help!

regret70

Hi

where do i start? i am 25 years of age and have up until christmas last year always been careful with my money and hardly in debt. now i owe approx £16000 and i dont know where to turn. I would be able to pay off my loans over the next 3 years but am in my overdraft and this is going to make everything very diffiuclt for me as i will just be gettign further and further into debt. my husband doesnt know. I have been so stupid and applied for so many loans i have now got a very poor credit rating. i wonder whether it is worth consolidating my debts? but dont know where to approach as i have a poor rating

any help will be gratefully appreciated!
thanks

Marthasdad

Well done for getting on here and recognising the problem before it gets out of hand.

You need to do a Statement of Affairs (SOA) so the really good people on here can see what you can afford to pay towards creditors.

In my opinion, consolidating can be dangerous (I have had experience of this) and it would be difficult to get a loan if your credit rating is really bad (and even if you did, the APR would likely be too high to make it worthwhile).

What you need to do is get the monthly budget together and work out what you have left for your creditors - only then can you start to sort it out but don't worry, you will sort it and it will not seem so bad when you're back in control.

Good luck!:T

BeautyandtheBeast_3

Hi and welcome!

first things first you are best to post a SOA (statement of affairs) so peeps can help you out xx

regret70

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2

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................................ 310
Secured/HP loan repayments.............. 145
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 40
Electricity............................. 20
Gas..................................... 20
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 15
Mobile phone............................ 40
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 150
Clothing................................ 50
Petrol/diesel...........................100
Road tax................................ 10
Car Insurance........................... 40
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1027


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 2000
No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly.. .APR
overdraft......................1600......100....... .17
loans.................... 16000.....550........various!
Total unsecured debts..........17600......650........-


Monthly Budget Summary
Total monthly income.................... 1850
Expenses (including HP & secured debts). 1027
Available for debt repayments...........
Monthly UNsecured debt repayments....... 650
Amount left after debt repayments....... 173

Personal Balance Sheet Summary
Total assets (things you own)........... 2000
Total HP & Secured debt................. -4000
Total Unsecured debt.................... -17,400
Net Assets.............................. -19500

i feel sick

Marthasdad

Are you sure your Council Tax figure is right (£40 per month) - this seems really low?

regret70

thats half of it, my husband pays the other half

thanks

Marthasdad

It might be best to do your SOA to include all your income and expenditure for the 2 of you.

However (and I'm no expert) - it looks to me as though, if this is your income and your half of the household expenditure that you are managing to meet the required payments on your debts - the thing to do is stop any credit card spending and pay as much of those off each month as you can (as your credit position will probably mean you can't get another card with a 0% balance transfer rate) also keep up with the looan repayments.

This way, you are not making the debt any worse and will also do a lot to repair your credit rating as you are making the contractual payments and are not defaulting.

I hope this helps - there may be others with additional advice, so keep an eye on here for any other good ideas.

The main thing is, you are far from a dire situation - you've asked for help before it gets too bad and, with careful self-discipline, you should be able to get out of the situation.:j

Tixy

Hi and Welcome

You are showing a surplus after debt repayments of £173, do you have this money? What are you spending it on?

More importantly what have you spent £16k in less than a year?

regret70

thanks,

i don't have any credit cards so i guess that is something, but i just desperatey want to clear my overdrafts so that i can get back to some normality, and pay off the loans.

thanks