Debt and no way out..

Tabathab

I am currently trying to fight my way out of my debt but am finding it very difficult, and it has now got to the point where I am being rejected for a switch in mobile phone contract.

I currently bank with 1 bank and have with them:
- 1 current a/c with a £2500 overdraft limit - I am currently using £2200 of this per month (I am paid just over £1100 pm).
- credit card - no longer using as have £3000 on here - paying the minimum payment each month about £60pm
- loan - £1400 left to pay on this until April 2010 - £96pm and £13PPI per month.
- small savings a/c for car repair etc

I also have a £35pm mobile contract - which I wanted to reduce and swap to orange but was rejected on credit check.

I also have a car loan in my name which my partner pays 1/2 of - £60 each per month.

I want to be debt free and have tried to get a loan to consolodate and/or 0% credit card - but I am consitently rejected.

I have checked my credit score through experian and all is okay - I have a fair/moderate credit score.

As I said I get paid about £1100 pm and pay in outgoings per month:
- rent at partners house (he owns house via mortgage but I am not named on this) £395
- food pm month £60
- contact lenses £20
- mobile £35
- gym £35
- car insurance - pay by direct debit pm - £35pm
- dd into savings £20

The above is in addition to minimum CC payment, car payments and personal loan payments.

I do not spend anything else a month - apart from say about £50 on going out/essentials. I cannot see a way out of my current situation and feel as if I am drowning with no way out.

Can anyone help?

ambitousblonde

If you only you use £2200 of your OD each month and the limit 2500 reduce it perhaps? My calculations show you have a bit left over each month is that correct? Use the spare cash to pay of the debt.

Hannah_10

Can you do us an SOA (statement of affairs) please? Here's a link to a neat little SOA calculator tool and it even converts it to post on MSE http://www.makesenseofcards.com/soacalc.html

As you want to deal with this as an individual and not a couple fill it in for your individual situation, not for anything he pays.

After that we'll have a far better idea how to help you.

CH27

You say you have been consistently rejected. How many cards or loans have you applied for?

Tabathab

I applied for 1 loan with santander and then went to my bank to see if i could increase my current loan to pay off my CC and overdraft and they said they couldn't do anything for me. Then I applied for a Sainsbury's loan and got rejected. Then there is the mobile contract. This is all in the last 3 months so I realise this may have had a negative effect on my credit score, but having checked it this month, it is still showing as fair-moderate.

The spare cash I have pm just seems to get eaten in my overdraft - i have thought about opening another current a/c with no/minimal overdraft on and use that a/c for my income and then allocated the income pm to all my outgoings/paying off debt - I wasn't sure though if this is the right thing to do in my situation?

curlytop12

hiya,definately fill out SOA-there is a sticky at the top of the debt free wannabe board called something like"help for newcomers and SOA".
you will get lots more replies then.good luck!

Hannah_10

I wasn't sure though if this is the right thing to do in my situation?

Neither will anyone else be without a SOA Tabithab. I could make some stuff up off the top of my head if you like, y'know, just guess at things, hope I get it right, that kind of thing? Or you could tell us what we need to know and we could say something far more likely to be accurate.

[Deleted User]

if you post a full SOA (link given above), include all your income and expenditure, including the minimum debt repayments, and their APR's people will be in a better position to comment more acurately.

Also, there are some very good SIM only and PAYG mobile phone deals for £10pm, inclusive of anytime anynetwork mins and texts.

Domino9

barbiedoll

Cancel your mobile phone contract and get a pay monthly sim-only deal, it will work out much cheaper and you shouldn't need a credit check.
Cancel the gym membership, if you are able. You can walk/run for free!
You could possibly get the contacts cheaper too, my sister pays around £10 per month.

Open a basic bank account (again, no credit checks are needed), you won't get an overdraft facility so you will need to be very careful with checking your spending every month. Set up a standing order to pay off your overdraft, with as much as you can each month. Try to make sure that you pay something regularly, but at least with a standing order, you can adjust the payments if you need extra cash for an emergency. It's a good idea to set up a standing order to pay off your credit card too, keep paying £60 each month and you will soon be paying MORE than the minimum payment required, so you will clear it a bit quicker.

Try to get into the habit of keeping a spending diary, write down every penny that you spend during the day. You may be able to see where you are wasting money, eg, magazines, work lunches, sweets on the way home, etc etc. Post up your SOA and we can have a look for you.

Well done for having some savings and for recognising that you need to take some positive action. You've come to the right place! :T

ghostmadlittlemiss

Hannah_10 wrote: »

Neither will anyone else be without a SOA Tabithab. I could make some stuff up off the top of my head if you like, y'know, just guess at things, hope I get it right, that kind of thing? Or you could tell us what we need to know and we could say something far more likely to be accurate.

Is there really any need for that?
Kayleigh

Tabathab

i've completed the SOA but it won't let me post it on here as it's a link. Basically the SOA says:

Total monthly income: £1130
Expenses: £730
Av.for dedt repayment: £400
Un-secured repayment: £170
Surplus £230

Assetts £11,200
Secured and HP dedt: -£5500 (this is what I pay and excludes partners liability)
un-secured: -£6600
Net assetts: -£900

Does this help?