SadGirls SOA

SadGirl

I have also now written a letter to the FO, enclosing my loan details. Thank goodness I had the day off today, and I can type pretty quick!! This may make a big difference if it works! Thanks folks! All I need to do is sort out the rest now!

SadGirl

I have just spoken briefly to the FO. They say as the protection is optional, the onus is on me, and I probably wont get it back.

SadGirl

Saying that, they are writing to them to complaining.

lynzpower

Well here goes..After yesterdays shenanigans I almost had a smile on my face, but after working all this out, I'm more depressed than ever.


MONTHLY INCOMING £2500

MONTHLY OUTGOING

Mortgage £440
£60,274 owing at 5.9%

Tv License £11

Egg Loan £328.44
over 7 years at 7.9%
(This is the one I am thinking of taking out this month to pay off my Egg Card - balance £10,723, and my Egg Loan £11,903)
if your credit rating is good, can you not get another 0% credit card and move the balance, theres no point in spending 7.9 % on it in loan form

Loan £379 ( call them ask if you can lower the interest, its worth a go)
£5137 owing at 11.68% finishes 06/08

Internet Connection £15 9 drop down to the tesco value one thats a ficver less_)

Car Insurance £80.95

House Insurance £21 ( whos this with have you checked its the cheapest ae you CERTAIN you are tied in i thought i was and wasnt)

Barclaycard £90 minimum a month
£4765 owing 12.9% purchases 27.9% cash (About £1000 of this I think is cash advances) ( transfer this to another 0% card and CUT IT UP)

Halifax Visa £250 minimum a month
Balance £13,600 at 6.9%, 21.95% cash. (About £800 in cash advances on this card) ( again, transfer and CUT UP)

Petrol £160 ( are you buygin this in tescos youll get clubcard vouchers that you can use towards shopping)

Shopping £80

Gas/Elec/Water £80 ( certain this is the cheapest)

Council Tax £79

Phone £50 ( break this down for us, it seems a lot )
Secured Loan £422



Incoming a month £2500

Outgoing a month £2636

Now you can see why I have a cash balance on my visa cards ( DONT DRAW CASH FOR GODS SAKE!)

there will be a way out of this im inclined to think once youve moved your balances to a 0% card it will be much easier to chip away at the balances

RAS

Hi

Well done for kicking up about the loan but I think you are not quite getting the point about interest rates.

They compound over time, so the longer you pay them over, the more they cost you, even if the interest rate is lower.

Without the details of the existing loan (cant find this listed on yesterdays first post) and credit card, it is impossible to tell you exactly what the penalty will be for your action.

I would stongly advise against taking this loan out until you understand more about the implications. If may or may not be the right thing.

I would also suggest that you need to look very seriously at your income and expenditure.

Over the years you have taken 20K equity out of the house, added a £40K SECURE loan and accumulated up another £46K of debt.

Sixty percent of your income is going on servicing debt.

You cannot afford this now and you will not be able to afford it in the future. Your debt doesn't quite wipe out the equity that you still have left in the house, but it would only take a hike in interest rates and or a drop in house prices for you to have nothing left.

Can you re-post your SOA with the old Egg Loan and the Egg credit card at their current rates? Then better people than me can tell you what will happen if you consolidate.

Also it might be an idea to talk to CCCS or payplan ASAP.

Sorry if this sounds harsh but, you need to increase your income, cut your expenditure and reclaim any charges that might be available, before things come back to bite you.

boo2905

Hi

I don't know much about interest rates and all the jargon to do with loans etc but I just thought I would add my little note.

First of all congratulations on joining here and facing your fears so to speak.
:T :T :T
I did it last week and feel a lot better and a lot more positive about it.

Second I read your other thread that you created the other day and after the argument that ensued on there I can see why you created a new thread with your SOA

Third - you could try and sell some things on Ebay and Amazon - I've been selling some clothes that I never wear and have made about £25 so far :j - not a lot I know but it's a start and you can use it for yourself or to pay extra of one of your debts until it's cleared and then move on to the next one.

And Fourth you should use https://www.whatsthecost.com and create a snowball profile. Someone suggested this to me and it was a really good help - it shows you what to aim pay each month and then you update the total as you pay more off - it's a really good tracker for you to stick with and you'll see it go down.

As I said, I'm a newbie to all this myself but I thought that you sounded like you couldn't see the wood for the trees.

Keep us up to date on how you are going on this thread - then you can look back in a year and see the progress you have made.

suzanne
x

Bestthingsinlifearefree

Hi SG,

Welcome to MSE. Your income does not seem to be the problem but your spending does.

"Over the years you have taken 20K equity out of the house, added a £40K SECURE loan and accumulated up another £46K of debt"

If the above persons calculation is right. Can you give any indication as to where the £100,000 pounds spending additional to your salary has gone? e.g holidays or car or were you unemployed or gambling or helping family or somethging else?

I am not having a go but just trying to establish where the over spending has occured in the past and this might help you in the future.

Do you keep a spending diary?

Another option is to sell the house, clear your debt, rent for a while live with in your means, rebuild savings and then if it is important to you buy again.

You could clear all your debt and still a have a nice deposit for a place in the future ,once you have your spending issues under control and use to living well within your monthly income.

As i say it seems that your income is not the problem but your spending.

Keep posting. Good luck.

I_was_a_fool

Hi SadGirl

You have definitely been mis-sold your ppi (as you were self employed) & you should get it all back. We got all of ours back, but it took three letters to do it. Don't take no for an answer!

