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Help! £15000 credit card debt

Options
Please help, I have thought about an IVA but not sure I need to go this route.

I have a home worth £105,000. I have secured debts of £14,000. I have credit card debt of £15,000. There is no equity in my house.

I earn £35,000 per year, and have approx £900 per month disposable income, but £600 of this is eaten by interest charges. I have started to struggle with my repayments in the last two months.

I have recently applied for a £10,000 loan with Tesco to control this, and was declined. I then applied to Asda, also declined.

Does anyone know my options please?
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Comments

  • elaina79
    elaina79 Posts: 953 Forumite
    Please post an SOA then we can see where all your outgoings are going.
    I used to suffer from lack of motivation.... now I just can't be arsed.

    Official DFW Nerd Club - Member no. 1141 - Proud to be dealing with my debts :cool:
  • guinness9
    guinness9 Posts: 13 Forumite
    sorry - how do i do this? literally just joined...
  • debrag
    debrag Posts: 3,426 Forumite
    how would a £10,000 loan control this?

    Plus stop applying for finance
  • guinness9
    guinness9 Posts: 13 Forumite
    my thinking is i can spread the majority of the debt over 10 years with manageable payments
  • debrag
    debrag Posts: 3,426 Forumite
    your debt is £29000 so you would still have £19,000 left. YOu would also have 3 creditors and 3 payments going out each month would this really be the cheapest and best option?

    Speak to Payplan or CCCS
  • Mellika
    Mellika Posts: 506 Forumite
    Hi Guinness welcome to MSE :hello:

    As Elaina said, you will need to post a SOA. Here's a link to an easy one:

    http://www.makesenseofcards.com/soacalc.html

    Also, read these threads for new members, it will make things clearer for you, plus save everyone a lot of time:

    http://forums.moneysavingexpert.com/showthread.html?t=562271

    http://forums.moneysavingexpert.com/showthread.html?t=107280

    Good luck xx
    GC March Wk1 £28.72/£30 Wk2 £28.4/£29
    "Life is too short to float Coke cans..."
    Use it up, Wear it out, Make it do, or do without!
    :jSealed Pot Challenge Member No.644 (Mar4-Dec1):j
    100 Day Challenge: 13/100 (Mar4-Jun9)
  • guinness9
    guinness9 Posts: 13 Forumite
    Thanks for the reply debrag - I can manage the secured debt quite easily, this has another 9 years to run. It is the credit cards that are making me struggle! However, a loan over 10 years at a stupid bad-credit rate would not make financial sense, although I appreciate I have no sense as it is!
  • guinness9
    guinness9 Posts: 13 Forumite
    Thanks Mellika, will do this around 10am.
  • debrag
    debrag Posts: 3,426 Forumite
    if you can get a loan for £15000 and the repayments are less than you pay on the cards then maybe AND cut up the cards.

    but do an SOA as you may be able to increase your payment to the cards overpaying on this is probably easier than on a loan
  • guinness9
    guinness9 Posts: 13 Forumite
    Not a pleasant experience.....!

    Monthly Budget Summary
    Amount(£)
    Total monthly income 2,600
    Monthly expenses (incl. HP & secured loans) 1,924
    Available for debt repayments 676
    UNsecured debt repayments 480
    Amount left after debt repayments
    196

    Personal Balance Sheet Summary
    Amount(£)
    Total Assets (things you own) 128,000
    Total Secured & HP Debt -129,000
    Total Unsecured Debt -15,750
    Net Assets
    -4,750

    Household Information
    Number of adults in household 1
    Number of children in household 0
    Number of cars owned 1

    Income, Expense, Debt & Asset Details

    IncomeAmount(£)
    Monthly income after tax 2100
    Partners monthly income 0
    Benefits 0
    Other income 500
    Total monthly income
    2600

    Expenses
    Amount(£)
    Mortgage 412
    Secured loan payments 476
    Hire Purchase (HP) payments 295
    Rent 0
    Management charge (leasehold property) 0
    Council tax 61
    Electricity 30
    Gas 40
    Oil 0
    Water Rates 40
    Telephone (land line) 0
    Mobile phone 65
    TV Licence 20
    Satellite/Cable TV 21
    Internet services 0
    Groceries etc. 80
    Clothing 30
    Petrol/diesel 70
    Road tax 20
    Car Insurance 69
    Car maintenance (including MOT) 20
    Car Parking 0
    Other travel 0
    Childcare/nursery 0
    Other child related expenses 0
    Medical (prescriptions, dentists, opticians etc.) 0
    Pet Insurance/Vet bills 0
    Buildings Insurance 20
    Contents Insurance 20
    Life Assurance 0
    Other Insurance 0
    Presents (birthday, christmas etc.) 20
    Haircuts 0
    Entertainment 100
    Holiday 0
    Emergency Fund 0
    Mobile internet 15
    Total monthly expenses
    1924

    Secured & HP Debt Description

    Mortgage 103000
    Secured Debt 14000
    Hire Purchase (HP) Debt 12000
    Secured & HP Debt totals 129000

    Unsecured Debt Description
    Debt
    Virgin Card 4250
    First Direct Gold 5000
    MBNA 2500
    Flybe 4000
    Unsecured Debt totals 1575

    Asset DescriptionValue (£)
    Cash 0
    House Value (Gross) 115000
    Shares and bonds 0
    Car(s) 13000
    Other assets (e.g. endowments, jewellery etc) 0
    Total Assets
    128000
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