What is the best way out of this debt?

Impet_Limpet

I'm not sure where to start here

I have some debts which I would like to clear, it may not be considered much but to me it is.

Edited to show state of affairs

Monthly Incomings:
My salary - £588
Loan from step dad - £70

Total - £658

Monthly Outgoings:

Board - £160
Bills - £50
Capital One loan £157.70
Car Insurance - £32.00 (ish)
Petrol - £25
Pension - £75
Credit card minimum payment £40
Payment to step dad £55
Mobile phone £10
Total: £614.70

Student Overdraft (2.00% monthly interest) = £1000 (limit 1200)
HSBC Credit card 13.9% =£1200 (limit 1750)
Student RBS Credit card (1.527% monthly interest) = paid off (limit 1300)
Capital 1 loan = £1000 (7.9%) shall finish paying by August

I have a halifax current account too, it has no cheque book, OD or credit card, it was just used as a feeder account for an ISA i used to have.

I think these are unsecured debts?

I am not a full time student anymore hence the overdraft charges. I only attend uni 1 day a week (75% of a full time course). I work 4 days a week. When I was a student I lived away from home and then returned to my parents in between terms meaning I lived in 7 addresses in 6 years, I have recently started a new job too (only 2 months ago) so I am worried about applying for 0% credit cards in case I get turned down and mucking up my credit record even more.

I am not due to graduate until 2009

In 2005 I was earning £14,500 pa and this has plummetted since (made redundant so fell back into overdraft as I was starting to get out of it) then working in NHS where pay isn't so great.

I live in a household of 5 adults (my b/f family as I couldn't afford to rent my own place up here in blackpool)

Does anybody have any advise?

Kind Regards
Martine

tomstickland

It's very simple but also not so simple. You have to reduce the outgoings to below the ingoings. You also need to minimise the interest rates, since 15.9% is very high.

chevalier

Martine1081 wrote:

I'm not sure where to start here

I have some debts which I would like to clear, it may not be considered much but to me it is.

Student Overdraft 15.9% = £1000I think Alliance & Leicester do a current account where they match your OD but it is 0% for the first year. You also get £50 cash back if you apply via https://www.quidco.com
HSBC Credit card 15.9% =£1400
Student RBS Credit card = paid offIf your HSBC card has a higher APR than this one, can you balance transfer the HSBC balance to this card
Capital 1 loan = £1000 left due to be paid by Augustwhat are the monthly repayments for this?

My only problem is I only bring home around £588 pcm working 4 days a week - I go to uni for the other day. So more is going out than coming in.

Does anybody have any advise?

Hi there please see above. There are a couple of other things.
1) if you live alone do you get single person council tax discount
2) have you checked whether you are with the cheapest electric/gas/mobile/insurance providers? There can be an amazing difference in the cost of these depending on who you are with.
3) Can you get evening work temporarily to increase your income. If you really don't want the commitment of an extra job, you could do mystery shopping (where you go and check out a shops customer service and get a bit of money for doing so)
Hope these ideas help
chev

CLAPTON

you need to tell us full details of your income and your expenditure and general details of your situation

along this format
An SOA Statement of Affairs

a. list of income
b. a detailed list of spending (include mortgage and secured debt but exclude unsecured debt)
c. a total of spending as above
d. now you can see how much you have to pay debt monthly by forming income minus spending
e. a list of unsecured debts
i.e. debt amount, minimum monthly debt repayment, APR
f. a total of unsecured debt and of monthly unsecured debt repayment.

Impet_Limpet

edited SOA at the top

Impet_Limpet

I live in a household with 5 adults. One of these people is my b/f so I doubt I'm considered single.
I pay board each month £160 + 50 towards bills/replacement of aplicances/council tax etc.
No secured debt because I don't have a house.

The RBS credit card was higher interest.

