First post... Big debts... How to move forward?

Percy1983

I am paid hourly but I am currently capped at 37 hours, I am asking for this to be increased to 40.

I do have a very small income from doing a few tax returns and I do fix/build computers in my spare time, I haven't added them into my income as they are small amounts and irregular.

I think they main turning point has been I have stopped spending on things I don't need. For years I have convinced myself I need things which I don't. I have really changed the way I shop, as far as games and films go I wait for them to drop in price and have been on a rule if I want something I sell something, but I think I need to stop that too and just sell.

My fianc!e is the main reason I am here, I actually feel guilty and does upset me to think about it, I really have let her down and we can't move on in life until I get this sorted out. My currently level of debt doesn't scare me but losing her is something I can't even think about...

Tixy

From the posts you have made she sounds very supportive so don't worry about losing her.

This may not be much comfort to you but you are relatively young and you have realised the downside to credit while you are still young. You are unlikely to get a mortgage with your current debt but if you put the energy in to tackling this debt now in a few years time you will be in a much better position and be able to look forward. If you don't buy a house until you are say 30 this is still young compared to average first time buyers. By then hopefully you may both be earning more and you won't be saddled with debt from your youth.

From your posts its clear you really want to sort things and you sound determined - I'm sure you will do it.

GeorgeUK

Hi Percy

Looks like you've made a few discoveries of how reducing the interest can cut a huge amount of time off your debt free date (DFD).

If you were a married couple then i would suggest taking on each others debt, but as you aren't, this has potential to get messy so it is best if you can avoid it. As you are currently able to meet the minimum payments, i would suggest not doing this right now - also a consolidation loan would restrict how much you could overpay the debt by and would probably be cheaper in the long term not to do this.

The highest APR i am paying right now is 7.42%. As mentioned, it is possible to get balance transfer offers on existing cards so you don't always need to look at getting new cards for offers. Some will offer 0% for 6 months or a low interest for life of balance offer. I would suggest clearing the 2 cards with the lowest balance first and when you get a nil balance statement through, phone them to enquire as to the current interest rate and ask them if they have any balance transfer offers on right now. If they don't, you can try again the next month. Once you are able to transfer, try to either clear a card or move the ddebt with the highest APR so you are paying less interest.

You can have about 3 credit checks in a 6 month period before your credit score is affected. Offers on existing cards usually don't require a credit check which is why this possibility should always be investigated before closing an account. It gives you more room to manouver.

You have a mountain of debt in front of you which has taken years to build. If you try to run at it headon you will only give yourself a headache. It will take time to deal with this just as it took time to accumulate. That's the hard part - patience to deal with the debt and also to not add to it. It's a lifestyle change as well as a financial shakeup.

If you haven't had any credit checks recently, it may be worth trying to get another card - don't spend on this at all. It may also be worth suggesting to your fiance about 0% deals if she is currently paying interest on her card.

PercyPig

Hello :wave: Just wanted to say hi from one Percy to another

Percy1983 wrote: »

I may have overstated presents a bit, I actually make presents where possible, for my other half's last birtherday and xmas I made a winnie the pooh and a tigger (yes got the fabric and stuffing etc) it saves money and gets you in the good books.

That is very impressive!

Percy

shakeNmake

Percy1983 wrote: »

I may have overstated presents a bit, I actually make presents where possible, for my other half's last birtherday and xmas I made a winnie the pooh and a tigger (yes got the fabric and stuffing etc) it saves money and gets you in the good books.

Oooh, you show off!

Percy1983

Its not showing off, I am not that good at it. Pooh's ears are wonky and tigger doesn't sit straight. They did take me about 8 hours each to make too which was fun. Will add pictutes if the demand is there.

It does have draws back, she has asked if its Piglet or Eeyore for her next birthday.

I didn't quite have the skills to make her engagement ring so I got it custom made, this included sourcing the diamond myself, the results are impressive and the money saved is amazing.

