I really need some advice!!

toltz

Hi,
I really need some advice!
Right I am just going to lay it all out there...

Firstly, I am always overdrawn (lately I have been over my agreed overdraft so am being charged quite a big fee) it is at the stage where I am paid so in credit for a while and then overdrawn again when I pay a set amount into my joint account to cover all the household bills. My overdraft is being reviewed by my bank in November and I am concerned they will reduce the amount they give me which is the only way I am surviving.

I have not defaulted on any payments, but I applied for a loan for a small amount to cover my overdraft and my credit card but was rejected (this maybe because we have not been at or address very long etc) I have applied for a free credit report just waiting for pin to access it.

I am concerned as our mortgage is up for renewal next August. I have 3k on my credit card and am overdrawn £800. I know it is not ideal but is the best thing I should do is stay in my overdraft (but what if this is reduced!!) and use anything extra to pay towards my credit card or concentrate on paying off my overdraft then the credit card. I am thinking that it will be better if I have a lower credit card debt when we come to renew mortgage. I have 4 cards I am going to shop around for the best deal then cancel the 3 I am not using. Do not want to apply for any more credit.

Also, I pay a set amount into our joint account to pay for household bills, mortgage (interest only) etc this is never overdrawn and we have never missed any payments. We always have a little bit left over at the end of the month. Is it best to save this so we have some sort of lump sum when it comes to renewing our mortgage or use this extra to pay off the debts/reduce the amount we are putting in each month.

I am really not sure the way forward.

Any advice would be great,

THANK YOU

Toltz





I have a credit card which is at

saffronflowers

Hi Toltz

Many on here would say that it is not a good idea to get credit to get out of debt as it does not address the spending habits that caused the debt, if you read this thread http://forums.moneysavingexpert.com/showthread.html?t=107280and post up a SOA then we can exmanine where you can save money etc and address what is a relatively small debt, though still worrying. Good luck and look forward to your SOA.

SFx

**Amy**

HI

I agree with SF above about spending habits.

Also deffinitely post an SOA (statement of affairs) so that we can help you cut back/make some savings:

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

Re: being declined for credit, as you are aware the credit crunch has hit, and a lot of lenders arent lending any money, which could be why you have been declined.

I woudl also say do not consolidate your cc and overdraft into one loan. Overall you will end up paying more back.

x

toltz

Thanks for your comments, I am going to sit down with my partner tonight and go through everything together so we can do an accurate SOA.
Will post tomorrow.
Thanks again
toltz