Advice needed

2makeit

Just found this site and looks really good, just need some big advice.


I have a mortgage, 2 personal loans, 2 credit cards and bills on top of that, but am very short every month and am trying to move money about to cover the basics minimum payments but this has got to the stage that i am borrowing money to cover these costs. And have no money to spend on other things.

Whats is the best way to get on top of it all?
Would increasing my mortgage, or get bigger loan to cover c/cards +loans?

Any advice would be great as i need to sort it asap!!

lynzpower

hi there 2makeit ( great name )

Welcome to debt free wannabee.

Your situation sounds like many of us when we first started out here, you are not alone :T

Why not read southern scousers sticky "first time posters" and read all about the Statement of Affairs ( or SOA as we call it) thats all your incomings, outgoings, debts and APRS, and then we can look at finding a bit of leverage for you and advice on solutions Pop it up for us to have a nosey at and we will give you the benefit of our experience

Big welcome :wave:

Annie_Fanny

Firstly don't panic! A lot of people on this forum have been in your position and there will be a remedy without taking out a bigger mortgage or consolidation loan. A bigger mortage/loan will teach you NOTHING about budgeting, costcutting, frugal living etc so this needs to be addressed!

We basically need to have a look at all your incomings and outgoings including debts with APRs called a 'Statement of Affairs' (SOA). Have a look at this thread for advice on how to devise an SOA:
http://forums.moneysavingexpert.com/showthread.html?t=107280

Post back with your SOA and you will get heaps of good advice.

Annie

Annie_Fanny

Dang it Lynz - you beat me to it!

kevin_M

Welcome to debt free wannabe. enjoy your stay

got no advice Annie Fanny & lynzpower covered it all

KatrinaC_2

2makeit wrote:

Whats is the best way to get on top of it all?
Would increasing my mortgage, or get bigger loan to cover c/cards +loans?

Any advice would be great as i need to sort it asap!!

Generally, getting more credit to solve your exisiting problems is a bad idea as there is no guarantee that you won't get into even more debt; many of the posters on here have tens of thousands of pounds of debt from repeatedly consolidating their debts. It's a lot easier to try and cut back on what you are spending (which is often what caused the problems in the first place), try to find more money, and/or to pay off your debts in the most efficient way possible.

Try putting up a statement of affairs on here (there's advice on how to do that in the threads above) and you'll get more help with cutting back than you can shake a stick at!

A second excellent plan (which I would love to take credit for but can't as it was suggested to me when I first arrived here:rotfl: ) is to keep a spending diary so you can see exactly where your cash goes.

Good luck,

Kat

Macduff_3

Welcome to the site!

No advice from me at present - its all been covered.

Have a look at doing your SOA - look at some others on the site to see what sort of things you should be putting down. Then... let us at it!!

robnye

if you want to be a little resevered in disclosing your SOA online, i am sure you could just send the details to a select few that volunteer (this was done recently for someone else who was a little embarrased)

2makeit

Soa

Salary - £1200
Monthly payments

Mortagage -£505(2 year fixed, 1year gone)
Insurances -£78
Gas/Elec -£50
Council Tax -£65
Water -£42
Phone -£12
Internet -£15
Tv licence -£11
M/phone -£35(going to reduce this)
Food -£150
Car insurance -£60
Petrol -£60

Credit Cards
1 £2000 (£50min payment)
2 £2500 (£50min payment)

Loans
1 -£225( 6.5% ) 72 months left
2 -£155(7.7%) 72 months left


Overdraft -£2000


Total spend -£1563

as you can see the money is non existent as paying out all the time.

So any help would be great as am not getting anywhere.


Ps Always looking for a better job, more money(any out there?)

lynzpower

Ok a couple of things

1. Could you get a lodger in? Can bring in money for very little effort?

2. What have you got to sell?

3. Part time job?

I make it that you are 263 short per motnh to break even.

If that food is just for you, then its high. Me & my partner spend 100pcm between us, including toiletries & the like, so you should be able to save yourself 100 there ( ish) head over the old style board for cheapest decent food you can make

Another thing, you havetn said how much you spend on your car, what with repairs, MOTs etc?

Do you absoultely need your car? Only its costing you at least 120 a month, without repairs or mots or services or parking or any of that jazz

Failing that, you might want to think about a Debt management plan, but Id exhaust all other avenues first.

Also check out https://www.quidco.com https://www.pigsback.com and do a search for online surveys and the like to have a bit of extra trickling in to top you up a bit.

Annie_Fanny

Totally agree with Lynz's advice.

Throwing in a few other options...any chance of a interest free loan from parents/friends/partner?
Can you cycle to work?
Carshare to work?

Also you need to find out the APRs on your credit cards and overdraft.

You can do this. I know it feels like you can't but you just need to draw all the strength from within and tackle this head on!

Annie