I will ring my empty credit card provider and see what they can do, would the line "since you can't offer me a ggod rate can I close the account?" line get me anywhere out of interest if they aren't playing.

I may try applying for another credit card, even if its just a lower rate it help. Will have a look around and apply for one only.

Will have some bits on ebay soon. I am having trouble with some of it, I have many computer games I don't really play too much anymore but as I have found in many cases I would be lucky to get £2 for some of them when I paid £30 for them. I know it sounds silly but to a point I have debts but I do have something to show for it and I feel if I just sell everything regardless of value then I will have nothing and still have a large amount of debt. I just feel its bad enough I have spent to much to get in this situation so to now sell everything at an absolute loss would be yet another mistake.

GeorgeUK

Hi Percy - that's kinda what i did (the card closure, not tigger).

I basically called and enquired as to the current interest rate and asked if there were any balance transfer deals on right now.
There were, but i wanted a better deal. Make sure you know what you intend to ask and if they do put you through to card closures, just tell them you were informed that they may be able to offersomething. If not then say you'll need to look at your other accounts or something.

http://forums.moneysavingexpert.com/showthread.html?p=13820937#post13820937

border_collie

The best support you could get off your girlfriend is to sit in watching telly with you.
Also stopping you from buying anything at all. Leave her money seperate then you can both go out for the very occasional meal if she finds she has some spare.

Perhaps she could start saving like mad ready for when you finally become debt free?


This way if it all goes horribly wrong you haven't dragged her down as well.

Percy1983

You have all made some good points about keeping my better halfs finances separate, there is kind of a problem. I was talking to her before about this and explained that it is better to leave me too it as if it goes wrong etc (what you have told me) but now she feels I am shutting her out and I don't want her help. So we talked about how she could help, now hear this out.

Basically if she can get a loan to cover £6-7k to basically get rid of my high interest stuff, if we go for 3 years which is my target anyway the the amount of interest that will save will be quite a lot, as you would imagine this involves me setting up a standing order to her to cover payments. Now yes this does put her at risk with my debts as such but she is aware if my finances get worse she is stuck with it but she is happy she can afford to pay it if that time came. I will add if this is the plan it won't be happening until my loans a paid freeing £450 a month in my cash flow.

I will add I haven't sugested this it is her idea, now I know in many ways some of yo don't agree with this but on the other hand you have to see this has a huge potentially a huge money saving. I did sugest she starts saving etc but she actually used my owen advice against me which is why earn 6% on savings while paying 30% on the same amount elsewhere, she doesn't see it as mine and her money.

Yes she may need her head testing but I love her to bits.

Fire_Fox

Please please don't take your partner up on this offer. If you became ill (God forbid) or she became pregnant unexpectedly ... circumstances change and you do not need to both have a poor credit rating. One missed payment stays on your credit file for six years .... that's six years after the debt is completely paid off NOT six years from the late or missed payment. Why doesn't she start overpaying her own debts so one of you is clear to start saving for the future? Then the minute you are debt free, you will be in a position to get a place together.

It is better for your joint future that you sort this out with her moral support - sit with her and your SoA on how best to cut down your outgoings and how best to increase your income. You could both do online surveys or mystery shopping, or even just get a job working in a pub - there are loads of roles where the ability to handle money and be trustworthy are desirable attributes. Speak to the card companies, try to get reduced APRs and/ or balance transfers. Could you and your partner perhaps share one car? After all with depreciation/ maintenance/ tax etc. this is costing you as much to run as any debt.

I'm not recommending it, but if you went on a Debt Management Plan with one of the free charities (CCCS or Payplan) many credit card companies will freeze interest entirely - technically cheaper that getting a loan and keeping some of the other cards running? Your girlfriend can still help you make overpayments if she so chooses, but it means one of you has a clean credit history for when you get your own place (credit checks are often required for renting as well as mortgages).