Tackling the effects of 2009

Stephy13

Hello all ive been reading this forum for a while and thought i should say hello:hello:

2009 was not a good year for me and OH. OH got made redundant, we arranged with mortgage company to make half payments till he got a job, big mistake. We now have a mark on our credit file which i've been told will stay for up to 6 years!! Even though i settled the arrears.

Have been refused credit twice, i now know not to keep applying thanks to this site. But we have over £3k of debt OH earns nearly half of what he used to and its down to my wage to keep the house going.

I don't go out, drink, smoke or buy new clothes or make up. I count every penny meal plan each week so there is no waste. As I'm only 23 I'm not eligible for any help or benefits and I'm now at my wits end with it all.

But hopefully 2010 will be better and I plan to be debt free by Christmas

Thanks to anyone that reads my rant and I hope to take part in some of the challenges you have on here.

Thanks again

Stephy x

planning_ahead_2

Hi and welcome

If you can post up an SOA then peeps can advise if there are any more savings to be made - although it sounds as if you have things well covered already.

Regarding the mark on your credit file - I believe that you can ask for a comment or something similar to be added to your file. Someone who knows more than me will be along and confirm if this is so.

If you can, then I would write and ask them to add a comment to effect that due to redundnacy you negotiated with mortgage lender to reduce payments whilst OH sort new employment. Whilst report shows default, at all times you were in contact with lender and made agreed reduced payments.

If you can do this, then I would hope that any future creditors would review the statement and take into account that you worked with your lender during difficult times (difficult time for whole country and not just your family). This, to me, shows commitment to your debt which IMHO makes you a better risk.

Best wishes with the plan to be debt free.

planning_ahead_2

Hi

Found on this page of MSE

"you're entitled to add your own comments as a ‘notice of correction'. This will often mean your credit applications take longer, but it may help you to obtain better deals."

Happytogetdebtfree

Hi and welcome to the boards, with abit of management you can be clear of your 3k debt by xmas all the best x

Stephy13

Thanks planning_ahead... i'll get my writing hat on this afternoon and draft something up. Great advice. As I"m new what is a SOA??

Thanks Happytogetdebtfree I hope so too!!!

Horace

An SOA is a statement of affairs..you put your income and outgoings onto it including details of any credit card debt, card limits, the amount you are paying each month and the APRs.

https://www.makesenseofcards.com/soacalc.html - follow the instructions on there to copy and paste it to MSE (here).

Stephy13

Oh I found what SOA is:embarasse

Here it is

My monthly income £1072.70
OH income £600.00 (may change he is self employed currently)
Total £1672.70

Outgoings
Mortgage £688.89 (4.1% standard variable)
Council Tax £112
OH Van finance £204.00 (17.5% APR) 18months left
TV Licence £11.28
Phone/Broadband (BT) £48
Car Insurance £25.48
Petrol £10 ( I walk to work a lot)
Food £175.00
Gas & Electric £65 (British Gas)
Life Insurance £25.00
Home Insurance £16.92
Water £28.45
£1435.02

Debts
Halifax Joint £1864.89 (Credit Limit £5250) 15%
Halifax Mine £1550.80 Credit Limit £2000) Just come off 0% to 17.5%!!!
Tesco Credit Card £0 (Credit Limit £2000) 16% (I think?!)


I hope thats right!!

Any advise on how I can reduce this would be most grateful

whiteguineapig

i am not an expert steph i noticed your post when i was browsing/supposed to be making dinner
we have just changed from bt to talk talk , we got £24 back thro quidco , and it is about £18.50 a month i think

Stephy13

thanks whiteguineapig we are tied in for at least another 8 months I believe don't think i can get out of it but will have a look. Thanks

Poosmate

Hi Steph, you could probably shave off another £25-£30 off your groceries bill.

Shame the difference in apr's on the credit cards isn't greater, you wouldn't really save anything by transferring the 17.5% one to the 15% one unless you could transfer the balance for free (but there's usually a 2.5-3% btf).

The only other way I know of that you could do it, although it's dodgy and requires extreme discipline, is to pay for stuff with the lower rate cc and pay that amount off the higher rate card and it does take a while to transfer the balance this way.

An example, pay £25 for petrol, instead of using debit card use lowest rate credit card, then pay the £25 off the higher rate credit card with the debit card you'd have used for the petrol.

It's a slow but sure way to transfer balances without incurring fees but you really have to be disciplined at it.

Hope that helps

Poo

theoretica

Looking just at your OH's finances, between the earnings you show and the van finance he is only making a profit of 400 a month. I do hope with that he has a lot of spare time (because otherwise he is earning only about half the minimum wage) could he find a lucrative occupation to fill this? Advertising a man and van service, any hobby he could make money from or even a part time job?