Am I ok with money?

shooter987

Hi guys,

I know the topic title might sound a bit dumb but Ive decided that enough is enough with my debts.

I currently have a loan of £13500.00 for 7 years which has been running for 1 year now and Im paying £224.35 a month. This was a consolidation loan for a previous bank consolidation loan with the same bank for £10000.00 including cards. When I took out the £13500.00 loan, the bank advisor said this was my real opportunity to sort things out and I feel so ashamed I didnt.

I also have 1 credit card with just under £1000.00 with Capital One and a bank mastercard with just over £3000.00.

I earn £15450.00 a year and live with my parents. Ive been with the same bank for 13 years (my first bank) and lived at home for 23 years. Im scared as to the extent of my debts and want to really reduce these.

After all my outgoings including food I have £284.00 left a month to spend on social life etc.

I have never missed a payment although a couple of times my phone bill has been paid a few days late due to the fact I renewed a credit card and the phone company didnt have the right details. I once accidentally didnt pay my mastercard around 3-4 years ago for 1 month but they were very good about it.

I am due bonuses in April for around £500-600 which I want to pay almost entirely off my cards but Im worried Im already in a massive mess, your opinions on my financial state would be greatly appreciated?

shooter987

I also meant to say that I tried to transfer my cards to a 0% balance transfer card, I got refused, they said I had too much available credit on both cards! I have £11500.00 credit limit on LTSB and £7500.00 on Capital One. Is there anything I can do to be accepted on a new 0% rate as that would help immensely! I can then DESTROY my cards!

southernscouser

Firstly post a full SOA. See this thread for a guide.

If the credit company said you had too much available credit you can simply phone your credit card companies up and decrease your limits.

Ali-OK

Hi

Which card have you got with LTSB? You could just ask them to change it over to the LTSB Advance CC which has a 5.5% LOB for BTs - they did this for me. You'd have to check whether there is a BT fee, though I didn't pay one but that was November last year.

It's not the best LOB rate around, but it would save you getting credit checked again. Phone them and enquire.

Other than that, I wouldn't apply for further credit right now.

Follow SS's advice too - post your SOA, you might be able to chop some outgoings to overpay.

shooter987

Thanks and Im sorry I didnt do that before:

Monthly Incomings:

My salary - £979

Total - £979

Monthly Outgoings:

Mortgage/Rent - £315 (includes all bills as I live at home)
Council Tax - 0
Gas - 0
Electric - 0
TV License - 0
Sky 0
Phone - £30.00
Food - £50 (only spent on lunches)
Car Insurance - 0
Petrol - 0
Life Insurance 0

Total: £395.00

Debts:

Lloyds TSB Personal Loan (opened Sept 2005) : £13500 (APR 9.9% I think)
Lloyds TSB Mastercard : £3400 (credit limit : £11500)
(Minimum Balance Repayment : 0.025%)
Capital One Mastercard : £1024 (credit limit : £7500)
(Minimum Balance Repayment : 0.03%)

Debt Repayments:

Loan : £224.00
Capital One : £30.00
Lloyds TSB : £70.00

shooter987

Thanks, I certainly dont want any more credit but Id like to transfer both cards to a 0% rate so I can really eat into those balances. Ive even quite a long term relationship so I can get this sorted.

I understood that its difficult getting credit limits reduced and it might have an adverse effect, is that the case?

tyllwyd

So from your SOA, your income is £979 and your outgoings are £395 plus £324 debt repayments. That leaves £260 - do you know what you are spending this money on? I assume that you must have spent this plus extra to have run up the debts. Why are your debts still going up - have you got a plan to sort this out in the future?

shooter987

I have friends that live far away and my ex also lived in another city so around another £50-70 went on train fares, now I use a combination of cheaper buses to see friends. I love films but the monthly pass means I wont spend much there. People around me say £260.00 free to do what I like with isnt enough yet Im sure it is surely?

I havent got a plan really, I realise though that its over for the former lifestyle, Im disgusted how Ive got into this debt.

My aims are to pass more exams to make my CV more attractive and hopefully get a better paid job. Half of any future rises will go towards paying off debts. 75% of all future bonuses will go that way too.

I also have £3500 tied up in shares and around £700 of that I can use next April to cash in tax free. I suppose I need some reassurance that Im doing the right thing with my debts and they are not in a horrific state.

lil'H

shooter987 wrote:

My aims are to pass more exams to make my CV more attractive and hopefully get a better paid job. Half of any future rises will go towards paying off debts. 75% of all future bonuses will go that way too.

Hey congrats on facing up to your debts. From your income/outgoings you certainly should be able to prevent yourself from overspending, so whu not if you get a new job put ALL of your future rises/bonuses to your debts you'd get your debts paid off much quicker that way?

Lil'H

loubie_lou

£50 on lunches? This seems quite a bit! Did you take packed lunches to work? If not then its best to start! Can another £100 of your £260 'spare' each month go to paying off your cards?

I'd also reduce your limits so you're not tempted to splurge!

Ali-OK

shooter987 wrote:

Thanks, I certainly dont want any more credit but Id like to transfer both cards to a 0% rate so I can really eat into those balances. Ive even quite a long term relationship so I can get this sorted.

I understood that its difficult getting credit limits reduced and it might have an adverse effect, is that the case?

Getting your credit limit reduced - just phone the card provider and ask them to decrease it to the level you choose. It's not hard.

I understand you want a 0% deal, but if you've just been refused a card, then that will show on your credit file and you should wait 3 months at least before applying for another. That's why I suggested the 5.5% LOB with your current provider, but a different card. What are the APRs on your current cards? If it's an interim saving for say 3 months whilst you get a gap on your credit report and allow time for cards to be closed/lower credit limits to show, I reckon you'll have a much better chance then to get a 0% deal.