Some Debt Advise please

CAFC1

Hi,

I have currently woken up to my debt problems and i need to do something about it.

I currently owe

£15,200 with egg loan 7.9%
£1500 overdrawn
£1,800 on egg card 13.9%
£2000 on capital one 15%

I currently earn £21,735 a year, plus overtime which usually bumps it up to about £24,000. I live with my parent and half with my girlfriend. Paying my way with both. My current bills come to £940 including my loan, but not making any payments to my cards, this does not include eating, social, clothing, pertol, etc. I usually take home £1,400 approx.

I have come to a decision that i need to pay this off, i have reduced it down since christmas by about £500, (plus my £285 a month payments to my loan). I have spoken with egg who are going to call me about putting it all in one at 6.9%.....should i do this or balance transfer my cards to 0%, also can i get cheaper ASU else where aw that bumps the monthly payments up by about £50 at the moment??

I would be really grateful if someone could give me some advise, even just to talk to someone who has been in the same position and has got out of it would be great.

Thanks in Advance.

CAFC1

highguyuk

:hello: and welcome to MSE.com and well done for taking the steps to get out of debt.

Im not as knowledgeable as some people on here, but can make a couple of suggestions and questions?

1) What charges are you paying for your overdraft?

2) Can you post a full SOA (Statement of Affairs) on here with your full income/outgoings/debt etc and maybe we can help you save some money on your living without cutting down too much. This could then be used to fire at your debts so that they are paid off quicker.

Regards,

tyllwyd

A loan at 6.9% would be better than the rates you are paying at the moment, so on the face of it that doesn't seem a bad idea, but before you sign anything have a look at the term and the amount you would pay in total. Would you prefer to keep the flexibility to pay back quicker by throwing all your spare cash at the credit card debts?

A 0% deal would obviously be good, but again have a look at when the deal would run out and think about whether you prefer to juggle your money around or go for a simpler option of paying a fixed amount on one loan.

CAFC1

highguyuk wrote:

:hello: and welcome to MSE.com and well done for taking the steps to get out of debt.

Im not as knowledgeable as some people on here, but can make a couple of suggestions and questions?

1) What charges are you paying for your overdraft?

2) Can you post a full SOA (Statement of Affairs) on here with your full income/outgoings/debt etc and maybe we can help you save some money on your living without cutting down too much. This could then be used to fire at your debts so that they are paid off quicker.

Regards,

Hi, Sorry for the delay in replying. Thank you very much for your post. I will put a SOA on this evening, it would be great if you could give me some tips from there.

CAFC1

tyllwyd wrote:

A loan at 6.9% would be better than the rates you are paying at the moment, so on the face of it that doesn't seem a bad idea, but before you sign anything have a look at the term and the amount you would pay in total. Would you prefer to keep the flexibility to pay back quicker by throwing all your spare cash at the credit card debts?

A 0% deal would obviously be good, but again have a look at when the deal would run out and think about whether you prefer to juggle your money around or go for a simpler option of paying a fixed amount on one loan.

Hi, Thanks for you reply -
Probably going to look at putting it all in one place, i've tried the juggling thing before, and unfortunately got myself into more debt! I am waiting to hear back from Egg, the only thing is the expense of having the ASU cover in place, but after looking i don't think i can get an independant one as the debt to salary ratio is to high......

ms_london

Could you list what the £940 a month you pay out includes?

As others have mentioned, perhaps include a SOA.

You are on an ok wage (more than when I moved to London & was repaying my debt), you just need to get things in order.

Can you call your CC's and ask if they can freeze your interest/charges ((its worth a try!!)) and ask them if you can repay a lower amount? They might want to see a copy of your SOA to agree to this - just explain that you are having financially difficulties.

What you need to do however is to work out how much you can live off each month. I have £50 a week - which is for food/social money, the rest used to go into paying off my debts (now I am saving).

Do you have a car? What about car ins/tax/mot/petrol? Transport costs?

Could you cancel the PPI on your loans/cc? Get a 2nd job?

xx