Hello all, advise needed please

james316

Hello all. I am new to the forum and have some issues with debt. I have applied to various companies offering struggling people loans and then when I have read up on them on here, have been saved more money by you helpful bods!!!!

In a nut shell, I have about £15000 worth of debt, 2 creditors but 3 loans. Overdrawn with my bank and am starting to struggle. I have recently moved into my new house with my better half and basically want to combine 2 of my loans to reduce the monthly payments.

As this was our first house, I have also been lent money from close friends and want to pay them back as soon as I can.

I have thus far been unsuccessful at obtaining credit and need pointing in the right direction. Any help appreciated, Many thanks James.

System

james316 wrote: »

Hello all. I am new to the forum and have some issues with debt. I have applied to various companies offering struggling people loans and then when I have read up on them on here, have been saved more money by you helpful bods!!!!

In a nut shell, I have about £15000 worth of debt, 2 creditors but 3 loans. Overdrawn with my bank and am starting to struggle. I have recently moved into my new house with my better half and basically want to combine 2 of my loans to reduce the monthly payments.

As this was our first house, I have also been lent money from close friends and want to pay them back as soon as I can.

I have thus far been unsuccessful at obtaining credit and need pointing in the right direction. Any help appreciated, Many thanks James.

Hi James and welcome along!

First of all, can I ask how you came to have three separate loans in the first place? Was it from debt consolidation that went wrong (i.e. you continued to spend, even after consolidating). If so, then a further consolidation is probably not the answer. How much money per month would your repayments be reduced by from this further consolidation? Is there any way you can save/earn that amount per month so that you can continue your repayments on your existing loans?

You do need to post your SOA so that people on here can rip it apart. Some of the advice might seem harsh but it is only meant to help you in the long-run.

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

If you are unable to obtain further credit then that might be a blessing in disguise so that you can focus on the existing debts. But, like I say, we do need to see an SOA before we can help you properly.

Red.

GeorgeUK

Hi James

Right now you are not in a good position to get credit. The fact that you have just moved may count against you and you will also need to make sure that you are listed on the electoral roll. The credit reference agencies mat not update their records until the new data is released so you may want to check that you are actually listed by experian or equifax.

Also too many credit checks in a short period of time can count against you. You should check your credit record to see how many you've had in the last 6 months (more than 3 and your credit score could be reduced).

Check your credit file free at experian (if you cancel within 30 days).

james316

Thanks for the help so far everyone, here is my SOA:-
Number of adults in household........... 3
Number of children in household.........0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax joint ........ £1650
Lodger rent in..................................£140
Benefits................................ 0
Other income............................ 0
Total monthly income.................... £1790
Monthly Expense Details
Mortgage................................ £495
Secured/HP loan repayments.............. 0
Council tax............................. £120
Electricity............................. £30
Gas..................................... £30
Water rates............................. £30
Telephone (land line)................... £11
Mobile phone............................ £15
TV Licence.............................. £12
Groceries etc. ......................... £275
Petrol........................... £150 - I work in another town in a poor Public transport area
Road tax................................ £10
Car Insurance...........................£80
Car maintenance (including MOT)......... £10
Child related expenses............ £136child maintenance payments
Buildings insurance..................... £20
Contents insurance...................... £15
Life assurance ......................... £65 - both of us
Entertainment........................... £40
Total monthly expenses.................. £1544

Then the Debt monthly payments:-

Halifax ...£157
Halifax ...£184
HSBC ....£124
Total.......£465

So basically I am looking at overspending by £219 every month. I am on the electoral role at my old address but am currently changing this. I ended up with three loans - I think the last one was for consolidation and it was under control as I was with the parents. Then moving into our house I realized that we were not going to be in good place. I thought that I would be able to secure a debt against the house and was right, but as the house is part owned under a government scheme, they will not allow extra finance on the house unless it is for structural repair!!!
Not too sure were to go from here tho. Many thanks, James.

savingmummy

james316 wrote: »

