Desperate, and Banks keep saying no

mariannemarlow

Hi

I am hoping someone can help me.

I have massive credit card and loan bills each month and although am on a decent salary am still spending more than I earn each month.

I am trying to re-work my loan and credit card payments by getting better deals but I keep being refused.

I don't know what I am going to do.

Is declaring myself bankrupt an option, or would that affect my husbands credit rating aswell?

Feeling rather desperate after being turned down for a loan for the 2nd day in a row.

Oh, Im a temporary worker aswell (although this didn't stop my bank from giving me a £15,500 loan a year and a half ago)

Any help would be appreciated.

Thank you

Marianne

ms_london

mariannemarlow wrote:

Oh, Im a temporary worker aswell (although this didn't stop my bank from giving me a £15,500 loan a year and a half ago)

That was the same for me when I took out my Lloyds loan (with PPI), so when I lost my job I was then told that I wouldnt be eligable for PPI - grrrrrrrr!!

Well done for posting!! You say you are on a good salary - would you be able to post a SOA (statement of affairs) and list your incomings & outgoings & your debt (including creditor, balance, available balance, monthly repayment & APR)..

Does your hubby know your situation? If not, you need to tell him.

Bankcrupcy isnt always an option, and until you let us know the level of debt you are talking about it is hard to advise one way or another.

It takes a lot to start living within your means, and means you will need to break the bad habits you have fallen into & retrain yourself.

See the banks saying No as a good sign, otherwise they could say yes and you could find yourself in a worse position with double the debt say 6 months down the line.

Ms_London

mariannemarlow

I don't have PPI as it's useless to me! (they really try and force it on you don't they!)

Well when I say good salary, it's about £329 a week, but I don't get paid leave or get paid for bank holidays - plus my office was closed for the week after xmas so I am not getting paid this Friday!! - it's the most I have ever earned. But it's probably less than a lot of people.

I shall try my best with the Statement of Affairs, I do hope someone can give some advice as im tearing my hair out here, it's so depressing.

SOA:

Outgoings Per Month (all the credit cards are the minimum payments!)

Abbey Credit Card: £70 (total Debt £3,700) about 20% apr
Lloyds Loan: £311 (total debt 11.500) about 7.9%
Lloyds Platinum Asset Card: £269 (total debt £13,000) about 18% apr
Evans Acct Card:£6 a month (total debt about £150) prob about 30% apr
Rent:£174 a month (shared with my husband)
Council Tax:£40 a month (shared with husband)
Orange Mobile Bill:about £45
BT:£12 a month
Powergen:£8 a month (gas)
Atlantic Electric: £20 a month (electric)
Travel:zone 1-2 weekly travelcard works out at about £97 a month
Washing Machine Insurance:£22.50 every 3 months (works out £7.50 a month)
Hospital Plan:£4.15
Accident Protection:£5.15
Overdraft interest charge £6.78
I spend about £100 a month on lunches and shopping

So I get paid about £1425.67 a month and outgoings are about £1215.58

Crikey!!


Yeah my husband knows.

ms_london

Income - £1425.67



Rent: £174
Council Tax: £40
Orange Mobile Bill: £45
BT: £12
Powergen: £8
Atlantic Electric: £20
Travel: £85.30

Washing Machine Insurance:£7.50
Hospital Plan: £4.15
Accident Protection: £5.15
Overdraft interest charge £6.78



Total Outgoings £407.88



Remaining Money £1017.79



Debts



Abbey Credit Card: £70 £3,700 20%
Lloyds Loan: £311 £11,500 7.9%
Lloyds Platinum Asset Card: £269 £13,000 18%
Evans Acct Card: £6 £150 30%



Total Monthly Debt Repayments:



£656.00



Remaining Money After Debt Repayments:



£361.79



· I suggest that you try and clear your Evans Account Card as soon as possible. At 30%, as most store cards, this is your debt with the highest balance, and with a balance of £150 could be cleared relatively quickly.

· So after all of your payments have been made, both basic outgoings (rent etc) and your debts you are left with £361.79 a month. However you have no budget for food/birthdays/holidays etc etc.

· If you were to live on £200 a month, would this be possible? That way you could throw the extra £161.79 into your debts, namely the Evans Card, Abbey Credit Card & Lloyds Platinum Card.

· What is your credit rating like? Could you transfer to a 0% deal? Or perhaps call up your current creditors and ask them if they could reduce your interest rate? Its worth a try, or try and bluff and say that you have been offered a better deal elsewhere and could they match it?

