First time poster - long time debtor

Caddy1

This is my first post so I hope I do it right!

Like everybody else here I need help with my debts. I'm always scraping through till pay day and I don't think I'll ever be debt-free.

This is my SOA (is that right?):

Outstanding debts:
Natwest - £2000 overdrawn (APR 17.73%)
Alliance Leicester - £600 overdrawn (£5 per month charge)
Alliance Leicester loan - £4444.81 (APR 11.44%)
Egg card - £2154.75 (from balance transfers) not sure APR
Barclaycard - £3122.55 (APR purchases 6.80% and 15.80% cash - I once took out £70 on the card)
RBS - £96 overdrawn

Income: £1314 per month

Outgoings: Rent (including electricity, food, etc. I have a joint account with my girlfriend) - £550
Loan: £108.41
Natwest: £50
Barclaycard: £70
Egg: £100
Fuel: £160

I've cancelled my magazine subscriptions and checked my Equifax and Experian credit reports but can't see any problems - except on the linked address they've got an address wrong; I've contacted Equifax about it.

Any advice would be greatly received. I've opened a new bank account with Abbey for the 0% overdraft but haven't got all the paperwork yet.

I'm going to try for a 0% balance transfer card today and look into another loan to pay off the Alliance Leicester one (and cover the Natwest overdraft). My main concern is that if I don't get them, I don't know what to do.

Caddy1

GeorgeUK

Slow down a little.
You can usually have about 3 credit checks in a 6 month period before your credit score is affected. Too many applications close together may make you seem desperate for credit and therefore a higher risk.

I suggest you fill in a full SOA (for expenditure that you split with your partner, write a comment beside the entry once you post it here)
http://www.makesenseofcards.com/soacalc.html

There may be other things that you can tackle as well as just the actual debts - you may be able to make savings in your expenditure.

Have you looked into reclaiming bank charges or Payment Protection Insurance if it was missold?

Marthasdad

Are you sure more borrowing is what you need?

I did this some time ago and foolishly never cut up the cards I was paying off, thus running up more debt and getting myself in an awful mess.

Please don't try and borrow your way out of a financial squeeze - take it from me, it feels great in the short term (as you have some money) but after a while, you get to the stage where you realise you're living off credit and that is damn frightening!

Have a good think and listen to all the good advice that is on its way.....

Good luck.

jo1972

Hiya Caddy1,

Just thought I'd pop in to say welcome

Listen to the advice you are given on here, there are lots of people with valuable tips to help you. I definately personally wouldn't go down the route of getting more credit. I know that a consolidation loan can feel like a weight off your shoulders and it's nice to be paying just the one company and the one lot of interest rather than numerous different ones, but that's only if you are confident that you will actually pay off all the original debts and not do like I did which was get a great big loan, spend most of it and leave nothing to pay off the other debts and ended up just adding another loan to the list. It's very easy to do, so beware of that trap.

Good luck x

Marthasdad

Exactly what I did Jo1972 - uncanny when you realise you're not the only one who made these type of mistakes!!

david_hellier

Hi and welcome,

The others will I'm sure advise on cutting back. Right now though you need to put the brakes on spending to avoid getting deeper in debt.

According to my figures you have £56.03 per week to spend on yourself each week.

Write this amount a spending diary on a Monday and, using receipts, deduct as you spend through the week. Try to get to the end of the week leaving some over to carry forward to the next week. This has the effect of keeping your overdraft down and avoids overspend.

Good luck, the figures. Keep all repayments at a static level, never the minimum and stop using credit cards for any more spending.


income
self1341.00
partnercbtc
total0.001341.00
divide by 4.33 £ 309.70 £ 309.70 total weekly income
spend
rent/mortgage550.00
council tax0.00
elec0.00
gas0.00
water0.00
secured loans0.00
TVlicence0.00
fines
od120.00
od140.00
loan108.41
natwest50.00
bcard70.00
egg100.00
fuel160.00
total 1098.41
Start= income - spend = £ 56.03 per week

jo1972

Marthasdad wrote: »

Exactly what I did Jo1972 - uncanny when you realise you're not the only one who made these type of mistakes!!

There are a lot of us out there Marthasdad, I think also there is the buzz of being accepted for credit for the consolidation loan in the first place, plus you always ask for an extra grand on top so that you can 'enjoy' yourself. I went down this route 5 times before all avenues of finding credit had closed up and I was left with debt all over the shop.

Saying that, for some people, I do think if it's possible to consolidate AND you are sensible, then it can be helpful. I'll probably be flamed now but also saying that, out of 10 people, there are probably only 2 that would be sensible enough to make it work (unforunately I was in the majority)

Caddy1

Thank you all so much for you're replies.

The problem I've got at the mo' is that I've got to go to Italy for my sister's bloody wedding. So need some money for that.

Do people think I should just not use the credit card and pay out each month? Won't this mean I'm paying off the debts for years?

It's so confusing.

david_hellier

If you can't afford to go to your sister's wedding then politety tell her so. It's not an issue. Consolidation of debt is a slippery slope. Pay off ccs with a fixed amount each month (so or dd) NEVER the min payment. Cut them up.