Thanks for the help so far everyone, here is my SOA:-
Number of adults in household........... 3
Number of children in household.........0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax joint ........ £1650
Lodger rent in..................................£140 is this 1 lodger?
Benefits................................ 0
Other income............................ 0
Total monthly income.................... £1790
Monthly Expense Details
Mortgage................................ £495
Secured/HP loan repayments.............. 0
Council tax............................. £120 is this over 10mths? if so change it to over 12mths
Electricity............................. £30
Gas..................................... £30
Water rates............................. £30 this seems higher then normal
Telephone (land line)................... £11
Mobile phone............................ £15
TV Licence.............................. £12
Groceries etc. ......................... £275 how many is this for?
Petrol........................... £150 - I work in another town in a poor Public transport area
Road tax................................ £10
Car Insurance...........................£80 have you looked for cheaper?
Car maintenance (including MOT)......... £10
Child related expenses............ £136child maintenance payments
Buildings insurance..................... £20
Contents insurance...................... £15
Life assurance ......................... £65 - both of us
Entertainment........................... £40
Total monthly expenses.................. £1544

Then the Debt monthly payments:-

Halifax ...£157
Halifax ...£184
HSBC ....£124
Total.......£465

So basically I am looking at overspending by £219 every month. Many thanks, James.

There a few ways of cutting back a bit!
I noticed a few things missing ie, clothing, medical expense, haircuts, holidays, presents. Apr`s and amount of debts.

3 adults living at your home, what income do you get from the other 1?

Tixy

Hi James

You have only included your income? does your OH work? are these costs just for your share of costs or for you and OH? If OH does not work do they get some sort of benefits?

The £140 lodger income does not seem high, do this cover all their expenses, i.e. the extra gas, elec, water, cleaning products, loo rolls etc you must use?

£275 for groceries is very high, £200 should be more than enough for 2 people, £160 is doable as you have a monthly shortfall. Try meal planning for the week ahead before you shop, cook from scratch not ready meals or takeaways, try the drop a brand challenge.

B&C, seems high (although you haven't shown the value of the house) try looking around for a cheaper combined deal. Is car insurance the best deal? Assuming you are both quite young life insurance seems quite high, have you shopped around?
Is internet included in landline? or do you have no internet?

Is £10 per month sufficent for car servicing, mot, tyres etc? considering the mileage you are doing.

Do you drive 'efficently' (slowly!)

How long do you have left on each of the loans?

No money on haircuts, presents, clothing etc?

james316

Clothing is something we don't need to spend on right now which is why I left it out. Partners sister is a hair dresser so that's free. Not in a position to go on holiday, presents we bite the bullet on as and when and cut into the food bill. Its a friend who lives with us and he is only on part time hours with no family so rent is only £35 a week for him. Save on the internet too by coming to my parents house!!!!!!!!!!

james316

Thank you all for your responses. The income is both mine and my partners, the expenses are all combined and between us, this is what we earn and what we spend as a household. Parents have their own business and provide toilet roll, kitchen paper and cleaning products at trade prices.

Groceries were at £320 per month and then I did learn to cook. £10 a month gives £120 per year for parts as I can do all the work myself. We are relatively young which is why insurance is high. Will shop around for B&C and car insurance is the cheapest I could find.

I work for Tesco so have already done the brand challenge. But thank you all for the help so far. James.

WorzelG

If your job is on the shop floor in Tesco then you need to move jobs to a closer store, Tesco or otherwise. £150 per month travel is really biting you.

Also stop the life assurance whilst you sort yourself out.

james316

Not sure if the Life assurance is part of the mortgage deal and we had to take it - will check though. I am a recently signed off manger for Tesco so moving right now isn't really an option. Just wish my financial woes were in as good a position as my career!!!!

Tixy

In that case in order to meet your shortfall, any chance of overtime for either of you? a second job? anything you can sell (ebay/amazon/gumtree/carboot) to raise cash?

I'd imagine you could still get the groceries down a bit (especially as I assume you get an employee discount?) is there anything extra regularly in the grocery cost such as cigs, magazines, lottery tickets, alcohol etc - this can sometimes be why people struggle to reduce it down.

Whilst you are showing a shortfall, and considering your figures above I think you will struggle to get a consolidation loan. Do you still owe money to friends/family as in your first post? have you made any arrangements to start to pay this back? are you paying anything towards your overdraft?