BIG Debt - Enough disposable Income - No help!!

johnnybb2000

Hi,

Usually use this site for vouchers!! Great site isn't it but....

I moved home at the height of house prices to a property which, in hindsight, was a little out of our price range and needed refurbishment. This was two years ago.

The refurb was completed in 19 weeks - to plan but not to budget!!! Now I am left with £18346 worth of debt - not all attrib to the house but nevertheless, "I am where I am"...

I have created a financial plan, I understand my monthly income / outgoings / commitments / risks etc. but, am struggling to contain my developing problem. Can anyone help?

In summary;I have £19k of debt spread across multiple credit cards with varying APR (some 0%, some 15%, one 25%). I have attempted to consolidate to one credit card but cannot get the credit limits until cards are closed, I have investigated (but not committed to protect my decent credit rating in the event of refusal) an unsecured consolidation loan however, interest rates are obscene and now starting to get really anxious in the event that the Risk that the debt will become uncontrollable becomes an Issue (due to CC introductory interest rates end while I am trying to sort things out!!).

Does anyone have any sound advice please? If Iwas to get a £20k loan at 5%APR I would have over £1000 disposable income per month and I don't know why I am struggling so much.

Any advice or practical advice would be gratefully received. I guess "Martin" himself is too busy now he is such a legend!!! :-)

Kind REgards,

John

ghostmadlittlemiss

I wouldn't do the loan, you'll pay more in the long run and are more likely to rack up more debts with all the spare money. Can you pop us a Statement of Affairs up please? The link is here: http://www.makesenseofcards.com/soacalc.html Sorry for the quick post but I'm running late for work.
Kayleigh

getmore4less

SOA is the starting point.

GeorgeUK

I agree a SOA would help.
The minimum payment on your debt is about £550pm @ 3% minimum payment. If you have £1000 available for repayment, this shouldn't be a problem. I can understand that you want to pay as little interest as possible but if you are starting to struggle to meet the minimum payments, there must be something else that is eating up that money.

Have you got any creditcards open that you don't use? You may be able to get a balance transfer offer as an existing customer - either 0% for 6 months or a low interest for life of balance deal. These usually don't require a credit check either so you won't need to worry about that. You can usually have about 3 credit checks in a 6 month period before your credit score is affected. Even if you don't have good limits on some cards, it's better to make use of what you can and try for a limit increase a few months later (just before you clear the card)

bargainbetty

You might not need to consolidate all to one card.... call all the card providers and ask for their lowest life-of-balance transfer rate. Then look at the smallest card balance, and empty it onto other cards. Then go back to that card, and fill it up on a low interest rate. Repeat as necessary/possible. OK, you still have the debts, but you're paying a lot less in interest.

I would agree though, an SOA would be a great start, and lots of people will help!

Good luck x

gfplux

Make out your SOA (link - http://www.makesenseofcards.com/soacalc.html ) Try not to guess at the figures, dig out the paperwork! However remember a partial completed one is better than none. It is in fact one of the most important things you will ever do to start on the road to recovery. If you want a lot of help on this forum, posting your SOA is the first and most important step. After it is done it is very easy to keep it up to date. In my opinion everyone should have an up to date SOA even if you have little or no debt. It is a great tool to manage your life with.
If you post it on the forum answer the obvious questions before they are asked so you get immediate feedback, such as :-
If you have other Income explain what it is
Mortgage – interest only or not.
What is the age of any children.
Council tax over 10 or 12 months.
Electricity and gas any arrears.
Water rates meter yes or no.
Mobiles, how many and when are the contracts up for renewal.
If no contents insurance is it include with buildings insurance.
If your pets cost money, what are they.
House or flat value, has it been valued by an Estate Agent and when.
The more you can explain about your financial figures and circumstances the quicker you will get advise rather than questions.
When you have posted it and it does not look right or you want to change it, do so and repost it.

engleby

We know how you feel have got debt on various cards and like you the 0% have run out. Can't get any other loans have tried and refused as we have already got too much unsecured lending. We have £180,00 equity in house and can't even release any of that like you don't know which way to turn but the suggestion of asking existing cc lender to switch to a balance transfer without a credit check sounds like an idea we are only paying the minimum on all cards and making no progress

johnnybb2000

Ok... I think I need to "SOA" then... Listen, thank you so much for all of you taking the time to reply... and so much info. Seriously glad I posted and now gonna SOA. As I type I actually don't know what SOA is, but I am sure I will find out with the links provided.

Can't thank you enough, I will post again after SOA.

Kind Regards,

J

johnnybb2000

OK, just looked at SOA and actually done all that in Excel.... I have also found out how much interest I am paying on each card and can prioritorise... Crap thing is, I am not disciplined to keep managing it on a month on month basis therefore, I guess I am better off seeking professional help. Any suggestions please?

J

tealady

If you are bad at managing then you need to set budgets for EVERYTHING. Use direct debit where ever you can. Open up separate bank accounts if you must.
Then NEVER carry more than one card, and use that only in direst emergency.
Work out a daily budget and only carry that amount of cash with you, say to yourself when its gone, its gone.
If there is a bit of cash left at the end of the day, throw it into a pot and use it to pay off a card.
I am hopelessly organised with money and find direct debits work for me, also online banking means I don't have to go to a bank or ring anyone to pay irregular bills.
Hope this helps

gfplux

Hello Johnybb2000,
What do you mean professional help.
Do you mean a Doctor or Psychiatrist.
let us know.