What to Do?

Fabregas2010

Hello all,

I have gotten into a bit of a pickle. I would like to get a loan to consolidate all existing outgoing payments into a smaller amount.

The current outgoings that i have at the moment that can be changed are:
My overdraft: £30 per month
My wife's overdraft: £30 per month
Our joint account: £50 per month
store card: £20 per month
Loan: £240 per month
Finance: £50 per month

With these current outgoings I am coping well and could quite happily continue as it is. Unfortunately the company I have finance with is going into liquidation, which forces my hand in trying to get more money from a bank. What it means is that my finance payments will increase to £250 per month, which is doable, it will mean that I will not be able to do anything with my family or make any kind of savings at all. With a new loan, I could consolidate this and all others as mentioned above into an easier payment of around £400 per month. I will need a loan of at least £15,000 to do this though. I have just checked my credit rating today and it shows it at 459 with credit expert. With my bank, I have no missed payments or fees for going over my overdraft in the last 6 months. I have however in the last 6 months had late payments with a credit card I belived to have paid off, the balance is now fully paid though. I also recently got declined for a small loan from speed-e-loans, despite the previous month been accepted for exactly the same amount (which was repaid in full on the date requested)?!

The credit score is not entirely accurate as it shows I am not on the electoral roll, when in fact, I am. Should I not be able to get a loan soon, I will have to make these payments of another £200 every month, which will prevent me from doing anything with my family aside from buying food.

Please help!

yorkshire-lad

can you post up more accurate figures of your debt amounts, whether they are on credit cards, overdrafts, loans etc.

if you have had missed payments in the past 6months then your chances of getting a 15k loan are very slim.
i know you say it would prevent you doing things with your family but there are plenty of things that dont cost money, like going for a walk.

if you can, please post up a statement of affairs, here is the link:
http://www.makesenseofcards.com/soacalc.html

in order for people to help you, they will need a clearer picture of you financial state.
it sounds to me that you will be more better visiting the debt free wannabe board instead of taking on more debt.

good luck.
YL

StuTheDon

Ok, to do this now you will need a salary in excess of £60k - do you have that?

You will need a loan of £15k, you already have credit extended of £15k. So the banks will see your exposure as £30k and you will need a £60k salary to cover this.

Your score seems low (although it is ultimately meaningless as the banks dont use the numerical score) - the above, coupled with potential credit payments issues, means it is unlikely you can do this.

I'd focus on overpaying these debts and clearing those with highest APR first.

Fabregas2010

Here are the statement of affairs:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1200
Partners monthly income after tax....... 400
Benefits................................ 400
Other income............................ 0
Total monthly income.................... 2000

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 487.8
Rent.................................... 120
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 35
Gas..................................... 35
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 8
Mobile phone............................ 70
TV Licence.............................. 12.5
Satellite/Cable TV...................... 40
Internet Services....................... 20
Groceries etc. ......................... 300
Clothing................................ 0
Petrol/diesel........................... 30
Road tax................................ 10
Car Insurance........................... 110
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 200
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 8
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 20
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1686.3


Assets
Cash.................................... 0
House value (Gross)..................... 5000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 1000
Total Assets............................ 10000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 10000....(237.8)....19.5
Hire Purchase (HP) debt ...... 7000.....(250)......25.6
Total secured & HP debts...... 17000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Santander......................300.......15........35
Wife O/D.......................500.......20........6
My O/D.........................300.......20........12
Joint Acct.....................300.......50........10
Total unsecured debts..........1400......105.......-


Monthly Budget Summary
Total monthly income.................... 2,000
Expenses (including HP & secured debts). 1,686.3
Available for debt repayments........... 313.7
Monthly UNsecured debt repayments....... 105
Amount left after debt repayments....... 208.7

Personal Balance Sheet Summary
Total assets (things you own)........... 10,000
Total HP & Secured debt................. -17,000
Total Unsecured debt.................... -1,400
Net Assets.............................. -8,400

chalkie99

Some of these things don't make much sense to me.

You have no mortgage, pay a rent of £120 a month (?), have a house valued at only £5,000 (?) and have secured debts of £17000. What are they secured on?

Fabregas2010

Sorry, i'll try clear some of that up for you.

There are no secured debts, I have a personal loan and finance on a car, which total 17000.

The rent is £120 per month because i am in the armed forces living in married quarters.

