It's getting worse and worse...help! EW

elliewild

This is my first time diary, i didnt even know this place existed, but im glad it does. i don't know what i'm going to do, everytime i think ive sorted something, it all comes tumbling down. I'm surprised im not that depressed - i try to look on the bright side, but its been increasingly hard.

i have about 12000 debt and im 25 and getting married on 31st July.
i just got a statement through the door saying that my loan is 17.65% (instead of the 7.9% reason why i took a loan) and it appears that although i took the loan out over 2 years ago ive only paid off £600. i rang them to query this and she said my loan was actually 19.2% (and this does appear on my loan agreement) but i was unaware. (i was also told that i needed insurance before they could do me a loan and so i took this out foolishly and realised -by looking on this site- that it was a con and cancelled it about 1.5 years into my agreement. they have offered to phone me back to set up a 9.4% loan (graduate loan) and said that id have to put over £5000 on it to get this rate (under £5000 is 12.9%) i know what your thinking - dont put another 1500 on! but she also told me that my 0% student overdraft expires this month (although noones contacted me about this) and i owe £2000 on that. she recommends adding this on to avoid paying interest on this at 17% on top of loan interest.

i would go with her suggestion, seeing as though i have no way of paying 2000 etc and wanted 2 stress free months (for the wedding) but i also feel like the loan was a mistake on the banks side - i feel like they have screwed me over and that i should appeal to have it wiped (if i go with new loan - that wont be an option) firstly because they tricked me into insurance and secondly because they offered a rate of 7.9% graduate special rate, which was actually 19.2%. and the fact that even though ive been paying £110 per month ive only paid off a tiny bit of my loan.


here are my SOA details (as a remember them - will be updated)

My wage £1200
Partners wage £800

total incomings 2000

Loan 19.2% (took out £4000 on 10th Jan 07 Natwest) term 60mths, repayment £110per month

Barclaycard 0% til mar 2010. £2800 (direct debit for min pay £55pm)

My Virgin £2000 0% till Aug 2009 (limit £2000)(direct debit for min pay £25pm)

Partners Virgin £500 (limit £600)(direct debit for min pay £25pm)

Natwest Mastercard £800 limit £800 (direct debit for min pay £10pm)

Natwest Student acc -£2000 overdraft 0% ends Aug 2009 apparently! wage goes into on last working day of month

Car payments (finance) £110 per month (direct debit)

Partners Argos

Partners Barclaycard 14.5% £260 limit £260

Mortgage £550 per month (direct debit)

Food £90 - £100 per month

Water £65 per month (direct debit)

Gas/Elect Scottish power £85 per month (direct debit)

petrol (for work) £75pm

total monthly outgoings £1210 (not including partners argos/barclaycard)

=790pm

elliewild

BTW im getting married in prague because its cheaper than here! costing about £2000 in total - will put up a rundown of my costs!

elantan

ok if i got this right you have £790 spare a month have you done a snowball yet? you say your partners barclay card do you clear that every month? do you clear the argos every month? do you keep a spending diary?...

congrats on the wedding


sorry loads of questions

Trying_to_be_good

The NatWest loan seems to be at about 22% if the £4,000 over 60 months at £110 figures are correct.

This may sound harsh, but how had you planned to pay the student overdraft back? Or did you plan to run it on paying interest on it? The Virgin card runs out in Aug, too - do you have a new card to transfer that to?

Do you know where the additional £790 is going each month? It'll obviously make a real impact on your debts if you can use it there.

elliewild

i am so proud, yesterday after i wrote i got out all my finances and looked through everything. To answer your questions, i had planned to move 0% debt to credit cards (via card tarting) however unfortunately i have been declined for cards and now have none to move the debt onto. The reason i didnt realise that my 0% student overdraft was due to expire was because they promise that they will give it to you 3 years after you graduate. i graduated first in 2006 but then did another year teacher training and graduated again in 2008 - so i presumed that it would go off this graduation.

Its been hard keeping track of my finances this year as its my first year teaching and i had to read up quite a lot on what i was teaching (its A level so quite in depth)

anyway ive discovered that actually my finances look as follows:

My incomings are 1200
Partners incomings 640

outgoings:

Barclaycard owe 2595.64 limit3520 £60pm 0% till Feb 2010 (then 14.9%)
Virgin E owe1995.21 limit2000 £25pm 0% till Aug 2009
Virgin J owe478.52 limit600 £25pm 1.2408% card purchase
Natwest MasterC owe 800 limit800 £10pm 15.756%
Halifax Visa owe0 limit350 18.95%
Natwest Student o/d -2000 2000 0% Till Aug when reduced to 1000 and 17%

John Barclaycard 200 260 14.9%
John Argos 400aprox

Natwest Loan £4000 £110.80pm 19.2% 60mths from 10th jan 2007
Car Finance £6000 £110.79pm

Food 100 -PM
Petrol 80 -
Mortgage 557.94
Water 69.54 every 3 months
Gas/Elect 80.50
Council Tax 91
Tv Licence paid in full when due
Telephone/Internet-john pays
Car Insurance 370 fully comp yearly Paid in full when due
Road Tax £35 per year Paid in full when due
MOT n/a

what i was paying it left me with £162.23 pm - no wonder i was poor! its hard to know bills that john pays because we try to keep our money separate to avoid arguments! i pay the majority as he's on min wage earning 640 per month

elliewild

reply to Elantan - what is a snowball? i dont clear johns b/c or argos every month - thats his job - i have enough to pay for without worrying about his finances too! especially as they are relatively small debts and he is unable to get credit because he doesnt earn that much.

and this is my first post on this spending diary, lets hope it helps me!

Trying_to_be_good

Well done for getting all the bits of paper together, and starting your SOA.

This is a brilliant thread for newbies: http://forums.moneysavingexpert.com/showthread.html?t=107280

It has a link to an SOA that is formatted to be easy to read - it will make it easier for others to help you if you can find time to redo (and add to yours) on this one.

It also has the snowball link - it shows the long term effect of making payments now - it can be very motivating!

What's your subject? There are lots of teachers who frequent different boards on this forum.