Encouragement and help required please :-(

moneyexpertiwish

I've completely screwed my finances by overspending and too many nights out and bad habits. I'm now in a real jam and need some help and encouragement.

Here's my debt and plan.

1. £7,500 RBS loan (consolodation of 2 loans and overdraft). Payment = £201 per month commencing today. Rate 13.9%. Previously had 2 defaults.
2. £3,000 - Credit Card at 17.9%. Paying minimum of £75 per month. 1 default - Their error trying to take a DD I cancelled but accepted no responsibility.
3. £240 - Littlewoods - 2 defaults. Payment plan of £80 per month for 3 months commencing 07.11.2009.
4. £200 - o2 - Big bill from abroad. No plan, been making small payments but has defaults 2/3+. Contract cancelled.
5. £410 - Payday loan - due 16.11 (paid 550 to payday today).
6. £1000 - Due my mum.
7. £400 Dentist bill on grans credit card. Currently paying £20 interest per month.

I contacted yes loans and paid a £70 broker fee today to attempt to get a loan of £1,250 over 2 years to pay off the short term expenditures.

I'm being sent forms from a company called moneyworries who will pay £4,000 of my debts including the CC, payday loans, littlewoods and o2. Got a little sucked in but what they've offered is below.

The repayment is £150 per month over 32 months. I'm financially savvy but just waste money stupidly. I've done my calculations and the rate is 13.50% over the term which I'm pretty impressed with. However, I've got a feeling that there is some kind of catch.

They've advised not to pay my debtors just now and they will send me an agreement to act form which means they will deal with them and pay them off.

The first 2 payments are £200 and will reduce to £150 with the £100 being taken off in the last couple of months of the loan.

I currently clear £1,440 per month.

I have shares totalling £1,400. However, I have matching shares through a company scheme and if I cashed them in it would mean I would forfeit £1,400 worth of shares for selling just now.

Any encouragement, slap in the face for a reality check, slap for going to the broker and getting sucked into the above payment plan which appears great on the surface (the company is moneyworries).

I believe I have a cooling off period of 14 days and can also get my £70 back if I send a request in writing to yes loans (but that might be if they couldn't find me a loan rather than me rejecting one).

I think I've got all bases covered but am still worried.

I'm due to go away next weekend and am meeting people (been planned for months) and I need £250 to go. I could cancel this but I know it's going to upset some people.

Any encouragement / tips are welcome.

RAS

Hi

At the most basic readsing, this is not going to sort your problems. All you are doing is spending a lot of effort and money moving the debt around. You are not paying off any debt.

Do a proper SOA http://www.makesenseofcards.com/soacalc.html

Then we can help you for effectively.

gfplux

You mention a slap in the face, well...............................
Examine yourself, is this really your “light bulb moment.” Do you still think you will win the lottery? If you find plenty of reasons and excuses not to act immediately then the bulb has not come on properly. Do you really want to get out of debt. If you can not do without (this is a general list) - A Sky contract, Mobile Phones, Two cars, Bingo, Music lessons, Lottery tickets, Air fresheners, Cloths for a year, Charity contributions, Savings for a child, Presents, Holidays, Weekends away, Fitness/Sports Membership, then again the bulb has not come on properly. That's not without mentioning Cigarettes!


Good Luck

moneyexpertiwish

gfplux wrote: »

You mention a slap in the face, well...............................
Examine yourself, is this really your “light bulb moment.” Do you still think you will win the lottery? If you find plenty of reasons and excuses not to act immediately then the bulb has not come on properly. Do you really want to get out of debt. If you can not do without (this is a general list) - A Sky contract, Mobile Phones, Two cars, Bingo, Music lessons, Lottery tickets, Air fresheners, Cloths for a year, Charity contributions, Savings for a child, Presents, Holidays, Weekends away, Fitness/Sports Membership, then again the bulb has not come on properly. That's not without mentioning Cigarettes!


Good Luck

I think it is. I've worked out that since I started working about 7 years ago I've !!!!ed about 50k on nights out, holidays, weekends away and have about 12k debt.

Don't think I'll win the lottery.

Have a car worth about a k that's off the road and needs new tyres.

Don't have Sky, sports membership or a mobile contract and certainly won't be going anywhere on holiday!

I'm basically a waster and have completely donald ducked all of my finances.

Can you advise on what you think regarding the moneyworries loan I've been offered?

I was paid £1,740 today and I have less than £100 and am paid monthly. :embarasse

Kandipandi

As RAS said you seem to be shuffling money rather than dealing with it directly.

