I am in a bit of pickle can anyone help?

richiem1234

Ok I have been stupid No need to tell me enough people have!

So here is the question and solution but will it work? Or does anyone have a better plan?

What i owe

Barclays Bank overdaft

£1492.70

Visa

£7147.52 rate is 4416.56 15.9%
2619.48 27.9%
Virgin

£5486.74 rate is 955.81 27.9%
4508.63 29.9%

Capital one

£497.69 rate 0%

LlOYDS

£4171.52 rate is 14.88%

Dad

£500 rate 0%

Total £19296.17

What i get in

Rent 1 £495.00
Rent 2 £450.00
Wages £1290.00

Total £2235.00

What i pay out

Mortgage 1 £524.92
Mortgage 2 £856.70
02 Phone £30 lowest it can be and can't cancel it
Insurance £37.65 can't be lowered landlord insurance
I can live off £200.00 month
Does not include credit card payments.

Total £1449.27

So each month i get £785.73 in surplus not including my credit card payments or the £200.00 per month i need to live off. So i asked my dad if he will lend me one of his credit cards on a 0% limit £5500.00 and i must transfer it back A.S.A.P. So i can shuffle stuff around. But here is were the problems start i rang Virgin and they said even if i cleared the balance they would not allow me to transfer another balance on to the card. I ran Visa and would only be able to transfer £5500.00 they said they would look at it once i had removed the balance or part of it
Lloyds have agreed to go to 0.4% per month 4.9% per year. Not yet done. I do not want to sell either of my houses. And i genuninley want to pay it back as fast as possible. I don't want to go into an IVA.
My question is it worth risking transfering £5500.00 from visa on to my dads card at 0% then transfering the virgin depending on what percentage they give me?

How will it come unstuck?

Any better ideas?

I live at home so no out going bar the ones i have given.

Your expertise is needed.:eek:;):D

GeorgeUK

I think you need to do some number crunching on this to see what the likely outcomes of each scenario may be. With transfers there is also a 3% fee to take into account.

I'll take a look at it again when i get home tonight.

David_Brent

richiem1234 wrote: »

Ok I have been stupid No need to tell me enough people have!

So here is the question and solution but will it work? Or does anyone have a better plan?

What i owe

Barclays Bank overdaft

£1492.70

Visa

£7147.52 rate is 4416.56 15.9%
2619.48 27.9%
Virgin

£5486.74 rate is 955.81 27.9%
4508.63 29.9%

Capital one

£497.69 rate 0%

LlOYDS

£4171.52 rate is 14.88%

Dad

£500 rate 0%

Total £19296.17

What i get in

Rent 1 £495.00
Rent 2 £450.00
Wages £1290.00

Total £2235.00

What i pay out

Mortgage 1 £524.92
Mortgage 2 £856.70
02 Phone £30 lowest it can be and can't cancel it
Insurance £37.65 can't be lowered landlord insurance
I can live off £200.00 month
Does not include credit card payments.

Total £1449.27

So each month i get £785.73 in surplus not including my credit card payments or the £200.00 per month i need to live off. So i asked my dad if he will lend me one of his credit cards on a 0% limit £5500.00 and i must transfer it back A.S.A.P. So i can shuffle stuff around. But here is were the problems start i rang Virgin and they said even if i cleared the balance they would not allow me to transfer another balance on to the card. I ran Visa and would only be able to transfer £5500.00 they said they would look at it once i had removed the balance or part of it
Lloyds have agreed to go to 0.4% per month 4.9% per year. Not yet done. I do not want to sell either of my houses. And i genuninley want to pay it back as fast as possible. I don't want to go into an IVA.
My question is it worth risking transfering £5500.00 from visa on to my dads card at 0% then transfering the virgin depending on what percentage they give me?

How will it come unstuck?

Any better ideas?

I live at home so no out going bar the ones i have given.

Your expertise is needed.:eek:;):D

Try filling in your statement of affairs and post on here - people could then advise you better: http://www.makesenseofcards.com/soacalc.html

richiem1234

If you could that would be really helpful. Thank you george

richiem1234

I don,t realy understand how that works?

David_Brent

richiem1234 wrote: »

I don,t realy understand how that works?