Good luck

Sharon

SadGirl

Bestthingsinlifearefree...Let's just explain here. This board says in the stickies, help, not judge. I don't have a gambling habit, or big holidays etc. These debts were originally accumulated when there were two of us living in this house. My husband walked out while I was at work, packed all his belongings, and left to live with someone else. We had just had an extension built, hence the £20k on the mortgage. It was the most sensible way to raise the credit, and with two wages coming in it was fine. He also left me with a £20k loan, a £5k credit card, a £3k solicitors bill that was his, and earning one wage. I don't drink, I don't smoke. My one luxury is that I have hung onto my car and house. The last resort will be to sell my house. On one wage things have spiralled. I have overspent in the past yes, and I see the error of my ways, but I don't think I need you to spell that bit out to me right now.

Ras I thought I had posted the Egg rates. The balance of the card was £10,723 on which I have to pay £225 a month. There is some cash balance so the interest is high (24%)on a percentage of it.The rest is at 8%. The loan I already had was for £11903 at 6.73% £199.18 a month until 2013.So I have only paid a year of it. Adding the two together, I will pay £328 a month, at 7.9%. Now, that will save me £100 a month. Ok, the original loan was 6.73%, and now it's 7.9%, so a little more, but the interest rate on the card will be alot lower, thus, saving money, and probably paying it off quicker,. I thought it was a good idea. I can't see why people are trying to disuade me? My plan was, when my other loan is due to finish next June, I could then pay off my smaller barclaycard quicker, by then hopefully there will be some balance space on one of my other cards, so I can balance transfer the credit cards to the lowest interest one and keep them together.
Boo2905
I have used ebay alot in the past, and I plan to sort out all my old stuff this sunday, and get it listed! Thanks for that! I'm even selling stuff I would have normally kept, but needs must!
As for the PPI, I posted my letter to the loan company, and the FO are on to it, although he did not sound that positive. He said I had the choice to take out the insurance, and the onus was on me Anyway, they are chasing the 'broker fee' of £1500, and the 'completion fee' of £500 too, so we will see!

I am now keeping a spending diary. Yesterday I spent:
£10 on fuel
£48 on my gas bill
£1.80 on two diet cokes on my local, as it was my friends birthday last night.

Today, I am not going to spend at all. I am going out for a bike ride with 3 friends. I have my water bottle with me, and will come home for lunch. In the evening a friend is coming over to watch a dvd she's bringing. Are you proud of me? Let's hope it's lasts. I really am trying. I know it looks messy, and I know I've been stupid in the past, but everything has changed now.
Oh by the way, I tried to change my internet connection to tesco, but aol wont let me go. They told me I'm locked in for another 9 months, as I had a wireless router sent to me. It automatically signed me up for another year!! I was cross as I've been with them for 7-8 years! So I can't move yet. keep the tips coming guys. I'm listening to them all.

RAS

Sad Girl

I have reorganised you SOA based on your CURRENT situation and separating household expenditure from debt. Is this correct now?

I have one more question re Income tax. If I multiply that up by 12 and add the normal single persons allowance, it comes to about £1200 per month. Are you saving enough for the Income tax on £2500 or quoting your gross working income or something else i do not understand?

SadGirl wrote: »

MONTHLY INCOMING £2500

MONTHLY OUTGOING

Mortgage £60,274 owing at 5.9% £440

Tv License £11

Internet Connection £15

Car Insurance £80.95

House Insurance £21

Petrol £160

Shopping £80

Gas/Elec/Water £80

Council Tax £79

Phone £50

Income Tax £150

Can I just add, my phone and utility bills have a bit paid off my tax as I'm self employed.

DEBTS

Barclaycard £4765 owing 12.9% purchases 27.9% cash £90 minimum a month
(About £1000 of this I think is cash advances)

Halifax Visa Balance £13,600 at 6.9%, 21.95% cash. £250 minimum a month
(About £800 in cash advances on this card)

Egg Card Balance 10,723 at 8%, plus cash at 24% £225 a month.
There is some cash balance
Egg Loan £11903 at 6.73% £199.18 a month until 2013.

Loan £5137 owing at 11.68% finishes 06/08 £379

Secured Loan (GE Finance) Loan = £43500 Interest rate? £422


So, after all this....

Incoming a month £2500

Outgoing a month £2636

I appreciate that you will only pay an extra £800 for the privilege of transferring the Egg loan to a new one, but you could be putting that towards other debts.

It might help everyone else if you could indicate the maximum on these credit cards?

Pity about the cash balances. If they were all on one card, I would recommend clearing that ASAP by paying the minimum on the other cards. As it is I guess clearing the Barclaycard would be the best option?

Sorry you felt Bestthingsinlifearefree was getting at you, but if you peruse these boards you will see the question asked time and again. It is not judgemental, just that there is little point in helping people over the immediate situation, if they do not address the underlying cause. You will realise that there are a lot of folk here who are facing or have faced severe financial disruption because of relationship breakdown, ill health or bereavement. There are others who just spent. It helps to know the background, so thank for the information.

I suppose the only thing I could say is that it looks like your ex did a dirty, since debts in dissolving marriage are joint, irrespective of whose name is on the paper.

There are others who would understand how to snowball this lot.

Other thoughts are can you take a lodger? The income is tax free upto about £4,800. Can you increase you charges? Can you take a second job on PAYE for a short while?

Anyway, hope you enjoyed the ride.

If you pop into Money saving old style, you will find lots of other ideas how to have a decent life at low cost. As an immediate thought, you could let them loose on a list of what you have inthe freezer and cupbords and ask for help with a menu plan for the month?

it might be useful speaking to CCCS or Payplan as well.