Help Debt and Bad Credit - First Post!!!!

evnsj6

Hiya all,

First post so be gentle with me.

I am currently looking to consolidate all my depts, they amount to approx £5000!!!! Now I have bad credit from my past and all the loans I seem to be offered are secure loans with a massive APR.
Is there anyway for me to get a loan with a lower APR thats not secured on my house.
This has actually got me thinking with my remortgage in June 2009, will I get a remortgage in the current climate.
Could someone please give me some guidance on whats the best thing for me to do!!!!

rayday2

No one can tell you what mortgage situations will be like next month let alone next year!

As for consolidation loan - don't do it! Before you go any further have a look on one of the debt charities websites or give them a ring and take some impartial advice.

I wish I had asked advice before I consolidated, could have saved me a lot of misery!

**Amy**

Hi

Welcome to MSE.

Firstly it would probably be a good idea to post an SOA (Statement of Affairs) which lists all your income/outgoing/debts etc. so that we (and you) can see where you stand.

http://www.makesenseofcards.com/soacalc.html

Its a good way of getting hints and tips from everyone on here to help cut your outgoings, and see the best way of attacking your debt.

I would say DONT consolodate. There are others ways of paying off your debt. Consolodation tends to just add interest/time/money to the debt your already have.

As for mortgages, what Rayday has said really is spot on.

x

evnsj6

Thanks Ray I will give them a whirl. Cant do any harm at all.

Cheers.

rog2

evnsj6 wrote: »

Could someone please give me some guidance on whats the best thing for me to do!!!!

Hi evnsj6, and welcome to DFW.

Please forgive me for saying this, but it looks as though you have fallen into the 'Consolidation Trap' - possibly by all of those 'glossy' ads on the telly.

So stand back and look at the overall situation, for a bit:

Consolidation is not the only way to deal with debts - in fact it is a very 'risky' area indeed. Not only are you likely to end up paying far more, albeit that the monthly payments will decrease but the payment term is likely to be much longer, but you will have a charge against your home, giving the 'lender' priority over other creditors, and there is always the possibility that you will 'use' the extra monthly 'available funds' to run up more debt.

That said, consolidation can be a useful tool if you can raise the money at normal interest rates, for example extending your mortgage with your current mortgage lender, but the market is fraught with risk and there are many posters, including myself, who have been down the consolidation route and regretted it.

Your debts, you say, are around £5k - these could, possibly, be managed through a DMP (Debt Management Plan) or in many other ways, organised through one of the debt counselling charities, such as CCCS - 0800 138 1111, National Debtline - 0808 808 4000 or through a debt adviser at your local CAB.

I would give them a ring (it's free) - their advice is professional and unbiased - just to see what other alternatives are available to you, before you go down the 'consolidation' path.

rayday2

evnsj6 wrote: »

Thanks Ray I will give them a whirl. Cant do any harm at all.

Cheers.

Exactly and if you don't think its for you at least you had options and made an informed decision.

I thought that borrowing was the way out, again and again I know different now

Good luck and if you are unsure of anything they said pop back ask here and see how it goes. Companies that offer huge APR are always around so there is no rush.

evnsj6

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1500
Partners monthly income after tax....... 600
Benefits................................ 0
Other income............................ 50
Total monthly income.................... 2150

Monthly Expense Details
Mortgage................................ 558
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 85
Electricity............................. 107
Gas..................................... 25
Oil..................................... 0
Water rates............................. 41.68
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 15
Satellite/Cable TV...................... 60
Internet Services....................... 0
Groceries etc. ......................... 400
Clothing................................ 15
Petrol/diesel........................... 120
Road tax................................ 18
Car Insurance........................... 65
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 6
Buildings insurance..................... 30
Contents insurance...................... 15
Life assurance ......................... 25
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1675.68

Assets
Cash.................................... 0
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 121500

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 110000...(558)......7.5
Total secured debts........... 110000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds Tsb Furniture...........5000......135.......0
Gran Loan for Deposit..........5000......130.......0
mbna...........................2100......85........0
Playfooty Debt.................500.......52........0
Total unsecured debts..........12600.....402.......-