As for the house value, I thought it meant household value, where I have computers and TVs and the like, adding up to a value of £5000

Fabregas2010

If I manage to get the cash now, I can pay the car off at £3500, but if i don't I'll have to pay the full amount of £7000, double the price! What is the chance of being able to get a balance transfer card instead?

Malky

Assets are your house (not whats in it), car, cash, shares and bonds. What's the other £1000? Are you sure your car insurance is £110 per month? I'm guessing your loans etc are unsecured as you don't seem to own anything to secure them against other than your car.

Fabregas2010

The other £1000 is jewelry, yes my insurance is £110 per month too. Yes they are unsecured.

[Deleted User]

Hi,

There are things that you could cut down on in your SOA if you wanted to increase your surplus income to overpay on your debts etc

Sorry I'm not going to be of any use in advising on loans or consolidation - but your income multiples look like it would be unlikely that you would be given further credit, given the level of debt you currently have - although I am not an expert.

Perhapse you should take a trip over to the Debt-free wannabe board for further advice on paying down your current debts.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1200 Any way to increase? Overtime?
Partners monthly income after tax....... 400 Any way to increase?
Benefits................................ 400 Are you recieving all that you are entitled to?
Total monthly income.................... 2000

Monthly Expense Details
Secured/HP loan repayments.............. 487.8
Rent.................................... 120
Council tax............................. 90
Electricity............................. 35 check that you are on the cheapest tariff for your area and if switching is benificial check the cashback sotes (Quidco, topcashback etc)
Gas..................................... 35
Telephone (land line)................... 8
Mobile phone............................ 70 This is very high, even for two - if you are stuck in a contract drop a tariff, if/when out of contract look at SIM only deals and PAYG
TV Licence.............................. 12.5
Satellite/Cable TV...................... 40 you could cut this back or switch to Freesat/freeview
Internet Services....................... 20 see if combining all or any of TV, Home phone and internet would be cheaper
Groceries etc. ......................... 300 This could be reduced - meal plan, batch cook, drop brands, shop in cheaper supermarkets (lidl/aldi) - take a visit to the old style board for further advice here
Clothing................................ 0 probably need something here, even if just for child
Petrol/diesel........................... 30 If usage is so low, is a car necessary?
Road tax................................ 10
Car Insurance........................... 110 very high, at renewal shop around
Car maintenance (including MOT)......... 10
Childcare/nursery....................... 200
Other child related expenses............ 50 what does this cover? Can you get the same/similar for cheaper elsewhere?
Pet insurance/vet bills................. 8
Contents insurance...................... 0 possibly need something here
Presents (birthday, christmas etc)...... 10
Haircuts................................ 20
Entertainment........................... 20
Emergency fund.......................... 0 possibly need something here
Total monthly expenses.................. 1686.3

Assets
House value (Gross)..................... 5000
Car(s).................................. 4000 - Is the car really necessary (your fuel is so low, it looks like you don't use it too much), and it is costing you a small fortune in repayments, insurance and tax - check your agreement to see if you are able to hand the car back without penalty (sorry I cannot advise on this, but hopefully someone more who knows about this could comment) - if you found that you couldn't live without it perhapse you could then save for a cheaper run around?
Other assets............................ 1000
Total Assets............................ 10000

Secured & HP Debts
Description....................Debt......Monthly...APR
Secured Debt.................. 10000....(237.8)....19.5
Hire Purchase (HP) debt ...... 7000.....(250)......25.6
Total secured & HP debts...... 17000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Santander......................300.......15........35
Wife O/D.......................500.......20........6
My O/D.........................300.......20........12
Joint Acct.....................300.......50........10
Total unsecured debts..........1400......105.......-


Monthly Budget Summary
Total monthly income.................... 2,000
Expenses (including HP & secured debts). 1,686.3
Available for debt repayments........... 313.7
Monthly UNsecured debt repayments....... 105
Amount left after debt repayments....... 208.7 You have a good surplus s

Personal Balance Sheet Summary
Total assets (things you own)........... 10,000
Total HP & Secured debt................. -17,000
Total Unsecured debt.................... -1,400
Net Assets.............................. -8,400

HTH

D9

Fabregas2010

Domino9 wrote: »

Hi,

There are things that you could cut down on in your SOA if you wanted to increase your surplus income to overpay on your debts etc

Sorry I'm not going to be of any use in advising on loans or consolidation - but your income multiples look like it would be unlikely that you would be given further credit, given the level of debt you currently have - although I am not an expert.

