A bit of a dilemma

Mr._P_Nut

Hi everyone, first of all I'd like to say what a great forum this is and also what great advice it has on it.

Now I suppose I'm in a little dilemma, I have loan with YB that I owe 5k on. I have 2 phone contracts, myself and the girlfriends. I live at home so pay board. Insurance on my motorbike, tv license etc.

Loan = £193 per month
Phones = £90 per month
Board = £220 per month
Insurance = £20 per month
I owe my parents about £600
TV License = £12 per month
Catelogue = £100 per month
Silly Payday I'm using most months = £150 per month for £120 (stupid I know)
Overdraft = £600 (my wage goes in and I use all of the overdraft each month)

I was stupid with my loan, and got hammered with about 40% APR. I could pay up both phone contracts for £600 ish.

Now I get paid around £1100 per month and after paying everything find myself skint! I'm thinking do I get a loand and pay it all off, phone, overdraft, parents etc and get it in 1 monthly payment (a consolidation loan) and be in debt for longer but still habe money each month. I'm thinking if I get paid £1100, £220 a month to parent, £150 a month towards the (new loan) debt leaving me with £700 ish for the month.

I can kind of live with having to pay back a loan for a number of years knowing that as long as I'm sensible and dont take out contracts etc again then I can live fairly comfortably from month to month, without having to struggle.

Is there a loan anyone would recommend, I'm not sure what a settlement figur would be on my load but I recon to have everything covered I need to borrow around £7.5k. I've been turned down by my bank in the past year and also Tescos (them and Sainsburys seem to have good deals going). I'm not sure why I was turned down, I'v never missed a payment for anything, I've been overdrawn a couple of times but thats about it. Should I check my credit score first? Is Equifix still free to use if you cancel? Any loans anyone would recommend? Sorry for the long post, glad to get it off my chest!

BTW I'm 22, have worked at the same company for 5 years and my job is secure.

Thanks,

Will

CLAPTON

how much do you earn (gross)
have you exceeded your agreed overdraft limit
how many credit applications have you made in the last 6 and 12 months

talana

Sorry to say you're most unlikely to get any sort of loan from a mainstream lender (as you've already found out with your bank, Tesco & Sainsburys). Any lender would assess your credit worthiness and look at your credit history, and they would see the revolving payday loans, living in your overdraft and all the rest of it.

So forget the idea of a loan, not going to happen.
Go over to the DFW board and post up a full soa for people to offer advice on. You need to tackle the root cause of the problem, which is you're spending more than you earn.

Mr._P_Nut

Thanks for your replies. The problem is at the minute I'm stuck in the cycle of almost 'having' to get a pay day loan. I've heard mixed things about these affecting your credit rating, whether it be good or bad?

Gross is about 17.1K. Would it be worth running a credit report? I've applied twice and the past year, I think with my Bank I kind of got carried a way with the 'oh but if you lend this much it's still only this to pay back' etc etc and ended up applying for about 2k more than I wanted.

Would Equifix be a good idea? It is a struggle to try and get back to 'normal'. I'm paid on the 7th, and have about £100 for the month by the 10th.

Oh just to add, my overdraft limit is £600 per month, and I dont go over it (I have twice and on one of those occasions another company admitted fault for taking it when they shouldn't)

Peelerfart

Try posting on the DFW board as Talana has said.

They are very clever, nice people there who will be able to help you.

Good Luck

PF

CLAPTON

It is sensible to get copies of your credit records .. just the £2 statutory ones or free trials (as long as you cancel in time) so you can see what they say

how with debts of at least £5k then trying to borrow another 7.5k on a 17k income is unlikely to be successful.
living in your OD is bad news
going over your OD limit is even worse news

1. work out a proper budget including everything you spend i.e. a good format
http://www.makesenseofcards.com/soacalc.html

2. stop spending except on absolute essentials

3. keep a spending diary.. a record of every penny you spend

4. you first priority is to get rid of the payday loan;
can you sell anything on ebay
ask your parents to let you reduce the board payment for a month so the payday loan can be cleared
get a part time job


and as already suggested by talanta posting on the debt free wannabe board might be useful

Mr._P_Nut

Thanks for all your replies. I will definitely make a budget, I did think about getting a part time job but I work 8-6 most days through the week and feel I do need a little break at the weekend. I've also heard I'd get hammered on tax on a part time job, is that true?

I know what you're saying about not being able to get a 7 and half loan but this is what I had before and I was on even less money then and got it! Strange I know, if only I could go back a couple of years, what is it they say, hindsight is a wonderful thing!

I know it would be hard for anyone to tell me, and it does sound a little silly me asking you, but if I owed, for example 5k, would a settlement figure bring that down? Would there even be a settlement figure or is that from loan to loan?

To be honest I would get the same loan again, same rate, same repayments, but with what I had left from paying my current loan off I'd pay off my overdraft/phones etc instead of blowing it! It would be for the greater good this time but I cant get one, ahh well I suppose its one of those things. Perhaps going in to my bank and sitting down with a bank manager would help?

CLAPTON

stop spending
do the budget sheet and see what your expenses really are
get a part time asap even if only for six months or so
and use the money to get rid of the payday loan asap and then start on the next debt with the highest APR

going to you bank may well result in their withdrawing your OD once they know what an appalling financial situation you are in

wotsthat

Thanks for all your replies. I will definitely make a budget, I did think about getting a part time job but I work 8-6 most days through the week and feel I do need a little break at the weekend. I've also heard I'd get hammered on tax on a part time job, is that true?

A mainstream lender is going to politely suggest that you may be a little overstretched already.

I think it's admirable that you accepted you have a problem and want to do something about it. A part time job sounds like a great idea (you won't get hammered for tax). Next time you're sat in your bedroom in your parents house and you are considering a £45/ month mobile contract just ask yourself if Vodafone, or whoever, work as hard for that money as you did.

Presumably you don't want to stay with your parents forever so why not nip this in the bud now.

Don't end up like this chap...

https://forums.moneysavingexpert.com/discussion/2923292

greektony

yeah, that guy is quite the joker

whatyadoinsucka

why have you got two phones, why are you paying for a partners, all mobile phone companies offer contracts of £15 a month for 300 mins and unlimited texts and a bit of internet

also Tv license do your parents not have a tv license, ask them to share the cost.

as per others stop buying, or heaven help you when you rent or mortgage on your own