Although up to now I have always kept up to date with payment my credit score isn't good because when I was a full time student I lived away from home, then moved back in with my parents between each year resulting in over 7 addresses in 6 years, I have also recently changed jobs (2 months ago) as they say, you don't work in the NHS for the money!:rotfl:

dudleyboy

Hi there. Ideally, with those APRs, you'd be able to apply for a 0% or low life of balance transfer rate, as you'd be able to make more of a repayment impact on your actual debt rather than just paying the interest they're charging you. However, as a student, you're likely to be limited by the types of credit available to you -most limits won't be in excess of £500 and some cards may not even take you.

As others have suggested, the best thing to do is post a SOA so you (and we) can see what your expenses are and where cutbacks can be made to increase your monthly repayments.

I'm also inclined to say not to worry about your debt too much at this stage. Unfortunately education is expensive, as is supporting yourself throughout, but you should have the opportunity to repay this once you've graduated. Until then, just try to keep the balances down and don't increase it unnecessarily.

Impet_Limpet

I went to my student union who suggested I get my wages paid into my halifax account and move my standing orders over to the halifax account too. Then the RBS will forclose? my student account and ask for my overdraft to be paid and then I have to write a letter offering them a small amount each month and to ask if they can freeze my interest.

I was hoping to keep my head above water until I finish paying off my capital one loan and then use that £157.70 to pay off my debts without having to resort to affecting my credit record any further.

cazziebo

Oops - clicked thanks by mistake! ah well welcome and enjoy your first thanks!

don't want to encourage you to break the law but surely if your accommodation as a student was temporary then your parents' address is your permanent address for the past 6 years? So I'd have thought you would only have to give that one.

Good luck, Martine, hope you find a way out (and also good luck with the studies)

Caz
x

Martine1081 wrote:

I live in a household with 5 adults. One of these people is my b/f so I doubt I'm considered single.
I pay board each month £160 + 50 towards bills/replacement of aplicances/council tax etc.
No secured debt because I don't have a house.

The RBS credit card was higher interest.

Although up to now I have always kept up to date with payment my credit score isn't good because when I was a full time student I lived away from home, then moved back in with my parents between each year resulting in over 7 addresses in 6 years, I have also recently changed jobs (2 months ago) as they say, you don't work in the NHS for the money!:rotfl:

CLAPTON

several things

a. your major problem is your low income..can you earn any more at easter/summer when presumably you aren't at Uni

b. your cap 1 loan is the killer as its costing you 157 per month ..can anyone help you refinance it over alonger term..parent/bf?

c. if you ask RBS to freeze interest etc, then they will probably default your a/c and this will trash your credit rating and show on your credit file for 6 years.

d. whats the story about the pension...surely you can suspend this for a time ..75 would come in very handy

e. lastly ..i would strongly advise you to work out a proper budget..the current one seems a little light..any thing spent on car tax/mot/servicing/socialising/haircuts/dental/optical/medical/uni books/any lunches/coffees /newspapers/magazines etc.

Impet_Limpet

I already work when I'm not at uni. I only attend 1 day a week, during the hols I just do an extra day at work. I work 30hrs/wk when at uni.

Whats this about mystery shopping?

B/f will not get involved with my finances, we are pretty separate in all financial aspects. My step dad is under no obligation to help as he is currently divorcing my mum and he has already reduced help. My mum does not earn much money (and i barely see her!) and has money struggles. The cap 1 loan is almost finished after 36 months (it was oringinally taken out when i need to commute 140 miles a day and was earning much more and needed a newer car, then it exploded and then i lost my job.)

My car sailed through the mot last week, I've paid tax for the next 1 months I service my own car and parts are bought at huge discount through friends, I never go out as I spend so much time in the evenings doing uni work, packed lunches are paid for out of my board, i take my own tea and coffee into work, i have no dentist and had an eye test 3 months ago. I have acculminated all the uni books i can possibly need. i refuse to buy newpapers and mags on the basis its just full of propaganda anyway!

I applied for help from the access to learning fund (ALF) but was turned down on the basis of £588 is too much earnings as gov't put cost of living of 25 yr old at £47p/w apparently

pension is a halifax stakeholder thing, not been going for long (about 7 months or so) but the NHS threat of redundancies forced me to act)