Newbie needing some debt advice!!

Quincifer

Hey. Im not in a completely dire situation like other people I have read but I would just like some advice really.
Im 20 years old, living with students but not a student myself. I have an £850 loan, £1500 overdraft and £375 credit card that im paying off at the moment. Im on a payment plan for the c/card which I guess is sorting itself out (although leaving me quite poor as a result) but my real problem is the loan and overdraft. Ive been wanting to consolidate the 2 things into 1 loan which means i'll be paying less each month so I can start putting some money away, but my bank has refused me because of my income. Im only contracted to do 20hrs/wk (on minimum wage at 20yrs old its pennies!) but I do at least half over again each week so earn more than my contract says. Ive been told time and time again that after rent/bills/etc I need to have about £400 disposable income to be approved which I accept I am not earning, but I just cant understand why it makes any difference if I already have a loan AND overdraft AND credit card with the same bank?! Ive never missed a payment or been over my limit so as far as they're concerned my credit is ok but the fact that I have a badly paid job stops me sorting it out.
I dont think i'll be able to budge the bank but does anyone have any ideas of what I can do? Even if its just to cut down or save a bit or something!
Much appreciated, Lynsey
xx

Thefunkygibbons

The loan consolidation is not a good idea so the bank in saving you from yourself

All that would do is result in more interest over a longer period

Your plan of action needs to revolve around
1. Get more work. If the job you have only provides for 20 hours a week, then you need to get another one.
2. You need to tigthen the belt more so that you are living within your means, once you clear your debts, you will be saving interest so that is the light at the ned of the tunnel

Can you provide more detail on the debts, APRs etc so we can prioritise

Can you do a detailed Statement of income and expenses. Provide as much detail as you can.

Chin up, learn good habits at a young age and you will come out of this experience better off in the long run

Kateelizabee

Is it worth consolidating and saving at the same time? My husband and I have a bit of cushion in case of emergencies, but I scrapped my "save money" resolution this year when I realised that I'd be losing money if my debts had higher interest rates than my savings account! Unless you get a really low interest rate on your loan or a really high interest rate on your savings account, you may not be actually saving anything!

Quincifer

God, i take ages to reply!

I have no idea what my credit card APR is, but it doesn't really concern me at the moment because im using a payment plan to get rid of it by April.

The loan is APPROX 16% or something like that, im not sure. All I know is that I pay £43 a month, i got it in June 2004 and itll be paid in 2 years! Sorry, im not much help. But I have just written to the bank to ask if I can cancel the PPI on it, its not much but every little bit helps!

My overdraft is going to be really hard to pay off as its the account that all my incomings/outgoings go through, but i thought if i put a bit away each month and then every few months put it back in and then cut it down it might work?! Not sure though.

Oh and im looking for another job! Ive got more than 3 years customer service experience(worked in a bank - ha!, insurance and a call centre) and i got a job in retail at minimum wage?! I dont know what I was thinking but im going to leave for pastures new and more prosperous!

metherer

Hi,

This might not be much use, but have you thought about switching banks?

I moved from Barclays to HSBC in the summer, and they moved all my DD's, gave me a better overdraft facility, a credit card to clear my old one, at a better, lower rate, and even let my roll my debts in with my mortgage when i remortgaged with them. :T

hope this helps,

Metherer

Quincifer

Big gap ... again!

Thanks for that, I might look into it. It always sounds like a hassle but if it might help me out im willing to try!

Update - Got my PPI cancelled on my loan so thats £4 a month knocked off, it isnt amazing but its a helping hand. Only 2 more payments on my credit card (only one more huge one) so that'll soon save me £125 per month - roll on april!!

x