Left with lots unsecured CC Debt after relationship breakup

sleepydogg

Folks
Really not knowing which way to turn at the moment so would appreciate your helpful advice.

Give you a bit of backkground. Long term relationship failed and I've been left with approx 23k of unsecured Credit card debit although I do still have the home (mortgaged).
Now i have been managing this debt along with all other household outgoings (have never missed any payments, no CCJs or anything like that) but its got to the stage where I'm was thinking of getting an unsecured loan and consolidating this to give myself more breathing space maybe be able to reduce the CC payments from 500 to 300pm then least i would have a fixed loan for a cetain time period (even if i have to pay more in the long run)
Problem is even though this would be unsecured consolidation loan I cannot get a loan anywhere. Because of the large% debt i guess.

Should I be thinking about a secured loan? really dont like the thought of that but i'm at last resort. Just worried about increasing interest rates etc. and I dont want to go down an IVA or bankruptcy route. Just wanna get this paid off lessons learned i guess.
Not sure even if there is any good aboveboard secured loan lenders out there but I just want to be able to get this cleared as quickly as possible then get back to throwing everything else at the mortgage.

Have included everything in the SOA below
appreciate your help Thanks SD



Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 2442
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2442
Monthly Expense Details
Mortgage................................ 877
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 75
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 18
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 23
Groceries etc. ......................... 64
Clothing................................ 10
Petrol/diesel........................... 40
Road tax................................ 5
Car Insurance........................... 25
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 23
Contents insurance...................... 0
Life assurance ......................... 20
Mortgage insurance...................... 70
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
car payment ............... ............ 258
Total monthly expenses.................. 1615

Assets
Cash.................................... 0
House value (Gross)..................... 160000
Shares and bonds........................ 0
Car(s).................................. 12000
Other assets............................ 0
Total Assets............................ 172000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 121000...(877)......4.5
Total secured & HP debts...... 121000....-.........-

Unsecured Debts[
Description....................Debt......Monthly...APR
RBS............................3723......84........23.2
Barclaycard....................3246......65........16.9
Santandar......................4174......41........0
CapitolOne.....................4894......150.......2.4
Virgin#2.......................4032......89........11.8
Virgin#1 ......................3081......65........16.7
Total unsecured debts..........23150.....494.......-

Monthly Budget Summary
Total monthly income.................... 2,442
Expenses (including HP & secured debts). 1,615
Available for debt repayments........... 827
Monthly UNsecured debt repayments....... 494
Amount left after debt repayments....... 333

Personal Balance Sheet Summary
Total assets (things you own)........... 172,000
Total HP & Secured debt................. -121,000
Total Unsecured debt.................... -23,150
Net Assets.............................. 27,850

tattycath

It's never a good idea to change an unsecured debt to a secured debt.

tattycath

sleepydogg wrote: »

Folks
Really not knowing which way to turn at the moment so would appreciate your helpful advice.

Give you a bit of backkground. Long term relationship failed and I've been left with approx 23k of unsecured Credit card debit although I do still have the home (mortgaged).
Now i have been managing this debt along with all other household outgoings (have never missed any payments, no CCJs or anything like that) but its got to the stage where I'm was thinking of getting an unsecured loan and consolidating this to give myself more breathing space maybe be able to reduce the CC payments from 500 to 300pm then least i would have a fixed loan for a cetain time period (even if i have to pay more in the long run)
Problem is even though this would be unsecured consolidation loan I cannot get a loan anywhere. Because of the large% debt i guess.

Should I be thinking about a secured loan? really dont like the thought of that but i'm at last resort. Just worried about increasing interest rates etc. and I dont want to go down an IVA or bankruptcy route. Just wanna get this paid off lessons learned i guess.
Not sure even if there is any good aboveboard secured loan lenders out there but I just want to be able to get this cleared as quickly as possible then get back to throwing everything else at the mortgage.

Have included everything in the SOA below
appreciate your help Thanks SD



Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 2442
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2442
Monthly Expense Details
Mortgage................................ 877
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 75
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 0 are you in scotland to not pay water rates?
Telephone (land line)................... 0
Mobile phone............................ 18
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 23
Groceries etc. ......................... 64 this seems low?
Clothing................................ 10
Petrol/diesel........................... 40
Road tax................................ 5
Car Insurance........................... 25
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 23
Contents insurance...................... 0 are your contents insurance included with buildings?
Life assurance ......................... 20
Mortgage insurance...................... 70
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
car payment ............... ............ 258
Total monthly expenses.................. 1615

Assets
Cash.................................... 0
House value (Gross)..................... 160000
Shares and bonds........................ 0
Car(s).................................. 12000
Other assets............................ 0
Total Assets............................ 172000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 121000...(877)......4.5
Total secured & HP debts...... 121000....-.........-

Unsecured Debts[
Description....................Debt......Monthly...APR
RBS............................3723......84........23.2
Barclaycard....................3246......65........16.9
Santandar......................4174......41........0
CapitolOne.....................4894......150.......2.4
Virgin#2.......................4032......89........11.8
Virgin#1 ......................3081......65........16.7
Total unsecured debts..........23150.....494.......-

Monthly Budget Summary
Total monthly income.................... 2,442
Expenses (including HP & secured debts). 1,615
Available for debt repayments........... 827
Monthly UNsecured debt repayments....... 494
Amount left after debt repayments....... 333

Personal Balance Sheet Summary
Total assets (things you own)........... 172,000
Total HP & Secured debt................. -121,000
Total Unsecured debt.................... -23,150
Net Assets.............................. 27,850

Haircuts, clothes, entertainment and emergency fund are all zero-is this an oversight?

sleepydogg

No water rates. NI
Food: well basically just myself and its mainly porridge, bean rice. Havent really been eating to be honest. bear minimum.
Contentents and Buildings together so this is ok.
No emergencey funds / savings
Clothes £0-50 per year i would estimate. so not included.
Haircuts luckily my friend sorts me out in this dept

thanks

tattycath

Just bumping this thread - hopefully someone we be along soon who can give you some structured advice-far better than I
good luck. x

mum2one

sleepydogg wrote: »

Folks
Really not knowing which way to turn at the moment so would appreciate your helpful advice.

