Advice please.

[Deleted User]

robdav99 wrote: »

Unsecured Debts

Are all the monthly payments listed below the minimums that you are allowed to pay on each of the debts?

Are you allowed to make penalty free overpayments to the GE money loan?

Have you stopped spending on the CC's?

I have listed all of your debts in the order that you should be paying them off - from the most expensive to the least expensive (but this does not take into consideration any early repayment charges or fees - so if these apply then take them into consideration when deciding on the order that you pay them off).

The best (and cheapest) way to pay of debt is to snowball it (there's a snowball calculator at the end of the page where you filled in your SOA).

Basically, snowballing means that you should pay only the minimum amount towards all debts, and then pay the maximum available (your SOA surplus towards the debt that's costing you the most in interest) - this will speed up how quickly this debt is paid off and minimise the amount of interest you pay towards it.

Then when the first debt is fully paid move on to the next highest charging interest debt - this time overpaying with your SOA surplus + the previous minimum payment your were paying towards debt 1.

Description....................Debt......Monthly...APR
GE Money Loan..................3496......83.83.....22.5
Natwest CC.....................1389.19...33........17.9
Natwest Loan...................10947.....190.6.....8
Mortgage Unsecd Loan...........12377.....55........4.79
Sofa...........................1000......83.33.....0
Laser Eye......................1773......110.......0
Total unsecured debts..........30982.19..555.76....-


Monthly Budget Summary
Total monthly income.................... 2,440
Expenses (including HP & secured debts). 1,400.87
Available for debt repayments........... 1,039.13
Monthly UNsecured debt repayments....... 555.76
Amount left after debt repayments....... 483.37 If you don't have this do as other posters have advised and keep a spending diary to see where it goes - then readjust your SOA and/or your spending diary to reflect actual spending - there may well be things that you have missed off that cannot be cut back on, but there may well be things that you're spending this on that can be cut back or cut out.

Hi I have made some comments above,

HTH

D9

Verbatim

Do you need 2 cars? If you could save all the maintenance, tax and insurance etc on one car or both(?) that would give you extra to repay debt.
Have you got a spare room? Could you take a lodger?

dancingfairy

Rob - all I can say is if it sounds to good to be true.....
Seriously how are they going to get rid of your debt within 5 years? Magic?
An IVA will seriously damage your credit rating as it is a form of insolvency.
The other option they could possibly be referring to is a debt management plan (dmp) and they (nor can anyone else) can't guarantee interest and charges will be frozen. Also by entering into a dmp your will default on your original deal that you signed up for when you took out the credit card/loan etc so you will get defaults on your credit file.
You should get in touch with the debt charities to discuss what might be your best option. 30k of debt is going to take quite some time to clear just by snowballing so you may want to consider an IVA but you should thoroughly consider all the options with a debt charity before doing anything drastic.
Have you got anything you can sell - carboot? ebay? etc?
You also appear to have a reasonable surplus as others have said which you should be able to use to hammer those debts.
Best of Luck
df

NeverAgain_2

Rob,

You have a reasonable joint income.

Your mortgage payment is relatively low, so it's affordable.

Property - buy or renting - is expensive and many people find it wipes out their monthly budget.

Not in your case, so you are not in such a bad position.

One option would be to sit tight for a few years, while concentrating on paying down the higher interest debt.

Are there any plans for little Robs?

You'd be in bother without your partner's income.