Help, debt advice needed!

loanstar

I am currently in debt and finding it very hard to get out. I have a £3,000 overdraft which is at a very high interest rate (around 20%) and a credit card debt of £500 which at the moment is interest free. Unfortunately the very maximum I can save each month is £100. However, with £45 coming out of my account each month for interest repayments I'm not getting very far!

Does anyone have any advice? I have applied for two loans but have been rejected twice, possibly because I have changed address a lot. Should I keep trying? Or does anyone have a better idea?

I would really appreciate some help, thanks.

yorkshire-lad

loanstar wrote: »

I am currently in debt and finding it very hard to get out. I have a £3,000 overdraft which is at a very high interest rate (around 20%) and a credit card debt of £500 which at the moment is interest free. Unfortunately the very maximum I can save each month is £100. However, with £45 coming out of my account each month for interest repayments I'm not getting very far!

Does anyone have any advice? I have applied for two loans but have been rejected twice, possibly because I have changed address a lot. Should I keep trying? Or does anyone have a better idea?

I would really appreciate some help, thanks.

could you put up a SOA?

and im sure some nice peeps will be along to help.

i too am a newb at tackling my debt, but you have done the right thing in facing it. im here for moral support:T

Tixy

Hi Loanstar.

To be able to give you the best advice for your situation we need to understand your finances. As yorkshire lad says if you post an SOA we may be able to find areas you can cut down in to free up more money to pay off your debts quicker.
Here is the link
http://www.makesenseofcards.com/soacalc.html

Format for MSE forum and paste it here. It can be time-consuming but is really worth it.

Don't keep applying for loans once you've been turned down as it will just make your credit reports look worse. You will probably need to leave it 6months before you try applying again - hopefully by then you won't need to.

Good luck

10past6

loanstar wrote: »

I have applied for two loans but have been rejected twice

It's never a good idea to borrow your way out of debt

loanstar

What are people's thoughts on a super balance transfer in order to stall the interest repayments? Help!

Here's my SOA:

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1050
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1050

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 29
Electricity............................. 15
Gas..................................... 15
Oil..................................... 0
Water rates............................. 4
Telephone (land line)................... 0
Mobile phone............................ 21
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 7
Groceries etc. ......................... 180
Clothing................................ 100
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 15
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......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 100
Holiday................................. 0
Emergency fund.......................... 0
Toiletries.............................. 5
Total monthly expenses.................. 811


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Credit card....................530.......15........0
Overdraft......................2700......35........18
Overdraft......................400.......0.........0
Total unsecured debts..........3630......50........-


Monthly Budget Summary
Total monthly income.................... 1,050
Expenses (including HP & secured debts). 811
Available for debt repayments........... 239
Monthly UNsecured debt repayments....... 50
Amount left after debt repayments....... 189

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -3,630
Net Assets.............................. -3,630

10past6

Confirm this is a typing error

Statement of Affairs and Personal Balance Sheet

Clothing................................ 100
Entertainment........................... 100

loanstar

No typos I'm afraid...

chazsucks

You need cut down your clothing for a start! You can use that money to put on the overdraft..
Go to charity shops if you really need that many clothes or ask friends if they have any old clothes they don't want anymore etc don't be embaressed just explain your trying to pay off a debt. Also car boot sales and black bag parties where everyone takes clothes they don't wear anymore and swaps them etc

Also what about selling any old things you have that you don't use anymore on ebay? or gumtree or something... even if it's just £5 here and there... the sooner you pay it off the less your paying in interest!

Or maybe a part time job? even a couple of hours extra a week, or ask busy friends / family if they need odd stuff doing, cleaning, repairs etc anything you're good at make use of!

I can't really comment on the entertainment as I don't know what that consists of

10past6

loanstar wrote: »

No typos I'm afraid...

You need to step back and re look where your outgoings are being eaten up.

theoretica

You need to look at where the £189 on-paper surplus is going: keep a spending diary and buy nothing without considering first- most things are still there a week later if you really want them.

If you put £189 surplus + £100 clothes + £50 from entertainment +£80 from groceries (packed lunches and cooking from scratch are very money saving) towards your debt you could be debt free by the end of the year and in a much freer position next year!

Tixy

Hi. Well done on posting your SOA.

Some of your costs are really low - council tax, water, internet etc - just so we understand, are you in a house share or something?

Haircuts, toiletries, presents - well done on these amounts.

Like others have said Groceries are high. For one person £100 per month should be easily doable, the hardcore on here can manage on around £60! Try the drop a brand challenge, make sure you are not buying too much food and throwing it away because it has gone out of date. Cook from scratch, avoid takeaways and take a packed lunch. For more info check out the old style board.

Entertainment - of course you have to have some but try to think of cheaper ways to enjoy yourself as well - can you invite your friends round once a month instead of going out to pubs/clubs etc. You buy a few nibbles/dips and they bring a bottle of wine (or cans of beer each). Look out for offers on here or Martins weekly email for half price restaurants etc. If you go to the cinema lots try orange wednesdays for half price (one of your friends is bound to be on orange). If you talk to friends you may find they are having the same problems financially and will be happy to change habits so you all spend less.

Clothes - if you have been spending £100 per month you can cut out for a while or just budget say £20 per month. You could set yourself a challenge to sell old clothes on ebay and use any money you make to treat yourself to new ones.

I would not recommend a SBT in your position as I think you may just run up the overdraft again- it is very easily done. You first need to work out where your surplus is going and as has already been suggested a spending diary is a really useful tool. I don't go out without mine!

Maybe try joining some challenges on here as they are good motivation and look at the up your income board for some suggestions on increasing your income.

Good luck.