Heeeeeelp!

matt-williams

Hi Guys

I'm new here so firstly apologies if this question or similar has been posted before.

Basically following too many years at Uni and living a lifestyle I couldn’t afford, like many others I've racked up a fairly hefty debt of about £37K.

This is currently being serviced by 3 loans and a credit card, with repayments of just under a thousand pounds a month.

Fortunately I have a reasonably well paid job and I've managed to maintain these repayments with a cut back on my lifestyle - however along with most others I'm now feeling the pinch and finding myself with less and less money each month.

At the current rate I'd be debt free in about 5 years. The C-Card is on 0% still and the loan APRs are all pretty good circa 6.9%. I have a pretty good credit rating, as I never miss payments etc.

My question is should I try and consolidate everything into one 'super loan’ spread over a longer period and potentially reduce my monthly outgoings by up to £500 or stick with what I'm doing and get rid of the debt quicker?

One train of though is that although reconsolidating is adding years to my debt toll as well as much more in interest, the economic climate may/should change in the coming years and as such I may be able to reassess the situation in a few years.

Or are there any other alternatives? It's been suggested that I contact one of these debt management companies who claim to be able to write off part of your debts but I don't feel too comfortable about that as at the end of the day its my fault I'm in the situation I'm in - not that I've too much sympathy toward banks and lenders mind as I feel its partly there fault we've got the current economic problems that are affecting so many of us!

Any advice would be gratefully received.

Thanks

RAS

Matt

Do not consolidate. That makes things worse.

Have a look here and post up your SOA. See here
http://forums.moneysavingexpert.com/showthread.html?t=107280

**Amy**

I agree with RAS. Please do not consolodate and definitely post up your SOA.

You never know what we could help you save money on.

x

claireabelle_2

hi matt
I had similar debts to you in July 07, and now have paid 2/3 off... it does require a shift in lifestyle and hanging out here and with your spreadsheet a fair bit, but I'm so glad I didn't go down the consolidation route again (done twice before and failed). I put the numbers into whatsthecost.com's snowball calculator and I would have paid a horrific amount of interest (as opposed to just frightening).
So, here's what I'd advise

• read all the newbie guidance
• do yourself a budget
• sort out which order your debts need paying (normally highest apr first) and feed them into that snowball website above
• post up an SoA here if you like, and people can advise what you're paying too much for...

The biggest things for me were;

• stopping shopping
• meal planning - including taking my own lunches
• saying no to a few nights out and holidays
• stopping eating out twice a week
• recognising that there are two shifts required in my spending mindset, firstly to start living within my means, and then again to below my means to start paying the debts off, which is doubly painful, but sooo rewarding.

I'll be debt free by my 30th next march!
hope that helps
Claire

matt-williams

Thanks Guys I really appreciate your help

dancingfairy

Don't forget you can always contact the free debt organisations. CCCS (Consumer Credit Counselling Service), CAB, National Debtline. Just whatever you do don't go to one of those companies that will charge you a fee for their advice and will sell you what suits them not what suits you.
Would definitely post an SOA though.
df x

matt-williams

Thanks again guys, well I've completed an SOA as you can see below, where should I post it sorry?


Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 2700
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 450
Total monthly income.................... 3150

Monthly Expense Details
Mortgage................................ 550.41
Secured loan repayments................. 0
Rent.................................... 450
Management charge (leasehold property).. 54
Council tax............................. 138
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 0
Mobile phone............................ 45
TV Licence.............................. 11.71
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 320
Clothing................................ 100
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...................... 22.32
Life assurance ......................... 27.76
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 15
Entertainment........................... 400
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2254.2

Assets
Cash.................................... 0
House value (Gross)..................... 110000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 110000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 110000...(550.41)...0
Total secured debts........... 110000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan 1.........................17454.....223.7.....6.9
Loan 2.........................10000.....268.5.....7.2
Loan 3.........................9256......206.4.....6
C/Card.........................8500......250.7.....0
Total unsecured debts..........45210.....949.3.....-

Monthly Budget Summary
Total monthly income.................... 3,150
Expenses (including secured debts)....... 2,254.2
Available for debt repayments........... 895.8
Monthly UNsecured debt repayments....... 949.3
Surplus(deficit if negative)............ -53.5

Personal Balance Sheet Summary
Total assets (things you own)........... 110,000
Total Secured debt...................... -110,000
Total Unsecured debt.................... -45,210
Net Assets.............................. -45,210

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.

Merlot

matt-williams wrote: »

Thanks again guys, well I've completed an SOA as you can see below, where should I post it sorry?


Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 2700
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 450
Total monthly income.................... 3150

Monthly Expense Details
Mortgage................................ 550.41
Secured loan repayments................. 0
Rent.................................... 450
Management charge (leasehold property).. 54
Council tax............................. 138
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 0 - Don't you have a land line, how are using the internet?
Mobile phone............................ 45 - Too high, phone your provider if you are 9 months into your contract and they can reduce it slightly
TV Licence.............................. 11.71
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 320 - How many is this for?
Clothing................................ 100 - Too high
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...................... 22.32
Life assurance ......................... 27.76 - That is high, are you under 35? is this a joint policy? Does this have any fancy useless add on like critical illness?
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 15
Entertainment........................... 400 :eek: Got to stop today, entertain at home with a bottle and a pizza, £50 is just about ok, not £400
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2254.2

Assets
Cash.................................... 0
House value (Gross)..................... 110000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 110000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 110000...(550.41)...0
Total secured debts........... 110000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan 1.........................17454.....223.7.....6.9
Loan 2.........................10000.....268.5.....7.2
Loan 3.........................9256......206.4.....6
C/Card.........................8500......250.7.....0
Total unsecured debts..........45210.....949.3.....-

Monthly Budget Summary
Total monthly income.................... 3,150
Expenses (including secured debts)....... 2,254.2
Available for debt repayments........... 895.8
Monthly UNsecured debt repayments....... 949.3
Surplus(deficit if negative)............ -53.5

Personal Balance Sheet Summary
Total assets (things you own)........... 110,000
Total Secured debt...................... -110,000
Total Unsecured debt.................... -45,210
Net Assets.............................. -45,210

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.

I have added comments in above.

I can see real light at the end of the tunnel on this one, you can easy save £500 per month from your current SOA and still have a life.

Merlot.x.

claireabelle_2

matt-williams wrote: »

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 2700
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 450
Total monthly income.................... 3150

Monthly Expense Details
Mortgage................................ 550.41
Secured loan repayments................. 0
Rent.................................... 450
Management charge (leasehold property).. 54
Council tax............................. 138
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 0
Mobile phone............................ 45 this is high... mine used to be this much and vodafone did me a tailored minutes/texts deal saving #20
TV Licence.............................. 11.71
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 320 meal planning will help you reduce this... cooking from scratch too!
Clothing................................ 100 could you reduce this to chuck a bit more at the debts?
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...................... 22.32
Life assurance ......................... 27.76
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 15
Entertainment........................... 400 that was me, too but i want to be debt free more than i want to pay #7 for a glass of wine! so I allow myself one night out a week - how does that sound?
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2254.2

Assets
Cash.................................... 0
House value (Gross)..................... 110000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 110000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 110000...(550.41)...0
Total secured debts........... 110000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan 1.........................17454.....223.7.....6.9
Loan 2.........................10000.....268.5.....7.2
Loan 3.........................9256......206.4.....6
C/Card.........................8500......250.7.....0
Total unsecured debts..........45210.....949.3.....-

Monthly Budget Summary
Total monthly income.................... 3,150
Expenses (including secured debts)....... 2,254.2
Available for debt repayments........... 895.8
Monthly UNsecured debt repayments....... 949.3
Surplus(deficit if negative)............ -53.5

Personal Balance Sheet Summary
Total assets (things you own)........... 110,000
Total Secured debt...................... -110,000
Total Unsecured debt.................... -45,210
Net Assets.............................. -45,210

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.

yes, i reckon you'll be fine, just a bit of reining it in :T

moggylover

claireabelle wrote: »

yes, i reckon you'll be fine, just a bit of reining it in :T

As long as that £400 a month on entertainment wasn't just for one night a week:eek: - lol.

Definitely do not consolidate! The cut backs do not appear to need to be in any essentials (except maybe the mobile phone and insurance policy) - so just making some life style adjustments as claireabelle suggests (and did) will get you sorted.

Could you not ditch the mobile phone (please do not scream at me - I'm old - we didn't used to "need" them:o ) and get an all-in tarrif on a landline?

matt-williams

Thanks Guys some good advice from all! I've just spoken to 02 and they've reduced my tarif - the entertainment costs are high and I know and I'm sad to say that thats made up from about just 3 nights out a month - I need to reduce them, problem I have is most of that is work related entertainment that I really need to get involved in, but can't claim back from work (its complicated!!) but that said I know that spending £125-£150 on a night out with nothing much to show in material terms is a huge waste, not to mention the damage my liver is getting!!