Help!

Fabregas2010

Hello,
I'm currently wondering what to do, so I'll lay out my situation:
- I am married with a 1 year old child
- I currently earn enough to see my family through with the essentials with about £100 to spare
but my fanancial situation is:
- I have 2 credit cards:
--Vanquis I owe 80 limit is 150
--Santander I owe 350 limit is 400
-I also have a loan:
--Halifax for 10000, pay 240 p.m. since february 2009
-I have a back account that is frozen:
--LLoyds who I owe 350 to close the account
-I also have finance:
--Welcome for 17000, pay 50 p.m. I owe 9400

With the finance I know I can pay for the car outright for 4000 though, as the company is going into liquidation next year. The intrest rate on it is astronomical because I was stupid and young when I got it. I have looked at the balance transfer credit cards, but I don't see how i could use them to pay off the finance due to the deal I know about? My credit rating is not terrible either, experian tells me I have a good one (though I doubt it).

I haven't defaulted on any payments for 2 months, and I have never been any more than 2 payments in arrears.

Any thoughts?

[Deleted User]

It's a slog but it might help if you could do a 'statement of affairs' (SOA) which is easier than it sounds as you put the numbers in and it does the maths

http://www.makesenseofcards.com/soacalc.html

also these links will give you a start

good luck

http://www.moneysavingexpert.com/loans/debt-help-plan

https://forums.moneysavingexpert.com/discussion/107280

Fabregas2010

Thanks that was a great help! What is the best card for me to apply for though? Would a balance transfer work on a deal that I have come up with for welcome? Or would I have to pay the full 9000?

Tixy

Hi and welcome

Most credit cards only allow you to balance transfer a balance from another credit card.
But in theory if you could get a new 0% card that allows a 'super balance transfer' or 'money transfer', then you could use this to transfer the money into your bank account and then can use that money to pay off a loan or any other debt. For these type of transactions you pay a set fee on the balance you transfer from the credit card (typically 3%-4%). The only cards that do these type of transfer are listed here - http://www.stoozing.com/sbt.php

However from what you have posted about having missed payments and the amount of debt you have (and the fact that some of it is subprime) my guess is that you would struggle to get a new card at all, especially not one with a £4k limit on a 0% deal.

Before you start making applications for new credit products it would help if you could post up a statement of affairs as joolz suggests. That will help us see how likely it would be you would get any further credit. You don't want to make lots of applications as these in turn affect your credit rating.

Fabregas2010

Ok here are my results:
Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 927.17
Partners monthly income after tax....... 300
Benefits................................ 400
Other income............................ 0
Total monthly income.................... 1627.17

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 307.8
Rent.................................... 95.79
Management charge (leasehold property).. 0
Council tax............................. 129.58
Electricity............................. 35
Gas..................................... 35
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 11
Mobile phone............................ 65
TV Licence.............................. 12
Satellite/Cable TV...................... 51
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 150
Petrol/diesel........................... 50
Road tax................................ 10
Car Insurance........................... 72.31
Car maintenance (including MOT)......... 10
Car parking............................. 20
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 20
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1464.48


Assets
Cash.................................... 0
House value (Gross)..................... 4000
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 6500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 10215....(237.8)....9
Hire Purchase (HP) debt ...... 9357.....(50).......28<
DWF............................9000.....(20).......0
Total secured & HP debts...... 28572.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Santander......................350.......10........12
Vanquis........................80........5.........30
Total unsecured debts..........430.......15........-


Monthly Budget Summary
Total monthly income.................... 1,627.17
Expenses (including HP & secured debts). 1,464.48
Available for debt repayments........... 162.69
Monthly UNsecured debt repayments....... 15
Amount left after debt repayments....... 147.69

Personal Balance Sheet Summary
Total assets (things you own)........... 6,500
Total HP & Secured debt................. -28,572
Total Unsecured debt.................... -430
Net Assets.............................. -22,502

[Deleted User]

Hi there, is your Mrs in agreement with you about the problem? And can you get her to read this thread and the replies? It's always best to tackle the problem together

Start a spending book and write down every little thing, even the tube of polos from the garage etc. Read it back after a week & it'll surprise you!

First thing I'd say is to budget carefully & cut right back on Sky/satellite (ask to switch to the cheapest package if you're in a contract then asap go to free reception only).

Same with the mobile phones £65 is a heck of a lot!! could go payg or cheapest contract you can get, I got 300 min & free texts just kept the old phone for £6 a month.

Groceries can be planned & bought more cheaply (see the Old Style Moneysaving board for ideas) as again £75 per week for 2 adults & 1 child is a hell of a lot ( me & my hubby eat really well (too well lol) for about £35.00 a week)

Same with clothing - £50 per person per month is pretty high, could the adults just wear what you've got for a few months, just replacing children's outgrown clothes, underwear shoes etc only when they wear out. Charity shops and sales are a good source of things of jazz up clothes you've already got.

No household contents insurance? get some quick! You could lose everything in a fire and have to start with £0.00.

I think that you could quite easily make savings of £200++ a month - that would easily pay off your small debts instantly, and could be used to make debt repayments every month with no defaults.

Other piece of advice - NO MORE CREDIT CARD SPENDING - cut them up or lock them away somewhere safe then you can't use them, you have to budget.

People here on MSE are great, come back keep telling us how you get on, you'll get all the support you need

Sorry if the above sounds a bit harsh but it's what works and I found that I get more of a buzz doing things the MSE way than I ever did getting into debt. We are totally debt free, on a low income & mobility benefit yet now I have 4-figure savings and a holiday every year.

Fabregas2010

Ok I've sorted my finances out now and still have about 100 spare per month after giving a lump sum to debts, saving for xmas and paying for all our food.

Thanks for all your help! Should be in a much better situation in March

[Deleted User]

Fabregas2010 wrote: »

Ok I've sorted my finances out now and still have about 100 spare per month after giving a lump sum to debts, saving for xmas and paying for all our food.

Thanks for all your help! Should be in a much better situation in March

Keep us posted - and come back to tell us how you're doing