Starting to struggle

debtfreein5

Hi

I have £30k (GULP) in unsecured Debts, all are currently upto date with no arrears. However I am now struggling to do this.

I have today applied for a consolodation loan but if declined I will need to make arrangements with the CC companies involved.

If I offer an arrangement to repay each debt over 5 years and include an extra 10% on top of the debt as at today, do you think that it is possible they will accept this - this is assuming that the interest is stopped.

I am trying to do this with the least impact on my credit score as well as not letting any cards get to arrears or default in the first place - but will they take me seriously?


Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1850
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1850
Monthly Expense Details
Mortgage................................ 550
Secured/HP loan repayments.............. 43
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 55
Gas..................................... 130
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 25
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 20
Petrol/diesel........................... 120
Road tax................................ 10
Car Insurance........................... 30
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 25
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 15
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1293

Assets
Cash.................................... 0
House value (Gross)..................... 245000
Shares and bonds........................ 0
Car(s).................................. 7500
Other assets............................ 0
Total Assets............................ 252500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 200000...(550)......0
Hire Purchase (HP) debt ...... 600......(43).......0
Total secured & HP debts...... 200600....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
MBNA - VIRGIN..................15000.....295.......16
Egg............................2100......50........0
RBS - Loan.....................10000.....233.......5
RBS............................4100......94........0
Asda...........................2100......72........0
Total unsecured debts..........33300.....744.......-

Monthly Budget Summary
Total monthly income.................... 1,850
Expenses (including HP & secured debts). 1,293
Available for debt repayments........... 557
Monthly UNsecured debt repayments....... 744
Amount short for making debt repayments. -187
Personal Balance Sheet Summary
Total assets (things you own)........... 252,500
Total HP & Secured debt................. -200,600
Total Unsecured debt.................... -33,300
Net Assets.............................. 19,200




These are my share of household Bills only - Have been adding EVERYTHING onto Credit cards recently - which is why I have just been able to cope but need to stop this today!
Any advice will be appreciated.:o

angelicmary85

Hiya,

Welcome to MSE!!

DON'T GET A CONSOLODATION LOAN! General concensis is that you end up spending on cc's again so not worth it!

Post up your SOA http://www.makesenseofcards.com/soacalc.html

Good luck with your debt free journey! x

debtfreein5

Thanks - What is an SOA?

angelicmary85

it's your Statement of Affairs - have posted the link in my 1st post

sarahs999

Yes, to reiterate, consolidation should be your last move, not your first. Post your SOA and we'll try to find ways to help you get it under control. Most imoprtant thing is a change in attitude to spending. GOod luck

dancingfairy

Consolidation loans are great- (for the banks) - they offer you an attractive low monthly payment, you pay off the credit cards, think oh I can manage now and start spending again, meanwhile the bank gets to charge you loads and loads of interest 'cos they spread it over many years and if they offer you a secured loan - even better 'cos then they have your house as security if you don't pay.
Seriously - they are bad, bad, bad.
Would definitely do an SOA and also would contact one of the debt free charities that Martin recommends but don't go with one of those small ad's in the paper, we can write you debts off, rip-off co's. Go for a free company like CCCS or your local CAB.
Good Luck
df

gargrave50

conclave wrote: »

We got a panel of Financial Advisors who may help you out for your problem.Please contact us on [EMAIL="conclavemarketting@gmail.com"]conclavemarketting@gmail.com[/EMAIL].

Thanks

Reported as SPAM - hopefully the forum will ban you as you seem to be offering magical solutions on just about every post.:rolleyes:

RAS

Hi

You have no benefits, no income for partner and appear to have the full household costs. Does your partner not work or contribute to the household income?

See www.entitledto.com for the benefits.

Tixy

Hi

The most obvious thing to jump out of your SOA is your Gas & Elec costs are both horrendously high. You say the SOA is for your share of the costs - please say that these bills are not actually double these large figures? Are you paying arrears? Are these based on actual readings? Are you leaving the heating on 24/7? Are you with the cheapest supplier. Of course every family is different in what they use but £30 for elec and £60 gas would be more 'typical'.

The £200 on groceries is also high if you partner is contributing the same amount. For a family of 4 you could aim for £200 per month (maybe start at £250 and aim to knock off £10pm). Start by using the drop a brand challenge, use meal plans to only buy what you use.

Does your partner pay council tax, water rates, TV licence? Do you have a landline & internet?

Have you checked car insurance & life insurance are the best deals? Use a comparison site to see if you can get any cheaper and if you switch try to earn cashback from quidco or topcashback.



I think you should be able to cut out £187 to mean you can meet your minimum payments?

chevalier

bascially what tixy said. good luck with your debt free journey
chev

debtfreein5

Hi

I did some work on my fuel costs and have got them down to £110 pm - I had used estimates all last year which is why they had been so high!

My Husband pays the rest of the mortgage and all other bills.

Thanks