Little help...please.

Energised

Hi there everyone. I guess you could call this my "lightbulb moment".

I just though I'd best sit down and have a look at actually what I owe and I'm a little bit shocked to be honest!

Liverpool Vic Loan -- 8728.41 (Currently pay 171 a month)
Natwest Loan

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1204.76 (currently pay 49.88 a month)
Natwest OD

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213.92 (Limit now £250, was £1500 this morning)
Kays Catalogue ---- 606.06 (Min pay)
Next Directory

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330 (Min Pay)
LX Direct

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206.4 (Min Pay)
Capital One CC

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192.7 (Min Pay)
Vanquis CC

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250.41 (Min Pay)
Vodaphone

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150 (One lump sum this payday)
Computer

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427.34 (One lump sum next payday)

My Salary (Ranges between 940 and 1100 after tax depending on o/t)

Car Insurance £41.00
Nat West Loan £49.88
Liv Vic Loan £170.91
Capital One £8.00
Vanquis £10.00
Kays £50.00
Next £20.00
Littlewoods £8.00
Three £40.00
Mum £80.00
Gym £27.00
Total Average p/m 500


Total Debt 09/12/06 - 12310

Now, I wish I could get a 10k loan and pay all of that off so I've just got one pot (and never, ever use a credit card or a catalogue company again!) I've never had a CCJ but I've got a shocking credit rating from hundreds of missed DDs etc. I think, if this sounds best, I've got a claim in currently for bank charges nearing £1900. If this goes through I'll pay off the NW loan any both credit cards and whatever I can from kays/next/LX and everything I save, I'll add to my big loan payments. Does that sound ok? Failing the charges coming through, I'll just concentrate on paying things off one at a time, as soon as it does I'll add that to paying something else off until I'm just left with big loan.

Really, my question is this. Everything is now getting paid, at least the minimum payment goes out of my account and nothing bounces/no referred DDs or anything like that anymore. I just really want to know when my credit rating will get back to being reasonably respectale. If I go 6 months having nothing but perfect DDs on my account and not in my overdraft (which I will end alltogether the second I'm out of it) will that improve my credit rating at all?

Would it benefit me to say, close down Kays and LX Direct account and the Vanquis account but spend say... £50 on the Next and the Capital One accounts and then continue to make min payments until the balance is cleared, then spend another £50, just to keep my credit rating improving?

I feel like I've come a long way alread in sorting my debt problems in that I've already spoken to everyone and I'm no longer in any arrears with anyone, now it's just to get down to paying them off!

I'd appreciate any advice or support or suggestions or anything! It's quite a shock seing just how deep I am, now I've realised, I'd just like to get it sorted!

Cheers

Energised.

oops_a_daisy

Hi Energised well done on having your light bulb moment and welcome to DFW. Do you have the APR's for all of your debts ? could you do a full SOA showing all incomings and outgoings. The best thing to do is to pay off the highest APR debts first while continuing to pay the minimums on your others then when you have paid off one of your higher rate debts put the money that you would have paid into that onto your next highest ( if you see what I mean ) this is called snowballing and there is a nifty calculator HERE which will show how long it will take to pay off your debts this way. If you post your SOA ( Statement Of Affairs ) on here Im sure some of the DFW Nerds will be able to make suggestions where you may be able to make savings thus giving you extra money to pay off debts. When you have paid off a card cancel it - this will help with your credit rating and the same with your overdraft, if you pay some of it off reduce it with the bank.
Good luck - OOPS

Annie_Fanny

Great advice there from oops a daisy. Welcome to MSE and well done on getting this far. You are doing really well!

Annie

~evanesco~

Hi Energised.

Definately take full advantage of oops a daisys link to snowballing. I love it!!

It seems from your SOA that you've got about £500 sapre to throw at your debts. Have you included everything you payout in a month? Things like food and petrol etc.

Start a spending diary and write down everything you spend.

1) If you have to wite it down it'll make you think twice about buying it.

2) You can see where you're spending and don't need to be.

