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50K in the red - need advice to re-organise ASAP

spitfire747_2
Posts: 1 Newbie
Dear All, thankyou in advance for any help you may be able to throw my way.
I am 26 years old and now owe 51,000 pounds in unsecured debt. This was borrowed to finance my airline pilot training. It has taken me 4 years of study and training to fuflil my ambition and to achieve the licence I now hold. Throughout this 4 years i have been in full time education, then full time training and then part time work and training.
I knew at th very start I would have to borrow heavily to achieve my dream and such sacraficed alot. I moved out of my flat back with my folks, sold my car and lots of belongings, worked 3 jobs for a year to save etc. prior to starting this course. I lost 6,500 pounds of savings when a school went bankrupt with my course deposits, but that is long in the past.
I currently owe
HSBC professional studies loan - 31K (repayments 356pcm june2005 onwards)
Barclays Career Develpment Loan - 8K (181pcm from 2004)
MBNA Visa Credit Card - 7K (not sure waiting for first statement)
Tesco loan - 6K (221pcm starting in June2005)
I estimate the toal repayments will be 846.78per calender month as of June 2005, and will be debt free in 11 years time.
However this is fine if i get an airline pilot job starting soon as starter salaries are approx 24,000 per year rising steadily after. BUT if i do not get a job I am unskilled and will be working for a lower wage, where i might take home 1100 per month after taxes etc...
This leaves me in a position where i cannot move back out and carry on living my life. This may be short term but there are some fully trained pilots still out of work a year after training.
What i would like to do is to consolidate all of my loans into one large loan, with oe monthly repayment, over a longer time period of say 20, 25 years, but so far have not had any decent reponse, primairliy as i am currently out of work having just completed the training.
if anyone know of anywhere or a way i could do this, please let me know. I am scared that this could get out of control especially if i am unable to make the FULL payments to the various companies each month
26 male
no adverse credit (yet)
parents may be willing to use property for secuirty (last option)
THANKS
I am 26 years old and now owe 51,000 pounds in unsecured debt. This was borrowed to finance my airline pilot training. It has taken me 4 years of study and training to fuflil my ambition and to achieve the licence I now hold. Throughout this 4 years i have been in full time education, then full time training and then part time work and training.
I knew at th very start I would have to borrow heavily to achieve my dream and such sacraficed alot. I moved out of my flat back with my folks, sold my car and lots of belongings, worked 3 jobs for a year to save etc. prior to starting this course. I lost 6,500 pounds of savings when a school went bankrupt with my course deposits, but that is long in the past.
I currently owe
HSBC professional studies loan - 31K (repayments 356pcm june2005 onwards)
Barclays Career Develpment Loan - 8K (181pcm from 2004)
MBNA Visa Credit Card - 7K (not sure waiting for first statement)
Tesco loan - 6K (221pcm starting in June2005)
I estimate the toal repayments will be 846.78per calender month as of June 2005, and will be debt free in 11 years time.
However this is fine if i get an airline pilot job starting soon as starter salaries are approx 24,000 per year rising steadily after. BUT if i do not get a job I am unskilled and will be working for a lower wage, where i might take home 1100 per month after taxes etc...
This leaves me in a position where i cannot move back out and carry on living my life. This may be short term but there are some fully trained pilots still out of work a year after training.
What i would like to do is to consolidate all of my loans into one large loan, with oe monthly repayment, over a longer time period of say 20, 25 years, but so far have not had any decent reponse, primairliy as i am currently out of work having just completed the training.
if anyone know of anywhere or a way i could do this, please let me know. I am scared that this could get out of control especially if i am unable to make the FULL payments to the various companies each month
26 male
no adverse credit (yet)
parents may be willing to use property for secuirty (last option)
THANKS
0
Comments
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Hello Spitfire,
It sounds as if you are a bit down about this.
Good on you for recognising before it gets out of hand that you may have a problem. :T
The £6500 you lost when the school went bakrupt. Did you list yourself as one of their creditors? Might be worth checking if the receivers have any cash left over for you after sorting out their debts. The Official Receiver should be able to help you with that and I think it is free
MBNA- phone them today so you know EXACTLY who you owe and how much at what rate and then you can work out how long you will have to repay them for. All pennies count.
Are you able to move any of the smaller loansor credit cards to the 0% for the life of the balance cards (Capital One I think but please check the credit card board for this). At least then you are only paying capital and not exorbitant interest.
Make sure you make it clear to all involved if your situation worsens but if possible make every minimum payment. Do it by direct debit so you can't forget!
Don't be negative about your possibility of getting a job, you've done the hard part, now you've got to learn to sell youself. If you are successful you will have approx £1520 after tax. Stay at home with your parents. Overpay if you can, shift balances until you are paying the mimimum interest and maximum capital off. You'd be surprised how many years it takes off when the interest isn't mounting up.
But, if you are unsuccessful, you could do a weekend job as well as any other job you may get. Every bit counts and I'm sure you can get the payments sorted out. If you end up living with your parents and take home £1100 per month , a bar job one night a week @£5/hour could add £100 to your income if you are able to manage mere evening this can only help.
Boring , yes,frustrating yes but this means you will be able to move out and do your own thing sooner.
Consolidation loans are really only necessary if you can't negitiate a better deal with the companies you owe or are able to find better deals for your debt.Remember consolidation loans often have APR's of c 17%. Much higher than most credit cards.
Let me know how you do
Thrift Jo,0
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