Help Required with Personal Loan + Credit Card

coldasfire

Hi There Every One,

This is the last hope for me. I am sure I am going to get the help which is been given to a lot of people.
Just to give a brief history. I was the one being in a bad situation due to my timing. It all started with my application for a remortgage back in 07. At that time my mortgage fixed term was coming to an end and I had an outstanding of 8000 pounds on my credit cards and 15000 of Personal Loan. My mortgage amount was 185000 and the price of my property was @ 215000 at the time. I wanted a mortgage of 205000 inorder to wipe my outstanding loans into one low payment. My mortgage was refused. I tried to do a personal loan which got refused, the next thing I found was in a situation where I had poor credit history. My mortgage went up from 4.99% to 7.84%. 0% term on the credit cards went up to as much as 21% on some and 28% on Virgin. I was in a situation where my monthly outgoing each month were more than my income. Than thanks to the reduction in the mortgage rates after some time to 4.74% still it had done the damage and my outstanding cc loan grew from 8000 to 42000.

I have now paid of a major portion of it still have 22624.56 the following:
Barclay Loan 6622.68
Santender 0 Credit Card 4964.25
Barclaycard 8354.29
HSBC Credit Card 2683.34

I am still afraid to apply for a personal loan as I tried it 6 months back for debt consolidation and got refused. My total outgoing every month is quite high and don't know what to do. Also, my current Mortgage Interest rate is 4.74% but if the interest rate goes up, I will be in a situation again where I can't afford to pay for my food even and every thing will go for this. I require you to kindly help me out what to do in this situation. Any advise inorder to reduce my monthly outgoing will be highly appreciated. My dream is to be debt free so any thing on those lines will be highly appreciated. I don't want to try the IVA or claiming bankruptcy as I think there might be some thing which can be done without going into that extreme circumstance. I appreciate your prompt reply in this regards. Thanks to :money:for this in advance. I am sure to receive valuable advise in my circumstance as I can't think any think any more

clang_uk

Hello and well done for posting it's always hard to start discussing problems. The first thing you can do to help us help you is to do an SOA http://www.makesenseofcards.com/soacalc.html this will help us see if we can offer any advice as to where you can lower your spend. Hopefully we can all find a way for you to afford to eat!!

Keep your chin up!!!

Tixy

Hi and welcome
As clang says we need to know more about your finances before we can advise and a statement of affairs should tell us the right things, and might assist you to see it all written down.

I would not apply for another loan right now until you have had some advice, just from what you have written it sounds unlikely you would get a loan, but we could advise better once we know more. Also have you checked your credit file recently? Have you always managed to make the minimum payments each month or have there been times you have missed them?

coldasfire

Many thanks for this. Here is my SOA

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 2200
Partners monthly income after tax....... 610
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2810

Monthly Expense Details
Mortgage................................ 745
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 133
Electricity............................. 43
Gas..................................... 75
Oil..................................... 0
Water rates............................. 42
Telephone (land line)................... 40
Mobile phone............................ 80
TV Licence.............................. 11
Satellite/Cable TV...................... 40
Internet Services....................... 27
Groceries etc. ......................... 350
Clothing................................ 120
Petrol/diesel........................... 200
Road tax................................ 0
Car Insurance........................... 45
Car maintenance (including MOT)......... 15
Car parking............................. 50
Other travel............................ 0
Childcare/nursery....................... 50
Other child related expenses............ 90
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 35
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2191


Assets
Cash.................................... 0
House value (Gross)..................... 211000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 211000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 185000...(745)......4.74
Total secured & HP debts...... 185000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
BarclayLoan....................6622.68...289.......10
Barclaycard....................8941.37...141.2.....17.9
HSBC...........................2683.34...67.08.....22.9
Santander 0....................4964.25...173.2.....0
Total unsecured debts..........23211.64..670.48....-


Monthly Budget Summary
Total monthly income.................... 2,810
Expenses (including HP & secured debts). 2,191
Available for debt repayments........... 619
Monthly UNsecured debt repayments....... 670.48
Amount short for making debt repayments. -51.48

