***new+scared But Need Help***

webbo1981

Hi

after months of browsing I have finally decided to register and hopefully get some help!

Income after Tax = £1035 per month

Debts


Clydesdale/Label Store Card -382.64 29.80%

Virign CC -1930.93 24.90%

Royal Bank of Scotland CC -384.63 0%

Egg CC -786.60 14.88%

HSBC Current Account -1543.72 (only 1000 limit so getting charged £75 per month for being overdrawn and then interest on top. I called them+they said they can offer me a managed loan.£50 per month for 3 years! apr 12.1%???shall I take it?)

Alliance + Leicester Current Account -266.43 0%

Northern Rock Loan -4383.66 6.90%

total = -9678.61

just to also note that this past month I have applied for 3 credit cards...all rejected....and a new northern rock loan...rejected! In all fairness I missed 3 payments on my virgin card and one on my royal bank of scotland. Not much consulation but haven't missed a payment for 2 months on anything.otherwise I pay on time for everything bar them 3. So why do I keep getting rejected!? Is it worth getting my credit report from the 3 major companies?

Outcome

Outgoings
o2 16
mum 200
Loan 240.44
Garage 22.56
Ntl Digital 34.5
Ntl Net 45.49
Haircut 20

Please please...any suggestions!?

Thanks

Kimberley

£20 haircut? Why not get yourself a clipper set and cut your own hair. Why digital TV? Can't you get freeview??

CLAPTON

good step step to post here

can you please repost using the following format....its alot clearer and gives more information so we can help you better


If you browse the bulletin board you will see examples but the general format is

: statement of income:

: statement of expenditure
this should be quite detailed but excluding debt repayment
: a subtotal to save us all having to add it up

: statement of all debts including
outstanding amount, monthly repayment , APR
a subtotal of the total debt and of the total repayments, to save us having to add it up

also add a brief details of you situation, partner, any children, rent or own property, value of house and mortgage, any special circumstances that are relevant

fairylights_2

What is ntlnet? That's astronomical money, if it's just internet connection?
You're probably being rejected because of bad payment record AND too many searches in a short space of time. I know that can reflect badly on you.

According to your list, you have about £500 a month to service those debts. Where is it going?

Your interest rates on those debts stink too. You *REALLY* need to pay off the two big APRs as quick as you can.

webbo1981

Kimberley wrote:

£20 haircut? Why not get yourself a clipper set and cut your own hair. Why digital TV? Can't you get freeview??

fair point about hair but I would struggle to ut it myself.

as for the digital well being as I stay in I need something to entertain me....I like sky sports which I don't think you can get on freeview???

webbo1981

CLAPTON wrote:

good step step to post here

can you please repost using the following format....its alot clearer and gives more information so we can help you better


If you browse the bulletin board you will see examples but the general format is

: statement of income:

: statement of expenditure
this should be quite detailed but excluding debt repayment
: a subtotal to save us all having to add it up

: statement of all debts including
outstanding amount, monthly repayment , APR
a subtotal of the total debt and of the total repayments, to save us having to add it up

also add a brief details of you situation, partner, any children, rent or own property, value of house and mortgage, any special circumstances that are relevant

: statement of income:

1034.68

: statement of expenditure

o2 16
mum 200
Loan 240.44
Garage 22.56
Ntl Digital 34.5
Ntl Net 45.49
Haircut 20

statement of all debts

Account Amount Interest
Clydesdale/Label Store Card -382.64 29.80%
Virign CC -1930.93 24.90%
Royal Bank of Scotland CC -384.63 0%
Egg CC -786.60 14.88%
HSBC Current Account -1543.72
Alliance + Leicester -266.43 0%
Northern Rock Loan -4383.66 6.90%

hopefully a little clearer.....I currently live with parent and her partner. So now property or anything! Thanks for reply.....any ideas?

briona

Hi Webbo

Welcome to MSE! Firstly, is this a full statement of affairs, e.g., EVERYTHING you spend money on?? You mention a garage but no car... or insurance, road tax, petrol etc. Socialising? Lunch? Clothes?

Haircut £20
How often is this? You can get cheap haircuts from student/trainee hairdressers at many salons. After all if this £20pm, it adds up to £240pa which could go towards clearing debts.

DEBTS
HSBC £1543.72 +£75 overlimit fees
It's very important to get this back within its limit because you are losing a fortune in overlimit fees. In the first instance, I would look at where you can make cutbacks elsewhere to enable you to do this. I would NOT take their offer of a managed loan just yet – it is effectively just a consolidation loan and while £50pm is a nice and manageable amount, it doesn't address the problem of spending in the first place.

Clydesdale/Label Store Card £382.64 @ 29.8%
This needs to be cleared ASAP – the APR is huge. For every £100 you originally spent you are paying back almost £30 in interest. After you haev done something about your overdraft I would put every spare penny into clearing this card in full. You cannot afford to make minimum payments on cards with such high APRs.

Virgin CC £1930.93 24.9%
This is your next priority as the APR is quite high. Once you have cleared the store card, you will have extra money to throw at this one, followed by the one below.

Egg CC £786.60 14.88%

Royal Bank of Scotland CC £384.63 0%
Alliance + Leicester Current Account £266.43 0% [is this an overdraft?]
Both of these are at 0% and therefore of lowest priority [depending on when the 0% offers expire]. Is there a possibility of shifting some of the higher APR debt onto one of these? If not but if you have available credit on the card/overdraft, borrow a couple of hundred from it/them and use it to pay off the highest rate debts [Clydesdale can be paid off in full, and you could part-pay Virgin].

