doing the debt shuffle

justlookin_3

firstly i aplogise if this info is out there already.

i have been reading the forum for many years and use it for advice on a regular basis.

i have been "shuffling" credit cards for YEARS onto low rates etc but have recently been refused new cards (rates on my cards start to finish in august)

Cards and overdraft debt amount to approx 9k!!!!!!
then i owe family abouth the same:o

i am in the middle of building an extension on our family home (not my brightest idea but we needed/wanted the extra room) and i wanted to take the wife on hols next year for her birthday.

i was looking at a long term card but having no luck so i contacted my mortgage provider re a secure loan at 9.7% for 20k over 18years

i want to consolodate my debts ??

any advice welcome

RAS

No

Put your options into the snowball on www.whatsthecost.com and you will realsie how much interest you pay over 18 years.

Also, never secure unsecured debt. With one you lose your credit record, with the other you risk losing your house.

justlookin_3

thanks for your reply.

that appears to be the feeling in general but i'm not sure where to go for other loans. As i've said i have had my application refused for the first time.

My credit card debt has been reducung all be it slowly!!!

mark55man

hi - you do need to bite the bullet and maybe tighten the belt to start paying off quicker otherwise you will be in limbo forever, and the sooner you start the sooner you will be clear!!

don't mean to nag - but that's the way it is - look at Up Your Income board for more money and Old Style moneysaving to save costs

justlookin_3

thank u for your replies.

i do need to tighten my belt, defo!!! uping my income would be lovely.

but at this moment the good rates are running out and i'll be making high interest rate payements so need advice on what to do with the debt!!!

justlookin_3

I am currently looking at ebaying as much as Possible n
Already work pretty much ever day and a couple of nights each week so extra income would have to be selling or home working which I am more than willing to do!! I would appreciate thoughts on what I should do.
I will try post a list incoming outgoings over the weekend!!!

elsiepac

Hi just popping in quickly...

Are all the cards currently maxed out?

If you've been refused credit, it's likely because they see you as over committed and so the more the you apply and get rejected, the worse it will get.

My thinking on whether or not the cards are maxed out, was to with the interest rates you will be charged from August.

Can you get the rate from every single card and *fingers crossed* if there is some room on the one which will go to the lowest rate, move over as much debt as possible from the one which will be the highest rate IYSWIM. That way, if worst comes to the worst and you can't get 0% elsewhere, and you end up having to pay interest, at least you'll be minimising it as much as possible. Also, you would then pay minimum payments on the lower interest rates, and whack ALL your spare cash at the high interest rate one until it's gone, then move to the next and the next and so on. RAS gave you a link to a snowball calculator there which you can use to help plan.

Good luck!

LC

justlookin_3

hi,
no, none of the cards are maxed and i make a payement (minimum) ever month.

i am trying to do a statemnet thing but at the minute my debts are;
over draft £3000 = apr 19% approx (costs £30 a month)
virgin = £0 (cancelled but wish id kept for balance transfers now)
halifax = £0
RBS = £1428 = 0% till nov
barclay = £4000 = 6% life of balance
aa (MBNA) = £2565 = 0% till august
barclay = £1425 = 0% till sep
tesco = £500, 16.9%

and following my rejection for new cards to shufle (which has never happend before) i have move the barclay card and AA debts onto tescos at 3.9% till feb.

over draft is a constant pain and never used it untill about 2years ago FOOLISH BOY!!!!!!!

very depressing and shamefull when i say it out loud

justlookin_3

wonder if i could save and pay of 4k by feb???

as well as finsih my extension!!!

justlookin_3

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2 (one 17y/o at college)
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1900
Partners monthly income after tax....... 300
Benefits................................ 100
Other income............................ this can vary between 0 and 200 a month
Total monthly income.................... 2300
Monthly Expense Details
Mortgage................................ 685
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 110
Electricity............................. 60
Gas..................................... 60
Oil..................................... 0
Water rates............................. 45
Telephone (land line)................... 20(inc internet)
Mobile phone............................ 60(3 x mobiles mine, wife and son)
TV Licence.............................. 11
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200 (roughly)
Clothing................................ 0(sure i spend something but wife a big primarni fan)
Petrol/diesel........................... 80
Road tax................................ 20
Car Insurance........................... 30
Car maintenance (including MOT)......... 0(i do most work myself)
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 60(savings and martial arts)
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 22
Contents insurance...................... 0
Life assurance ......................... 70(thinking of changing or shopping around for this)
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1558

Assets
Cash.................................... 1000
House value (Gross)..................... 160000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 1000
Total Assets............................ 164000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 110000...(685)......4.4
Total secured & HP debts...... 110000....-.........-
Unsecured Debts
over draft £3000 = apr 19% approx (costs £30 a month)
virgin = £0 (cancelled but wish id kept for balance transfers now)
halifax = £0
RBS = £1428 = 0% till nov
barclay = £4000 = 6% life of balance
aa (MBNA) = £2565 = 0% till august
barclay = £1425 = 0% till sep
tesco = £500, 16.9%

£12918
plus approx £9000 to family
Monthly Budget Summary
Total monthly income.................... 2,300
Expenses (including HP & secured debts). 1,558
Available for debt repayments........... 742
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 742

justlookin_3

i am sur ewe have more month left than money !!!! so i am going to start a spending diary also (wonder if ther is an iphone app;-)
i think the spare oneys goes on debt payements, house renovations, holidays, birthdays, xmas and SOCIALISING!!! i have never been very good at saying no to a night out or weekend away