Struggling with debt

helloiamsteph

Hi all,

I have been looking at this site for some time and have seen all the great help and advice offered – some of which I need now.

Unfortunately I fell foul of the ‘champagne tastes and beer pockets’ syndrome a few years back and got myself into some debt. My partner and I are looking to buy a house next year (we currently rent) so I have been assessing my financial situation.

My debts are broken down as follows….

Person loan - £8,390 (41 payments left of £204 per month)
Mastercard - £3,665
Barclaycard - £1,700
Total - £13,755

The APR on my mastercard is 18.9% and 16.5% on my Visa.

I am really struggling to manage all this debt, and the monthly outgoings are getting to me - £204 on loan, £110 o mastercard and £30 on visa (both minimum payments… I know).

I have tried several times to get a consolidation loan with no luck, and have since stopped trying to save what is left of my credit rating – I got into trouble with some mobile phones when I was younger which means my credit rating isn’t too good.

I am desperate to reduce my monthly outgoings somehow, and get myself out of this rut, whilst still being able to enjoy the money I work hard for.

I really don’t know where to start.

Any advice much appreciated.

GeorgeUK

Might be an idea to post up a statement of affairs
http://www.makesenseofcards.com/soacalc.html

There may be some savings to be made from your current expenditure.

Have you tried looking at your credit file recently?
You can do so free at experian if you cancel within 30 days.

How many credit checks have you had in the last 6 months? 3 is usually okay.
How many late payments in the last 2 years?
Any CCJ's or defaults?

Clark80

If you try to buy a place next year they will take your debt into consideration before offering you a mortgage.

Paying money back is not fun at all but unfortunately it is a necessary evil. (after all you did borrow it)

Best advice would be to find your local CAB centre but you probably want to try and pay back the higher interest stuff first. Also worth looking a 0% card for balance transfers (although obvious you shouldnt use these cards for any spending while paying back - best to cut them up)

helloiamsteph

Hi George,

Statement of affaird below (completely forgot to add my overdraft to my previous post!)

Waiting for experian to get back to me as apparently I registered before but can't remembered my login details.

Monthly Income

Income Amount
Net Monthly Salary £ 1,700.00
Partner's Monthly Salary £ 0.00
Benefits £ 0.00
TOTAL MONTHLY INCOME £ 1,700.00




Essential Monthly Outgoings

Outgoings Amount Mortgage £ 0.00
Rent £ 475.00
Council Tax £ 83.00
Electricity £ 20.00
Gas £ 0.00
Heating Oil £ 0.00
Water Rates £ 20.00
Telephone £ 0.00
Mobile Phone £ 40.00
TV Licence £ 10.00
Satellite TV £ 49.00
Internet £ 0.00
Buildings Insurance £ 0.00
Contents Insurance £ 0.00
Life Insurance £ 0.00
Groceries £ 180.00
Clothing £ 50.00
Petrol £ 0.00
Car Tax £ 0.00
Car Insurance £ 0.00
Car MOT £ 0.00
Car Maintenance £ 0.00
Car Parking £ 0.00
Other Travel £ 85.00
Childminder/Nursery £ 0.00
Medical/Dental Expenses £ 0.00
Pets Insurance/Vets Bills £ 0.00
Birthdays/Christmas £ 0.00
Holidays £ 0.00
TOTAL MONTHLY OUTGOINGS £ 1,012.00 NET MONTHLY SURPLUS £ 688.00



Monthly Debts

Debt Total Debt Min Payment Rate Overdraft £ 550.00 £ 0.00 0.25 %
Loan £ 8,390.00 £ 204.00 0.00 %
Credit Card 1 £ 3,655.00 £ 105.00 0.00 %
Credit Card 2 £ 1,500.00 £ 40.00 0.00 %
TOTAL DEBT £ 14,095.00



Assets

Asset Value
Cash £ 0.00
House Equity £ 0.00
Shares/Bonds £ 0.00
Car(s) £ 0.00 TOTAL ASSETS £ 0.00

helloiamsteph

Hi Clark, thanks for your message - I really was very silly back then and am (literally) paying for it now.

