Which way to tackle my debt?

stacey2193

Speaking from experience, consolidating debt in whatever form, loans, mortgage, balance transfers etc only leaves the temptation to run up more debt. I have done this several times over. If you do so you must close the accounts and cut up any cards. I have recently done this so I can't run up any further debt on them.

chrishell76

Sorry for the delay. I have included my loan of £1000 as short term I have decided for this, as still unsure if to get the mortgage loan of not. This money will basically pay my overdraft and hopefully keep me in credit until next pay day, but it will be tight.

Any comments/help would be great.

Thanks

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1614
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1614

Monthly Expense Details
Mortgage................................ 199
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 56
Electricity............................. 39
Gas..................................... 39
Oil..................................... 0
Water rates............................. 23.9
Telephone (land line)................... 10
Mobile phone............................ 15
TV Licence.............................. 12.18
Satellite/Cable TV...................... 10
Internet Services....................... 25
Groceries etc. ......................... 160
Clothing................................ 0
Petrol/diesel........................... 165
Road tax................................ 2.92
Car Insurance........................... 33.92
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 200
Medical (prescriptions, dentist etc).... 8.33
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 4.64
Life assurance ......................... 0
Other insurance......................... 2
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1015.89


Assets
Cash.................................... 0
House value (Gross)..................... 60000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 63000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 47000....(199)......4.7
Total secured & HP debts...... 47000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
MBNA CC........................3900......37.62.....0
Loan...........................1000......48........14.9
Total unsecured debts..........4900......85.62.....-


Monthly Budget Summary
Total monthly income.................... 1,614
Expenses (including HP & secured debts). 1,015.89
Available for debt repayments........... 598.11
Monthly UNsecured debt repayments....... 85.62
Amount left after debt repayments....... 512.49

Personal Balance Sheet Summary
Total assets (things you own)........... 63,000
Total HP & Secured debt................. -47,000
Total Unsecured debt.................... -4,900
Net Assets.............................. 11,100

Tixy

Hi

If you really have £598 a month that you can put towards debt repayments then I wouldn't consider getting a secured loan. You could have both the card and the loan clear in 9months time.

If you took out a secured loan and only paid £50 a month you would end up with over £500 surplus a month, and if you saved that the interest you could earn would be less that what you would be paying for the secured loan.

Even if you choose not to put it all to debt repayments or have missed something out your budget (clothes/presents/car maintenance & servicing & tyres & something towards possible future repairs etc) then you could still easily clear within a year.

If you don't have anything like £500 spare a month (and if you have maxed your card and overdraft then it sounds like you don't), then I would rethink your SoA to see if you can work out where else you have been spending. You might want to try keeping a spending a diary and write down everything you spend for a few weeks.