Refinancing - I can feel myself Spiralling and Need Help!

Sangunius

Hi All,

I can feel my debt spiralling out of control and need some advice asap.

I was thinking of refinancing under 1 loan over an extended period to reduce costs, but i tried 1 loan application with Tesco's and this was declined within seconds

I have the following and would love to hear some advice on what is my best option/s.

Loan £4,161.31 (Early Settlement figure) 27 months left £168.42 a month

Credit Card 1 - Santander £2,700.00 (0% till August 2012 - hence the investigation now)

Credit Card 2 - Barclay Card £1,500.00 (Current card, which i keep using when short and hence the feeling of spiralling out of control)

I have basically thought i can afford my loan and have done for 5 yrs now! Its the credit cards i need to sort and thought my best bet would be a loan to cover them all and cut up my credit cards once and for all. My first application has failed and i dont want to affect my credit rating further by appliying for others until i know what the hell to do. Please help!

jobdone1

best thing is to guide us helpful debt free guys by filling out an soa that way we may be able to guide you in a direction that will not require a loan some times just getting rid of things u don't need and being careful in others u may find you have more spare cash than you currently think o congrats on trying to deal with it

Sangunius

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned....................
Monthly Income Details
Monthly income after tax................ 1310
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1310
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 425
Management charge (leasehold property).. 0
Council tax............................. 74
Electricity............................. 25
Gas..................................... 23
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 14
Mobile phone............................ 30
TV Licence.............................. 12
Satellite/Cable TV...................... 5
Internet Services....................... 14
Groceries etc. ......................... 100
Clothing................................ 20
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 10
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 12
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 150
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 969

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

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................4161......168.......10.4
Credit Card 0%Aug2012..........2700......28........0
Credit Card....................1500......30........0
Total unsecured debts..........8361......226.......-

Monthly Budget Summary
Total monthly income.................... 1,310
Expenses (including HP & secured debts). 969
Available for debt repayments........... 341
Monthly UNsecured debt repayments....... 226
Amount left after debt repayments....... 115
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -8,361
Net Assets.............................. -8,361
Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using IE browser.

Sangunius

Hi Thxs for the advice, i have posted my SOA.

sistafromanothermista

Firstly :wave: and
Do you have £115 left at the end of the month? If not a spending diary is the way to go where you can keep track of all your spends and work out where it's all going!

jobdone1

Sangunius wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned....................
Monthly Income Details
Monthly income after tax................ 1310
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1310
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 425 can this be reduced {move in with friend /parents} or get a loddger
Management charge (leasehold property).. 0
Council tax............................. 74
Electricity............................. 25
Gas..................................... 23
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 14
Mobile phone............................ 30 try to end this save money
TV Licence.............................. 12
Satellite/Cable TV...................... 5 cheapest for satelilite is this correct
Internet Services....................... 14 seems very high plus net cheapest at the mo
Groceries etc. ......................... 100
Clothing................................ 20 cut this back if poss
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 10 whats this for
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 12
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20 cut this back maybe £10
Haircuts................................ 10
Entertainment........................... 150 slice this in half if you can
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 969

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

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................4161......168.......10.4
Credit Card 0%Aug2012..........2700......28........0
Credit Card....................1500......30........0
Total unsecured debts..........8361......226.......-

Monthly Budget Summary
Total monthly income.................... 1,310
Expenses (including HP & secured debts). 969
Available for debt repayments........... 341
Monthly UNsecured debt repayments....... 226
Amount left after debt repayments....... 115
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -8,361
Net Assets.............................. -8,361
Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using IE browser.

Have a little look at what you might be able to cut back on can you get a lodger or move in with friends just while you clear your debts ????
if you must go down the loan route have you looked into extending your current loan not ideal just looking at your credit car that the 0% deal ending in august whats going to be the apr on that ??? remember to close the credit card accounts once cleared is my advice hope my view on above gives you another eye on it good luck:D

Barbeduk

Ooh, there's not much wiggle room there. All I can see is cutting back your grocery shopping by maybe £20 a month and dropping your entertainment budget to £100 a month. Is the mobile on a contract or can this be cut? Can you sell anything, get a lodger, get a 2nd job?

And you really need to put something by for an emergency fund (as I'm now learning!).

The debt is half of your net income which is probably why you've been declined for an unsecured loan, all the banks are getting jittery.

I'm sure someone will be along with better advice, good luck!

Edit: they did, see above!!

jobdone1

i am with barbduck take all hints and advice from every one we are all hear to help each other and other hints mat be better than what i have advised good luck and hold your head up high for asking the community for help welldone

Sangunius

Hi all thxs for the advice so far, i do think i need to look at what i'm spending and tighten up on this. I think the first thing needed is to get a balance transfer card to buy myself time with the Santander card. Will i have issue's getting a card? Would it be a good idea to speak with Barclay Card and see if they will let me have a lifetime balance 0% even though i have a card with them already?

sistafromanothermista

Sangunius wrote: »

Hi all thxs for the advice so far, i do think i need to look at what i'm spending and tighten up on this. I think the first thing needed is to get a balance transfer card to buy myself time with the Santander card. Will i have issue's getting a card? Would it be a good idea to speak with Barclay Card and see if they will let me have a lifetime balance 0% even though i have a card with them already?

You might do considering your ratio of debt to income.
*if* you're declined it won't do you any favours with future searches. Also how long ago did you apply and got declined for the loan? Generally if you were declined for the loan i would imagine chances are not much better for a 0% card but i'm no expert.

Sangunius

Things have certainly changed since i took my first loan 5 yrs ago out as i was earning far less and was able to take a £10,000 loan with M&S. Would it be a good idea to speak with them in refinancing? As i have never defaulted and i just want to manage this and cut up my credit cards and have a managable monthly payment even if it is over an extended period. This will go hand in hand with budgeting correctly and not over spending.