Debt and no way out..

[Deleted User]

I currently bank with 1 bank and have with them:

Monthly income: £1100 pm


£2500 overdraft limit - using £2200 What is the cost of this debt, are you charged a fixed monthly charge regardless of balancce, or charged a rate of interest on what you use each month, or both?
£3000 minimum approx £60pm What is the interest rate (APR) being chrged on this?
- loan - £1400 left to pay on this until April 2010 Do you mean 2011? 2012?- £96pm and £13PPI per month.

- small savings a/c for car repair etc do you foresee an expensive problem with the car? Do you have an estimate for what it's going to cost, and have you saved the full amount you expect to need already, or are you contributing to this monthly? If so, how much?

I also have a £35pm mobile contract - which I wanted to reduce and swap to orange but was rejected on credit check. Cancel the contract and go PAYG, or look at pay monthly SIM only deals, as I said above there are some great £10 pm deals with 100's of free minutes and texts. (Check rescent bills to see what you actually use)

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. The more credit checks you have done (and one will get done for any credit you try to take out - phones, ccards, loans), the less likely it is you are to be accepted. Don't apply for credit for at least another 6 months. (Check Martin's guide on the main webpage about credit reports)

I have checked my credit score through experian and all is okay - I have a fair/moderate credit score. The SCORE is meaningless as each institution you apply to for credit applies their own scoring system - what is important to you is the actual credit report - and if I understand correctly you have no bad credit (CCJ's, defaults, late payments), then you are most likely to have been rejected for another reason e.g. many credit searches in a short space of time, debt to income ratio, not on the electoral register etc (all in Matin's guide I refered to earlier)

As I said I get paid about £1100 pm and pay in outgoings per month:
- rent £395
-food pm month £60
- contact lenses £20 see if you can get cheaper online
- mobile £35 - see about one of the alternatives listed above
- gym £35 - do you use it often enough to justify it? Can you get it cheaper elsewhere? Would cancelling e an option?
- car insurance - pay by direct debit pm - £35pm
- dd into savings £20 - is this the same savings to cover the car repairs? If so how ling until you have enough of a buffer here?


I do not spend anything else a month - apart from say about £50 on going out/essentials.- so what do you actually have left at the end of the month? Keep anspending diary noting down everything that you buy if you are not sure where it all goes - note down everything from chewing gum, to car payments and rent and everything in between.

Total monthly income: £1130
Expenses: £730
Av.for dedt repayment: £400
Un-secured repayment: £170
Surplus £230 - this is quite a bit of money to not know where it goes! You're either missing somethings off your SOA, or not calculated everything accurately. Keep a spending diary. If you do have this at the end of every month, then pay it towards the debt you have that's costing you the most in interest (I suspect the CC, but do check)
Assetts £11,200
Secured and HP dedt: -£5500 (this is what I pay and excludes partners liability)
un-secured: -£6600
Net assetts: -£900



HTH

D9

Jesthar

Tabathab wrote: »

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?

Hey Tabathab,

If you look near the bottom of the SoA calculator page, you will see there is a section called "Format results for discussion boards" - if you click on the button labelled 'MSE' it will put the results into a page you can copy and paste into a new post here

Anyway, your summary above says that you theoretically have £230 a month left over after bills and expenses - the question is, can you actually find this money? I think you would find it useful to do a spending diary to find out - get all your bank and credit card statements for the last few months and create a spreadsheet to show every single thing you have spent each month - you might be amazed where pennies are slipping away and how it all adds up!

If you can find this extra money, then great! That is twice as much as your minimum payment total, and you can use that to overpay on your credit card or reduce your overdraft, whichever has the highest interest rate If not, you need to find where that money is going and plug those holes, and you will soon find you are on the way to sorting our your debts.

Hope that helps!

~Jes