No way out!

victor16_2

Have finally taken the bull by the horns and tried to find a way out of the mess. But...

Need to find a way of consolidating my debts so I'm not paying out as much each month.

Can't remortage due to fixed rate penalty charges. Can't get a further advance on my mortgage or a homeowner loan from my mortage company due to bad credit rating.

Can't balance transfer for the same reason.

Where can I shift this debt to so that I can manage it?!?!?!

(In process re bank charges but bank not playing and anyway this takes time).

Any help would be gratefully received.

sproggi

Hello and Welcome victor16,

Is it possible for you to post your SOA (statement of affairs), SS has explained how to do this in a sticky thread at the top of this board,
The people on MSE are a fantastic help and it may be a case of being able to find savings elsewhere with your money.

Sproggi

Storm

Hi Victor and welcome :hello:

Firstly, consolidation is rarely recommended on here as you need to address the cause of the debt & it's very easy to consolidate, then run up credit cards again.

Have a look at SouthernScousers sticky at the top of the board for how to put together a SoA (statement of affairs) and the whizzes on here will be able to see where you can save money each month to service your debts.

If your credit rating is bad at the moment then you're unlikely to be able to get a deal that will be better, but there's normally loads of ways in which you can reduce your monthly outgoings to allow you to pay off your debts.

victor16_2

Try not to faint but it runs something like this...

Income per month is £1300.

Mortgage is £324 per month (fixed rate for 5 years - 16 months in).
Utilities = £74 per month
Phone =£25
Council Tax = £86

Loan £5,500 - Egg - 6.7%APR - £180 per month
Loan £3000 - A&L - 8% APR - £52

HP on Car - 7% APR - £5000 = £92 per month

Credit Card payments of £200 on various high interest cards that I can't transfer!!

Although it looks like i spend a lot most of this is left over from my student days and doing up my home when I first bought it - I have added untold equity to it but can't get it back!!!

Please help!!

lynzpower

You need to do a FULL SOA with everything like food, electric, car costs, the lot!

Use martins budget planner at the top of the page to give you a guide

Storm

OK, from your figures you should then have £247 left a month for food, going out, clothes etc, which is going to be tight.

First thing - look on Uswitch to see if you can get a better deal on your utilities (sign up to Pigsback first as you'll get 'piggypoints' which you can convert into vouchers)

Check you're on the right council tax banding http://www.voa.gov.uk/council_tax/cti_home.htm as this will show you what your neighbours are paying.

You need to work out how much you're spending on things like food & travel each month too as these can be big chunks of income - and if you've got a car budget an amount each month for tax & mot.

Could you take in a lodger for a while until you get the debts more under control? Have you anything that you could sell on Ebay/Amazon/Car Boot Sale to raise a bit of extra cash?

Is it just you or have you got a partner/kids etc to feed too? Have you checked if you're entitled to any benefits http://www.entitledto.co.uk/

Lots of questions I know, for which I apologise!

Storm

Just thought as well, could you sell your car & get something cheaper? You might be able to clear the HP, and if you're careful get something with lower running costs.

victor16_2

Luckily, there's just me to think about!

Have got a pile of things ready to sell - don't have internet at home which makes e-bay difficult - (am doing this at work while its quiet!!) - but car booting is an option.

Have been underpaying on my gas and electric as I pay by Direct Debit - if i switch i'lll have to pay off the lump sum won't i?

Have done a sample debt remedy with CCCS and they've come up with a plan that it infinitely more manageable for me - are there any hidden downsides to this that might not be apparent to me?

All your help is gratefully received - and an end to my sleepless nights would make you my new best friend!!