Advice what do you think?

uptomyeyes1984

Morning all,

Well heres our situation, we already have a natwest loan (no ppi) for £15,000 had it for a year now. but to cut it short we brought an unsucessful business and have used just over £9,000 on our credit cards (all 0% till half way thoguh next year) but pay more than the min payments.

we also last year finished paying off a £10,000 in 2years (but we were both working) and now i'm a stay at home mum and only work about 5hrs a week it's not worth doing any more as we loose out.

now heres my question with the current market do you think we should just get another loan out now or wait until 0% finishes? we thought about doing an IVA but at the end of it didnt think it was right for us.

We dont own our home (council property) and stick to our monthly budget so hopefully no more card spending.
what would you do?

Kelly - loosing the will

milliemonster

Hi Kelly, don't lose the will! but I'm trying to get my head around your post and could do with some more information as I'm not quite sure I understand why you want to get another loan and then talk about an IVA but you are making more than the min payments on everything currently?, can you post up your SOA?, heres the link http://www.makesenseofcards.com/

Burlesque_Babe

I wouldn't think another loan would help. You'd have a huge early repayment penalty as it's so early in the loan and if you are not working full time you'd struggle to get anyone to lend you the money.

The best thing to do is to pop up your SOA (as millie has already suggested) and we can have a look at helping you without you getting another loan.

uptomyeyes1984

thanx for your replys.
ive done the soa before and posted it and to be honest everything was in check and budgeted everything already. but heres what we owe.

Natwest loan- £15,000
mint cc- £1,524
mbna cc - £4,326
halifax cc - £1,384
virgin cc - £2302
natwest o/d - £700

Total Debt - £25,236
as i said before all credit cards are 0% till next year.

i'm not worried about the loan we have thats fine its just the debit on cards i want rid of. we pay all the bills etc... and never not been able to pay but just thought another loan (on top of one we already have) for the credit card debt would be a solution? or not?
what a pickle!

uptomyeyes1984

p,s i'l get another soa on later i'm just running around after my 1year old (lol and i'm 5 1/2 months pregnant) nap times soon!

milliemonster

Another loan isn't going to be the answer as you are going to effectively swap what is currently on 0% interest to a loan that you will be charged interest on.

If you are currently overpaying on your credit cards then I don't see why you have any problems?, I understand you want to get everything paid off (don't we all!) but it won't happen any quicker by consolidating your cc debt into another loan.

Just keep making overpayments on your cc's as much as you can and then when the interest free period is up apply for a new one, does that make sense?

uptomyeyes1984

Monthly Income Details
Monthly income after tax................ 29
Partners monthly income after tax....... 920
Benefits................................ 350
Other income............................ 0
Total monthly income.................... 1299

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 348
Management charge (leasehold property).. 0
Council tax............................. 103 (over 12 months)
Electricity............................. 40 (on a key meter so stock up for winter)
Gas..................................... 0
Oil..................................... 0
Water rates............................. 40 (for both waters)
Telephone (land line)................... 20 (we are lowering our package to cheapest)
Mobile phone............................ 36 (for myself and husbands wouldnt change this)
TV Licence.............................. 21
Satellite/Cable TV...................... 21 (on lowest package and cant get a good freeview where i am...+ gotta have some good things)
Internet Services....................... 15 (in a contract with orange changing to talk talk for phone/broadband in Jan)
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 40
Road tax................................ 20
Car Insurance........................... 28
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 10 (nappies)
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 8
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 860

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4500
Other assets............................ 0
Total Assets............................ 4500

No Secured Debt

Unsecured Debts
Description....................Debt....Monthly...APR
Natwest Loan..............15000.....223.......0
Mint...........................1512......30........0
MBNA.........................4326......5.........0
natwest O/D...............700........0.........0
Virgin.........................2302......30........0
Halifax.......................1384......28........0
Total unsecured debts..........25224.....316.......-

