HELP needed ,not sure what to do !!!!!!!!!

ohnno

I have accumulated debt's of nearly £7,000 over the last few years and now it's all getting too much.
I owe on credit dards Egg,Tesco,etc and a personal loan which is about £3,000.I have a low credit rating so i wouldn't be able to put all the debt on one card. Should i try to balance transfer as much as possible or take out,iff possible,a loan and pay all of it off leaving just the one loan ???
HELP !!!!!!!!!!!!!!!!

Thanks xxxxx

BILLIE

I am sorry to see OhNo that no-one has replied too you. I am not an expert - not even brave enough to put my own SOA on here, but if you do put your SOA on with explanation I am sure one of the experts will be on it straight away - never give up (am a great one for giving advice just don't take it myself!!)

IsoChick

An SOA is a good start, this will include details of each of your debts - amounts owed, APR's etc...

You can find the SOA Calculator here: http://www.makesenseofcards.com/soacalc.html

From what I've read on here, consolidation loans are a bit rubbish...

Try not to worry too much - we have over £50k of debt (not including mortgage) and have managed, with MSE help to start to get sorted!

Storm

Hi Ohnno :hello: and welcome

Generally speaking consolidating debts into one loan isn't a good idea - especially if you've not got a good credit rating so the apr isn't necessarily be that great.

Have a look at the 'stickies' at the top of the board & you'll find info on how to pull together a SoA - basically a list of all income & outgoings, plus your debts broken down into total owing, minimum payment & apr

If you look at my signature, I cleared off a similar amount of debt, so it definitely can be done (I'm currently looking forward to my debt free anniversary!)

Good luck

Storm x

ohnno

Thanks to all of you,it may not seem like alot of money but it's a bit of a weight on my shoulders. xxxx

slummymummyof3

There are lots of people and lots of ways to help you, however it will be necessary to provide a SOA so we can see where you may be able to cut back etc.

thevinternet

Hiya - welcome to the boards, you're definitely in the right place.

Avoid a consolidation loan if at all possible, as you'll be paying interest on top of interest, if that makes sense!

Do you know which card has the highest APR? This means you'll be paying the most interest on it. You should tackle this debt first. Cut up the card or put it in the freezer in a mug of water so that you can't get at it to spend!

Try looking at the 'Payment a Day' thread on this board - by paying a tiny amount each day, you can soon reduce your debts. Also this challenge gives you a sense of achievement, keeps you on track and your fellow 'PAD-ers' will give you some support. xxx

MrsPorridge

Hi, I echo what others have said, please avoid a consolidation loan. I have consolidated at least 3 times in each case it was to pay off my credit card debts which the consolidation did (all three times). As you can see from my siggy it just didn't work for me and I ended up owing far more than originally.

Its only the past 6 months after being brave enough to join this site that I realised nothing would change with me and spending until I changed my spending habits.

ohnno

Here is my SOA,

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1000
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 30
Total monthly income.................... 1030
Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 156
Hire Purchase (HP) repayments........... 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 10
Gas..................................... 10
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 10
Mobile phone............................ 15
TV Licence.............................. 12
Satellite/Cable TV...................... 46
Internet Services....................... 0
Groceries etc. ......................... 260
Clothing................................ 20
Petrol/diesel........................... 50
Road tax................................ 10
Car Insurance........................... 10
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 20
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 794

Assets
Cash.................................... 0
House value (Gross)..................... 220000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 221000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 4000.....(156)......11
Total secured & HP debts...... 4000......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Tesco..........................2000......50........0
Egg............................500.......40........26
Capitol One...................500.......30........16
Total unsecured debts..........3000......120.......-

Monthly Budget Summary
Total monthly income.................... 1,030
Expenses (including HP & secured debts). 794
Available for debt repayments........... 236
Monthly UNsecured debt repayments....... 120
Amount left after debt repayments....... 116
Personal Balance Sheet Summary
Total assets (things you own)........... 221,000
Total HP & Secured debt................. -4,000
Total Unsecured debt.................... -3,000
Net Assets.............................. 214,000
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