Some of the hardcore DFWers will be along soon to pick aprt your SOA:D

Evans. xox

sanfrancisco

It is normally BAD NEWS to get a consolidation loan. I know it seems like a great solution now, but if you get really organized and pay off some of those small loans, by the beginning of next summer you will be well on your way to sorting it all out and being debt free.

in-trouble_3

~evanesco~ wrote:

Hi
Start a spending diary and write down everything you spend.

this certainly does help, i have started doing it, and has stopped me buying stuff i dont need.

clarab_3

oops_a_daisy wrote:

Hi Energised well done on having your light bulb moment and welcome to DFW. Do you have the APR's for all of your debts ? could you do a full SOA showing all incomings and outgoings. The best thing to do is to pay off the highest APR debts first while continuing to pay the minimums on your others then when you have paid off one of your higher rate debts put the money that you would have paid into that onto your next highest ( if you see what I mean ) this is called snowballing and there is a nifty calculator HERE which will show how long it will take to pay off your debts this way. If you post your SOA ( Statement Of Affairs ) on here Im sure some of the DFW Nerds will be able to make suggestions where you may be able to make savings thus giving you extra money to pay off debts. When you have paid off a card cancel it - this will help with your credit rating and the same with your overdraft, if you pay some of it off reduce it with the bank.
Good luck - OOPS

That snowballing link is brilliant - has really shown me the light at the end of my tunnell!

Energised, have you tried ordering your credit files from all 3 agencies and having a good look at cleaning them up. I don't think consolidating is a good idea (trust me, ive been round the consolidate/spend cycle a few times myself...) but cleaning up your rating could help you get a better rate for some of your cards or loans, as long as you cancel the xisting ones immediately.

Energised

Thanks very much guys! .

Well NatWest are charging me a horrendous 23.9%. I originally borrowed £1250 in Nov 05. To date I have paid 564.04 and my current balance is 1204.76! They'd ever so kindly reduce that to around £1008 if I made the payment in one go!

Grrrrrrrr :mad:

Ok, here is the order of attack

Vodaphone (Pay off 150 owed)
Vanquis (clear then close)
LX Direct (clear then close)
Kays (Clear then close)
Capital One (clear then close)
Next (clear then close)

Thanks for all the advice everyone

Energised

I've done the snowballing thing! I'm going to get rid of my credit cards by February, I'm being charged 39.9% from vanquis and 30.9% from C1.

Horrendous!

So min payment on both this month (It's december afterall) Pay off the balance on Vanquis in Jan, the Balance off of C1 in Feb.

Is it really a better idea to just cancel them both as soon as they're paid off? Would it not improve my credit rating more if I pay the min amount for a while?:)

Thanks

Ash

EDIT: On top of min payments, I say on average I've got an extra £200 to spend on clearing debt a month.

clarab_3

Energised wrote:

I've done the snowballing thing! I'm going to get rid of my credit cards by February, I'm being charged 39.9% from vanquis and 30.9% from C1.

Horrendous!

So min payment on both this month (It's december afterall) Pay off the balance on Vanquis in Jan, the Balance off of C1 in Feb.

Is it really a better idea to just cancel them both as soon as they're paid off? Would it not improve my credit rating more if I pay the min amount for a while?:)

Thanks

Ash

EDIT: On top of min payments, I say on average I've got an extra £200 to spend on clearing debt a month.

Only my own experience Ash, but cutting them up and cancelling them made sure they STAYED clear when i felt sorry for myself

credit rating will improve itself just as well as you are still making regualr payments to your loans...

Energised

clarab wrote:

Only my own experience Ash, but cutting them up and cancelling them made sure they STAYED clear when i felt sorry for myself

credit rating will improve itself just as well as you are still making regualr payments to your loans...

Yeah I definately see what you mean .

I'm sure you're right, I think I'd be able to control the capital one card though. I might just pay it off so there's £45 on it then make three months worth of payments at £16. Incidentally, I'm about to go and cut them up now!

Thanks

Ash