Help needed

candyfloss2010

Hi

I am desperate for help. I have 3 credit cards plus 2 loans and now my cards have run out of interest free charges. I am now being hit with about £80 a month interest with the cards and I also end up being overdrawn in my bank so they add on £22 a month, I also have a large overdraft! I can pay the loans no problem but I will struggle to pay the overdraft off and the credit cards now they have additional interest.

I have applied for other credit cards and loans to consolidate my cards but I can't get anywhere. I presume I can't go into debt management because one of the loans is for a car and I don't want to lose that or sell it. I haven't missed a payment on my credit cards but now the interest has hit I don't think I am going to be able to pay them. Please can someone advise me?

Hannah_10

Ok there's a few things here.

Consolidation loans are a bad idea, there are people here who have consolidated twice, three times, four times and gone into debt more each time. This is because it's a "quick fix" and doesn't take account of how you came to be running up a debt to start with, sometimes it's because you had to fly your poorly Dad home from Australia... usually it's because life didn't match int he income and expenditure departments. Consolidation is a bit like trying to put out a burning car with petrol.

Going into a debt management plan doesn't neccesarily mean you have to lose the car. If it's a secured loan it takes priority over your other debts, if it's an unsecured loan it gets put in with all your other debts, it can be hard to tell the difference. Never go to a company offerring DMP's though, only a charity or do it yourself. (Read about that here)

You really, really need to do a SOA. It's a big sheet with all your debts, all your outgoings, all your assets and so on on it. It sounds daunting but there is a dead-simple topic about it. The topic even includes a link to a even simpler online calculator tool thingy. Until we see a SOA anything we say about what's going to be the best solution for you is a guess, not a considered point of view. (SOA topic here)

bottleofred

Hi Candyfloss,

Totally agree with Hannahs post. Post your soa and we'll take it from there.

debtfreein5

Hi Candyfloss

Do put a SOA on and accept suggestions with an open mind. Hannah gave me some recently which really helped. My husband and I have come up with a plan to attack debt one by one without having to do a DMP.

Just be aware....people see your numbers as very black or white and make suggestions just on what they see. I was a little taken aback at some suggestions...but please stick with them and see if they are possible......its REALLY helped me!

Hannah, dont think I thanked you at the time but you really did help.

Good luck

candyfloss2010

HI

Before I complete the SOA I just wanted to clarify something else. The one personal loan is unsecured which is the one I can afford to pay as I took it out on behalf of my partner and he gives me the money for it each month so it is a completely separate from my own debts as such. We did use this to buy a car which is only in his name. I know I am responsible for the loan obviously but without fail the money goes in and out of my account and I would like it to remain like that so how would that effect a debt management programme is it not possible?

Oneday77

candyfloss2010 wrote: »

HI

Before I complete the SOA I just wanted to clarify something else. The one personal loan is unsecured which is the one I can afford to pay as I took it out on behalf of my partner and he gives me the money for it each month so it is a completely separate from my own debts as such. We did use this to buy a car which is only in his name. I know I am responsible for the loan obviously but without fail the money goes in and out of my account and I would like it to remain like that so how would that effect a debt management programme is it not possible?

Tecnically it is your debt, regardless of how it is paid for.
You could just not declare it or the money you get to pay it. However if your partner stops paying your up the brown river with a leaky boat and no paddle.
Post up your SOA and include it. That way everyone has a clear picture and can help accordingly. Remember to add the money you are given as additional income.

HappyMJ

Not possible. The surplus income must be proportioned between all debts. Can your partner take out a loan now and pay your loan off?

candyfloss2010

Hi

I have completed the form as requested however I am confused, when I tot up everything with the calculator it comes to approx £1778 outgoings not what the calculator has added it up as. I added a little extra on as I actually pay a little extra on my cards but that was only about £30. My income is £1942 but it calculates the outgoings as £1098.



Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1342.18
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 600
Total monthly income.................... 1942.18
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 287.8
Management charge (leasehold property).. 0
Council tax............................. 112
Electricity............................. 31
Gas..................................... 31
Oil..................................... 0
Water rates............................. 33
Telephone (land line)................... 13.5
Mobile phone............................ 12
TV Licence.............................. 9.5
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 360
Clothing................................ 50
Petrol/diesel........................... 60
Road tax................................ 15
Car Insurance........................... 13
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 8.99
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 5
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1111.79

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 2000

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................479.76....10........17.47
credit card....................2771.89...63.83.....13.46
credit card....................2890.3....25........NaN
personal loan..................11000.....306.......11.87
personal loan..................10000.....239.5.....0

RAS

Hi

You have only copied part of the SOA. You need the whole lot. It will be arounf £1770.

And your grocery bill is massive for 2 people. You should be able to halve that.