Trying to pay debt off

t_benn_1

Right having a problem sorting debts

Debts:-
2900 Mrs credit card 6.5k limit pay 100 a month now
1300 overdraft around 15 a month interest
1000 overdraft around 15 a month interest
400 left on sofa 45 a month

So was looking at 6k loan over 5 years so would be paying back less a month as now but actually paying it off.
Banks will let us have a loan to pay over drafts of but not all it meaning we'll be paying more back, which is no help.

Other option is put it on the mortgage which sounds great
77k left on mortgage
135k house is worth
extra 6k over remaining term of 27years would be 40 a month so plan was to over pay by 100 or so a month.
But Halifax won't let us.

I earn 21.5+ a year
Other half 16+ a year

We have savings with work which are tidied in for 2 more years(3years total) which we put 400 a month in. Will look to get around 20k+ out in 2 years.

Also she gets 200 a month for maintenance.

Any ideas?

t_benn_1

ttt bump

DarkConvict

You need to post up an SOA (MSE format) so we can really see what is happening - http://www.makesenseofcards.com/soacalc.html

Instructions here - https://forums.moneysavingexpert.com/discussion/107280

Consolidation loans are generally a bad idea.

DarkConvict wrote: »

Generally loans are front loaded, so here is an example.

£10,000 of credit card debt at @ 25%, paying back £500 a month
It will take you 26 months to pay off these debts. During that time, you'll pay £2,732.00 in interest.

£10,000 loan to consolidate at @ 15%, you will be asked to pay back at 5 years. So 5x12 = 60 months. £10,000 at 15% over 5 years is roughly £17,500 to repay.
Making monthly repayment to be £292

This shows a consolidation loan takes longer to pay back, you pay more in interest, and worse of all it bring down repayments. Lower repayments is bad for a big reason if you are in debt to the point of wanting another loan, if you have more money per month than when making the min payments on cards you end up spending again. But that £206 just isn't enough so you get a credit card, end up making min payments and then bang 12-24 months later you need another loan and have a whack load more debt.
Mentally consolidation looks good but it really just turns you over and gets you from behind much harder... is one way to put it.
Take it from those who have had 5 or more of them, Avoid at all costs!

http://forums.moneysavingexpert.com/showpost.html?p=32046475&postcount=6

t_benn_1

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1200
Partners monthly income after tax....... 1000
Benefits................................ 120
Other income............................ 80
Total monthly income.................... 2400

Monthly Expense Details
Mortgage................................ 458
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 115
Electricity............................. 60
Gas..................................... 23
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 12
Mobile phone............................ 70
TV Licence.............................. 35
Satellite/Cable TV...................... 40
Internet Services....................... 0
Groceries etc. ......................... 250
Clothing................................ 0
Petrol/diesel........................... 150
Road tax................................ 20
Car Insurance........................... 100
Car maintenance (including MOT)......... 40
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..................... 25
Contents insurance...................... 0
Life assurance ......................... 58
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1491


Assets
Cash.................................... 300
House value (Gross)..................... 135000
Shares and bonds........................ 2500
Car(s).................................. 3500
Other assets............................ 0
Total Assets............................ 141300


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 77000....(458)......5.6
Total secured & HP debts...... 77000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
card...........................2800......65........0.561
overdraft......................1000......15........19
overdraft......................1300......15........19
Total unsecured debts..........5100......95........-


Monthly Budget Summary
Total monthly income.................... 2,400
Expenses (including HP & secured debts). 1,491
Available for debt repayments........... 909
Monthly UNsecured debt repayments....... 95
Amount left after debt repayments....... 814

Personal Balance Sheet Summary
Total assets (things you own)........... 141,300
Total HP & Secured debt................. -77,000
Total Unsecured debt.................... -5,100
Net Assets.............................. 59,200

Fergie76

Are sure you really have £814 left over each month?

If so, why not pay more back on your CC each month other than minimum payment and look at reducing your O/D?

If you have as much as you say left over, do you really need a loan?

downnotout

Why is your TV licence so high?
Child care costs? older child? but still no child costs?
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
All 0?

On paper you have 800 ish to pay off debts which is more than enough to pay off debts, but you really need to fill in all the blanks on the SOA.

slummymummyof3

Your mobile phone bill is HUGE - can you cut it or swap to pay as you go?

Car insurance very steep, use comparison sites and cashback sites.

If you have had your life insurance for a number of years you might find that you can get it cheaper elsewhere as prices have come down considerably over the last few years.

Why is your tv licence £35 per month?

Haircuts?

Is this a realistic soa? I suggest you keep a spending diary to check where your money goes - this can be a reality checker if you find that you aren't actually left with the money your soa suggests you should have.

Have you thought of opening another bank account to have your salary paid into that you can then transfer money over to pay off one of the overdrafts? Balance transfer on the credit card to get a more favourable rate on the outstanding balance?

t_benn_1

slummymummyof3 wrote: »

Your mobile phone bill is HUGE - can you cut it or swap to pay as you go?

Car insurance very steep, use comparison sites and cashback sites.

If you have had your life insurance for a number of years you might find that you can get it cheaper elsewhere as prices have come down considerably over the last few years.

Why is your tv licence £35 per month?

Haircuts?

Is this a realistic soa? I suggest you keep a spending diary to check where your money goes - this can be a reality checker if you find that you aren't actually left with the money your soa suggests you should have.

Have you thought of opening another bank account to have your salary paid into that you can then transfer money over to pay off one of the overdrafts? Balance transfer on the credit card to get a more favourable rate on the outstanding balance?

Phone bill is mine and partners as is car insurance.