73K debt advise please

John4702

my bad the Abbey has been on a low rate for 9 months, hense the low payment, this month it reverts 22 percent and correctly a whole chunk per month.

I have a very good relationship with natwest, so they will always increase my loan to hopefully allow me to get into the future with out defaulting on anything.

My current mortgage payment is 640 for 110K

i have managed in the past to keep all my debt that is on cards in a low rate but now I need to shift debt in order to release money from cards, so therefore i have enough sace to start doing some card shuffles.

The reason i am where i amis the fact i have over spent for 6years. Last year i doubled my wage and also my parter started contributing recently so now i have no reason not to start paying it back. Its just the best way to pay it back im after...

The imidiate problem is shifting credit debt so i can get better rates else the stupid high credit rates will definitly kill me.


Thanks.
A couple of points from me then

Your Abbey card of £10,000 balance has a minimum payment of £10.00 a month against it, which seems low to me for an interest rate of 22% is this right?

Your MBNA cards in June will turn from very low minimum payments to £100+ minimum payments, so that's your really really deadline on this because that's when you're going to start to default on things

How much will your new mortgage payment be on your £140k mortgage?

thumshie

John4702 wrote: »

If i spend then i have to top up y current account every so oten, from a card to keep my head above.

If you mean withdrawing cash on a CC the APR will not be the figures you've quoted, but much higher. Do you always use the same card? You may want to check your statements to see which cards have the cash withdrawls on and the ammounts/Cash APRS, may look untidy but splitting the balances on each card to show the BT/purchases/Cash amounts and aprs may show/change CC priorities.

saffronflowers

I dont mean to sound horrid, but I think that you need to really look at ways of paying the actual debts. I agree if you can shift one debt to a lower rate card that is sensible, but you need to actually work out how to pay the repayments.

I agree with the others that putting the 30k on your mortgage is not a great idea. Something has got to give and if that means the car, the bike etc, then it has to go. When you are debt free and have saving you can get them back.

Totally my own personal opinion but I think it is really harsh asking your girlfriend of half of her earnings to help out with your debts. It is an extremely low wage to begin with.

I hope you take this post in the spirit is meant and well done for facing the situation

SFx

John4702

Let me set the record straight I am not asking my girl friend for help towards my debt i am simple asking her to contribute to the 1200 a month of the cost of living such as mortgage, food, utilities etc.

Surely the best way of paying the actual debt is to put it all into the lowest APR's possible, then i will have the maxium amount of disposable to throw at paying the debt off.

At present and i see no way of changing this, putting 30K into the mortgage achives the lowest apr for that money. Then i can giggle the cards about and put and get them on all low APR's. And then retain thoses or similar apr's every six month term as i will have the ability to jiggle.

Now i will have all my debt around 7 percent and can start paying more due to lower apr's.

Leaving debt on the cards will result in apr's of 17-22 percent which will eat up a big chunk of dispoable income and thus i wount be able to pay much back. Also a IVA will eat up my equity at the end of the 5 year term anyhow.

Has no one on here approached any of there creditors off there own back with out using an IVA company? To get interests frozen etc

I dont mean to sound horrid, but I think that you need to really look at ways of paying the actual debts. I agree if you can shift one debt to a lower rate card that is sensible, but you need to actually work out how to pay the repayments.

I agree with the others that putting the 30k on your mortgage is not a great idea. Something has got to give and if that means the car, the bike etc, then it has to go. When you are debt free and have saving you can get them back.

Totally my own personal opinion but I think it is really harsh asking your girlfriend of half of her earnings to help out with your debts. It is an extremely low wage to begin with.

I hope you take this post in the spirit is meant and well done for facing the situation

SFx

John4702

If i do draw cash on cards i then transfer that balance thus all cards are always at the best balance transfer rate possible.