Perhapse you should take a trip over to the Debt-free wannabe board for further advice on paying down your current debts.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1200 Any way to increase? Overtime? No it's salary based
Partners monthly income after tax....... 400 Any way to increase? Yes, she can work weekends too
Benefits................................ 400 Are you recieving all that you are entitled to?
Total monthly income.................... 2000

Monthly Expense Details
Secured/HP loan repayments.............. 487.8
Rent.................................... 120
Council tax............................. 90
Electricity............................. 35 check that you are on the cheapest tariff for your area and if switching is benificial check the cashback sotes (Quidco, topcashback etc) A good idea, will look into it
Gas..................................... 35
Telephone (land line)................... 8
Mobile phone............................ 70 This is very high, even for two - if you are stuck in a contract drop a tariff, if/when out of contract look at SIM only deals and PAYG We are both on 2 year contracts, we can look to getting it reduced in September
TV Licence.............................. 12.5
Satellite/Cable TV...................... 40 you could cut this back or switch to Freesat/freeview We do a lot of Sky watching, without it it would cost the same in buying DVDs
Internet Services....................... 20 see if combining all or any of TV, Home phone and internet would be cheaper just seen I've entered this wrong, it's 10 per month
Groceries etc. ......................... 300 This could be reduced - meal plan, batch cook, drop brands, shop in cheaper supermarkets (lidl/aldi) - take a visit to the old style board for further advice here Another good idea, will try to save some cash here
Clothing................................ 0 probably need something here, even if just for child detailed that below, my mrs buys about £50 per month for herself, I just make do
Petrol/diesel........................... 30 If usage is so low, is a car necessary? Yes it is, to do shopping and to visit relatives
Road tax................................ 10
Car Insurance........................... 110 very high, at renewal shop around I recently renewed in feb, for some reason me (at 23) with a 1.6 vauxhall astra this is the cheapest on fully comp
Car maintenance (including MOT)......... 10
Childcare/nursery....................... 200
Other child related expenses............ 50 what does this cover? Can you get the same/similar for cheaper elsewhere? It covers clothing, baby wipes and nappies, plus others like plates and bottles
Pet insurance/vet bills................. 8
Contents insurance...................... 0 possibly need something here Yeah, will have to check that out
Presents (birthday, christmas etc)...... 10
Haircuts................................ 20
Entertainment........................... 20
Emergency fund.......................... 0 possibly need something here Yeah, will have to check that out
Total monthly expenses.................. 1686.3

Assets
House value (Gross)..................... 5000
Car(s).................................. 4000 - Is the car really necessary (your fuel is so low, it looks like you don't use it too much), and it is costing you a small fortune in repayments, insurance and tax - check your agreement to see if you are able to hand the car back without penalty (sorry I cannot advise on this, but hopefully someone more who knows about this could comment) - if you found that you couldn't live without it perhapse you could then save for a cheaper run around? With the company going into liquidation I cannot now return the vehicle unfortunately, saving for the moment is out of the question as we need every penny we get.
Other assets............................ 1000
Total Assets............................ 10000

Secured & HP Debts
Description....................Debt......Monthly...APR
Secured Debt.................. 10000....(237.8)....19.5
Hire Purchase (HP) debt ...... 7000.....(250)......25.6
Total secured & HP debts...... 17000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Santander......................300.......15........35
Wife O/D.......................500.......20........6
My O/D.........................300.......20........12
Joint Acct.....................300.......50........10
Total unsecured debts..........1400......105.......-


Monthly Budget Summary
Total monthly income.................... 2,000
Expenses (including HP & secured debts). 1,686.3
Available for debt repayments........... 313.7
Monthly UNsecured debt repayments....... 105
Amount left after debt repayments....... 208.7 You have a good surplus s touchy ground here, as it is all my wife's money. I pay for all bills and food, she gets everything else. It's hard to talk about debt as it is my fault and has caused us very big arguements in the past

Personal Balance Sheet Summary
Total assets (things you own)........... 10,000
Total HP & Secured debt................. -17,000
Total Unsecured debt.................... -1,400
Net Assets.............................. -8,400

HTH

D9

I have added my reply to your suggestions. Thanks a lot for the advice!