Monthly Budget Summary
Total monthly income.................... 2,150
Expenses (including secured debts)....... 1,675.68
Available for debt repayments........... 474.32
Monthly UNsecured debt repayments....... 402
Surplus(deficit if negative)............ 72.32

Personal Balance Sheet Summary
Total assets (things you own)........... 121,500
Total Secured debt...................... -110,000
Total Unsecured debt.................... -12,600
Net Assets.............................. -1,100

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

======== Enter any other useful information below ========
2 adults and one dog in household, oh and 1 fish both non smokers too.

evnsj6

The Satalite TV is high as that is Internet Phone and Tv package all in one.

**Amy**

evnsj6 wrote: »

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1500
Partners monthly income after tax....... 600
Benefits................................ 0
Other income............................ 50
Total monthly income.................... 2150

Monthly Expense Details
Mortgage................................ 558
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 85
Electricity............................. 107 Seems high, check?
Gas..................................... 25
Oil..................................... 0
Water rates............................. 41.68
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 15
Satellite/Cable TV...................... 60 Do you need? Freeview?
Internet Services....................... 0
Groceries etc. ......................... 400 Very high for 2 adults and 1 dog
Clothing................................ 15
Petrol/diesel........................... 120
Road tax................................ 18
Car Insurance........................... 65 Check cheapest?
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 6
Buildings insurance..................... 30
Contents insurance...................... 15
Life assurance ......................... 25
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1675.68

Assets
Cash.................................... 0
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 121500

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 110000...(558)......7.5
Total secured debts........... 110000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds Tsb Furniture...........5000......135.......0
Gran Loan for Deposit..........5000......130.......0
mbna...........................2100......85........0
Playfooty Debt.................500.......52........0
Total unsecured debts..........12600.....402.......-

Monthly Budget Summary
Total monthly income.................... 2,150
Expenses (including secured debts)....... 1,675.68
Available for debt repayments........... 474.32
Monthly UNsecured debt repayments....... 402
Surplus(deficit if negative)............ 72.32

Personal Balance Sheet Summary
Total assets (things you own)........... 121,500
Total Secured debt...................... -110,000
Total Unsecured debt.................... -12,600
Net Assets.............................. -1,100

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

======== Enter any other useful information below ========
2 adults and one dog in household, oh and 1 fish both non smokers too.

Hi

From what i can see (have marked on your post above) the food budget is very high for 2 adults and 1 dog. You will be able to get some good hints and tips on how to save money, but i think you should be able to at least cut that in half. So that would be a massive saving of £200 a month.

The cable Tv - do you need it at the moment? Would it be worth cancelling and switching to Freeview, or even just lowering your package (i have one for £18 a month). Just seen your post - mine still comes in at £35 a month with TV, Broadband and Phone calls (Sky), could you reduce something?

Car insurance/electricity - have you checked that you are using the cheapest provider? Might be worth doing.

Debts - Your debts look "managebale". Do you know the APRs on them? This would help to work out which ones to pay first.

If you still arent sure, it may be worth contacting CCCS or National Debtline.

Also might be worth seeing if you have anything you can ebay/ sell on Amazon etc.

x

evnsj6

Thannks for that Amy.
I have only just had the Electricity changed to Eon and they advised payment would be £70.00 a month for both gas and Electric, but the Gas was £25.00 and electric about £107 so I am in the process of getting this checked out.
Car insurance is for two vehicles and we did this through Confused.com which saved us a packet from before. I used to work for Admiral Insurance in the claims dept so kind of wanggled a good deal, : )
Groceries bill does seem high as I checked my account at the amount of times I use my card eg: in Tesco, for lunch, monthly shop and odds and sods, so I will defo look at this as never realised it was so high before. was wondering where all the clubcards points were coming from., as I might have used the petrol in there too.

evnsj6

With the Sky, footy is the only Vice me and the Fiance have and to lose that would mean divorce!!!!!! even if she does support the Arsenal