New member - at wit's end!!!

caine62

Hi all,

This forum is a fantastic resource!

I'm 25 and now earn a decent living. I've been working for 4 years, the first two of which I worked in a very sales-orientated environment. I was young and foolish and easily encouraged by my boss and peers to rack up debt. They sold me the dream that within a year or 2 I would be able to afford anything I wanted. The boss believed that people with mounting debts/unaffordable mortgages work harder to generate enough commission to make their repayments. I'm not trying to blame it on them, it's my fault and my fault alone.

I changed company 2 years ago and have been doing well. In 4years my basic salary has doubled. However, I'm still struggling to repay my various debts.

I took out 2 loans within 12 months of one another, one for 6500 and the other for 5000. This was in addition to a loan in France (where I spent my teens) I had taken out to finance my university. I had a £2000 interest-free overdraft and 2 credit cards, both maxed out at a total of £4k.

I went into collections for the 2 loans, both with Lloyds TSB. They screwed me over royally but I managed to repay both of them 6 months ago with my hard-earned bonus. I then switched to HSBC, with whom I hold one of the credit cards. My debts now stand at: 4k on 2 credit cards, £4k French Loan, £2k overdraft and £2k my Dad generously lent me. The repayments for all of this are £620 per month, and that's only making the minimum payment on the credit cards.

I have sleepless nights worrying about this but everytime I try to consolidate the debts with one simple bank loan, I get turned down.

Leaving aside the overdraft facility, I have been asking for a £10k loan over 5yrs, without insurance. This works out at roughly £250-270pm using the standard loan calculators online, which is manageable and makes a huge difference to my outgoings. Problem is, no one will give me the loan. I've just signed up for a free credit report from Experian. I am baffled as to why HSBC won't, they can see what my incomings and outgoings are on my account. I may have a bad credit history but I'm trying to turn my life around and a 12yr old could work out that this loan would make sense.

I've spoken to a lot of poor credit lenders. They don't help the situation. I called Yes Loans today but asked to review the contract before I sign up and pay the fee. After coming accross this forum, I won't be taking it forward with them. Firms like theirs should be closed down and their owners put in jail.

Does anyone know of a lender who adopts a more tailormade approach to applications? I'm not stretching myself with this loan, quite the opposite. This situation is driving me up the wall!

Thanks!

fizz190

Hiya,

I was recently trying to get a loan for similar reasons, but my credit rating means that my only chance was borrowing at stupid interest rates and like you could see that it wasn't worth it!

I don't think borrowing more is necessary the answer. How much interest are you paying on the credit cards? Are you able to afford larger payments? How long is left on the loans?

I think it might be an idea to post an SOA so the more experienced posters on the board can give you some ideas on where you can cut back to increase your payments. I don't have the link but I'm sure someone will be along shortly with it.

Good Luck!
Fizz

fizz190

Ps. If you are determined to borrow, apparently Credit Unions take a more open minded approach. http://www.consumerdirect.gov.uk/

fizz190

and here's the SOA

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

caine62

Thanks guys!

There's a credit union near me but they only lend a maximum of £1000 above your savings so that isn't unfortunately the right solution for me.

Here's my SOA:
Monthly income after tax................ 2260
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2260

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 563
Management charge (leasehold property).. 0
Council tax............................. 30
Electricity............................. 20
Gas..................................... 20
Oil..................................... 0
Water rates............................. 10
Telephone (land line)................... 10
Mobile phone............................ 50
TV Licence.............................. 10
Satellite/Cable TV...................... 0
Internet Services....................... 5
Groceries etc. ......................... 150
Clothing................................ 0
Petrol/diesel........................... 50
Road tax................................ 5
Car Insurance........................... 170
Car maintenance (including MOT)......... 100
Car parking............................. 0
Other travel............................ 93
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 50
Presents (birthday, christmas etc)...... 0
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1356

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 4000

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................4000......250.......0
Credit Card....................2500......60........0
Credit Card....................1500......50........0
Overdraft......................2000......0.........0
Loan from father...............2000......250.......0
Total unsecured debts..........12000.....610.......-

Monthly Budget Summary
Total monthly income.................... 2,260
Expenses (including secured debts)....... 1,356
Available for debt repayments........... 904
Monthly UNsecured debt repayments....... 610
Surplus(deficit if negative)............ 294

Personal Balance Sheet Summary
Total assets (things you own)........... 4,000
Total Secured debt...................... -0
Total Unsecured debt.................... -12,000
Net Assets.............................. -8,000

dancingfairy

Hi I have a couple of suggestions for you:
Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 563
Management charge (leasehold property).. 0
Council tax............................. 30
Electricity............................. 20
Gas..................................... 20
Oil..................................... 0
Water rates............................. 10
Telephone (land line)................... 10
Mobile phone............................ 50 this is massive - get ontoyour contract provider and negotiate a much better deal and use the land line more if poss.
TV Licence.............................. 10
Satellite/Cable TV...................... 0
Internet Services....................... 5
Groceries etc. ......................... 150 not too bad but could be cut a lot further if you were really up for the challenge. See MoneySavingOldstyle for loads of hints and tips on this.
Clothing................................ 0
Petrol/diesel........................... 50
Road tax................................ 5
Car Insurance........................... 170
Car maintenance (including MOT)......... 100 are you putting this away somewhere? if so that's brilliant.
Car parking............................. 0
Other travel............................ 93 what's this for?
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 50 what's this for?
Presents (birthday, christmas etc)...... 0
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1356

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 4000

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly.. .APR
Loan...........................4000......250...... .0
Credit Card....................2500......60........0
Credit Card....................1500......50........0
Overdraft......................2000......0........ .0
Loan from father...............2000......250.......0
Total unsecured debts..........12000.....610.......-

Monthly Budget Summary
Total monthly income.................... 2,260
Expenses (including secured debts)....... 1,356
Available for debt repayments........... 904
Monthly UNsecured debt repayments....... 610
Surplus(deficit if negative)............ 294 o.k you've got nearly 300 a month spare here. Where's that going? to repay debts? or is it disappearing into a big black hole? Start a spending diary and see where all that money is going and where you can cut back.

Have a look at the snowball calculator and see how increasing you repayments willl cut a lot off your debt free date. I am sure someone will tell you where the link is.

Good Luck
df
x

urg123

Hi Caine

Well done for reducing the debt so far. I know that consolidating seems to make sense but it can be an easy way to rack up more debt.

I just wanted to make a few suggestions:

the rent seems quite high - is this something you can review?

I have been reviewing my grocery spends and have managed to aim for about £100 per month. Meal planning, using up the store cupboard ingredients and freezer items, cooking from scratch, batch cooking are all useful tips (see the oldstyle board).

Take in your lunch. I wasted so much on lunches and coffees and trips to the store for chocolate and crisps.

Can you sell stuff - your OP suggests that you bought lots of stuff. Do you still have them/ need them?

Look at ways of increasing your income - an extra job, market research are some of the ideas I have seen.

Hope this is useful and good luck on your debt free journey.

URG x