Consolidating....

longsightrob

Morning all,
I have an issue which needs the forums expert opinion on. My fianc! has debts totalling £22k which is over the following:
Credit card1 £5500
Credit Card2 £5500
Unsecured loan £11000
The problem is my wages covers all the bills which then leaves me with nothing for the month and after WTB (Wife To Be) pays her own bills the house hold has £300 for shopping and everything else.
She works part time and gets a great wage for it however I can’t help but think that by consolidating her debt to one payment it would give us more money n the pot now and be easier to manage.

Thoughts welcome.

chesky369

How much does she earn? How much do you earn?

longsightrob

Her net is around 1200pm and I'm at £1919 net pm

StuC75

what options are there for increasing earnings?

most lenders wouldnt look favourable on the Earnings to Debt ratio - also that would be initially doubled prior to paying off (and perceived likelihood of those facilities being re-used).

longsightrob

Once the our child is at school in 3 years there would be no more nursery costs, and her wage will go up for two more years (high school teacher) by a maximum of a couple of grand (gross) per year.

I may have some extra cash later in the year, however that’s not guaranteed

longsightrob

Sorry StuC75, could you explain your comments for me please?

CLAPTON

your partner has 22k in debt with an income less than 20k

she has absolutely no possibility of getting an unsecured loan to 'refinance' them

you may be able to refinance some of the debt assuming you have no debts

but really need to understand the total financial picture
amounts, aprs, minimum payment, outgoing, mortgage property value etc to give any useful advice.
also knowing how such debts were incurred would be helpful

this is quite a good format

http://www.makesenseofcards.com/soacalc.html

longsightrob

Clapton - your right she does but we have to address it somehow.

APR's on the cards will be late teens and on the loan it will be around 10%.
We have a mortgage that we only got in Jan 12' so changing it would incur lots of charges I would presume. We are looking to book time with them to discuss however i wanted to "sound out" my thoughts with the forum first.

I have £3k on cc (again late teens APR) and the over draft is being pushed to the max as we try and cover this shortfall.

If I’m really honest, I’m !!!!!! off with her for running up massive debts but its too late to cry over spelt milk - just annoys me that with over £37k net coming in we have nothing left to save/have a beer etc.



Sorry for the moan

CLAPTON

as I say one needs the full details of the debts and the mortgage LTV and other details



you may want to post on the debt free wannabe board and post up the SOA
lots of support and advice over there from people in similar situations

StuC75

longsightrob wrote: »

Sorry StuC75, could you explain your comments for me please?

22k Debt of household net pay of 39K per year.. IF these cards are maxed out then its also 100% of available credit used e.g. 22k of 22k on household net income of 39k.

Also when considering a new loan, the available credit would increase - granted the loan 'would' be repaid; but the credit card 'could' be reused - so would then be viewed as 22k debt of 33k Available on household net income of 39k.

Other suggestions being if Mortgage \ home owners possible scope for remortgage - although that has its own warnings due to longer terms (and interest charges) and the secured nature of that lending.

chesky369

Banks will not take your word for it that you intend to pay off your debts. All they will see is that you already have £22k of debts, so if they lend you a further £22, it will total £44k! Which is a heck of a lot more than your partner's annual salary.

They won't do it.