Advice

skintscotsman

Hello folks, looking for a bit of advice here......

I've managed to get my £20k + debt down in the last 6 months but not as quick or as much as I'd like. I'm sitting with approximately £18.5k debt now and I am looking to take even more control of my finances, however, I'm also looking to enhance my career prospects.......

I'm wanting to do a Post Grad Diploma so I can go onto teach: teaching is a very secure job and I would be earning substantially more in quite a short space of time. I axctually considered this over a year ago but it was the ££££s that stopped me.

I have discussed this with the bank a little but to be honest the girl on the other end of the phone was just looking to sell the loan and when I said I wouldn't be gettin one there and then she didn't seem interested.... :mad:

My plan:

Get a loan for £20.5k to consolidate the debts (18500) + (9*280) to cover the 9 months not earning. (I have learned my lesson by the way, cards cut up and have had no money for the past 18 months....)

The minimum repayments over 7 years would be £280.

Between now and Sep 06 (Sep 06 = commence PG course) pay more than £280 per month as I can afford it.

Between Sep 06 and end of course (9 months) pay £280 per month and that £280 per month has been borrowed "now" and put in a high interest account.

I would simply put a standing order from high interest account to current account to loan account when necessary to pay for the loan in those 9 months.

Once I start earning a salary after my PG course I would continue to pay £280 + greater amoount or get another loan over a shorter period of time.

What do you think?

black-saturn

Debt consolidation is generally not a good idea as it puts you in debt for a longer period of time for a higher amount. You need to address the reasons why you got in this debt and work out a way to pay it off without consolidation.

If you post us a list of your incomings and outgoings we could give you some pointers as to where you could cut down.

skintscotsman

black-saturn wrote:

Debt consolidation is generally not a good idea as it puts you in debt for a longer period of time for a higher amount. You need to address the reasons why you got in this debt and work out a way to pay it off without consolidation.

If you post us a list of your incomings and outgoings we could give you some pointers as to where you could cut down.

I have addressed the reasons and they were mainly because, outwith my control, I had to leave a job earning £31k to go into a job earning £10k.

I have been through a lot because of the debt and, through the calculator at whatsthecost.com, I worked out that consolidation will be cheaper, shorter and a "cleaner" way to cut the debt.

I have cut down as much as I can,, for example:

I cook my own lunch instead of payign £3 for a Boots Meal Deal.
I have taken up photograhy freelance so there is extra income albeit minimal.
I only socialise when it involves getting paid (ie photography!)
+ more...........

wigginsmum

Would you qualify for any grants to help with retraining?

Jules

black-saturn

If you cant live on 10k you obviously havn't cut down enough. I live on 7k with 2 children and can afford to do things most others cant.

skintscotsman

wigginsmum wrote:

Would you qualify for any grants to help with retraining?

Jules

i have considered this and i am currently looking into it.

skintscotsman

black-saturn wrote:

If you cant live on 10k you obviously havn't cut down enough. I live on 7k with 2 children and can afford to do things most others cant.

thanks but i was asking for advice not a lecture.

black-saturn

skintscotsman wrote:

thanks but i was asking for advice not a lecture.

And I gave you it. If you cant live on 10k consolidation is not your answer as you still wont be able to cover your living expenses with 10k and will get more into debt. You need to find ways to cut down on your spending so that you live within your means and don't need to get into debt again.

sammyy

black-saturn wrote:

If you cant live on 10k you obviously havn't cut down enough. I live on 7k with 2 children and can afford to do things most others cant.

How do you manage on 7k?I'd like to be able to!!!Do you have to pay rent/mortgage out of that?

black-saturn

sammyy wrote:

How do you manage on 7k?I'd like to be able to!!!Do you have to pay rent/mortgage out of that?

I've finished paying my mortgage off but I pay everything else out of that.

summerday

What exactly is the course- is it a PGCE and if so is it for primary or secondary teaching? I may be able to help re bursaries etc if I know the details.

Sarah