Rock Bottom - Near £30k of Debt - Now to Tackle it

Arfhurdaly

I think the answer is in the redundancy. Otherwise you'll pay bits n bobs for years.

Take the lump sum.
Offer F&Fs on the debt. Negotiate down to 60% or less. Then you have some savings too.
Apply for further work. Relocate if you have too.

Verbatim

So is your rent £900 a month with you each paying £450?

TheLostSheep

Verbatim wrote: »

So is your rent £900 a month with you each paying £450?

The rent is £450 in total. Good I know - I at least got that right when we moved.

£1000 per month goes to a joint account for bills. £600 from me and £400 from other half. This pays for:

Rent.................................... 450
Council tax............................. 155
Electricity............................. 25
Gas..................................... 40
Telephone (land line)................... 21
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 19
Groceries etc. ......................... 240
House Insurance......................... 11
=£973

This then leaves me with around £1000. I have to pay for:
Mobile phone............................ 25
Internet Services....................... 19
Clothing................................ 20
Petrol/diesel........................... 40
Road tax................................ 16
Car Insurance........................... 19
Car maintenance (including MOT)......... 30
Other travel............................ 200
Medical (prescriptions, dentist etc).... 5
Presents (birthday, christmas etc)...... 10
Entertainment........................... 50
=£434

This then leaves £566 on my part but I have to service:
Unsecured Debts
Description....................Debt......Monthly.. .APR
Lloyds TSB Loan 1..............7721......271.......12.7
Lloyds TSB Loan 2..............917.......92........21
Barclaycard....................2862......40....... .14.9
Lloyds Current AC..............2500......35........18
Lloyds TSB CreditCard..........15478.....360.......18
Total unsecured debts..........29478.....798.......-

I hope that's a bit clearer. My GF obvioulsy has £600 left but she has expenses of her own on travel and some other costs - the debt ultimately is not her, but possibly contributing £100 more may help I agree for joint expenses.

TheLostSheep

First slight bit of good news. After rejecting my first two proposals of F&F offers. Lloyds TSB have informed me verbally in detailed phone conversation that they would be prepared to accept in the region of £12,000 for that nasty Credit Card Debt. This would work out at 80% and they'd accept monthly payments.

I think this might be good in that it will lessen my onbligation to them monthly by £100 if I aim to pay if off over 48 months.

I am going to amend my letter tonight.

TheLostSheep

I also tried to phone Barclaycard but they rejected my request to lower the APR. The account is marked as closed now also. I might try the HBOS 0% I was offered as a balance transfer.

TheLostSheep

Question:

I moved my current accoutn as advised and salary will pay in there from End of month

What will happen with Lloyds A/C. It's standing at £2500 OD on a limit of £3000. When they see that regular payments have stopped am I in bother or are they just added to list of creditors.

tbourner

cg81 wrote: »

Question:

I moved my current accoutn as advised and salary will pay in there from End of month

What will happen with Lloyds A/C. It's standing at £2500 OD on a limit of £3000. When they see that regular payments have stopped am I in bother or are they just added to list of creditors.

I have no experience of it but I would guess they would take away the overdraft facility and treat it as a debt, which would mean they would contact you requesting you to pay it, then you'd have to set up a regular payment.

TheLostSheep

tbourner wrote: »

I have no experience of it but I would guess they would take away the overdraft facility and treat it as a debt, which would mean they would contact you requesting you to pay it, then you'd have to set up a regular payment.

That's what I am thinking will happen. The DDs are still set up via that account (totalling say £700ish). I could transfer the money from Co-op to there initially and see what happens.

pinkkaz

Hi cg81, have you been to the snowball calculator:

http://www.whatsthecost.com/snowball.aspx

to see how long it will take to pay off your debts, and the order you should pay them off?

TheLostSheep

pinkkaz wrote: »

Hi cg81, have you been to the snowball calculator:

http://www.whatsthecost.com/snowball.aspx

to see how long it will take to pay off your debts, and the order you should pay them off?

That looks really useful that. It's looking like 5 years. Reducing the Lloyds CC to £12k (via F&F proposal) would be a huge help. I shall send letter again today as they said on the phone this is likely to be accepted.