my sorry soa - what to do?

susie76

Right, here it is:
egg loan 3300 - 300 pm
cahoot loan 620 - 192 pm
beneficial finance loan - 3800 - 148 pm
mint credit card 3850 - 100pm
morgan stanley card 1000 - 25 pm
halifax card 1750 -35 pm
as you can see, i am paying 800 pm in debts - but my income is 1120! I need to reduce my debt repaymets by at least 300, pref 400 pm. i tried to get all my loans put into one but was refused (credit rating not great - high credit to salary, plus one annoying default - in a nutshell an RBS debt i thought was sorted - got letter from debt collection agency two months ago out the blue - at the same time it appeared on my credit file as a default) Egg have said i can change term of my loan from to five years, which will save 200 pm, i want to do the same with choot - but i have missed this months payment. I have been getting gradually ore behind and it came to a head this month and i couldn't pay everything. i phoned cahoot and asked if i could take a one month break - they said no, i asked if i could re take my loan over a longer time - they sad yes, but not until i have made the missing payment - i can't do this- i don't have the money. Seriously wondering now if a DMP woth CCCS or similar might now be thebest option, but was hoping to avoid this. Can't extend OD to make cahoot payment, or borrow from family. Help!!

lynzpower

Hi there Suzie
Welcome to DFW!

You havent listed the APRS of your debts.

Also you havent told us much about what other outgonigs you have. This is where we can save you money. Have a look at martins budget planner at the top of the page, and couple with Southern Scousers first time posters sticky and do a full SOA with literally everything you lay out for, how much it is and with whom

All the best and a big :hello: from me

TallGirl

Do a SOA and then call Payplan, they will quickly assess if they will be able to help you and then they call you back for further in depth advice. Once you have gone through their SOA they will advice you on your best options and tell you how long it would take to pay your debts of in a DMP. This si of course free and you do not have to proceed but at least you will have explored this option fully.

You may wish to avoid doing a DMP or IVA but if your a starting to rob peter to pay paul you may be getting in too deep. Your creditors and more likely to listen to any repayment plan if you do it now before you miss anymore payments. It will also save you in charges.

All the best and good luck.

susie76

myy other outgoings are (thank god) pretty low. 285 pm for rent and bills (my partner pays most of these) 35 mobile, 44 gym, about 150 for food (my partnera and i split that 50/50, we're not greedy, we have 2 kids!) the only bigger expense is 285 every 4 months for my daughters drama. i did a budget using the online ool, but apart from debts, there aren't that many savings to be had (the gym ,i know, but i need something nice!!)

lynzpower

Gym and Phone, lets face its 80 a month that is being spent on gym and mobile phone. thats a hell of a lot of money to be spending on luxury items every month for someone with your debts and your income.

Also you have got big loans? How come? Did sometihng happen or was it just overspending? If overspending and you are anything like most of us, you wil have excess gear in the house that can be sold, you kids clothes, clothes, CDS and so on. Ive rasied hundreds since I started selling a few motnhs ago, it IS worth doing.

Until recently, have you been missing payments? I suspect that in time you can move to 0% APRs but only when you have been working at chipping away.

Have you cut your cards up?

JAMIEDODGER

£300 is still quite a lot for 4 people.go over to old style board to reduce your grocery shop. I currently spend about £40 per week that includes food, cleaning products and nappies

susie76

not sure of all my aprs - cahoot around 8%, egg about the same, beneficial enormous (took it out at a nother point when my credit wasn't great), halifax and mint about 14%, morgan stanley still on 0%. I will be switching to a pay as you go mobile at the end of june when my contract runs out - i'll spend less if i have to put credits on it - but i need it to be contactable for work. Gym is admittedly a luxury but i don't have any others really - i don't smoke or anything. The beneficial loan was to move house (even renting it seems to cost alot), and pay off a credit card. the egg loan was to replace an egg card, and cahoot was to pay off cards. Obviously credit cards and me don't go, and i have cut them up and will NEVER hav another - but, in my defence, it hasn't all been lots of luxuries - i put a flight one on, and went out for dinner a few times i shouldn't and bought a few clothes (but not expensive stuff), lots was dental bills, childcare when i couldn't pay it any other way, stuff like that - had some rough financial times when my ex stopped paying maintenance for my daughters, and other times just spent more than i earned i guess. Learned my lesson though- DMP ruining my credit rating doesn't bother me does i don't want to ever have debt again once i have paid this lot off. Am hoping to reclaim bank charges though - have sent DPA letter, waiting for list of charges, but i reckon in total 2-3000, so that could pay something off.