Monthly Budget Summary
Total monthly income.................... 1,299
Expenses (including secured debts)....... 860
Available for debt repayments........... 439
Monthly UNsecured debt repayments....... 316
Surplus(deficit if negative)............ 123

Personal Balance Sheet Summary
Total assets (things you own)........... 4,500
Total Secured debt...................... -0
Total Unsecured debt.................... -25,224
Net Assets.............................. -20,724

Well there you have it. hit me with you opinions then

uptomyeyes1984

Thanx millie.... i know what you mean, i know were all looking for that "quick" solution and i know it's not going to happen over night (well unless we win the lottery) wishful thinking tho.

But i know what you mean another loan would be stupid i'm better to juggle to another 0% when these ones finish.
thanx every1

:T kelly x

andys15

uptomyeyes1984 wrote: »

Monthly Income Details
Monthly income after tax................ 29
Partners monthly income after tax....... 920
Benefits................................ 350
Other income............................ 0
Total monthly income.................... 1299

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 348
Management charge (leasehold property).. 0
Council tax............................. 103 (over 12 months)
Electricity............................. 40 (on a key meter so stock up for winter)
Gas..................................... 0
Oil..................................... 0
Water rates............................. 40 (for both waters)
Telephone (land line)................... 20 (we are lowering our package to cheapest)
Mobile phone............................ 36 (for myself and husbands wouldnt change this)
TV Licence.............................. 21
Satellite/Cable TV...................... 21 (on lowest package and cant get a good freeview where i am...+ gotta have some good things)
Internet Services....................... 15 (in a contract with orange changing to talk talk for phone/broadband in Jan)
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 40
Road tax................................ 20
Car Insurance........................... 28
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 10 (nappies)
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 8
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 860

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4500
Other assets............................ 0
Total Assets............................ 4500

No Secured Debt

Unsecured Debts
Description....................Debt....Monthly...APR
Natwest Loan..............15000.....223.......0
Mint...........................1512......30........0
MBNA.........................4326......5.........0
natwest O/D...............700........0.........0
Virgin.........................2302......30........0
Halifax.......................1384......28........0
Total unsecured debts..........25224.....316.......-

Monthly Budget Summary
Total monthly income.................... 1,299
Expenses (including secured debts)....... 860
Available for debt repayments........... 439
Monthly UNsecured debt repayments....... 316
Surplus(deficit if negative)............ 123

Personal Balance Sheet Summary
Total assets (things you own)........... 4,500
Total Secured debt...................... -0
Total Unsecured debt.................... -25,224
Net Assets.............................. -20,724

Well there you have it. hit me with you opinions then

i dont understand.
mnba you owe £4326 and pay a fiver a month. virgin £2302 and pay £30, they dont even look like it would cover minimum payment. the other cards look like only minimum payment. how do you mean you overpay on them

milliemonster

Ok, so you have a surplus of £123 currently, my advice would be to use this to overpay one of your credit cards (preferably the one that the 0% deal finishes soonest), make sure you keep your credit rating in tip top condition though, otherwise you will find when your 0% deal ends, if you can't get another one, your min payments are going to go up substantially and you won't have enough surplus income to meet them.

It may be worthwhile paying off your MBNA card as I know from experience that they will not only hike up your min payment but also your interest rate, on your current balance on this card you would be looking at a min payment of over £100 a month from your current £5 a month

To put this in context, to get a loan to pay off the £10k you have on credit cards and to keep your monthly payment the same more or less as to what you are paying now would take you around 15 years to pay off, with clever switching your cards about you could have these paid on in a lot less time.

What does concern me though is you are only paying the bare minimum on these cc's and not the minimum if you were paying interest, you need to use this time now to massively reduce your debt if you can

milliemonster

Andy, MBNA are complete b*stards, they set the min payment at £5 if you are on an interest only deal as if they are doing you a favour but then massively oik up the interest rate once the deal finishes