A better work around to this is to transfer money to my natwest card, so my natwest card is in credit. Then phone natwest and say i moved in it error, would u please move it to my current. If the figure is below 3K they normally do this with no issues

warburtonrichard

John
I can't see how with your Abbey payment increasing, your MBNA cards about to increase, your loan and other card payments plus your bills, even if you reduce them, can come in less than your income, even with the extra from your GF.
Borrowing on your house will cost you more in the long run and can leave your home at risk, but if you did borrow on it and clear about half of your debts, it is still touch a go as to whether you would be left with enough, even with reduced bills, to cover your outgoings.
You may be able to do it, if it's possible, but the CCCS will help you to work this out realistically and unbiasedly. It's their aim to get you through to A) not defaulting on anything or Being able to afford to live through some kind of DMP
You need specialist help now because if you CAN get to the point of not defaulting on your payments and you know you can stick to not overspending any more, you're inches away from the point of no return.
I'd recommend calling them NOW to get an appointment.
Good luck.
Warby

Verbatim

Hi John and welcolm,

Well done for admitting there's a problem and posting. I'd say too that remortgaging is not a great option. You'll have the debt much longer, for the life of the mortgage, will pay far more interest over that time (25 years?), and if your circumstances change and you lose your well paid job through recession or illness or accident you'll also lose your home.

First thing is to face up to cutting expenditure. Are you still using the credit cards? This has to stop at once or you're getting in deeper every month. It sounds as if you've consolidated in the past and continued spending on the cards so are facing a further consolidation now. So if you do consolidate/remortgage and continue with the same level of spending you'll be in a worse situation next time.

So best not to remortgage but if you do ensure the cards are cut up first.

After reducing outgoing is there anything you can do to increase income? Second job, let a room in your flat, overtime? I note you're thinking of selling the car as well as the motorbike. This would be excellent as you'd be reducing monthlyand annual outgoings in one fell swoop. Cars are hugely expensive with insurance, road tax, servicing, repairs/parts and petrol to find. If you can do without one for even a year or so work out how much this would save and therefore reduce your debt by.

On the plus side you seem really well organized and know exactly what you owe when so I'd guess you'll be pretty good at tackling all this if you put your mind to it.

Hope I've been constructive but apologies in advance if I've given offence.

Verbatim

Hi John and welcome,

Well done for admitting there's a problem and posting. I'd say too that remortgaging is not a great option. You'll have the debt much longer, for the life of the mortgage, will pay far more interest over that time (25 years?), and if your circumstances change and you lose your well paid job through recession or illness or accident you'll also lose your home.

First thing is to face up to cutting expenditure. Are you still using the credit cards? This has to stop at once or you're getting in deeper every month. It sounds as if you've consolidated in the past and continued spending on the cards so are facing a further consolidation now. So if you do consolidate/remortgage and continue with the same level of spending you'll be in a worse situation next time.

So best not to remortgage but if you do ensure the cards are cut up first.

After reducing outgoing is there anything you can do to increase income? Second job, let a room in your flat, overtime? I note you're thinking of selling the car as well as the motorbike. This would be excellent as you'd be reducing monthlyand annual outgoings in one fell swoop. Cars are hugely expensive with insurance, road tax, servicing, repairs/parts and petrol to find. If you can do without one for even a year or so work out how much this would save and therefore reduce your debt by.

On the plus side you seem really well organized and know exactly what you owe when so I'd guess you'll be pretty good at tackling all this if you put your mind to it.

Hope I've been constructive but apologies in advance if I've given offence.

Verbatim

Sorry, post to so long I thought it hadn't worked and tried again.

saffronflowers

I am sorry I have made you feel defensive, that was not my intention at all. But I think what I am trying to say, is there is no easy way to get out of this debt. Even if you do remortgage, you are still left with £43,000 of debt that needs to be dealt with. You need to be abolutely brutal with your budgeting, I have just done a very simple snowball calculation on £43,000 debt paying if off at £600 at 11% (a mixture of for life and increases in others) and it works out that you will debt free in November 2016.

This is not a personal attack on you at all and please dont take it that way, I am just trying to illustrate, that you need to have a real life style change.

SFx