Its pretty simple you just input your income and outgoings and it will give you a clearer view of where you stand with your debts.

RAS

And then you can snowball the debt and see how to pay it off most efficently. Once you have done that, explore what happens to your debt free date and intertst paid if you get the 0% deal and transfer back.

I suspect that you may come unstuck trying to transfer back, but may be able to balance transfer some of your most expensive debts between your own cards.

What would your father's situation be if you were unable to do a BT back to a card in your name?

Tixy

Unless you father is prepared to take the risk that you might transfer debt on to his card and not be able to transfer it anywhere else then I would not risk going down that route.

You have already said you can't get a loan.

So that I think leaves you with the options of carrying on as you are and paying very little off your debts, selling one or both of the houses, trying to increase your income or seeking advice on dealing with your debts, such as a debt management plan.

If you fill in the statement of affairs we can better see how much you have left for your debt repayments each month and how long it will take to clear your cards if you carry on with the cards you have and the repayments you are currently making.
It might also highlight any other options that may be available to you.
At the moment we cannot see what your minimum payments are and whether you are able to meet them.

Once you have done the SoA calc the same site has a snowball calculator which will work out a debt fee date for you and show you how much interest you would pay. You can then use that as a starting point to compare it financially to any other options you might have.

richiem1234

[tt]Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 3
Number of children in household......... 0
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 2235
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2235
Monthly Expense Details
Mortgage................................ 1382
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
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......................... 37.65
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1649.65

Assets
Cash.................................... 0
House value (Gross)..................... 176000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 176000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 208000...(1382).....8
Total secured & HP debts...... 208000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
visa...........................7147.52...131.......29.9
virgin.........................5486.74...126.......29.9
lloyds.........................4171.52...84........14.88
capital one....................500.......13........0
Total unsecured debts..........17305.78..354.......-

Monthly Budget Summary
Total monthly income.................... 2,235
Expenses (including HP & secured debts). 1,649.65
Available for debt repayments........... 585.35
Monthly UNsecured debt repayments....... 354
Amount left after debt repayments....... 231.35
Personal Balance Sheet Summary
Total assets (things you own)........... 176,000
Total HP & Secured debt................. -208,000
Total Unsecured debt.................... -17,305.78
Net Assets.............................. -49,305.78

As requested yes i know the houses are in negative equity. No need to tell me lol

GeorgeUK

The tool i use to crunch numbers is the one RAS mentioned - the snowball calculator. Basically, you pay the minimum to each debt and throw the remainder at the debt with the largest APR so you pay less interest.
http://www.whatsthecost.com/snowball.aspx

Have you tried to get a 0% card yourself or is your credit file not in a good state? (Missed payments/defaults?)
How many credit checks have you had in the last 6 months?

Virgin may not be prepared to give you any offers right now because you have a balance on your card. Have you checked your account online to see if there is anything listed under the promotions?

I have found both LloydsTSB and Virgin to be quite good at sending out offers of either a low life of balance offer or 0% for 6 months.

Right now it seems you have the option of transferring:
4171.52 + 3% (4296.67) from Lloyds to your dads card leaving 928 available (you can usually only transfer 95% of the available balance)
Transfer from Virgin to Lloyds - is this a life of balance offer or x months? Also for LOB cards the minimum monthly payment is usually a little lower.
If you don't have enough to complete the transfer from Virgin, put this on the remainder of your dads card.
After a few months, Virgin may offer a 0% or life of balance offer so you can then transfer the Visa to a lower APR.

If you need to transfer to your fathers card initially, then clear that as it is only for a few months rather than a new promotion, i would try to clear the virgin card first and wait to see if they give you any offers as an existing cusomer. If they don't you could still trasnfer the money from the visa card to Virgin and put the money you moved to your fathers onto visa. Most of it will at least be at a lower APR. You may also be able to get a 0% card from MBNA - tell them you have an old Virgin card with a nil balance but wondered if you could get a MBNA card. You would be willing to just transfer the credit limit from one card to the other - i have read that they have made this offer to some posters in the past.

richiem1234

Yeah i think thats the best plan! I have to admit some is via gambling have u done match betting i made a fair few quid out of that just ran out of ppl to do it for.