I have applied for a 0% Virgin card today but not holding my breath that I will get it!

rog2

helloiamsteph wrote: »

I have tried several times to get a consolidation loan with no luck, and have since stopped trying to save what is left of my credit rating –

That may be a 'blessing in disguise, steph. Generally speaking, it is 'bad practice' to try to tackle debt with more debt - I appreciate that the lure of the 'lower monthly payments' can sound attractive, but, in most cases, you will end up by paying much more as the period of the 'consolidation loan' is likely to be much longer.
There are several options open to you, including a Debt Management Plan and reduced or token payments.
In addition to posting your soa, as George has suggested, you might wish to consider talking with one of the debt counselling charities to see exactly what options are open to you.
The following organisations are fully endorsed by this forum and will give you free, impartial and professional advice:

• National Debtline - https://www.nationaldebtline.co.uk/ tel. 0808 808 4000
• CCCS - https://www.cccs.co.uk/ - tel 0800 138 1111
• A Debt Adviser at your local CAB

Just avoid going to a 'Debt Management Company' that will charge you for their services.

And, once you have posted your soa, the good people on this board will be only too happy to suggest ways to reduce your spending without reducing your lifestyle.

Good luck.

helloiamsteph

Thanks Rog, I will give those numbers a call this week

GeorgeUK

If it was more than 30 days ago and they want you to pay, have a look at equifax - free but cancel within 30 days. http://www.equifax.co.uk/

As i said, you can usually have about 3 credit checks in a 6 month period so too many and you may look desperate for credit and your credit score may reduce further.

Try formatting for MSE with the calculator - this should make it easier to read.

Tixy

helloiamsteph wrote: »

Hi George,


Monthly Income

Income Amount
Net Monthly Salary £ 1,700.00
Partner's Monthly Salary £ 0.00
Benefits £ 0.00
TOTAL MONTHLY INCOME £ 1,700.00



Essential Monthly Outgoings

Outgoings Amount
Mortgage £ 0.00
Rent £ 475.00
Council Tax £ 83.00
Electricity £ 20.00
Gas £ 0.00
Heating Oil £ 0.00
Water Rates £ 20.00
Telephone £ 0.00
Mobile Phone £ 40.00
TV Licence £ 10.00
Satellite TV £ 49.00
Internet £ 0.00
Buildings Insurance £ 0.00
Contents Insurance £ 0.00
Life Insurance £ 0.00
Groceries £ 180.00
Clothing £ 50.00
Petrol £ 0.00
Car Tax £ 0.00
Car Insurance £ 0.00
Car MOT £ 0.00
Car Maintenance £ 0.00
Car Parking £ 0.00
Other Travel £ 85.00
Childminder/Nursery £ 0.00
Medical/Dental Expenses £ 0.00
Pets Insurance/Vets Bills £ 0.00
Birthdays/Christmas £ 0.00
Holidays £ 0.00
TOTAL MONTHLY OUTGOINGS £ 1,012.00

NET MONTHLY SURPLUS £ 688.00



Monthly Debts

Debt Total Debt Min Payment Rate
Overdraft £ 550.00 £ 0.00 0.25 %
Loan £ 8,390.00 £ 204.00 0.00 %
Credit Card 1 £ 3,655.00 £ 105.00 0.00 %
Credit Card 2 £ 1,500.00 £ 40.00 0.00 %
TOTAL DEBT £ 14,095.00



Assets

Asset Value
Cash £ 0.00
House Equity £ 0.00
Shares/Bonds £ 0.00
Car(s) £ 0.00
TOTAL ASSETS £ 0.00

Hello Just reformatted this above to make it easier to read. Back in a sec with some suggestions!

rog2

helloiamsteph wrote: »

Thanks Rog, I will give those numbers a call this week

You can always look at their websites today, steph. The National Debtline site has an absolute wealth of information.

helloiamsteph

aha! the wonders of modern technology