More going out then in!!

charmedy2k

Hi there,

I am in desparate need of help or advice! Basically i have around £34000 of debts which I am struggling to pay off. I don't know the current outstanding balances but I can tell you how much was taken out and when.

Cahoot £12000 January 05 8 years £200 per month
Halifax £8000 October 04 8 Years £126 per month
Halifax £4000 September 05 4 years £164 per month
Halifax £5000 December 04 4 years £169 per month
Tesco £4000 May 03 3.5 years £149 Per month

Please don't think I intended things to get like this, I didn't and have been beating myself up on how stupid I have been.

As you can see I am paying £808 pounds a month just in loans and I only earn £1250 a month (Don't ask me how I managed to get all these loans on so little earnings as it wasn't exactly something i'm proud of, and my mum and brother got the 8k and 12k loans on my behalf).so after I've finished paying all these loans I'm left with £442 to pay my mortgage which is £426 as you can see i'm in real trouble now because i'm left with less than £20 for the rest of the month and unfortunately £20 wont even cover a weeks worth of petrol.
I know I got myself into a real mess but please don't give me any lectures as I have done enough of this myself!!
I do not want to go down the avenue of a DMP as my credit record is looking OK at the moment and the last thing I need is to destroy it again (I had a CCJ until very recently).

I am thinking of applying for a 25K loan over 7 years at a cost of £350 a month and paying off everything except the 8K which would mean that i'd spend £332 a month less then I am currently, of course it would also mean that i'd have another 7 years paying off all my debt but I can't see another way out and i'm starting to struggle with the monthly repayments and I dont want to miss any if possible.

Your advice (not criticism) would be much appreciated
Thanks

Bestthingsinlifearefree

Hi Charemedy,

Welcome to MSE you will get good advice and support here.

You will need to examine exactly where your money is going.

For example you borrowed 12K in Jan o5 and 4K in Sept 05 that is 16k in 12 months = £1333 per month of "income" from the loans + your salary £1250 = £2583 per month over the last 12 months (assuming you have had the same job / salary for 12 months).

If you could identify where this money has been spent it will help you in the future (this is not a critiscm / just trying to get some background info)

You need to post here a full statement of affairs all incomings and outgoings.

The solution is not borrowing more money ie consolidation but cutting back or transfering debt to lower interest rates etc etc.

You say you have a mortgage what is the amount and what is the rough value of the property.

Is it a capital and interest mortgage ?

Best things in life are free.