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Short term borrowing advice

Hi

I'm writing for a little advice from people who have been in my position or have and suggestions as to the best course o action for my situation:

I've been working really hard to reduce my debt over the past few years, last month I made the final instalment on a £8k loan. I still have the following borrowing:

£5500 loan at 7% apr
£2300 with Barclaycard
£1100 Natwest CC

I am paying £275 pm in repayments. My wage is £1460 after tax and deducting rent, debt repayments, bills and transport I have £700 pm to cover food and leisure. Now I think this is a reasonable amount and I also get 17% non contributory payment by work in to my pension, so although I don't save at present I think my future is reasonably secure.

However, and as silly and as stupid as I know it is, a lot of outgoings have caught up on me over the past couple of months which meant I went in the region of £400 over budget. To deal with this I ended up taking out a pay day loan wich I have now settled, but I am in a cycle now where I will be in a position where I have to take out another in a week or so. My credit rating is at the lower end of good when I checked it.

My thoughts were that a £500 loan paid back over a year would get me out of this pickle, but the short term loans I see advertised have extortionate apr rates and the better rates probably won't provide me with credit. It seems silly that such a samll amount should cause me this trouble when I have paid £8k back in 3 years and my other loan will be settled in 2.5 years and all I'll have left is a bit of credit card debt.

What is my best option here?

Thanks
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Comments

  • DCFC79
    DCFC79 Posts: 40,614 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 21 June 2012 pm30 4:43PM
    Out of the £700 can you not put say £100 into a savings account ?

    What is the underlying reason for £500 PDL as the same thing will continue to happen again and again if you dont do something about it.

    How much of the £700 is for food ?
    Is it just yourself the £700 is for or other household members ?
    Try living frugally for a bit to save what money you can and to put more into the savings account. Your 3 debts listed aren't that bad and are manageable on your salary of £1460.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    what's the 500 for ?

    but
    maybe Overdraft

    use the CCs ?

    use the CCs for normal shopping and then use that money for whatever you need 500 for
  • 19lottie82
    19lottie82 Posts: 6,027 Forumite
    Part of the Furniture Combo Breaker
    £700 for food and entertainment?! i.e. half your wage? :eek:

    How about spend £150 a month on food (perfectly reasonable, just make packed lunches and don't eat out or order takeaways) and £50 on entertainment for ONE month, and there's your £500 right there? If, like most people you get paid at the end of the month, then that's only a week away. problem solved.
  • DCFC79
    DCFC79 Posts: 40,614 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    19lottie82 wrote: »
    £700 for food and entertainment?! i.e. half your wage? :eek:

    How about spend £150 a month on food (perfectly reasonable, just make packed lunches and don't eat out or order takeaways) and £50 on entertainment for ONE month, and there's your £500 right there? If, like most people you get paid at the end of the month, then that's only a week away. problem solved.

    Depends how many the £700 has to cater for but yes I get what your saying.
  • 19lottie82
    19lottie82 Posts: 6,027 Forumite
    Part of the Furniture Combo Breaker
    DCFC79 wrote: »
    Depends how many the £700 has to cater for but yes I get what your saying.

    Ah right, however from reading the OP I assumed that they were single. I could be wrong tho.
  • Thanks for the replies.

    These were one off payments that I had to make. One was £130 for an outstanding insurance payment dating back 6 months that I wasn't even aware I owed until I got a letter from a colletions company that I immidiately settled. I had received emails about this from the company directly but didn't open them as I assumed they were just the usual monthly statement; lesson learned there.

    I owed a friend £150 for tickets, hotel and travel that she had paid for at the start of the year and I also had to fork out £200 for a deposit for my new flat (which is actually cheaper than my current one). I may get my £350 deposit back for this place but it will be months down the line.

    I was paid on the 18th and after paying back the pay day loan and other expenses which have been spread across this month and last, I have paid out £500 of my £700 DI already. I also have to contribute £30 to a van for moving and settle the final gas and electric bills.

    My predicament is not that I can't make £700 last a month, as I know I can, and I can also start saving since I paid a loan off last month. My predicament here is that I am going to have nearly a month to survive on £100 which I know is not possible. This is a one off and not something that will happen again, especially as I was able to survive on £500 before I settled a loan last month.
  • Oh, and yes the £700 is just for me.
  • DCFC79
    DCFC79 Posts: 40,614 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    19lottie82 wrote: »
    Ah right, however from reading the OP I assumed that they were single. I could be wrong tho.

    The post wasn't clear from reading it
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    what does the 100 have to cover exactly?
  • 19lottie82
    19lottie82 Posts: 6,027 Forumite
    Part of the Furniture Combo Breaker
    CLAPTON wrote: »
    what does the 100 have to cover exactly?
    food and entertainment.

    And OP, it is perfectly possible. If you stay in and plan your meals. I'm not saying it will be fun but plenty of people feed themselves on less.

    There is definitely no need to take out a loan for £500 in order to entertain yourself. Sorry but IMO that's just ludicrous and highly irresponsible.
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