Personal Balance Sheet Summary
Total assets (things you own)........... 211,000
Total HP & Secured debt................. -185,000
Total Unsecured debt.................... -23,211.64
Net Assets.............................. 2,788.36

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

Please note that I have made a payment of 1800 this month towards it which is not appearing on the cc bills yet so the amount which I put is the original one. I appreciate your help in this regards

Tixy

coldasfire wrote: »

Many thanks for this. Here is my SOA

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 2 do you need both cars

Monthly Income Details
Monthly income after tax................ 2200
Partners monthly income after tax....... 610
Benefits................................ 0 put child benefit in here, and any tax credits etc
Other income............................ 0
Total monthly income.................... 2810

Monthly Expense Details
Mortgage................................ 745 is this interest only or repayment?
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 133
Electricity............................. 43
Gas..................................... 75 this looks high, do you have arrears? have you checked you are with the cheapest supplier?
Oil..................................... 0
Water rates............................. 42
Telephone (land line)................... 40 shop for a cheaper deal or combine with sky/internet
Mobile phone............................ 80 can you reduce these? if not in contract shop around for a cheaper deal, if in contract then ask to drop a tariff
TV Licence.............................. 11
Satellite/Cable TV...................... 40 could you reduce your package or switch to freeview
Internet Services....................... 27 don't you get free with satellite tv? or look for a combined deal (cheapest landline & internet is only £20 combined)
Groceries etc. ......................... 350 try reducing this a bit, meal plan before you go shopping and try using cheaper brands for some items.
Clothing................................ 120 reduce this, only buy essentials for the kids for now.
Petrol/diesel........................... 200 are all journeys essential?
Road tax................................ 0 need to budget 1/12 of the annual cost
Car Insurance........................... 45
Car maintenance (including MOT)......... 15 is this sufficent for 2 cars MOT servicing tyres etc?
Car parking............................. 50 is this work or home? is there a cheaper option such as parking further away from work and walking?
Other travel............................ 0
Childcare/nursery....................... 50
Other child related expenses............ 90 what are these for?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 35
Contents insurance...................... 0
Life assurance ......................... 0 do you not have this? might be worth thinking about how your partner would manage if on their own
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 if you buy any then you need to budget for them
Haircuts................................ 0 need to budget for this unless all done at home
Entertainment........................... 0 is it realistic to spend nothing here?
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2191


Assets
Cash.................................... 0
House value (Gross)..................... 211000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 211000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 185000...(745)......4.74
Total secured & HP debts...... 185000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
BarclayLoan....................6622.68...289.......10
Barclaycard....................8941.37...141.2.....17.9
HSBC...........................2683.34...67.08.....22.9
Santander 0....................4964.25...173.2.....0
Total unsecured debts..........23211.64..670.48....-


Monthly Budget Summary
Total monthly income.................... 2,810
Expenses (including HP & secured debts). 2,191
Available for debt repayments........... 619
Monthly UNsecured debt repayments....... 670.48
Amount short for making debt repayments. -51.48

Personal Balance Sheet Summary
Total assets (things you own)........... 211,000
Total HP & Secured debt................. -185,000
Total Unsecured debt.................... -23,211.64
Net Assets.............................. 2,788.36

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

Please note that I have made a payment of 1800 this month towards it which is not appearing on the cc bills yet so the amount which I put is the original one. I appreciate your help in this regards

Hi
Your budget only show £51 short each month but I think you have missed off quite a few items from your SoA.
Equally I think there are some savings you can make by looking at each item and looking for cheaper providers etc.

Could you partner work more hours? are all the children at school?

