Caught in a web of Debt

foley_n

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Hi everyone, I'm just after a bit of advice.....

I have a credit card up to it's limit of £5,000 with a minimum monthly pymt of @ £130pm, intrst at £95.00pm, so there isn't much chance of reducing the balance in the near future.
I have a £3,000 overdraft which I'm trying to pay off each month as well.
I have a personal loan which has another 3 years to run, obviously when this is paid off I will use the extra money to clear off the card & the overdraft but I'm after a quick fix.
I tried to get extend my loan but was refused and was then turned down for another couple of loans with various companies (this didn't look good on my credit report).
This has then gone against me when I have tried to get a bal transfer.

Any solutions?????

lynzpower

Hi and welcome

IN order to offer the best advice we will really need to have a look at your SOA, check out Southern Scousers pinned "for newbies" that will help you to do an SOA. SoA is a statement of accounts, monthyl, so we ca nsee where you can cut back etc

What APRs are your debts on?

Lynz
x

lynzpower

Sorry I meant, click here, it will tell you all you need to know about the SOA xhttp://forums.moneysavingexpert.com/showthread.html?t=107280

ms_london

Could you call your cc and ask them to reduce the interest? Say that you've been offered another card & are thinking of moving? Call their bluff...

If this fails & you cant get a 0% card ((I couldnt when I was in debt)), then you will have to throw as much at the card as you can to try and make a dent in it.

Could you post a list of your incomings & outgoings? Could you afford to pay any more each month? Perhaps by posting a SOA we can advise you on where to save money without you even realising it (sometimes it takes a fresh pair of eyes to notice obvious errors/ways of saving)..

Is interest being charged on your OD? What %? Could you reduce this each month too?

xx

foley_n

Thanks ms London

Income & Outgoings - Rough estimate per month

Income £1200 Net

Cred Card £130
Loan £130
O/D £50
Mobile £30
Petrol £100
Mortgage £750
Bills £250??
Sky £52
Food £350
Nights out £200
The bills are split with my wife obviously but she has just gone back to work after having nearly a year off (maternity). We now have a 7 month old baby girl (doesn't come cheap), so it does all add up.
I don't know how much the intrst is on my o/d but I do need to find out.

ms_london

Thats alright. Its a bit quiet on here - going home time I suppose :0) I am sure people will be along with some helpful advice soon....

If your wife has gone back to work, & you say that you split some of the bills, it might be worth doing a joint SOA (and you'll need to take into account any child allowance, tax credits, child care outgoings etc etc)..

If you could find out EXACTLY how much you pay each month it would be very handy..

Bills £250 - could you break this down?

Food - far too high!!?? You could perhaps halve this..

Nights Out - £200? Consider yourself priveledged :0) - cut this be cut?

Sky - could you reduce the package you use or get freeview?

You have a car, what about car insurance/tax/MOT/servicing? What about budgeting for holidays/birthdays/christmas/savings? Do you spend anything on clothes?

If you could check the APR on your debts - are there any early repayment penalties on the loan? Could you take a payment holiday (and throw the additional £130 a month at your card?)..

What are the balances of your debt?

Does your wife have any debts? Are your aims to be debt free? Or just get better control of your finances?

Hopefully this will give you something to think about - but well done for posting. The first step is always the hardest.!!

Ms_London

lynzpower

Hi there

You could do with checking out what each of the bills are, for example phone needs to come down. Getting a handle on your debt ( and I know how hard this is ) is working out what you are laying out for your bills, your food, the lot.

YOu havent mentioned quite a lot of stuff like rent, baby products, clothes for you and your Mrs etc.

When youve had a look over it, come back to us.

Lynz
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