Help!!! Help more outgoing than Incoming!!

Michelle1312

Hi

I am wondering if you can give me any advice please, I have more outgoings than incomings at the moment.

What i really would like to know is at the moment I have 3 credit cards with a total debt of £3900 and I am only able to pay the minimum amount each month, therefore paying only interest off and the balance never goes down on one it seems to be going up as they keep adding a charge on as i am over the credit limit. I know its my fault i spent the money but i lost my job last year but i got another job with a lesser wage not long after and used the cards as a mean to survive etc.

Am I better getting a loan to consolidate all 3 cards, therefore paying one monthly amount, or find another credit card with 0% balance transfer (hoping someone will give me that limit) for a long number of months?

I am getting very stressed about this as i cant see a light at the end of the tunnel, I work full time and also have a parttime job, also a mother, so I am trying my best to make ends meet.

Any advice would be much appreciated!!!

climbgirl

We need more information before we can answer this. We need a full SOA (statment of affairs) - a list of ALL income and expenditure each month (including annual bills) and details of the debt including interest rates on the cards.

People are usually against consolidation loans because if you're undisciplined, you'll take out the loan to clear the credit cards, won't cancel the cards and will run up the debt on the cards again. So you're left with both the consolidation loan and the new debt on your credit cards.

You will also find that you will (probably) have a lower monthly payment by getting a consolidation loan. But this means you're paying it off over a longer period of time and you'll pay more interest in the long-run.

If you can move the cards to a 0% interest deal, it's worth doing. But you need to be careful that you are able to pay off the amount before the interest free period expires. The rates on the cards tend to be very high after the 0% period ends so you can end up paying more in the long-run if you can't clear it in time.

Before we can answer properly, we need more details of your outgoings and income so we know how much spare money you have in your budget to clear your debts each month.

russt2000

Hi,I would never take consolidation as an option. It seems to be a good idea, but you end up paying loads more in the long run, and you have to be prepared to be ruthless by destroying the cards , or you end up having to use them again and your then even worse in debt. you would be better speaking to CAB and working out if a debt management program would be better suited, if you are only just coping with minimum payments it may be worth going and talking to them to explore your full options ,it will help to take the strain off you in the long run

russ

RAS

Hi

Start by putting the details of your debt into the snowball on www.whatsthecost.com.

Think about what you could seel on amazon, e-bay or at a car boot sale? COuld you get back within your limit. You can reclaim penalty charges but do this later.

And do and SOA on here.

Michelle1312

Outgoings (Monthly)TV Licence £ 11.95 Child Savings Trust Fund £ 10.00 Npower (Gas & Elec) £ 140.00 Sky TV £ 46.00 Council Tax £ 122.00 Vodaphone (mobiles) £ 45.00 Virgin (Land line & Broadband) £ 37.00 Norwich Union (Family Inc benefit) £ 54.82 AA Membership (Car) £ 20.89 Mortgage (Interest only) £ 667.00 Yorkshire Water £ 24.00 Car Insurance (Swift) £ 35.00 Scot Eq (Life !!!) £ 31.61 Norwich Union (Home Insurance) £ 17.81 £1,263.08 Outstanding Credit CardsTotal O/SCapital 1 £ 125.00 per month £2,500.00 Mint £ 11.00 per month £ 300.00 Barclaycard £ 24.00 per month £1,085.00 £ 160.00 £3,885.00 Incoming (monthly)Child Tax Credit £ 52.80 Family Credit £ 42.11 Wage weekly £330.00 x 4 £1,320.00 Parttime wage only just started so not sure only 6 hours on a weekend £6.70ph £1,414.91 TOTAL LEFT -£ 8.17 Get given £100 per week from partner to obtain Food/petrol/nappies & clothes etc

barbarawright

£128 a month on phone/tv/broadband (and that doesn't seem to include a tv licence). Surely that can be cut down. A basic Freeview box costs about £20 and a fancy PVR costs £80 or so ie 2 months Sky. Or couldn't you at least get your internet from Sky?

Michelle1312

thanks for that, the mobiles are for work and i do get that refunded, i am looking at actually getting shut of the SKY as this is a luxury that can be lived without. Therefore it would be just the broadband/landline i would have to pay!

withabix

Why is your partner only contributing £100 per week? If he lives with you he should be contributing a lot more than that!

Take the £45 mobile off your SOA as that gets balanced off if you get it refunded by your employer (and it's not laready in your income figure?)

Michelle1312

Long story that i need to deal with separately!

slig

Can you re-post your SOA using this http://www.makesenseofcards.com/soacalc.html? Format it for MSE, and it'll make it easier to read. Make sure you include everything, and if any of your expenses are paid by work/partner then include their payment as an incoming so it balances correctly.

Why is your AA membership £20 a month? Can you stop paying into your child's savings for a while til you sort this?

£100 is huge per week for groceries/nappies/clothes. Would your partner mind if this went towards other bills too?

slig

Oh wait, your partner lives with you and his sole contribution is £100? Is this 100% non negotiable? It doesn't seem fair that you are ending up with a shortfall each month because he isn't contributing properly.