Problem Faced - Clear £30k Debt - Time for Action

TheLostSheep

Friday 23rd July
Applied for a Virgin Money 0% deal. Got rejected! realised I had a 0% deal with MBNA around 4 years ago. Could that be why?

Thinking of putting my main Credit Card to Debt Recovery with Lloyds where interest would be frozen. Would mean a mark on my Credit File though. Would this seem wise if I continue to pay other accounts rather than going the whole hog witha full DMP!?

Got my Credit Score and Credit File. It's now in the very poor group at 495 compared to 795 a year ago! 2 late payments. Grrrr!

TheLostSheep

Wednesday 28th July

Not been updating this as much. Had to re-list my car as it never got to the price that I’d hoped. I reckon I can get near to £1500 when it ends this weekend. I shall tally up everything at the end of the month in terms of money owed, what I have saved and what else I can do. Thus far I still feel really bad about what I have done but feel much more positive about sorting it all.

I’ve requested that my working days go down to 4 a week over longer hours. This could save me around £40.

I have also worked out how to get my travel cheaper. I plan to cycle 4 days a week to get bus. The travel time will be longer but it will cost me less. If the above two work out then I can potentially get my monthly travel to work for around £6 a day, meaning £100 a month rather than £200 a month!!

Just wish I could work out how to get accepted for a 0% card to balance transfer to. Finding that a bit annoying. Credit rating pretty poor though.

TheLostSheep

SUMMARY - START AUGUST 2010
Currently Due as at Aug 2010: £27,855 (£29,578 July 10)
Lloyds TSB Loan 1 £7533 (£7,721) 12.70%
Lloyds TSB Loan 2 £840 (£917) 21%
Barclaycard £2812 (£2,862) 14.90%
Lloyds TSB Credit Card £14,500 (£15,478) 18%
Lloyds TSB Bank Account £2170 (£2,600)
= £1723 paid to debts in July/Start Aug

TheLostSheep

I possibly need to look at updating the figures a tiny amount once I pay car money in. Based on usual payments and funds raised, in July I have managed the following:

£1000 made from sale of car
£330 made from Ebay
Saved £12 p/m from August on Broadband from £19.99 to £12 but free for 5 months until January 2011
Travel going to save £90 p/m – via £4 per day and 1 day less travel. Travel was £200 now £110
Saved £20 Car Insurance
Saved £20 on Trade Union Membership
Saved £60 by taking breakfast and lunch to work
Will save on car maintenance/repairs etc and going to cycle to train/bus
===
Need to consider in August:
Any way of getting a 0% deal
Look at finding alternative job
Cycle to work scheme and sell other bike
Anything else for Ebay
Only use new Co-op basic bank account for spending

wolveslass

You've done really well in your first month. :j

If you look at my signature we had similar debt levels in July and have paid off a similar amount. I'm proud of my efforts so you should be proud of yours too. That was a great amount to earn on ebay, what sort of stuff did you sell? I do well every now and then and then I lose motivation with it. I have all my cards on 0% but I have a lot of money each month going on repayments to them and my loans. In total I shell out about £800 per month and that's before household bills, mortgage etc. So my aim is to cut spending and make sure that I don't resort to buying on my cards. I no longer carry any of them they are all hidden away!

What keeps me going is the thought of what I'll be able to do with that extra £800 when these debts have gone. Get saving I hope, it's been a while!

TheLostSheep

Cheers Wolves Lass. How did you manage the 0%?

I really want to try and get on one or 2 of those as the interest is annoying. I tried Virgin hut got rejected, possibly cos I applied to MBNA years ago.

My eBay stuff was Old playstation, iPod, vintage football tops, some other electrical goods.

Run out of stuff to really flit now and eBay dies get obsessive.

Need to get thinking cap on.

wolveslass

I don't know why I got the 0% but have always managed with no problems. Have you tried Santander? I got this one most recently, also I bank with Halifax and they gave me one no problem, also gave me a decision there and then online.

TheLostSheep

Ok, well I think that might be something I do at night. I was stupid with that virgin one as knew I had an MBNA before and balanced transferred. HBOS offered me one a few weeks back. I hate a joint account (well still do) but my name isn’t on it. My ISA was used to pay off debts. They might be my first port of call.

Santander is possibly a good shout too as no banking relationship I can think of in terms of previous cards.

One thing I’ve thought of is, might it be worth contacting Lloyds TSB and asking if they’ll reduce the APR on that huge credit card as it’s seriously annoying. Lloyds have generally been ***** thus far with me, but it’s worth a go.

Thanks for your help again – much appreciated.

wolveslass

Otherwise it might be worth considering taking out a loan with a lower APR to pay off the biggest card??

TheLostSheep

Just doing an update as at the start of September.

The interest is really crippling but I've no way of getting it reduced.

Can't get balance transfers as credit rating is poor. Pretty annoyed about that.

Really don't want to go down the DMP route.

Been able to sell stuff on Ebay which has helped to tune of around £100 p/m. It's quite amazing what you find that you don't need - I guess that can't last forever though but still have around 3/4 mileage left from that.