Not sure where to start??

Emptypurse1976

Hi,

Live with my partner of 9yrs who tries to be clever with his money but we still have all our finances separate.
I on the other hand have £13000 of unsecured debt, across the remainder of a bank loan, and credit cards. However the reasons for this debt are as follows:
1)We have a little boy, and after having a severely traumatic birth I had severe Post natal depression (resulting in a threat of being sectioned) and the way i survived was to get out of the house - so where did i go? anywhere there was people - shopping!!!!!

2)it tends to be that if we need something - it goes on cc and he says he'll pay me back and i'm left paying the minimum payments.

I have £1089 on egg at 17.9%
£2360 on Tesco at 16.9%
£3310 on Barclayard at 6.5% for the life of the balance

and then the remainder of a loan with HSBC of around £6200 (not received final settlement figure yet)

Tesco have approved (in principal) a loan of £13000 at 8.2%

This will take my monthly outgoings to a similar level to just the loan.

I'm not sure whether or not to leave the Barclaycard where it is though?? As the interest rate is lower? Which would mean i could just borrow £10000?

Any advice greatfully received....... oh and should i get ppi included? I work for the Prison Service (so very secure job!)

Thanks!!!

Rafter

Hi there,

Welcome to MSE and great first post!

You are spot on that you shouldn't transfer debt from a low rate card to a high rate loan, so suggest if you can afford it you leave the barclaycard debt alone and just pay the high rate cards.

Similarly with the halifax loan, no point in paying a big redemption penalty or if the rate on the loan is lower than the tesco offer.

If you can make it work and afford the monthly payments, I suggest you try to get a 24 month loan for £5000 to repay the egg and tesco cards.

That way you will be debt free within a much shorter period of time and able to enjoy your family life as your son grows up.

As for PPI, don't see any point. You are in a secure job and this is unsecured debt, so you don't risk losing your home. If you do want peace of mind, look for income protection insurance online - it will be much cheaper than anything a credit card or loan company will sell you.

Good luck

R.

Emptypurse1976

Thanks so much for your advice, I thought people would just tell me to find a new man!!!

I will do some more investigating with my numbers.
:rolleyes:

Emptypurse1976

The only trouble is with the credit cards is i'm paying the minimum and can't see my way to paying much more?
Crikey its the coldest winter I've ever known and we've turned the heating off, to cut the Gas DD!!!!

The loan with HSBC is at 6.9%, but they won't extend it - or it will go to their rate for me 14.2%?

Another loan on top will cripple me, but I thought of maybe consolidating the loan and the expensive cards - so borrow 10,000 over 4yrs which would reduce my outgoings and hopefully stop me having so much month left at the end of my wages.... I am already overdrawn

minnie123

You probably already know this but it doesn't seem fair that you are part of a couple and thus this debt should be considered joint - you are the one stressing over it you need to share the burden - if only for your sanity

Emptypurse1976

To be honest, I have doubts about the relationship and would like to just get it sorted for my sanity.
Am I crazy paying off 6.9 (with loads of ppi!!! of which i should also get some back) with an 8.2? In order to reduce payments and make my life a little easier?

minnie123

If it was me I would borrow the 10,000 as you have said and just keep the one credit card debt. And with the money I am saving use it to pay extra off to get rid of the credit card debt asap.

I paid off a HSBC loan early that had PPI and I recall I got about £600 off the PPI back.