Northern Rock Loan £4383.66 6.9%
This isn't a bad APR, and once you've cleared some higher rate debts, you should be able to concentrate on paying it off [with more than just minimum payments]. Is the £240.44 loan payment for this? If that's an agreed or minimum payment, carry on making it, and in the future you may be eligible for a 0% deal.

Ntl Digital £34.50
Ntl Net £45.49
You could definitely get better deals than these. Re. digital, if you're in debt, then it's a luxury you can't afford. Better still would be to cancel it, and if you can't live with just the five standard channels, buy a cheap freeview box – a one off cost of around £40.
Re. the net, you could get dial up from around £13.99pm [CD from Tesco etc] and broadband from around £15.99pm/£191.88pa [Tiscali] – a saving of £354pa – nearly enough to clear the store card.

That's it for now. Over and out.

Briona

webbo1981

fairylights wrote:

What is ntlnet? That's astronomical money, if it's just internet connection?
You're probably being rejected because of bad payment record AND too many searches in a short space of time. I know that can reflect badly on you.

According to your list, you have about £500 a month to service those debts. Where is it going?

Your interest rates on those debts stink too. You *REALLY* need to pay off the two big APRs as quick as you can.

I have the 10mb broadband from ntl as the net seems to be my main source of entertainment at the mo.....

What do I do about my bad credit and payment record?

Tell me about the interest rates! They are unreal.....but how do I get rid of them?

I get paid on the 15th of every month....but this month as well as normal outgoings I have got my mot, tax and insurance......oh dear oh dear!

CLAPTON

your income is 1034
your expenses (without debt repayment) are 571 (pls check )

leaving £ 463 for debt repayments
debt payments are ...you have told us ? can you add that please

webbo1981

briona wrote:

Hi Webbo

Welcome to MSE! Firstly, is this a full statement of affairs, e.g., EVERYTHING you spend money on?? You mention a garage but no car... or insurance, road tax, petrol etc. Socialising? Lunch? Clothes?

Haircut £20
How often is this? You can get cheap haircuts from student/trainee hairdressers at many salons. After all if this £20pm, it adds up to £240pa which could go towards clearing debts.

Debts
HSBC £1543.72 +£75 overlimit fees
It's very important to get this back within its limit because you are losing a fortune in overlimit fees. In the first instance, I would look at where you can make cutbacks elsewhere to enable you to do this. I would NOT take their offer of a managed loan just yet – it is effectively just a consolidation loan and while £50pm is a nice and manageable amount, it doesn't address the problem of spending in the first place.

Clydesdale/Label Store Card £382.64 @ 29.8%
This needs to be cleared ASAP – the APR is huge. For every £100 you originally spent you are paying back almost £30 in interest. After you haev done something about your overdraft I would put every spare penny into clearing this card in full. You cannot afford to make minimum payments on cards with such high APRs.

Virgin CC £1930.93 24.9%
This is your next priority as the APR is quite high. Once you have cleared the store card, you will have extra money to throw at this one, followed by the one below.

Egg CC £786.60 14.88%

Royal Bank of Scotland CC £384.63 0%
Alliance + Leicester Current Account £266.43 0% [is this an overdraft?]
Both of these are at 0% and therefore of lowest priority [depending on when the 0% offers expire]. Is there a possibility of shifting some of the higher APR debt onto one of these? If not but if you have available credit on the card/overdraft, borrow a couple of hundred from it/them and use it to pay off the highest rate debts [Clydesdale can be paid off in full, and you could part-pay Virgin].

Northern Rock Loan £4383.66 6.9%
This isn't a bad APR, and once you've cleared some higher rate debts, you should be able to concentrate on paying it off [with more than just minimum payments]. Is the £240.44 loan payment for this? If that's an agreed or minimum payment, carry on making it, and in the future you may be eligible for a 0% deal.

Ntl Digital £34.50
Ntl Net £45.49
You could definitely get better deals than these. Re. digital, if you're in debt, then it's a luxury you can't afford. Better still would be to cancel it, and if you can't live with just the five standard channels, buy a cheap freeview box – a one off cost of around £40.
Re. the net, you could get dial up from around £13.99pm [CD from Tesco etc] and broadband from around £15.99pm/£191.88pa [Tiscali] – a saving of £354pa – nearly enough to clear the store card.

That's it for now. Over and out.

Briona

thanks for taking your time out for such a long reply.

I have a couple of colleges and a uni near me so il check them out for the haircut with students.

Funny you should mention car as I have got to pay for mot,tax and insurance this month!

As for the rest well I will certainly follow your plan as to paying the debts and not taking the managed loan! I have started to put things on ebay and sell stuff and shall try and use some of my income to get the hsbc overdraft to a £1000 limit to stop the silly amounts of charges!

After this I will then focus on the credit cards etc as you state!

What I dont understand is why I have been rejected. I have only ever had two loans and the 3 credit cards above and the store card in my 24 years young age! If I keep the payments up and maybe re apply in a month or too I would maybe get another credit card etc?

Also yes the £240 is for the loan.....0% deal?

Cheers for tip on freeview box etc

Regards

webbo1981

CLAPTON wrote:

your income is 1034
your expenses (without debt repayment) are 571 (pls check )

leaving £ 463 for debt repayments
debt payments are ...you have told us ? can you add that please

part of my loan £240 in included in my outgoings.....so as you point out I have £463 for my credit cards and overdraft etc........all my cards and stuff are min payments to each debt....sorry if not clear....I am new