· Could you take lunch into work? Its not glamorous but it saves a heck of a lot of money. Even if you took lunch into work 4 days out of 5, you’ll still be saving. How much do you & your partner spend on food a month? Do you have takeaways? Do you do a lot of home cooking?

· Don’t despair, we are all in the same boat and it can be done, whilst maintaining a good quality of life in the meantime. Check out the board for the online/offline discounts, shop around for the best deals, become a dvd and credit card tart.

· Could you sell anything on ebay or take a 2nd job?

Good luck and let us know how you get on.

Ms_London xx

mariannemarlow

Hi, there is no way that I have that much left at the end of the month!!

there is an error there somewhere or I have left something out.

You have changed my travel, but it costs me more than that as I have to get weekly travelcards as i am paid weekly.

also as i get no paid leave, if there is a bank holiday or i have a docs appointment i do not get paid for this.

i really have minus nothing at the end of the month,

my credit rating is awful, i have been refused two loans in the last two days due to my credit score. it's got to the stage where i am borrowing the last few quid on my credit cards as soon as i have paid the minimum payments.

i tried to re-negotiate my lloyds loan today and they refused me.

christmas has been a killer aswell, am not going to get paid this friday as my office was closed last week.

i barely have any time to relax and am very stressed so i don't think a second job is an option.

thanks v much for your suggestions though, i really should take food into work and will try and do so for the rest of the week as i have some bagels at home (i have a wheat intolerance aswell, but we wont go into that!)

citygal

Ouch Marianne- sorry to hear about your problem! We are all in the same boat here on this site (or used to be for some lucky people) but there are even more people out there but who choose to ignore it instead! As Ms_london pointed out count it as a blessing in disguise that the banks didn't loan you any money- you could end up being in far more trouble! Could you not take another job?

mariannemarlow

I have adjusted it. Still doesn't seem right though. But like you say it doesn't account for food/birthdays/going out etc.

I think I can forget holidays for a while with almost 30k of debt !

Income - £1425.67

Rent: £174
Council Tax: £40
Orange Mobile Bill: £45
BT: £12
Powergen: £8
Atlantic Electric: £20
Travel: £97.00

TV LICENCE 10.99
Lottery Tickets 8
TiscaliBroadband 15.99

Washing Machine Insurance:£7.50
Hospital Plan: £4.15
Accident Protection: £5.15
Overdraft interest charge £6.78



Total Outgoings 454.56





Remaining Money £971.11



Debts



Abbey Credit Card: £70 £3,700 20%
Lloyds Loan: £311 £11,500 7.9%
Lloyds Platinum Asset Card: £269 £13,000 18%
Evans Acct Card: £6 £150 30%



Total Monthly Debt Repayments:

£656.00


Remaining Money After Debt Repayments:


£315.11

mariannemarlow

citygal wrote:

Ouch Marianne- sorry to hear about your problem! We are all in the same boat here on this site (or used to be for some lucky people) but there are even more people out there but who choose to ignore it instead! As Ms_london pointed out count it as a blessing in disguise that the banks didn't loan you any money- you could end up being in far more trouble! Could you not take another job?

hiya, thanks for replying, yes, ouch as you say!!

i was trying to get my loan spread over more months/get a better interest rate, not borrow more.

Xbigman

MS_london, Just a quick look and I can see no food on there.

mariannemarlow
If your income is variable then what did you earn in total last year?. If you don't know then take a full weeks take home, divide by 22 and then times by 18. That will give you an everage to work to.

Once you have the income finalized go to the sites budget planner and fill it out. This has everything listed and really makes you think. You need to go through it as accurately as possible. If you put down £100 for food because you don't really know how much it is then next month you should keep all your shopping bills and add them up at the end of the month. If your budget is accurate and you stick to it your problems will be half over.
Regards


X

Xbigman

mariannemarlow wrote:

hiya, thanks for replying, yes, ouch as you say!!

i was trying to get my loan spread over more months/get a better interest rate, not borrow more.

This does not work. As you pay for longer you actually pay back more interest. Its clearing debts as fast as possible and then paying no interest that is the trick to long term financial security.
Regards



X

mariannemarlow

Xbigman wrote:

This does not work. As you pay for longer you actually pay back more interest. Its clearing debts as fast as possible and then paying no interest that is the trick to long term financial security.
Regards



X

you are right i know. but the problem is i am getting to the stage where i am going to start missing payment because i don't have the money. my husband is having to sub me cash almost every week.