Any suggestions greatfully received! debts 23K+ and spiralling

bitza81

Any suggestions or ideas would be appreciated...

Homeowners with equity but remortgaging not an option due to various reasons.
Not keen on the idea of a secured loan either.

Debts -
HSBC loan (10.9%ish) - o/s approx. 13K - £230 p/m
Virgin C/C - o/s 4K - £110 (ish p/m minimum payment)
HSBC C/C - o/s 3.5K - £105 (ish p/m minimum payment)
Various catalogues/ overdrafts totalling approx. £2000 and £100 p/m
Loan from Dad - o/s £13.5K - £100 p/m

Income -
variable due to partner being self employed. averages approx. £1500 p/m
part time income approx. £200 p/m
WTC/ CHB etc. approx. £250 p/m

Outgoings -
Mortgage - £600 p/m
H/hold bills totall aprox. £500

I was debt free 4 years ago and my partner had only a £5K loan.. due to a number of problems (which i don't need to go into) debt has now spiralled out of control and we have reached the point where meeting even minimum monthly payments is proving a problem.

Not sure where to go or what to do from here. Problems being that my partner is self employed, i work only part time. He has 2/3 small defaults (only 1 still unsettled now) on his credit file from years ago. I have some late (but not missed) payments registered on my credit file.

Any suggestions please!

Thanks

bank_of_slate

Hi bitza and welcome to MSE!!!

Have you checked that you are getting the cheapest utilities, mealplanning and writing shopping lists to get your grocery bills down?
Try listing your bills, there are often areas we can spot that could be reduced.
We're not here to judge, just to help!
keep posting
...Linda xx

JAMIEDODGER

could you list a total breakdown in what your household expenses cover, we might be able to save you some money there. according to your figures, monthly income less expenses leaves approx 200 per month, does this extra go to debt or does it just dissapear? well done for posting, youve taken the first and hardest step xx

bitza81

monthly outgoings -
gas/ elec - £63 (debt o/s with company of approx. £300)
council tax - £98
water - £38
Home ins. - £14
TV - £10.5
Sky - £41 - yeah i know... but this was a compromise if we canceled the gym membership of £70 p/m
phone/ net - £50 (net ntl 17.99p/m)
car ins - £39
van ins. - £26
mobile - £45 (needed for his work)
ins - £10
and another debt - £49
petrol money - approx. £100
food shopping - approx. 175

ok make that nearer £800 ... Hmmm slightly more when u work it out. We have been using credit to pay off debt. Please be gentle with me!... p.s. i have a 1 & 3 year old also.
Thanks

JAMIEDODGER

that works out to about 784 per month which wipes out your extra 200 and a bit more. have you considered calling payplan or cccs, they might be able to help you xx

bank_of_slate

Don't worry,
we're always gentle!

It's amazing the difference between the 'guesstimated' figure for bills and the actual figure when you sit and work it out.
Well done for posting on here and opening up to a bunch of strangers...although, we're not THAT strange...honest!!
...Linda xx

bitza81

i don't really want to do anything that will affect our credit rating (obviously if we miss payments i know this will)
We are looking to remortgage at end of this year... house value is 125000K mortgage is 75K so 50K equity... current rate is 7.2% (!!!) and redmption penalty works out to about 5K.
Not heard of payplan or cccs. Can u give me any more info on these?
Thanks

bank_of_slate

Hi bitza,
look at the top of this page, the links are there
...Linda xx

magentadreamer

Hi and welcome to MSE.

I'd first look at the apr's on your CC's if you have any amount below your credit limit free then swap some of the most expensive CC balance to it. Basically reduce the balance on the most expensive card to the cheaper one's. If you are able apply for a 0% card -transfer the balance then cut up the card.

store cards - the APR on them is hideous are you able to transfer to another CC? If not I'd try and hit them to pay them off.

Check your utlities,car insurance,household insurance etc to see if you can get cheaper then switch.

Ditch Sky - it's a luxury you can't afford.

Are you out of your 12 month min contract with NTL? If so give them a ring and ask for any offers going - I got half price broadband for 6 months by telling them I can find cheaper else where ( do a search on the net Tiscali and Bulldog all came up cheaper for me) I also got unlimited free landline calls for 6 months as well. I'm assuming you only have the basic phone and broadband with NTL

Is OH mobile out of the 12 month contract? If so ring the provider and see what offers they have -threatening to go else where got me a fiver knocked off for 12 months.

Food shopping - check out the money saving old style board on here. Plus the discount codes bit for money off your food shopping -loads of tesco codes if you shop online.

Take a good look around the board it's an amazing place full of helpful tips for saving money and budgeting.

MD x

Bokken_2

bitza81 wrote:

Any suggestions or ideas would be appreciated...

Homeowners with equity but remortgaging not an option due to various reasons.
Not keen on the idea of a secured loan either.

Debts -
HSBC loan (10.9%ish) - o/s approx. 13K - £230 p/m
Virgin C/C - o/s 4K - £110 (ish p/m minimum payment)
HSBC C/C - o/s 3.5K - £105 (ish p/m minimum payment)
Various catalogues/ overdrafts totalling approx. £2000 and £100 p/m
Loan from Dad - o/s £13.5K - £100 p/m

Mortgage - £600 p/m
H/hold bills totall aprox. £500

Any suggestions please!

Could you have a look at the loans that you have and arrange another loan to cover the HSBC loan and perhaps some of your dad's loan.
I found a couple of years ago Liverpool Victoria were very understanding when I wanted to clump my loans together and they have since allowed me to pay off large amounts as and when I get extra money together.They were also at a competetivly low % rate.
Have a look on the loan board for futher help.
I know Martin says you should not take out further borrowing to cover exsisting debts but I worked for me and provided breathing space while I tackled the Credit Cards.
Could you move the Credit Cards onto 0% credit card?Or onto a life of Balance transfer card?
Make sure you read up on the subjects mentioned before you start phoning the companies the more you know the more knowledgable you will be and the more confident to tackle this issues.
I left my mortgage until last when I was more confident and got a 4.79% fixed for 5yrs,got it arranged and transfered or free as well.
Good luck keep us updated.

postingalwaysposting

welcome to mse i must say i agree with magentadreamer, why sky? free view is just as good and is free, if you do the acumilator on the £41 a month thats £492 a year :eek: for tv you prob spend 4% of your daily time watching.

congratulations in making your first steps, this board is great and everyone will help in the way they can, well done :j