You mention your defaults so I assume you are not wanting to further damage your ability to get credit in the future, however with the defaults you have listed it looks like you are already on this road.

I would suggest posting a SOA and lots of people can have a look and give some advice, you may think you are financially savvy but sometimes it just takes a fresh pair of eyes to see something you have not.

Post it up and then you can be better advised.
Well done for deciding to do someting about this (even if it not necessarily the right thing)

moneyexpertiwish

Summary of Monthly Income, expense and surplus

Total monthly income: £ 1,440
Expenses (incl. HP & secured debts): £ 357
Available for debt repayments: £ 1083
Unsecured debt repayments: £ 696
Surplus (shortfall if negative) £ 387
This month (additional £300).

Personal Balance Sheet Summary
Assets: £ 2400
Secured & HP Debt £ 0
Unsecured Debt £ -12,890
Net Assets £ -10,490


Here's my own info based on the minimum expenditure at the moment.

I've started cycling to work so transport is now next to nothing.

Salary1440
Loan201
Digs130
Mum100
Thomas Cook80
Littlewoods80
Provie60
Car insurance40
Contact Lenses25
Contract Mobile Phone20
Cancer Research2

Expected Remain…702

I've had some other bad habit expenditures which I've now erradicated but I'm struggling to see how I can get through the next few months without getting into more debt.

My car is worth around £1,500 but has two burst tyres so I'd have to let it go for £1,000 so that someone will buy it and replace the tyres.

When I get paid next montg I'll be left with around £200 but I'm going to have to borrow to make it til then which is just going to keep knocking on.

I need to get out of that cycle. I've cut the nights out to virtually 0. The only way I've been able to get from month to month has been with the payday loan lately.

EDIT; I should add that I've got an impending court case for an unpaid parking fine. It started at £30, to £60, to £90 so I'm expecting to get hit with a +£100 when I get to court. :-(

Moneytroubles_2

Hi, I really dont want to put a downer on you but im talking from experience, when looking for loans I would always search for customer reviews online, and NEVER pay a broker fee.

Myself and OH tried to get a loan and went to YES loans, we paid the fee and then we were cut off, we kept phoning back and everytime got cut off then when i searched reviews i realised they are not a well reviewed 'company'. I sent a letter of complaint and luckily got my brokers fee back.

This was when my light bulb started to flicker.

Good Luck to you xxx

Kandipandi

I think it might be better if you do your actual full SOA with all figures included. Maybe if you try to do it again so that its clearer you will get a better response.
You have a car but no mention of fuel or running expenses (if it was on the road), a home but no insurance/council tax utilities etc. A fuller picture will help people give you the best advice.

moneyexpertiwish

Kandipandi wrote: »

As RAS said you seem to be shuffling money rather than dealing with it directly.

You mention your defaults so I assume you are not wanting to further damage your ability to get credit in the future, however with the defaults you have listed it looks like you are already on this road.

I would suggest posting a SOA and lots of people can have a look and give some advice, you may think you are financially savvy but sometimes it just takes a fresh pair of eyes to see something you have not.

Post it up and then you can be better advised.
Well done for deciding to do someting about this (even if it not necessarily the right thing)

All my defaults have been in the last two months. If I default another month or two is it going to have a big impact?

From what I understand they're there for 6 years so another month or two isn't going to make any odds is it? I understand that's not the right way to look at it but I can't afford to live atm.

moneyexpertiwish

Kandipandi wrote: »

I think it might be better if you do your actual full SOA with all figures included. Maybe if you try to do it again so that its clearer you will get a better response.
You have a car but no mention of fuel or running expenses (if it was on the road), a home but no insurance/council tax utilities etc. A fuller picture will help people give you the best advice.

Hi,

Sorry, need to leave work just now and will post the detail tomorrow.

The car is currently off the road and I just pay my rent to my mum so don't have any additional costs.

Kandipandi

Defaults can be moved up the line IYKWIM, if you have 2 defaults and then 12 good payments the 12 good payments push the bad ones off the list - not necessarily 6 years.

I was thinking that if you have a load of debt and cant afford to live you could perhaps consider a debt management plan with CCCS or another free company. But if you are not wanting to further hamper your credit 'rating' then this may not be the best idea.

Saying that, perhaps not being able to get any more credit may be the best option for you, deal with the credit you have and get help to pay this off, but another loan is just not the answer in my humble opinion.