Advice required please...

mjdh1957

It's unlikely anyone would give you a loan at a good rate, so you'd be consolidating low-rate APRs into a higher one, which makes no sense at all.

MW84

mjdh1957 wrote:

It's unlikely anyone would give you a loan at a good rate, so you'd be consolidating low-rate APRs into a higher one, which makes no sense at all.

so what should my next step be? Get into contact with one of the free advice places and speak to them. Whats the craic with the arrangement thing where you pay back your debts at a low ammount as seen through other threads...payplan or something? If I could agree to pay back these debts which I cannot afford at say £100 a month or so I should be ok

HazelEyes_3

Hi and welcome.

Have you checked your credit report? This would give you an indication of whether or not you are likely to get another loan at a reasonable rate. It seems unlikely given your current level of borrowing v. your income but I could be wrong.

I agree with the other posters that consolidation is a bad idea. What did you spend the money on? Have you anything you can sell?
This statement is frightening -
"I'm not bothered about paying a "high" interest rate as long as the payments are affordable to me and means I can get all the other debts paid off ASAP"

Although your income is low you do not appear to pay anything for rent, food, bills etc so you actually have quite a reasonable disposable income (or you would have if it wasn't for the debts). If you go for a consolidation loan without altering your spending habits first (and for a sustained period not just a couple of weeks) you will find yourself in the situation where you are unable to move out of your parents' home as you will have the consolidation loan hanging around your neck for years.

I know this isn't what you want to hear but with the support and advice of the folks on here you could get out of this situation - it wouldn't be easy but others have done it.

mjdh1957

You could contact PayPlan or CCCS - basically, what they can do is look at your debts for you, agree an amount you can afford to pay, contact your creditors and arrange a Debt Management Plan with them.

The advantage is that some of your creditors may freeze the interest, and you have a single payment to make to PP or CCCS instead of direct to the creditors. And I believe while you're on the plan, you must not take on any more credit (so no cards, HP or loans).

The disadvantage is that your credit report will show you as being a defaulter, and you might have problems getting more credit in future as it will stay on file for 6 years (I think).

MW84

HazelEyes wrote:

Hi and welcome.

Have you checked your credit report? This would give you an indication of whether or not you are likely to get another loan at a reasonable rate. It seems unlikely given your current level of borrowing v. your income but I could be wrong.

I agree with the other posters that consolidation is a bad idea. What did you spend the money on? Have you anything you can sell?
This statement is frightening -
"I'm not bothered about paying a "high" interest rate as long as the payments are affordable to me and means I can get all the other debts paid off ASAP"

Although your income is low you do not appear to pay anything for rent, food, bills etc so you actually have quite a reasonable disposable income (or you would have if it wasn't for the debts). If you go for a consolidation loan without altering your spending habits first (and for a sustained period not just a couple of weeks) you will find yourself in the situation where you are unable to move out of your parents' home as you will have the consolidation loan hanging around your neck for years.

I know this isn't what you want to hear but with the support and advice of the folks on here you could get out of this situation - it wouldn't be easy but others have done it.

as said. i have stopped my rock and roll life style and now looking to sort this out into a situation I can find managable. what would people advise as the next process? I obviousally CANNOT afford to keep paying these loans off every month along with credit card etc...

MW84

mjdh1957 wrote:

You could contact PayPlan or CCCS - basically, what they can do is look at your debts for you, agree an amount you can afford to pay, contact your creditors and arrange a Debt Management Plan with them.

The advantage is that some of your creditors may freeze the interest, and you have a single payment to make to PP or CCCS instead of direct to the creditors. And I believe while you're on the plan, you must not take on any more credit (so no cards, HP or loans).

The disadvantage is that your credit report will show you as being a defaulter, and you might have problems getting more credit in future as it will stay on file for 6 years (I think).

I know it sounds daft but that would not be a problem. would it possible for me to pay back all my loans and credit cards at say £100 a month? but keep my phone? or would this not be allowed? also my Dell runs out in November and is only £27 a month. I would rather try and pay this off properly if you know what I mean.

I am not looking into moving out in the next 6 years as I simply cannot afford it, by 8 years or so. I should be fully qualified and able to move out (hopefully)

Even though I do not know what to do; I would again like to thank everyone on here for their kind advice!

mjdh1957

Once you contact PP or CCCS they look at your income and outgoings (as the good folks on here do) and work out what you can afford. It may be more than £100 as there are criteria for how much they allow for socialising and everyday spending. And I believe you need to include all the debt, so that would mean the PC loan as well. No idea about the phone though if it's a credit account that might need to be shifted to a pay as you go.

Have a look at their websites and see what it's like.

SunderlandBlackCat

MW84 wrote:

I am quite confused? so basically I have 2 loans, say to one loan I will pay off now and the other just leave? even if I pay the one off with high rates I am gonna be struggling...

....posting all information in 5mins

It works by you paying the minimum you are allowed to on each debt but paying as much as you can over the minimum on the highest APR debts. have a look at the link I posted in the first reply & it does all the calulations for you.

MW84

SunderlandBlackCat wrote:

It works by you paying the minimum you are allowed to on each debt but paying as much as you can over the minimum on the highest APR debts. have a look at the link I posted in the first reply & it does all the calulations for you.

but in my case I believe I am paying the minimum or what I signed upto and cannot afford to pay any "more" as my expenses are actually higher than my income even when I cut down.

personally gonna contact payplan or CCCS and see what they say on Monday. although worried incase my phone and pc are taken from me! i also read I will need to change bank accounts which could be a hassle on as i've been with my current bank years. and wonder if a new bank would be willing to give me a account.

gonna have a look at my expenses and analyze them abit more. i pay board to parents which is £100 a month. would this be taken into account? same goes for smoking etc.? anyone else on payplan or whatever give me more info on the service? also what about car insurance...? if I don't pay this credit off I will not be able to drive and get to work :mad:

p.s - well done in the footie today

madduck

There are a couple of points that hopefully I can provide some info on, might not be in order that you've raised them and in no order of importance.

First of all, you say that you are making minimum payment levels at the moment, but to do this you seem to be continually increasing your level of debt, so you're not even standing still. Just sinking deeper. This isn't meant as a criticism, there are many of us who have been in the same position, me included!

If you went onto a DMP with CCCS, Payplan, etc., you wouldn't necessarily lose your phone. You would have to prepare, with their help, a budget. Looking at your earlier posts though, are you really spending about £50 per month on your phone? This may well be a problem! Can you reduce useage, move to a cheaper tariff, etc? If not, maybe Pay as you go would make you more disciplined?

If you did go onto a Debt Management Programme (where you work out what money you have free each month after essentials and this is split between your creditors) you should split money equally between creditors and not show any preference. This would make what you would intend to do with Dell difficult. What you could do is include it in your DMP, save extra hard and if you can free up extra money and this is your smallest debt, pay it off and take it out of your DMP early.