Any Advice Appreciated

pinkness

Hi All,

Am new to this site having had my 'lightbulb' moment which was very scary and embarrasing but just wondered if anyone can advise me.

I have spoken to the cccs today who have advised a dmp however I was wondering if there was any other way around this. My debts are as follows:

Natwest Credit Card
Owe £7409.17 limit £10000 min payment £170 (inc payment protection)

MBNA Card
Owe £8820 limit £11600 min payment £157

Goldfish Card
Owe £7235 limit £9750 min payment £163

Egg Card
Owe £2399 limit £2400 min payment £50

Alliance & Leicester Loan
Owe £4953.39 monthly payment £235 (inc insurance)

Natwest Overdraft
£1000 limit is £1600

TOTAL MINIMUM PAYMENTS ON DEBTS PER MONTH = £775

I take home £1007 per month and my outgoings are £500 leaving me £500 to pay my debts therefore I currently have a shortfall of £275.

Just wondered what you guys think to me increasing my personal loan as much as possible to pay off as much of the credit cards as possible (the current A&L interest rate is 5.9%) and then doing the credit card shuffle to get the lowest interest on the remaining card debts?

If anyone has time to advise me it would be very much appreciated.

With many thanks.

Jo

southernscouser

Hi Pinkness! Welcome to MSE and the DFW board! :hello:

Firstly consolidation isn't normally the best way to go. The main problem with it is that often you will clear the cards which is great but most people don't address the main problem which is their spending habits and just end up maxing out the cards again! I'm one of those who has done the consolidation route many a time and I wouldn't reccomend it! :doh:

If you give us a full SOA (state of affairs) we might be able to help you better! See this thread for a guide!

jessicamb

Hi Jo

I'm no expert with the debt side of things but if you post an SOA we could have a look at your outgoings and see if there is anyway to cut those back?

I would guess CCCS are acting in your best interests though although others will more knowledge on that side will be here soon.

southernscouser

Oh yeah, meant to say that one of the first things to do is cancel the payment protection on your credit cards. Complete rip-off and waste of money in my opinion.

Also take a look at this thread to see about getting rid of the PPI on your loan!

pinkness

Thank you so much for your very prompt replies. Will do a sos as soon as possible and will certainly cancel payment protection.

Many thanks.

Jo

lightatendoftunnel?

southernscouser wrote:

Firstly consolidation isn't normally the best way to go. The main problem with it is that often you will clear the cards which is great but most people don't address the main problem which is their spending habits and just end up maxing out the cards again! I'm one of those who has done the consolidation route many a time and I wouldn't reccomend it! :doh:

I am not very good with the finances!!! But i have to agree with the above, i have done exactly the same and a few months later the problem raises its ugly head again. I am not saying its the way you should go, but i am much happier since mine has been in place. Its only been six weeks but the last two weeks are the best for a longtime.Good luck with which ever way you decide, the people on here have been great support.;)

In_Search_Of_Me

Hi pinkness & welcome! As southern scouser (also known as ss!) says consoldating again not a good idea. Much better to stop spending and start paying back...it is tough going & means, in my case, a complete change in lifestyle (no shopping for unecessary "want things", cooking, budgeting, not using credit card unless I can pay it back straight away etc) but is well worth it. No need to feel embarassed/shamed. Most people on here understand that git wrenching "oh s****" feeling of being in here & generally try to support each other in our desire to be DFW's (Debt free wanabees!) & have all sorts of ways of getting there - saving £2 coins, food challenges (ie who spends less!!) and innovate ways of saving money (see old style board!) along with some humor (extreme money saving - with the exception of a few recent posters who apparently have no desire to save money!!)...As said above post your statement of affairs (SOA) & people will help where they can. Some of us have gone it alone without DMP's/IVA's while others have them and its about doing what is right for you! Hope you are OK...the sorting/coming to terms bit is hard as you find out what is what & get over the shock but at least you're dealing with it! Onwards, upwards & a big hug from me!

earwig

hi if the cccs say dmp then go for it it will be best for you in the long run getten more debt to ease debt never works you will only end up using them cards again and then your debt would be even bigger than it is now

trust me my oh had done this sort of thing loads of time the end result drop of income lead to bankruptcy and its not the easy way out as some people may think talk to the cccs again tell them your plans if they are ok with then fine but if not take there adivce its for your own good

pinkness

Thank you all for your really kind words and advice. My SOA is as follows:

My net salary - £1037

Monthly outgoings

(I don't pay rent - my house comes with my job but do have £30 deducted from my wages for bills)

Bills £30
TV licence £11
Mobile £40
Food £120
Car insurance £20
Entertainment £80
AA membership £4
Car maintenance £20
Car tax £15
Diesel £86
Pension £20
Clothing £20
Haircut £8

Total £474

Natwest Credit Card
Owe £7409.17 limit £10000 min payment £150 monthly apr 1.456%

MBNA Card
Owe £8820 limit £11600 min payment £157 monthly apr 1.59%

Goldfish Card
Owe £7235 limit £9750 min payment £145 monthly apr 1.385%

Egg Card
Owe £2399 limit £2400 min payment £50 monthly apr 1.24%

Alliance & Leicester Loan
Owe £4953.39 monthly payment £235 (inc insurance)

Natwest Overdraft
£1000 limit is £1600

Minimum payments total = £737
Left over wages after outgoings = £563 oops.

_pale_ I am worried about having a debt management plan for two reasons, firstly I am worried my car is about to die and I like in the sticks and a car is essential. If I have a DMP I will not be able to get any credit to buy a new car. Secondly the fact that your credit score is seriously affected, I know I have managed to get myself into a pickle with my cards but I rarely miss a payment on them one way or another and if an emergency crops up, I will have no spare cash to deal with it and no credit card. The whole county court judgement thing is really scary – I have never had anything like this before in my life and if a county court thingy comes about, I am worried what everyone will think of me :embarasse . Sorry for rambling but just got my DMP information pack today and am panicking, I can’t believe I have been so stupid!!

Also can I ask, I gave the cccs my outstanding credit card balances and they have worked out my monthly payments themselves but they have worked out my monthly payments as much higher than my minimum payments actually are if that makes sense – just wondered if anyone knew why this might be.

Many many thanks for your help.

Jo

CLAPTON

according to your figures you are short by about £170 per month.
although your SoA has some scope for reduction...mobile at £40, food at 120 could be reduced but in other ways it lacks sustainability over the longer time.

can you increase your income....lodger? part time job? over time?

pinkness

Hi Clapton,

I am just off to see if I can get a part-time bar job in the local pub. Hopefully that might help the situation. I don't get paid overtime but hopefully be getting a payrise in September. My house comes with the job and I am not allowed a lodger. I am teaching myself book keeping at the moment (ironic really) so I can try and get some part time work in the evenings.

Thank you very much for your ideas.

Jo x