Help reducing payments

Haxeyowl_2

I have just gone thropugh a divorce, and at moment I have the mortgage and all the bills to pay where as once we had two wages.

I have missed a couple of loan payments and with amount borrowed against my name, my credit score is lower than a snakes belly.

My car costs me £241.50 a month (Which was well within our budget when we was married). I have 2 years left to pay on it. it is currently valued at appoximately the same as how much I have left to pay.

Sounds simple, but there is a problem.

I need a good reliable car to get me to work as i do shifts, so using public transport is a no go.

I have seen a fantastic almost new car for £4000.

If i could get rid of my car and pay it off, i could buy the £4000 car.

Borrowing £4000 would leave me paying £100 a month, thus reducing my costs by over £140 a month.

But nobody will help me.

All money goes through credit score, a computer is not human, so it just says you cannot borrow any more.

Common sense would see i am £140 a month better off, and I have actually reduced my debt by £2000 too.

Does anybody know a way around this please ?

People claim they want to help you get out of debt, but nobody does. I have a car costing me £241, and you would think people would think you are trying hard if you reduce your debt payments by £141 a month, but the truth is they are all out to get you, and they love getting late payment fees from you, and they really don't care at all

Tixy

They are not out to get you, any new potential lender has to weigh up the risk of lending you money and you being unable to repay it.

The problem you have is that when a new lender looks at your circumstances they simply see you as too high risk to lend any more money to, they won't actually consider you expenses, never mind that they might reduce as a result of this loan, they look at your credit history and your debt to income ratio.

Plus of course the new lender's loan would be unsecured whereas the existing lender has their debt secured so that even though you circumstances have changed they still have the opportunity to repossess the vehicle if you miss payments or became insolvent.

Have you considered looking for a much cheaper runaround car for now until your finances improve? Are you currently able to meet all your debt repayments and basic living costs? If so then you could sabve up any excess you have each month and look to get a car around the £500 mark.
If you are not able to meet you current repayments and living costs then I would suggest you complete a statement of affairs http://www.makesenseofcards.com/soacalc.html to show a clearer picture of your finances.

Can you downsize your property? or sell and rent if you cannot afford to keep it?

The people who will really help you get out of debt are the debt advice charities here - IMPORTANT - Where to seek professional impartial advice about your debts. Banks/Creditors are primarily focused on getting their money back from you and keeping their risk to a minimum.

Haxeyowl_2

Thanks for your reply,

I am planning on selling my house soon. The problem will be i will probably only get mortgage value for it, which will be OK I guess, as it will be one less millstone, and I can then downsize.

problem with having a £500 runabout is the miles I do. I live in a rural area, so a reliable lower mileage car is what i really want. I am not greedy, I don't want a BMW.

I just have seen a bargain that would actually reduce my debt considerably. They may not all be out to get me, but they are not capable of looking at individual circumstances and actually helping.

Reducing my monthly car payments by £140 means i can pay more money to other debtors and actually afford to do things with my kids.

The car is smaller, so my insurance would also go down by £10 a month, and fuel and tax costs may also go down, so all in all i could be saving £160 - £180 a month, but nobody seems to want to assist.

My trotal debts will go down by over £2000 and my paymenst will go down by between £140 & £180. It seems to be the perfect solution, apart from the fact athat nobody wants to help.