Posted for Lovestoshop! SOA

dinkylou

Agree with Ms_London on this one.

Consolidation will inevitably make things worse not better.

Have you tried applying for some life of balance credit cards to transfer your higher rate cards? If not then you should do this ASAP.

Then you need to be getting rid of the overdraft and the catalogues and closing the catalogue accounts down.

Once you have transfered your higher rate cards to your LOB (life of balance) card then you need to CLOSE THE CARDS DOWN.

This is crucial or you may start to use them again.

Have you had a think about where you can make cut backs in your life (sky? food budget? socialising? clothes etc) This way you will have more to throw at your debts and you wont be overspending each month.

It may be painful at first but you need to reign in your spending and NOT get a consolidation loan.

x

Lovestoshop!

Can't get any more credit cards, tried. Keep being refused.

Lovestoshop!

It is a bank loan and not a consolidation with one of "those" companies. Fixed rate for 7 years. I don't have any spare cash to snowball any debts.

ms_london

I went to whatsthecost.com and this is what the outcome was for your potential consolidation loan:

The bottom line, is that this loan for £25,000.00, over 84 months, will cost you £380.99 a month.

In taking out this loan, you'll pay a total of £7,003.49 in interest. The true cost of this loan is £32,003.49

Granted - if you dont take the loan & continue to repay your creditors direct, you will still be paying interest, however, you could also be debt free a lot sooner & without paying so much interest.

Is it just me or would you rather have the £7,003.49 in your pocket rather than the banks? Its ok of course if you can overpay your loan, but this would mean cancelling sky, so I suspect you wouldnt want to do this?

I dont mean to be mean, but I spent time, listing EXACTLY how you could get out of debt, who you should pay what to, and you havent listened to a word. I like helping people, but its a bit frustrating when people dont listen.

Unfortunately getting out of debt takes a bit of effort.

xx

ms_london

Just to reiterate:

If you do budget for the current £200 per month for food (which is pretty high for just the 2 of you!), and after your (what I assume are minimum payments)£747 for debt repayments, this leaves you with £451.96 each month.

Come Sep you will be £92 better off since you will have repaid your loan, so this will leave you with a further £92 a month to throw at your debts.

This is exactly what snowballing means!! You DO have spare money to throw at your debts, you just refuse to see it.

xx

Lovestoshop!

Ok, i see what you mean about the £7000 interest.

lynzpower

I feel the need to add- have the cards been cut up? Are the catalogues ripped up & in the recycling bin?

Dump them, having further distractions in your way wont help.

You can do this and wasting a further 7k in interest, is certainly not going to help you get out of debt faster xx

dinkylou

I know this might feel harsh now lovetoshop, but this sum of money will take committment to get clear but YOU CAN DO THIS.

It sounds as though you are looking for an easy way out with the bank loan (which if you are absolutely determined to do you should get one over a shorter time as you can afford higher payments than £380 (especially sept onwards).

But this is the way you will fall down with more debt later.

Please please read the other threads on how people in a similar situation to yourself got a consolidation loan (as thats what it is, no matter who its with) and then thought they had money to spare and racked up more debts.

Its easily done.

You've found you have problem debts, please learn from the mistakes of others and dont get this loan.

southernscouser

ruyareece wrote:

I make your outgoings £2026.03

Yeah me too!

You should have £400 odd a month spare!

grex9101

black-saturn wrote:

Looks like this person is paying for the full package on Sky or a movie package. If you ring them on their freefone number 0800 731 6965 and say you want to reduce your package you can get it down as low as £18 per month.

If it's the movies you like I have been using ebay as a DVD rental company. Buy the DVD cheap off ebay, watch it a couple of times and then sell it back again for as around the same price as you bought it for. Then if theres one you want to keep you can. Same goes for other things like books, cds and computer games.

sorry boss, your freefone number for sky no longer seems to work