£23k Owed...£10k available....1 year on

TheLostSheep

I've been posting on here for around a year. Some wonderful information to allow me to face up to problems and tackle debts.

The main gist of my situation can be found here:

https://forums.moneysavingexpert.com/discussion/2574567

I'm currently in a situation where I am redudant and out of work. I have a fixed amount of around £10k as a lump sum, made available from redundancy money and a family friend.

I've been in a Full and Final offer cycle for quite some time and am not getting anywhere with my offers. My latest offers are of 50% but still not heard back.

I owe just over £23k.

On the positive side, in the last year, I have paid over £6000 to my debt :T That's some going if I don't mind saying so myself! :rotfl:

I've cleared off a small loan but am not really getting anywhere with where to go next. I owe the following:

Lloyds TSB Loan 1 £5560 (£7,721) 12.7%
Lloyds TSB Loan 2 £0 (£917 ) 21%
Barclaycard £2430 (£2,862) 14.9%
Lloyds TSB Credit Card £13,179 (£15,478) 9%
Lloyds TSB Bank Account £2350 (£2,600) 18%

I thought about doing an early settlement on the LTSB loan as that'd save me around £6-700 in interest. Quite clearly then I could clear the two debts of £2500 but then I am left with the HUGE problem that is my LTSB Credit Card. It's only on a reduced APR of 9% for 6 months. Once my temporary agreement ends it shoots up to near 19%!

I've tried 0% deals but generally get turned down. Obviously I have no income whilst I find another job (of which I've had 3 interviews recently).

So, should I sit tight with the final round of Full and Finals or start to clear 3 of those smaller ones?

bargainbetty

Personally, I would hold onto the money for living expenses while I found another job. What would be the point of you paying it off if you have to borrow again?

As soon as you have a new job, consider clearing a credit card off and then asking for a low-life-of-balance deal if you do a transfer back onto that card - you might get something. If not, pay off the highest accumulating interest debt first.

Good luck

TheLostSheep

Thanks for the advice.

I have an amount set aside on top of the amount for living off.

I was keen to clear a couple off (ideally through full and final!)

Perhaps I should lower to token payments, but it's frustrating knowing that I have an amount and getting no where with negotiating with banks.

TheLostSheep

Have got myself a job starting in a few weeks.

Have decided to pay the Current Account and the Barclaycard Credit Card off. Two debts off around £2500 that at least I have been able to clear.

Not sure what to do with the Lloyds TSB Credit Card debt of over £13k. The APR on it is reduced to 9% in an "arrangement to pay".

Any advice on where and how to get this on a lower rate? My Credit rating is pretty poor, although its not shot to pieces thankfully.

Dharma_Bunny

I believe that cc companies won't lend if you have lots of credit available already. Therefore paying off as much of the other ones and closing the accounts should put you in a better position to apply for a 0% deal. Probably leave it a couple months before applying though to improve credit rating.

Good luck with the new job.