4.9 credit card v secured v nonsecured loan advice please

janthemum

Please Help!!

Being Bi-Polar(Manic depressive); I have run up debts on credit cards of just under £5,000. I also have an overdraft of £1000 and husband has credit card of £1000 ie TOTAL £70000.

Asda 5.9% wont touch me nor will various other un secured loans. We do have £190,000 equity in our home and mortgage to run 6 years more with mortgage of £50,000.

My question is they all mseem to want to offer secured loans (at high variable interest rates). So what do I do

MandS and More credit card has offered me their card at 4.9 % on balance transfers. I have sent forms back but havnt been told balance\as yet that I can go up to.

Shall I wait and transfer as much as possible to AND MORE at 4.9% for the balance of transfer and then could I re apply for a lot smaller unsecured loan at lowere cost or get OH to as he is in full employment and I am medically retired.

Thankyou from a confused mum!

Conor_3

DO NOT GO THE SECURED LOAN ROUTE.

If you can't shuffle it all onto a low interest rate card, the best thing to start off doing would be to write to the people you owe money to explaining the situation and ask if it would be possible for them to freeze the interest and enter into a repayment plan.

If you do manage to shift it onto a lower rate card CUT THE OTHER CARDS UP otherwise you'll end up using them and be back to square 1.

In the meantime, make minimum payments on the cards with the lowest interest rates and pay as much off the high rate ones as possible to clear them off earlier.

lynzpower

have you done an SOA before? this should help show where extra money can be fgree off to pay your debts quicker x

janthemum

I have written out by hand a SOA I will transfer it up on screen shortly...I type very slowly.

janthemum

Conor thankyou for your advice I will now DEFINATLY not consider the secured loan. They seemed to really push it for me to consider.I will post SOA and write to debtors as you suggested. My Consultant Psychiatrist said he would also write to confirm illness and ask to write off debts although I doubt the Banks will do this ! Worth a try maybe, at least free the interest.

janthemum

INCOMING MONTHLY
£1,349.60 DH wages he is paid weekly so I totalled 5 and found the average.
ME:
£387.88 IC
£320.70 DLA

£503.14 Pension
£119 Child benefit
£42.24 Tax Credit
My Total £1,369.96
TOTAL INCOMING MONTHLY......£2,719.56

TOTAL OUTGOINGS MONTHLY
£150 credit card payments and loans see below
(as detailed below)........££2,228.00
It looks like there is a positive at end of month of £490 butsome how there isnt we are in debt.
Little background i suffer from Bi-Polar and just had manic episode where I can recklessly spend alot of money on "nothing" of any use.
Please be kind about this it is a serious illness and recently just come out of hospital and "spending due to grandiose ideas is a symptom.

OUTGOINGS
MONTHLY
£560 mortgage and endowment policy, finishes in 6 years (equity in house £180,000)
£22 house insurance contents and buildings includes extra for violin cover.
£106.95 cOUNCIL tAX
£21.93 water rates
£120 loan for car (3 years to go)
£30 petrol
£33 insurance car
(breakdown cover in with car insurance, no MOT for another year, 2 years old so hopefully no repair bills)
£56 loan first direct for £1400 for ds violin
£36.19 loan for sofa (finishes in June , 2 payments to go)
ENTERTAINMENT
£4o pocket money £20 each child
£48 violin lessons (my mum pays for other music lessons)
£17.99 internet/broadband Virgin Media
£26.48 phone virgin media
£37 SKY
£60 wine (we dont go out and enjoy a tipple with dinner)
£40 all families hair cuts and my colour (dry cuts done at home by travelling hairdresser; I do my own £4 colour)

PHONES
£15 DH PAYG
£5 PAYG
£30 DS phone
£30 DD phone
(Both were due to get cash back to the amount we payed out but it appears Mobile ship are not paying up)

PACKED LUNCH
£40 (£10 A WEEK for canteen)
£10 DS I make packed lunch for him

CLOTHES
£50 includes uniform and DD expensive taste. DS and DH never really get any clothes
ANIMALS
£40 dog and cat food litter
(Recently cancelled dog insurance)
£15 dogs haircut (in fact £30 every 2 months)

FOOD
Trying hard to be OS
£480 2 adults and two teenagers 13 and 6ft 15 yr old.
(I know this is way too much trying to get it down being inspired by OS board though)
No going out money, Never go out
LOAN for Violin £50 (for next years)
Virgin Credit Card owe £3,000 0% for a couple more months pay about £50 month
Sony £2000 0% a couple months left £50 a month I pay
Overdraft £1000
h owes £1000 Halifax Credit Card
Therefore want to put all debts on low interest Ie And More at 4.9% until debt finishes.

janthemum

bump SOA now included

Conor_3

You sound like my sis in law. She should be around £500 a month in credit but isn't and when she actually thinks about it, she buys stuff for the sake of it.

It's not actually as bad as it looks because from what I can work out, in a couple of months a lot is due to end.


OK, if it were me.....

Stop the pocket money for the kids. They can go get part time jobs and learn the value of a quid. They can also start to pay for their mobile phone bills. It'll do them the world of good for the future to learn that you have to work for money and things cost to use.

Ditch Sky. It's rubbish at the moment anyway. Apart from a few series on Sky 1 and 5 films a week on Premier, it's all repeats. The free channels seem to have more new content. You could always try the old "cancellation bluff" and you may get 3 months half price.

Do you really need a hair cut every month?

My mum and dad run a dog groomers. Virtually every breed can do 6-8 weeks without a cut with no problems. Buy a "Slicker Brush" and brush the dogs coat through thoroughly once a week. That'll keep the knots down.

You should be able to get the shopping down to £400 a month quite easily.

Shop around for phone/internet. What you have is quite expensive and there's better deals out there with better ISPs.

£50 every month on clothes? If they've got plenty, don't bother for a few months.

I'm sure others will come up with more ideas.

janthemum

Thanks Conor. As usual got up early worrying about money. 3.40am now...
Iwill take alot of this on board. First thing to go SKy; and I have thought about a short course at college; basic dog grooming may be appropriate that I will look in to. Thanks.

janthemum

Any other advice please on my SOA Thanks

liz105

I think the wine can come down to be honest.....also, (being a muso myself) If your kid has a £1400 violin and is having what seems to be private lessons they should be at a high standard by now, Im guessing grade 7 at least? Why dont they in turn start doing private lessons for little kids, they could get at least £5 p/h for it and that money could subsidise their own lessons.