Trying to do the right thing and failing

TooDee

Hi, i'm sure I've been here before but couldn't seem to sign in so had to sign up again... anyway.

I've been trying to sort my finances over the past few years. I've moved into cheaper accommodation away from my friends just to save some money. i've cut back in every way I think I can and i'm really starting to get on top of things although haven't managed to start saving yet.

The debt i've got is a £1000 overdraft and £997 left to pay off on a loan. The overdraft costs me £9 a month and the loan seems to have been around forever. I tried to find out the rate of the loan but the woman in the bank was useless and I haven't had chance to go back and talk to someone sensible.

I stupidly also took a laptop on buy now pay later as I get a bonus every year so planned to pay it off with my bonus. When I took the laptop I was well on track to have my normal bonus then the snow hit and my bonus went with it. I have to the start of march to pay that otherwise thats another loan that i'll be paying off thats £1000 and will cost me about £400 I think. As i said i moved away from my friends so really saw having a laptop as my connection to my life. When my old one died I tried to live without it but I couldn't

I've tried the past few days to find a loan that I might be able to combine all three of these in so £3000. I've applied at Sainsburys and Zopa both of which after some faffing about refused me. I checked my credit report on experian and there didn't seem to be anything untoward on there. I meet all my payments etc the only two things that I can think might be the problem is i've never had a credit card and this natwest loan as it was an emergency one so its made me a high risk i guess.


Sorry i've totally rambled to sumerise
Debt Loan £997
Overdraft £1000 - that i end up living in every month.
laptop £1000

Income £1050
Its really hard to list bills etc as it varys alot but rent is £411 this goes to my parents although I don't live at home so this is hopefully going towards a deposit on a house one day.
phone £35 a month
no tv licence to pay
internet £10 per month, cheapest I can get where I live.
Bus travel £60 per month pass.

Think thats everything. I feel like i've really got on top of my day to day living just really want to sort out my debt!

lvm

Would your parents possibly take out a credit card in their name (with a long 0% balance transfer on it) that you can transfer all debts to and set up a direct debit to the card from your account to make sure it's all paid off by the end of the 0% deal?

I wouldn't keep applying for further credit - the more credit you apply for, the more desperate it makes you look and will adversly affect your rating.

Tixy

Hi and welcome (or welcome back!)

Unless you can list your bills then its hard to see where you may be able to make cutbacks or how much you can afford towards your debts per month. Which bills do you have that vary a lot? can you work out an average over the last 3months or something so you have an idea. Otherwise from what you have posted it looks like you have 500 or so to spare each month - which you obviously don't from what you have written.

Do you have an old statement from the loan with the APR on - there will be a statement at least once a year. Or can you find out the original paperwork?

One of the things likely to be affecting your chance of getting a new loan is that you are using your overdraft every month - to a lot of lenders this looks like you not managing your money well.
Who is your current bank account with? have you tried speaking to them at all? That said you've already had 2 recent searches so don't keep applying all over, as too many searches can make you look desperate for credit (general advice is no more than around 3 in 6months). That said hopefully you can manage without a consolidation loan and with a bit more budgeting of your money may be able to clear these debts off.

TooDee

ivm thanks for the idea. Asking my parents is an option they may lend me atleast part of it but as they've helped me out alot with somewhere to live already i'm leaving it as a last resort.

Tixy wrote: »

Hi and welcome (or welcome back!)

Unless you can list your bills then its hard to see where you may be able to make cutbacks or how much you can afford towards your debts per month. Which bills do you have that vary a lot? can you work out an average over the last 3months or something so you have an idea. Otherwise from what you have posted it looks like you have 500 or so to spare each month - which you obviously don't from what you have written.

Do you have an old statement from the loan with the APR on - there will be a statement at least once a year. Or can you find out the original paperwork?

One of the things likely to be affecting your chance of getting a new loan is that you are using your overdraft every month - to a lot of lenders this looks like you not managing your money well.
Who is your current bank account with? have you tried speaking to them at all? That said you've already had 2 recent searches so don't keep applying all over, as too many searches can make you look desperate for credit (general advice is no more than around 3 in 6months). That said hopefully you can manage without a consolidation loan and with a bit more budgeting of your money may be able to clear these debts off.

I didn't think about the overdraft being a problem as its not listed when they give you a list of why you might have been declined. I just assumed it was this rubbish loan. I'll have a look for my loan statement but it might be quicker if I go in and ask. Having only one a year means its in my paper pile somewhere... i'm better with my money but not perfect.
My current account and loan is with Natwest. They seem very reluctant to help me and have given me no options at all.

As for bills well, I don't live in a traditional house... i don't really want to say where as I know people who go on here and they'd probably work it out pretty quick.
Gas is roughly £25 a quarter
electric £10 a month
£30 - £50 a month on coal
what would kind of be council tax is £150 a month
food £80 - £100 a month
going out probably £50
presents maybe £20 depending on the month
clothes upto £50 but some months nothing.

My bf does contribute a bit to bills but he doesn't live here full time.

Tixy

How much are you currently paying on your 997 loan?
Are you just paying the 9 on the overdraft? is the balance going up to or nearly up to the limit each month?
What will the monthly payments be for the laptop loan?

