Help! £15000 credit card debt

guinness9

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?

elaina79

Please post an SOA then we can see where all your outgoings are going.

guinness9

sorry - how do i do this? literally just joined...

debrag

how would a £10,000 loan control this?

Plus stop applying for finance

guinness9

my thinking is i can spread the majority of the debt over 10 years with manageable payments

debrag

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

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

guinness9

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

Thanks Mellika, will do this around 10am.

debrag

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

Not a pleasant experience.....!

Monthly Budget SummaryAmount(£)
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 SummaryAmount(£)
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

ExpensesAmount(£)
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 DescriptionDebt
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