Loads of debts (want large loan to pay off but get refused)

Firsttimebuyer_4

Hi guys,

Here's my SOA:

Monthly Incomings:

My salary - £1784

Monthly Outgoings - approximate (most outgoings are ½ of the bills, my partner pays the other half, but we have separate bank accounts so this is my mess, not hers)

Rent - £440
Council Tax - £52
Gas -£15
Electric - £15
TV License - £5.50
Phone - £20 (we use our mobiles free minutes, includes internet)
Mobile: Nothing....I pay £5 per month but got £100 credit for not taking phone when renewing contract. Includes free minutes)
Food and fun - £100
Car Insurance - £27.60
Petrol - £15
Barclaycard: 50
Coop: 50 (normally i have paid this off but our holiday was put on this card…..)
Amex: £90 (minimum payment as this is the lowest apr 4.9% LOB)
Natwest: £273
Barclayloan: £301
Egg Loan: £136
Barclays savers account: £250 (I put this in every month as it is a 10% deal, which is more than the interest on my credit cards, I have ca. £1580 in this savings account which finished March 2007)

Total outgoings: £1,855.1

Debts:
Egg loan: £136, 6.9% , 48 months period, 42 left, £5000 left. This is a flexible loan
Barclayloan: £301, 7.9%, 48 months period, 44 left, £11500 left
Natwest: £273 ,6.5%, 60 months period, 44 left, £10000 left
Coop card: Balance - £1000, 8.9%, credit limit £3000
Amex: £3800, 4.9% (life of balance), credit limit £4000 (came home to a letter from Amex saying they’ve reviewed my account so they decreased the limit from £5000 to £4000. I am NOT using this card since it’s a 4.9% life of balance transfer)
Barclaycard: £2200, 6.9% (life of balance), credit limit 2900, I am not using this card since it is a 6.9% life of balance transfer.

Money “stashed away”:

Barclays 10% savings account ending march 2007: £1580
Stocks: £1500 – I lost some on a couple of my shares so I won’t be selling these until they have bounced back up so I don’t loose anything. They will bounce back its just a matter of time. The sale of these is non negotiable so don't go there
Current account: £460

I am looking at my situation now and I’ve got more going out every month than coming in, but I got some money in
my current account to cover me until the promotional period from Barclays is over.

Now to answer some of your questions

Have you stopped running up extra on the cards now? If you don't mind me asking, what was put on the cards to end up with the debt you have?

I've stopped running up the cards, they are only going DOWN now. Apart from my coop card which i just paid the holiday on....unfortunately. The reason for my card debts and loan debts is that i was without a job for 4 months and also moved house at the same time (personal reasons so not moving was not an option). I had to pay to live so used credit cards. Once i got a job i took up some loans to pay for rent and all living costs. My partner had no job so i paid it all. She now has a job and we share the bills

there really is no point in saving when you're paying whopping interest charges - you say you have no 'fun' money, but you must have used the cards to buy stuff for yourself (holiday for e.g.!) or is it mainly living expenses?

Without a holiday i think i would go mad...sorry..We did go for a cheap option though. out of season 7 day holiday for £700 for both of us. I had to pay since my other half could not afford it.

I'd just like to make the point that reshuffling your debt is not technically 'paying them off' as you are only robbing Peter to pay Paul. Not a personal dig at you, more perhaps aimed at the loan companies that peddle these kinds of idea's.

But by lowering the monthly outgoings i would be able to put some money towards a mortgage, get on the ladder etc. Or have i been disillusoned?

Any help is good help. Thank you

libitina_2

We've not had a holiday for 6 years as we CAN'T AFFORD IT



(though tbh, days out cost nearly as much when all added up anyway)

lynzpower

Ok, well there are a few issues here I can see

1. you are bankrolling your partner. Not just keeping them afloat with the bascis, but paying for a holiday for her, when you are patently massively in debt- well you can do the rest of the thinking on that one. You ay the hol was 700, but then say

Coop: 50 (normally i have paid this off but our holiday was put on this card…..)

as in 1000, which is it? Do you know what debts you have exactly, or is this confusion meant to deter us you say you HAD to pay, Id say you CHOSE to pay for her. Is she agreeable to giveing you this money back then?

2. Paying 250 into savings isnt a wise move if it gives you too little to live on

3. where on earth do you live? 880 a month plus bills is a lot for 2 people. Im a londoner ( well, not by birth IYSWIM) and even I think thats a bit high?

CLAPTON

a few observations
congratulations on the relatively low APRs for your loans, at least much of your money is actually paying off the debts.

10% gross is 8% net after tax ...but now you've started you may as well complete.

your SoA needs a few more things in

if you are going to have holidays because you will otherwise go mad, then add a budget line for them so you can see how they affect the budget.

add something for car tax, mot, AA/RAC? , servicing & repairs.

does £100 for food and fun represent all your food (home and office, coffees, snacks) and going out costs?

in reality you have a surplus once the 250 savings is discounted which means you will be able to pay the debts off without getting along term loan

in any event if you have tried for 5 loans in the last month you credit record will show these applications and so you're unlikely to get a loan now anyway.

these loans will affect mortgage applications as lenders will take your debts and outgoings into consideration when deciding whether and how much to lend you.

last ..about those shares, if you dont understand about stop loses and get attached to shares that 'just have to go up' (why doesn't very one else know that too) you really shouldn't be investing in equities.

Firsttimebuyer_4

as in 1000, which is it? Do you know what debts you have exactly, or is this confusion meant to deter us you say you HAD to pay, Id say you CHOSE to pay for her. Is she agreeable to giveing you this money back then?

The 50 is what i will now pay per month on my coop card. 1000 is the outstanding balance.

add something for car tax, mot, AA/RAC? , servicing & repairs.

You are absolutely right...Since this was done 7 months ago i didnt include them. But I should!

does £100 for food and fun represent all your food (home and office, coffees, snacks) and going out costs?

Belive it or not...yes. My other half pays slightly more for food to say "thanks". We live cheaply and often go to her parents for dinner. The rest is spent on going out, which isnt often. A trip to the pub perhaps. Then saying that, there is the odd time when i might spend 200 a month but 100 is more likely.

last ..about those shares, if you dont understand about stop loses and get attached to shares that 'just have to go up' (why doesn't very one else know that too) you really shouldn't be investing in equities.

I've made a fair amount of money on stocks. I do know about stop losses. I have 2 stocks at the moment. One of the stocks are now only worth £200 (lost £300) so i'm not selling those just yet since it once make much of a difference and i this is my fault as it was the first stock i bought so i admit that mistale.. The prospects for this stock is good i think . The other shares i put a trail order (barclays stockbrokers) on but it dropped beyond what i set as a sell price so i still have them. I still really believe in this stock (DDD if you want to have a look)

Thanks for your advice. I will take them aboard and adjust my SOA as well.