In need of help and guidance

payingforthepast

Hi,

I've been recommended to this site by a friend and am hoping I can get some help here. Basically I have a lot of different debts racked up in different places and am now in a bit of a problem. I'm 24 and I racked up 90% of this debt when I was 18-19 and foolish with money.

However, I do have some light at the end of the tunnel as in December I will be receiving a payout from some shares I was given. The problem is just managing to get through until then.:mad:

First I'll detail my outstanding debts:-

Car Finance: £250 pm, £9000 outstanding
Natwest Loan: £212 pm, £5000 outstanding
Everyday Loans: £153 pm, £1200 outstanding

Capital One Credit Card: £200 at max
Vanquis Credit Card: £500 at max
Natwest Credit Card: £1350 at max

Storecards: £1500

I can manage the monthly payments on all of these and cover my other bills such as phone, car insurance , and petrol (I don't pay rent as I still live at home).

Now I recently had a problem with my car and needed to get it fixed to be able to get to work. Unfortunately I don't have any family members to borrow off so due to my outstanding credit I was forced to get payday loans to pay for the repairs. Now I know that was a mistake. Below is what I currently owe on payday loans:-

Payday Express: £500
Wonga: £700

Obviously these have risen with interest. These two debts really worry me and I don't have the means to clear them off, I;ve just been extending the loans and they are growing fast. Does anyone know where I would be able to get a loan to clear these two payday loans that would have a lower monthly repayment, I could then clear the balance of this loan when my share payout comes.

I am due to get £7000 from the share payout in December. My intention for this money is to clear as much of my debt as possible. Any suggestions as to which debts you would pay off first?

I suppose the priority of my post is getting the two payday loans consolidated into one manageable payment sharpish.

Thanks in advance for any suggestions....

thefoolonthehill

hi

read the sticky post "help for first time users and SOA calculator" You will then need to post an SOA and let everyone pick through it to receive the best benefit.

the best way to split any pyment is to pay off the debt with the highest interest rate first.

don't consolodate debt. getting into more debt to clear debt is like having sex for virginity -

i would then recomend speaking to CCCS or national debt line who can advise you best on the road that you should take.

Alternatively write to your creditors (that you plan to pay off in December) advise them of your situation and that come December you will be paying out the debt and in the mean time will the accept reduced payments until then?

Is your credit rating already shot to pieces?

fatbelly

If your credit rating is shot, i'd be tempted to do a debt management plan now and soften them up for full & final settlement deals in six to nine months.

Your soa might confirm this as a way forward as it sounds like you've reached the point where you can't pay the contractual instalments.

The car loan will need more looking at as it depends what sort of 'finance' it is.

payingforthepast

Thanks for your replies. I'll look at doing my soa now.

I really don't want to have to go into a debt management plan when I have shares not too far away.

Are there no loan companies or credit cards that I can take out just to pay off the payday loans? I know they will have a high rate but I can cope with that as I know I'll be clearing it.

A friend did a debt management plan three years ago and still hasn't touched their outstanding debt hardly.

I'm so close so don't want to have to cave in to a debt management plan now.

payingforthepast

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1405
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1405
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 253
Rent.................................... 80
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 50
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 25
Petrol/diesel........................... 200
Road tax................................ 16
Car Insurance........................... 118
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 807

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 7000
Car(s).................................. 8000
Other assets............................ 0
Total Assets............................ 15000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 9000.....(253)......15.9
Total secured & HP debts...... 9000......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Natwest Loan...................5040......212.......12.9
Everday Loans..................1500......115.......90.9
Capital One....................200.......7.........34.9
Storecard......................1500......100.......4
Wonga..........................719.......719.......1000
Payday Express.................500.......500.......1000
Natwest Credit Card............1300......30........16.9
Vanquis........................500.......22........36.9
Total unsecured debts..........11259.....1705......-

Monthly Budget Summary
Total monthly income.................... 1,405
Expenses (including HP & secured debts). 807
Available for debt repayments........... 598
Monthly UNsecured debt repayments....... 1,705
Amount short for making debt repayments. -1,107
Personal Balance Sheet Summary
Total assets (things you own)........... 15,000
Total HP & Secured debt................. -9,000
Total Unsecured debt.................... -11,259
Net Assets.............................. -5,259

payingforthepast

Above is my SOA, I appreciate any help you can give.
It really is the payday loans that are giving me headache at the moment as I can cope with the monthly payments on my other debts until I get the payout in December from the shares I was given.
So please any ideas??

GeorgieFTB

paying

I'm not too sure we can help too much, there isn't much fat to be trimmed as you live at home, your car is costing you 44% of your net pay, you should consider looking into selling the car and buying a banger, just for a little while, you do need to check out your finance on it first...

Your mobile is high, you should look at down grading your tariff if you can.

With the payday loans, some on here have managed to get them to split the payments into several installements but normally only after you have defaulted on them, sorry not much I can help you with but hopefully others will be along that know more.

I really do urge you to talk to one of the free dmp providers, CCCS/payplan or even CAP, as your unsecured debt repayments (not payday loans) are 27% of your net, your budget would balance but would you really have 300 left at the end of a typical month?

Gx

payingforthepast

Anymore ideas anyone???

TUS

Do you not have a family member or a friend who can loan you the money?

payingforthepast

Unfortunately I don't. Doesn't sound like I have money options. Thanks all anyway

browneyedbazzi

I think the idea of a dmp now is probably a pretty good one...if you started on that road now then in 6 months time when you have the shares payout your creditors may be more willing to settle for reduced full and final settlements, that would allow you to clear a lot more of the debt quickly. Make sure you talk to the debt charities though, they don't take fees so everything you pay with them goes towards paying off the debt - unlike commercial providers who charge fees and often don't pay anything towards your debts until all their fees are paid (this may be the sort that your friend has).