Thanks xxx

~Beanie~

ohnno wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1000
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 30
Total monthly income.................... 1030
Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 156
Hire Purchase (HP) repayments........... 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 10 - This is low, is it correct?
Gas..................................... 10 - as above
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 10
Mobile phone............................ 15
TV Licence.............................. 12
Satellite/Cable TV...................... 46 - Can you lower your package?
Internet Services....................... 0
Groceries etc. ......................... 260 - This could probably be cut
Clothing................................ 20
Petrol/diesel........................... 50
Road tax................................ 10
Car Insurance........................... 10 - Is this correct? Seems very low!
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 20
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 794

Assets
Cash.................................... 0
House value (Gross)..................... 220000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 221000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 4000.....(156)......11
Total secured & HP debts...... 4000......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Tesco..........................2000......50........0
Egg............................500.......40........26
Capitol One...................500.......30........16
Total unsecured debts..........3000......120.......-

Monthly Budget Summary
Total monthly income.................... 1,030
Expenses (including HP & secured debts). 794
Available for debt repayments........... 236
Monthly UNsecured debt repayments....... 120
Amount left after debt repayments....... 116
Personal Balance Sheet Summary
Total assets (things you own)........... 221,000
Total HP & Secured debt................. -4,000
Total Unsecured debt.................... -3,000
Net Assets.............................. 214,000
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

Thanks xxx

Some of your figures seem very low, are they correct? According to your SOA you have £116 left each month but if your figures are not correct then you won't have.

Don't you pay rent or mortgage? What is the 'secured' debt, I don't understand how it can be secured if you are not a homeowner

slummymummyof3

ohnno wrote: »

Here is my SOA,

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1000
Partners monthly income after tax....... 0
Benefits................................ 0 Have you checked to see if you are entitled to benefits as a lone parent?
Other income............................ 30
Total monthly income.................... 1030
Monthly Expense Details
Mortgage................................ 0 Do you own your property without a mortgage?
Secured loan repayments................. 156
Hire Purchase (HP) repayments........... 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 100 Can you ask for this to be spread over 12 months instead of 10?
Electricity............................. 10 This does not seem anywhere near enough
Gas..................................... 10 This does not seem anywhere near enough
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 10
Mobile phone............................ 15
TV Licence.............................. 12
Satellite/Cable TV...................... 46 Can you get a package for phone/tv/broadband - eg 3 for £30 have a look at the cash back sites as ofent have incentives. Alternatively phone current provider and explain you can't afford
Internet Services....................... 0
Groceries etc. ......................... 260 You can reduce this by cookng from scratch etc - bulk your chilli etc with dried lentils - look at the old style board for ideas
Clothing................................ 20 Get rid of this for now and concentrate on reducing debt
Petrol/diesel........................... 50
Road tax................................ 10
Car Insurance........................... 10
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0 You need contents/building insurance
Contents insurance...................... 0
Life assurance ......................... 0 You have dependents, you need to get some life assurance
Other insurance......................... 20 - What is this for?
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 794

Assets
Cash.................................... 0
House value (Gross)..................... 220000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 221000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 4000.....(156)......11
Total secured & HP debts...... 4000......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Tesco..........................2000......50........0
Egg............................500.......40........26
Capitol One...................500.......30........16
Total unsecured debts..........3000......120.......-

Monthly Budget Summary
Total monthly income.................... 1,030
Expenses (including HP & secured debts). 794
Available for debt repayments........... 236
Monthly UNsecured debt repayments....... 120
Amount left after debt repayments....... 116
Personal Balance Sheet Summary
Total assets (things you own)........... 221,000
Total HP & Secured debt................. -4,000
Total Unsecured debt.................... -3,000
Net Assets.............................. 214,000
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

Thanks xxx

Have come up with a few ideas quickly, I'm sure someone more knowledgeable will be able to help further. I would concentrate on paying any extra off the Egg cc first as it is the highest apr.