New to the forum - support required

Cookie1978

Hello everyone,

So glad I cam across a site like this, as I've been burying my head in the sand for so long now. I'm finding it increasingly difficult to manage my debt and the pressures of living in London are not helping me. My partner is aware of the situation but I don't she is aware of the extent of my debt. I guess it's up to me to manage my finances better, but sharing my experience with those in the same boat will definately help. I owe the following;

Personal Loans with HSBC - £6,100 and £4,900 (fixed repayment plans over the next 5 years of £100 and £115 per month respectively).

HSBC Credit Card - £400 (min payment £15 per month)

MBNA Credit Card - £2,900 (min payment £85 per month)

Student Loan - Outstanding balance £2,500 (monthly repayments of £70)

Total debt - £16,800 (total monthly repayments of £385)

I appreciate that I'm in a fortunate position compared to alot of people on this forum, but I feel ashamed that I let things get so out of control and I don't really have much to show for it. I'm left with very little at the end of the month but feel the pressure of giving my partner a decent, comfortable standard of living. Depression is beginning to set in and it's effecting me at work as well. I'm constantly around people who are debt free and comfortable, but on the same salary.

I guess I'm looking for advice from people in a similar position.

I'm hoping that I can clear this debt in the next 5 years, but I'm worried there's a hike in interest rates round the corner. Would you advise that I try to convert the credit card debt into a fixed repayment loan? The minimum payment I make each month to MBNA barely covers the interest and PPI, so I feel like I'll be stuck with it for ever.

Thank you for listening.

savingmummy

Hi welcome to the forum!

Firstly you need to do a full accurate SOA http://www.makesenseofcards.com/soacalc.html include ALL incomings and ALL outgoings.
Include all debts including the APR`s!

You need to ensure your OH knows the full extent as tbh if she wants to splash out on expensive luxuries she will not know that you can`t really afford that!
Your debt is your top priority right now not feeling you have to `spoil` your OH!
If she knew how this was effecting you she would be there when you need support and as they say 2 heads are better then 1!

Are you still using your credit cards? If so cut them up!!

Tixy

Hi and welcome

Just to echo what savingmummy says, doing a detailed statement of affairs is a good start. It helps you see clearly the position you are in and helps us understand your position to give you the best advice.

Regarding your debts - do you know the APRs for each debt? If not look them up, so you know which order to attack your debts and whether you can do some moving around to save interest costs.

Regarding a possible interest hike, should your credit card company up your interest rate you are allowed to 'opt out' of the new rate within 30days of being notified. This means you can no longer use the card or spend anymore on it but can continue to repay the debt at the current interest rate. Worth knowing about in case you do get a letter.

I'm not saying you shouldn't have PPI but do check whether you are getting good value for money with the PPI as part of the credit. Find out how much you are paying and what you get in return and then compare that to buying stand-alone PPI insurance.

Regarding the people around you at work - they may not all be debt free, they just perhaps haven't had their light bulb moments yet so are still spending on credit.

mum2one

Hi
I can only echo what the other lovely posters have said about the "make sense of cards link", its an absolute godsend.

Look at it this way, you don't know whats going on behind closed doors, that person you talk to a walk, may be one whos cracking the jokes, fetching the coffee, its just as likely that their having their own money problems.

You've taken the 1st, if not the hardest step, by holding ur hands up and say I need help, and thats what were all here for,

For one reason and another we're all in debt/getting out of it/ the lucky ones who have beat the debt.

Just take one day at a time, once your statement is done, people will look at it,and make suggestions as to where additional cuts may be made.

Good luck xx

Cookie1978

Thank you for the comments, SOA below.

Household Information[/b]
Number of adults in household........... 2
Number of children in household.........
Number of cars owned....................
Monthly Income Details
Monthly income after tax................ 1990
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1990
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 18
Rent.................................... 975
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 13
Satellite/Cable TV...................... 12
Internet Services....................... 0
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 115
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 15
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 200
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1488

Assets
Cash.................................... 230
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 230

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 270......(18).......21.8
Total secured & HP debts...... 270.......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
HSBC Credit Card...............380.......15........11.9
MBNA Credit Card...............2850......85........20
HSBC Personal Loans............11000.....215.......0
Student Loan...................2700......70........3.8
Total unsecured debts..........16930.....385.......-

Monthly Budget Summary
Total monthly income.................... 1,990
Expenses (including HP & secured debts). 1,488
Available for debt repayments........... 502
Monthly UNsecured debt repayments....... 385
Amount left after debt repayments....... 117
Personal Balance Sheet Summary
Total assets (things you own)........... 230
Total HP & Secured debt................. -270
Total Unsecured debt.................... -16,930
Net Assets.............................. -16,970

beanielou

Your biggest problem is that your rent is so high.
It is nearly half of your income.
Can this be reduced at all?

Tuesday_Tenor

Initial thoughts:

You've put down that you're a 2-person household, but nothing for your partner's income.

Or is her income totally separate, and she pays for certain items which are '0' on your list (Council tax, heating etc.).

Certainly the rent seems massive. You either need a double income to justify it, or need to downsize or re-locate to something you can afford.

Or does the large rent figure include Council tax and heating?

Could you explain a bit more?

Tixy

Hi, and well done for posting it up

We need to understand your SOA a bit better. is this the costs for 2 people or just your share/half?

That rent is very high compare to your income. I see you don't have any utility costs, can you explain a bit more?

mum2one

Cookie1978 wrote: »

Thank you for the comments, SOA below.

Household Information[/b]
Number of adults in household........... 2 -ok
Number of children in household.........
Number of cars owned.................... - have car valued at £230 further down the list, but not mentioned here
Monthly Income Details
Monthly income after tax................ 1990

Partners monthly income after tax....... 0 does your partner work, or put up some money towards the bills etx

Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1990
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 18
Rent.................................... 975 - massively high
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0 -are council tax down to telelone paid by OH, or are they included in the rent
Mobile phone............................ 40 -id high for foe one person
TV Licence.............................. 13
Satellite/Cable TV...................... 12
Internet Services....................... 0
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 115
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 15 -whats this for>
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 200
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1488

Assets
Cash.................................... 230
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 230

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 270......(18).......21.8
Total secured & HP debts...... 270.......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
HSBC Credit Card...............380.......15........11.9
MBNA Credit Card...............2850......85........20
HSBC Personal Loans............11000.....215.......0
Student Loan...................2700......70........3.8
Total unsecured debts..........16930.....385.......-

,
That leaves a total of -655, you need, but have
Budget Summary
Total monthly income.................... 1,990
Expenses (including HP & secured debts). 1,488
Available for debt repayments........... 502
Monthly UNsecured debt repayments....... 385
Amount left after debt repayments....... 117
Personal Balance Sheet Summary
Total assets (things you own)........... 230
Total HP & Secured debt................. -270
Total Unsecured debt.................... -16,930
Net Assets.............................. -16,970

Juzst popped a couple of questions iin x

miss_missy

hi
just a little thought how much available credit on your hsbc cc as you could transfer some of the mbna debt to this as its a lower apr therefore saving you some money spent on interest then i would work at getting the mbna card down as much as possible
i would if it was me also get rid of the ppi im sure someone with more experience maybe able to help you more but these were just my thoughts and hope they help alittle
well done with asking for help it is the first step

geniegal

I'm new too and am finding that I need to just spend half an hour a day in this forum in order to stop making the problem so big and scary. This feeling of isolation is very common i think and thats half the problem. i feel better already after only a few days.just keep reading the posts and you will feel better too