they said it was 5 years and its longer, complaining they did not realise they would have to pay more as wages went up etc etc they are quite complex and it is important you fully understand what you are taking on.

I quite honestly don't understand them all I know is they are to be taken as seriously as bankrupcy because that is your route if it fails and it is an alternative to it.

SM1974

rayday2 wrote: »

I have never done an IVA but I have seen so many posts on here where they have gone wrong, people saying they said it was 5 years and its longer, complaining they did not realise they would have to pay more as wages went up etc etc they are quite complex and it is important you fully understand what you are taking on.

I quite honestly don't understand them all I know is they are to be taken as seriously as bankrupcy because that is your route if it fails and it is an alternative to it.

Cheers - thanks for the post- I will take everything seriously in the circumstances I am in-

As I highlighted as well though has anyone on here had dealings with -
Kingsgate / Churchwood insolvancy-

Not good feedback so far-
http://www.moneysupermarket.com/COMMUNITY/forums/t/the-iva-council-do-not-believe-their-claims-12677.aspx?PageIndex=8

Steve