Have you tried keeping a spending diary at all to see if that helps?

At the moment if you put everything to monthly figs you seem to have

Income £1050
Rent 441
phone £35
internet £10
Bus travel £60
Gas say 10
electric £10
Coal say £50
'council tax' £150
food £100
going out £50
presents £20
clothes say 40
Total exps before debt repay - 946

So can you reduce your outgoings at all - perhaps cut down on clothing for the next 6months or so? and maybe cut presents a little (hopefully family will understand).
Could parents take a reduction in the rent you pay them until you get some of the debts paid up?
Is there any scope that you could share your accommodation and therefore share the rent and utility costs etc. Could boyfriend move in or would there be space for a lodger?
Is there any way you can increase your income? overtime at work? a second job? (can be a good way to meet new friends in your new location). Anything you could sell to raise a bit of money?

Hopefully someone else might have some more suggestions.

TooDee

I will try a diary again. I did do it for a while but i'm so forgetful i need to tie it on a bit of string around my neck lol.

So can you reduce your outgoings at all - perhaps cut down on clothing for the next 6months or so? and maybe cut presents a little (hopefully family will understand). Possibly, maybe something i will be aware of with a diary. To be honest i'm rubbish enough with presents anyway so i'm sure my family wouldn't miss them.

Could parents take a reduction in the rent you pay them until you get some of the debts paid up? No chance on this at the moment, where I live is paid for with an extension of there mortgage and alot cheaper than normal rental alternatives.

Is there any scope that you could share your accommodation and therefore share the rent and utility costs etc. Could boyfriend move in or would there be space for a lodger? No space for a lodger or bf unfortunately. We have been discussing if it would be better for us to move somewhere else thats maybe a bit more expensive but that we can share down the middle so maybe cheaper for me in the long run. As i live in the sticks he does drive me places when the buses arn't running so with that and the money he already gives me I am milking him a little.:o

Is there any way you can increase your income? overtime at work? a second job? (can be a good way to meet new friends in your new location). I'd like to change my job so i'm closer to home and like you say meet people here. I travel about an hour or so each way to work at the moment so I don't really have time for another job. I did try knitting stuff to sell but theres no real money in it. I'm keeping an eye out for jobs round here but the ones that do crop up pay alot less than what I get at the moment so its not worth me applying.

Anything you could sell to raise a bit of money? Not that I can think of sold anything I could when I moved here.

Thanks for the ideas, really got some stuff to think about.

If anyone has any ideas how I can get out of this buy now pay later loan this is the one that worries me as it hasn't started yet. Just found the details of it. Total cash price £1119 apr 29.8% Total charge for credit £699 eeek! Feel like such a fool but didn't expect to not be able to pay it.

Money_maker

TooDee wrote: »

If anyone has any ideas how I can get out of this buy now pay later loan this is the one that worries me as it hasn't started yet. Just found the details of it. Total cash price £1119 apr 29.8% Total charge for credit £699 eeek! Feel like such a fool but didn't expect to not be able to pay it.

I would go cap in hand to your parents as £700 on top would set you back absolutely months. If its one of the big electrical stores then best repaid a little sooner to allow for hold ups as they charge on the day (and are ruthless).

TooDee

Money_maker wrote: »

I would go cap in hand to your parents as £700 on top would set you back absolutely months. If its one of the big electrical stores then best repaid a little sooner to allow for hold ups as they charge on the day (and are ruthless).

This is looking like my only option at this rate and I guess I could ask them to lend me the full £3000 with a very small interest rate so theres something in it for them and get my finances back to zero. Oh that would be incredible!
They would after all like to see me standing on my own feet and buying my own house one day. Also when I move out of where i'm living now and we sell it the money i've paid off is mine (as long as we break even or make a profit) so theres some kind of insurance for them to lower the risk of lending to me.

Sorry just thinking out loud now. Well I certainly feel less hopeless than I did when I started this thread.

barbarawright

Whatever 'council tax' is, it seems quite expensive at £150 a month since it sounds as if you live on your own - it's twice my council tax and I live in one of the pricier London boroughs. If it actually is council tax, do you get a single person's discount?

TooDee

It's an unchangeable amount and going up again in april. It's not council tax but the closest thing I could think of to describe it. I think my other bills are so cheap and the £411 I pay is kind of going to savings it's not to bad a price to pay.

Went to the bank this morning my loan would be £753 if I payed it off now so that's some good news although she did advice me to pay off my overdraft first. I'm paying between 16 and 17% for the loan.

TooDee

getting somewhere! Mum has agreed to pay off the laptop and i'm setting up a direct debit to her. Unfortunatly she couldn't lend me any more than that but i'm super happy that i'm not going to get stuck with the interest on that loan! If I do happen to get any bonus' later in the year then I can pay it off sooner.

I've also been trying to work out where any money left goes each month and well i think its all on pointless crap... well not totally pointless but maybe some wool I found on offer or some stuff for the allotment. Anyway I really need to get on top of doing a diary I really need to know where its all going!

Thanks for the advice folks any more would be great. I feel so much better than yesterday!