Give you a bit of backkground. Long term relationship failed and I've been left with approx 23k of unsecured Credit card debit although I do still have the home (mortgaged).
Now i have been managing this debt along with all other household outgoings (have never missed any payments, no CCJs or anything like that) but its got to the stage where I'm was thinking of getting an unsecured loan and consolidating this to give myself more breathing space maybe be able to reduce the CC payments from 500 to 300pm then least i would have a fixed loan for a cetain time period (even if i have to pay more in the long run)
Problem is even though this would be unsecured consolidation loan I cannot get a loan anywhere. Because of the large% debt i guess.

Should I be thinking about a secured loan? really dont like the thought of that but i'm at last resort. Just worried about increasing interest rates etc. and I dont want to go down an IVA or bankruptcy route. Just wanna get this paid off lessons learned i guess.
Not sure even if there is any good aboveboard secured loan lenders out there but I just want to be able to get this cleared as quickly as possible then get back to throwing everything else at the mortgage.

Have included everything in the SOA below
appreciate your help Thanks SD



Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 2442
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2442
Monthly Expense Details
Mortgage................................ 877
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 75 - just checking do you have single persons discount
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 18
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 23
Groceries etc. ......................... 64 - very low for 1 person, are you eating properly
Clothing................................ 10
Petrol/diesel........................... 40
Road tax................................ 5
Car Insurance........................... 25
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 23
Contents insurance...................... 0 - guessing thats included with the buildings ins.
Life assurance ......................... 20
Mortgage insurance...................... 70
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
car payment ............... ............ 258
Total monthly expenses.................. 1615

Assets
Cash.................................... 0
House value (Gross)..................... 160000
Shares and bonds........................ 0
Car(s).................................. 12000
Other assets............................ 0
Total Assets............................ 172000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 121000...(877)......4.5
Total secured & HP debts...... 121000....-.........-

Unsecured Debts[
Description....................Debt......Monthly...APR
RBS............................3723......84........23.2
Barclaycard....................3246......65........16.9
Santandar......................4174......41........0
CapitolOne.....................4894......150.......2.4
Virgin#2.......................4032......89........11.8
Virgin#1 ......................3081......65........16.7
Total unsecured debts..........23150.....494.......-

Monthly Budget Summary
Total monthly income.................... 2,442
Expenses (including HP & secured debts). 1,615
Available for debt repayments........... 827
Monthly UNsecured debt repayments....... 494
Amount left after debt repayments....... 333 - thats a positive figure

Personal Balance Sheet Summary
Total assets (things you own)........... 172,000
Total HP & Secured debt................. -121,000
Total Unsecured debt.................... -23,150
Net Assets.............................. 27,850

Firstly you've got a real positive SOA, as you have £333 spare a month, if theres a major variance, then I would suggest getting a notebook and writing every penny into it, whether its 60p for a bar of choc or £4 for a magazine.

Ok theres 23k on credit cards, but you have a surplus, I wouldn't go down the way of having a secured loan, its not worth risking your mortgage for, as for unsecured loan, guessing at 23k, that would be a high risk for a bank.

Again going back to the surplus, - what i would suggest is keep the rest of the cards at the minimum payment and throw every extra pound at the RBS card, as thats the highest interest, then when thats cleared pick the next highest one. In all honesty even the RBS is at a good rate, compared to most of the cards available, your in a strong position, thou it may not feel like it at the mo.
The other suggestion would be can you do a life of balance transfer on any existing cards.

Your doing brilliantly, xx

Hannah_10

I also suggest snowballing, which means putting all the surplus money at the end of the month to the highest rate of interest borrowing and when that's clear taking the money now free and paying it all to the next largest debt. So in your case that would be paying £417 to RBS until it's clear, then increasing your payment to Barclaycard to £482 until that's clear and so on. According to this here snowball calculator you would be clear of all debt but your mortgage in 23 months. (OR 27 months if you kept another £100 a month back for yourself- for comforts sakes as your SOA is tight in places). It might actually be better than that because I inputted the repayments you currently make as the fixed minimums, they may not be. If they are not then you have even more to snowball with and you will get out of debt faster.

Snowballing is always the first choice option where it is available because it has no impact on your credit rating, anything else you could do liek a debt management plan (DMP) or an IVA would impact on you for 6 years.

Turning unsecured debt into secured debt is a really bad idea, especially when the gloriously convenient option of snowballing is available.

NeverAgain_2

You have some equity in your house, so would your mortgage lender consider a repayment holiday or perhaps interest-only for six months?

I know little about either, but I don't think such arrangements would ruin your credit rating.

It would enable you to throw more money at the three high-interest credit cards.

CH27

Do you have the £333 left over at the end of the month?
If not, keep a spending diary for a month.

mum2one

Hannah 10 - may have to be cheeky and ask to borrow you to do my snowball, everytime I try it adds on extra money and last time it said 99 years!!! xx

Hannah_10

You may haha, if you stick a new thread up with the debts list from your SOA I promise I'll have a go.