Husband has been declined a Post Office C Card but has good credit?...question...

ILW

PrincessJR wrote: »

thanks for the advice.

obviously upping our income would be great, but at the moment, it doesn't seem realistic. Consolidating our debts WOULD lower our outgoings, but I know what you're saying. Ideally if we could, I would prefer NOT to get new credit, but the interest on the credit cards means that when we pay £65, we get charged £60 interest...so frustrating!

I have just read about Ocean Finance. They could offer a secured loan of £10k at £230 per month repayment. That would be considerably less than we currently pay out, and is over 5 years. Also, they allow you to repay whenever you want, and you only pay 1 months interest as an early repayment charge.

I dont like the idea of it being secured on our home, but we do have Income protection insurance so if we were out of work, this would cover the repayments.

Cant decided if it would just be a short term answer though?

I believe Ocean Finance are a sub prime secured lending operation. You would be putting your home at risk.

CannyJock

You'd be paying back £ 13,800 if you go down that road, and secured on your house .... wouldn't be my first choice.

As other have said, I must be missing something. £ 10K of debt on a £ 47K income isn't a life and death situation.

I've helped a few relatives do Martin's money make-over and they've cleared a lot more than this back in less than 5 years. Can't recommend it highly enough.

Sounds like a year of tightening the belt and you can sort yourself out of this.

stephane_2

So to summarize:
- You earn £47,000 between the 2 of you
- You are already on a DMP for the last 2 years
- You can only afford the minimum payment on your credit cards

well, I really think that you need to look at your finance again. Have you taken any more credit since you started your DMP? I feel that taking more credit to pay for your actual debt is only a short term solution. Why are you not trying to re-negotiate your DMP to include your credit cards?

PrincessJR

The credit cards are my Husbands, whereas the DMP is soley mine from before we were married.
We have used his credit cards to pay for the wedding and other bits as I have been unable to obtain credt (DMP).

I think the reason we are stretched financially is our mortgage payments are £1000 per month. With all the other bills on top (C.Tax, Gas, Elec, Water, Phone, Internet, Sky etc....), then our credit cards AND my DMP we find that we dont have any spare cash at the end of the month to overpay on anything.

I think we need to sit down tonight and go through absolutley everything, how much we pay, APR's, the works!

I dont think my DMP would accepy my husbands credit cards even though we are financially linked?
Even if they would, we would be reluctant as at the moment the only account we/I have defaulted on is my Loan (which is now the only item left on my DMP) and wouldnt want more than 1 credit acount in default.

I think its safe to say you have all convinced me that a Consolidation Loan IS NOT the way forward, so thank you.

mum26

Can you get your internet and phone at a reduced cost through sky? our broadband is free through them and our phone is about £15/20 with the anytime package thing (they do cheaper options but we have children plus teenager in the house ) x

stephane_2

What is the outstanding balance on your credits cards? is it a high one? what are the interest rate?

Inactive

mum26 wrote: »

Can you get your internet and phone at a reduced cost through sky? our broadband is free through them and our phone is about £15/20 with the anytime package thing (they do cheaper options but we have children plus teenager in the house ) x

More importantly, do you really need Sky?, I live quite happily without it.;)

It would be the first thing I would get rid of if I was struggling financially.

PrincessJR

Our area is out in the sticks and we dont get any other reception - we have no choice but to have sky!! :-(

Wish we could do without it