Check you are getting all the benefits you can at www.entitledto.com

coldasfire

I think it covers pretty much every thing. I have recently switched my gas electric to ovoenergy before they increased their prices. As per their illustration I will be saving 40% from what I am paying now. I hope to see a big impact from there. I have 3 kids with the little one only 18 months old. Still my partner is working 5 hours every day and 2 days she is working 7.5 hours. I don't think we can put any thing at that front. I checked entitledto.com but couldn't found any thing apart from what I already have.

clang_uk

Tixy has beaten me to this I'm afraid. I was going to write exactly the same things!! It seems that you have quite a lot of expensive outgoings which can be reduced - check that you're with the right suppliers. Two cars is quite a luxury, could you make do with one?

How many months have you left on the loans, are you likely to free up money in a few months time?

coldasfire

Many thanks for the post Answers to the questions as follows:

Both of us go to work which requires cars. My cars are the reason me and my partner are working so we can't leave any.
Child benefit is coming in but we are putting it to child trust fund so 0 there
My daughter goes to after school which is 90/month.

Gas and electricity I already switched hopefully will come down by 40% as per my previous statement
Contract mobiles not having an option to switch down until end of the year We haven't put the life assurance as we can't afford for now. Road tax is 200/year /car already paid for both but point taken its 33.33. My car insurance is already paid its 69/month for both cars. I have also checked and found that the gorcessary and other amounts updated as per the reality. Updated SOA is as under:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 2200
Partners monthly income after tax....... 610
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2810

Monthly Expense Details
Mortgage................................ 745
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 133
Electricity............................. 43
Gas..................................... 75
Oil..................................... 0
Water rates............................. 42
Telephone (land line)................... 40
Mobile phone............................ 80
TV Licence.............................. 11
Satellite/Cable TV...................... 40
Internet Services....................... 27
Groceries etc. ......................... 300
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 33.3
Car Insurance........................... 69
Car maintenance (including MOT)......... 22
Car parking............................. 50
Other travel............................ 0
Childcare/nursery....................... 90
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 35
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 20
Entertainment........................... 15
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2140.3


Assets
Cash.................................... 0
House value (Gross)..................... 211000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 211000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 185000...(745)......4.74
Total secured & HP debts...... 185000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclayloan....................6622.68...289.......10
Barclaycard....................8941.37...141.2.....17.9
HSBC...........................2683.34...67.08.....22.9
Santander 0....................4964.25...173.2.....0
Total unsecured debts..........23211.64..670.48....-


Monthly Budget Summary
Total monthly income.................... 2,810
Expenses (including HP & secured debts). 2,140.3
Available for debt repayments........... 669.7
Monthly UNsecured debt repayments....... 670.48
Amount short for making debt repayments. -0.78

Personal Balance Sheet Summary
Total assets (things you own)........... 211,000
Total HP & Secured debt................. -185,000
Total Unsecured debt.................... -23,211.64
Net Assets.............................. 2,788.36

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

Hope it gives more insight.

coldasfire

My Personal loan is still for next 2 years And also the Credit cards are going to be there as long is its paid

Tixy

That looks better in that at least it shows you can meet your minimum payments.
One thing I would suggest is that you consider reducing (not stopping) the payments to the child trust funds in the short term to either be able to afford life insurance (which I do think is important given the disparity in your incomes -unless you have death in service cover at work, and could be more important to your kids than their trust funds) or using it to try to pay off some of that expensive 22.9% debt. Once you have a bit more leeway in your budget and some debts are paid off then you could bump up your payments to the trust funds again.
I do realise this is a personal choice that only you and your partner can make but i would at least think about it otherwise you are going to struggle to make a dent in those debts.

Once your children are all at school (which I realise it a bit away yet) will your partner then be able to work more hours to help really push down those debts?

Your partners salary looks low for the amount of hours she is doing. Is she working 30hrs per week? that salary hardly looks like she is earning minimum wage? If she does do 30hours already then I would have thought she might get working tax credits? (not an expert in this mind, just wondering)

coldasfire

Many thanks for your post. My query is do you think with my SOA, there is any possibility of me having a debt consolidation loan which can lower my monthly outgoings? Thats what I am after and I hope that there is some thing which I can do. I am not applying any more for any credit cards etc as I fear if I got rejected, it will scar my credit history further. I am sure you guys help me out here with this advise