help with debts...new here

louisechackett

Hi everyone,
Im new here and hoping for some advice re my debts.

Im 26, and a part time worker (i do 10hours a week) as i have a 16 month old son. Obviously my income is not massive due to this fact. My husband pays all the household related bills but i have a few things to pay myself. Im starting to feel really sick about it all, and worried that its never going to be paid as i have to pay one thing with another making more debt

My wage is 244.00 per calander month, i dont get taxed on this
We get £69.80 in child benefit every 4 weeks
We get £39.00 child tax credit every 4 weeks.

My debts are as follows:

Egg loan: 5990.97 (end date 1st july 2009-i have paid just over a year. APR 7.7%, cost per month 196.61)

MBNA credit card: 2071.35 (minimum payment 10.44 for next month. It is a limit of £2800, and it is 0% interest until jan 2007)

Next directory: £600.00 (minimum payment this month was £65.00. I have no idea of the interest on this but the service charge is about £13.00 a month)

so in total i have to pay £270ish a month, and i dont know what to do. any help is very gratefully recieved

louise x

lynzpower

Hi there Louise

Have these debts been run up on your own

Does your hubby know about them

Are you finances not put together, or is it just like your part time job money is your "spends" type thing?

Hnag in there
Lynz

Jesscat

Could you transfer your Next onto a 0% card or apply for a life of balance card such as Marks and Spencers that are doing one at 3.9%. Not sure but think the interest on Next is pretty obscene. x

dancingfairy

A couple of suggestions. Can you apply for a 0% credit card and shift some of the debts on to this? Also what about sitting down with your husband and explaining the situation, perhaps you could pay another bill and he could help with the credit cards - maybe you could buy the shopping etc? Either way perhaps a chat with him would help?

louisechackett

Hi lynz

Hubby knows i have a loan, and that i use the next directory but hes not sure how much is on the next.

We dont put our money together no, he pays all for the house and food etc, so i am left with this really, and the odd treat. I think its more like spends as you say, except there isnt any left.

Ive been looking around on the boards and wondered if it might be best perhaps getting a 4 year northern rock loan, for around £6500, and paying off the next and the egg loan. I think this would be about £150 a month without the payment protection. im just feeling so stupid, i know its not only me with debts but it feels that way

louisechackett

Thanks for your replies.

Hubby gets very angry with me about the debts i have, as unfortunately i have had them before and we had paid them off (as i got the egg loan to pay off my other debts) so i want to try and sort it a bit on my own, and then perhaps ask him for help when it is a bit more controlled.

Hope that doesnt sound really stupid

sdj25

Can you work an extra hour or two per week?

How long have you worked there, any chance of a raise / increase in living expense ?

louisechackett

Hi
unfortunately theres no scope for an extra couple of hours a week. I work in a primary school office, on a fixed contract so they are unwilling to offer the extras

i think in april i get an increase in cost of living. Howver, i am on a temporary contract (since march) as i have not yet been interviewed! (they havent got round to it yet!)

saubryn

I'd be careful getting a loan to consolidate unless you're 100% sure you won't run anything up again. It can be a good option for some people, but in a lot of cases it just lets you run up the card and catalogue credit again leaving you worse off.

Balance transfering the higher interest stuff is a nice bet, but would you use Next Directory again?

It sounds to me like you have enough coming in to pay it off if you can get rid of Next and that monthly charge. How much will MBNA be when the interest free period ends?

sdj25

I'd echo the other guys then and get your balance transferred from the Next card.

If you can't get a new card, try calling MBNA & see what sort of deal they can give you for transferring the balance over.
Don't get a consolidation loan, you end up paying more even if it "saves you money every month" (don't believe that Carol!)

louisechackett

the rate will be 15.9%

I think i would be very inclined to cut up all my cards and things. Im just sick of being in debt.

With the next i think i may use it again, as i buy my sons clothes from there, but i would be more inclined to spend what i can afford