Help please

Lauren86_2

Im 23 and when I was about 19 i was crazy for going out and got a £5000 loan with high interest to pay off an overdraft and a few car bits and basically blew the rest and also have an overdraft of £2500. And i have car finance every month that costs £150.

I still have a year and a half left on my loan and i am really struggling to save at the minute.

Im trying to save for a trip to see family in Australia next November and after that myself and my boyfriend want to get a mortgage. At the minute this all seems impossible.

My bank phoned me today and i have a meeting next week with a financial advisor and they have suggested getting rid of the overdraft with a loan and paying one monthly payment.

I can afford to pay about £350 a month to clear all this various debt (inc my car finance).

What do people think about getting loans etc to do this?

I am also tackling my spending and reducing this each month gradually but its a lot harder than i imagined because i tend to spend money without thinking. My boyfriend and i have come up with a spends system

TIA for any advice

misspoppy

Hi

This isn't generally regarded as a good idea as many people continue to spend on credit cards and overdrafts and in a couple of years end up with twice as much debt as they had. I realise you want to move on with your life but you have to pay for what you've spent. You should also try keeping a spending diary, noting down every penny you spend and you will see how much money you waste which could go towards saving for your holiday.

GeorgeUK

Could you post up a SOA so we can see if there are any areas in your expenditure that you can save on or if a 0% card may be an option?

Lauren86_2

Sorry im new to all this. What is a SOA?

woohoo_postingid

You need to bear in mind that a bank is there to make money. They are not interested in helping you unless it helps them too.

miss_spooky

Hi,

SOA - Statement of Affairs - use this link, put in all the details honestly, select the MSE format button & copy & paste into your thread her.

http://www.makesenseofcards.com/soacalc.html

I'll just echo what the others have said. If you have £350.00 spare to pay this loan, you could use that to clear your debts. You also say that your loan finishes in 18mths, with a new loan it will be over a longer period.

gfplux

Hello lauren86,
Make out your SOA and post it here. (link - http://www.makesenseofcards.com/soacalc.html ) This will automatically total the numbers. It can be saved (see the help) and you can change it every day if you want.
When making out your SOA (Statement Of Affairs) 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 there is “other” Income explain what it is
Mortgage – interest only or not.
What is the age of any children.
Council tax is it 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 pets cost money, what are they.
House or flat value, has it been valued by an Estate Agent and when.
The more that can explain about the financial figures and circumstances the quicker the post will get advise rather than lots of questions.
When you have posted it and it does not look right or you want to change it, do so and repost it.