Newbie looking help & advice!

purple81_2

Hi guys,

I had been recently looking for a loan to cover some debts so I could have the weight of owing so many companies lifted, but have realised that I should be simply tackling getting rid of them instead of getting yet another loan to pay them all off. Credit rating is terrible anyway so I think I can discount a loan anyway.

I have a loan (£5000 over 3 years) with my bank which I pay back at £182 a month (includes PPI) and I'm not worried about that so much, it comes out the 1st day of the month and I've been paying it for more than a year now so I don't even notice it anymore.

But I currently owe the following and am in need of some advice as to how I can better manage my money so as I am paying more than the minimum balances and actually getting the debt paid off.

Capital One £600 I pay £30 a month
Barclaycard £643 I pay £20 a month
Vanquis £500 I pay £30 a month
Simply Be £787 I pay about £35 a month
Evans £645 I pay £25 a month
Payday UK £500 I pay the min and carry it forward to the next month
Quickquid £250 as above
Payday Express £300 as above

Generally I find that each month I pay around £300 just covering min balances which is the reason I thought a loan to pay them all off would be beneficial and then I would just have one lump sum to pay. But as I said my credit rating is so bad I don't think I could get a loan, wouldn't even mind a high interest rate to get one but everyone I look at is a broker charging a fee and I'm not going down that scamming route!

I don't really know if I would be eligible for a DMP nor do I know much about them really, but I think that it would be easier if I gathered all these little debts up into one payment plan so a set amount was coming out of my salary each month.

To be honest I think I have sat for so long thinking 'oh sure I only owe such as such a small amount' and I really should have been looking at the bigger picture and the total amount of the debt!

Any advice to kick start my getting out of debt journey would be much appreciated.

Thanks x

Horace

Hi and welcome

Firstly don't consolidate your debts by getting a loan. Why not post your Statement of Affairs so that we can see what is coming in and what is going out - you will need to include APRs for all debts (eg cards, etc) https://www.makesenseofcards.com/soacalc.html (follow the instructions to copy and paste to MSE - removing the weblinks at the bottom as you won't be able to post these).

I would suggest that you contact one of the debt charities such as CCCS too - especially as you seem to have a few payday loans and these attract an extortionate rate of interest.

dannynixon

Can you do a full SOA so we can take a better look at your finances? Consolidation loans are generally a no no on here but we will have to see your money first!

Buffythedebtslayer

Hello !

Its great here, lots of people who are in the same position who have loads of tips.

You will be asked to post you Statement of Affairs (SOA ) which is all your incomings and outgoings so we can best advise you on how to use your money to pay off your debts. (I will find the link or whilst I am waffling away here some one will post !)

If you haven't missed any payments (have you checked your credit rating) and haven't applied for lots of cards or loans recently you might want to look for a 0% credit card to transfer your debts too?

In any case you want to get shot of payday and quick quid asap since they will increase the most quickly. I would definitely tackle them first.

How much money do you have after you have paid you essential bills and minimum payments?

xxxx

purple81_2

Thanks for replying so quickly guys! I have done my SOA and hope its right, tried to work out my spending as acurately as I could.


Household Information
Number of adults in household........... 4
Number of children in household.........
Number of cars owned....................
Monthly Income Details
Monthly income after tax................ 1202.33
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1202.33
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 150
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 20
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 15
Groceries etc. ......................... 60
Clothing................................ 20
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 120
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 20
Entertainment........................... 250
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 685

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Capital One....................500.......27........15.9
Barclaycard....................645.......16........15.9
Vanquis........................500.......25........34.08
First Trust Bank...............4651......182.......12.5
Payday Express.................300.......60........1286
Quickquid......................250.......50........2356
Payday UK......................500.......75........1286
Evans..........................540.......24........24.9
Simplybe.......................787.......30........39.9
Total unsecured debts..........8673......489.......-

Monthly Budget Summary
Total monthly income.................... 1,202.33
Expenses (including HP & secured debts). 685
Available for debt repayments........... 517.33
Monthly UNsecured debt repayments....... 489
Amount left after debt repayments....... 28.33
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -8,673
Net Assets.............................. -8,673

Here is a little background info too if it helps any, I live with my parents and my two brothers so I pay my mum £150 a month rent and chip in £20 a month for electricity. The money for groceries is stuff for my lunch at work mostly and a few toiletries etc. The amount for entertainment (which I know seems so high) covers socialising, ciggarettes etc etc I didn't know where else to put them.

Basically after I pay my loan and mobile/internet dd, my parents and my min balances I am usually left with £100 a week to live off. This might seem a lot but I spend around £30 a week on buses to work, £10-£20 a week on food/toiletries etc and £30 a week on ciggarettes (max) and then the rest is for going out, buying presents etc.

I am quitting smoking though, only on day 2 but its a start at least.

Thanks for all the help guys.

Buffythedebtslayer

Well that's a good start with SOA!

I am not very good at the prices of things and what not but here are my suggestions.

According to the SOA you have 28 pounds left -this should immediately on the payday loan/quick quid thing.

If possible I would do the following.

1. Get your credit report - go through Quidco https://www.quidco.com/ or some other cashback site - see if you have any problems/defaults that you weren't aware of.

2. Depending on the results of the credit check look for a 0%/low life of balance credit card to transfer as much debt as you can to lower the interest payments and pay off the debt

Right you must be VERY careful if you do this, you must always make the payment and you must always pay it off before the offer(say six months interest free )runs out.

3. Look for extra ways to save/make money.
Can you dog walk? baby sit? deliver leaflets? what do you have in your house you can e bay? can you garden? can you do over time? can you get a second job?

Internet wise have a read of the up your income board on here it is brilliant.

Can you walk home once a week and put the money towards the debt? can you buy cheaper toiletries?

Its hard but its less miserable then being debt and panicking about it all the time.

Its all about looking for ways to do stuff cheaper and ways to make money No amount is too small it all helps.

Hope this helps

xx