Advice needed. Had PPI Reclaim now what

seriouslackofpounds

Hi everyone, when I posted some 3 years ago I was deep in debt. The picture is a bit more rosy now. I do however (if you will give it) need the lovely people of this forum advice.
I will list my debts and then tell you my problem or rather asked your opinion on what I should do next.

Here are my debts and situation.

Debts were £48,000 but now quite a bit less!!!)
My Debts are (Interest per annum)
Barclaycard £4000 (Limit £4800, I pay £40 p/m agreed shortfall payment at 0%)
BOS Card 1 £3100 (Limit £3400, I pay £80 to apex managing this at 0%)
BOS Card 2 £3200 (Limit £3400, I pay £40 to BOS agreed lower payment at 0%)
Moorgate (formerly EGG Loan) £4500 (I pay £501 p/m at 6.9%)
Barclays O/D £640 (I pay £30 per month into reducing this, 9% p/a interest)
Capital One £243 ( I pay this off in full and reuse the credit each month. Interest 32%)

I earn £3200 a month. Pay £450 on rent, £300 on food, £85 Golf, £35 Gym, £260 Petrol and £57 on phone.

Here is the advice I need:
Just had EGG agree to pay me £6000 back for PPI as a refund.
I have suspended my payments to Moorgate. Stating I want a review of all charges and interest applied to my account. I have said I will settle the loan with some of the money in the PPI refund. Here is the advice - EGG (now called Canada Sq Operations) have offered me settlement on the PPI. Can I get them or moorgate to cancel/refund the interest and charges applied. These charges and interest would not have been applied as I could have used the £6000 to pay the loan off. I have said this to them. Am I correct? I am going to ask for a settlement figure is this the right thing to do?

To add to all of this. Lets assume the loan is paid off, I then will have about £1500 to pay off some of the credit card bills. Any further comments on getting rid of all of this debt. As in what to do on a monthly basis would be appreciated.
By credit statement according to Experian is poor. I had defaults with moorgate which I am also looking to ask them to remove.

NinjaSavingKat

Hello there... I am just having a read of what you have written and will try and answer some questions. I am not an expert just ruthless. So I will apolgise now..:p

First...do you live on your own and only look after yourself?? Cause your food bill is ridiculous. Cut that down to £100 maximum a month.. eat only supermarket branded food (its about retraining your taste buds and prioritising ).. and getting this debt paid off ASAP.

The £6000 needs to pay off the EGG / Moogate / Canada Square Operations without question. If you get repayments for charges then great. Don't bank on it.

The remainder needs to go to the Barclays OD and the Capital One. And stop using them both!! They have interest and you cannot afford to lose money to this.

This leaves you with £617 left and frees up a total of £531 a month and negates any wages needing to go to the Capital one card. If you think you need a credit card for "emergencies" then think again. Today you need to plan your every move to avoid such emergency card usage. Cut up that card.

Your wage, minus what you have listed is at £2013 per month. I am being nice here and letting you away with that horrific food amount - but seriously you need to reconsider this!!!

So with £2013 left over per month (remember you still have £617 left over from the PPI claim )... and seeing as your debt is clearly your greatest concern since you are on MSE asking for help, that you are willing to for-go any holidays, big nights out, parties, eating out etc...you won't mind ploughing everything into clearing the cards etc. :T

With the remainder of your debt at £10300 you need to plough £2000 into this for 5.15 months you will be debt free by 01.12.2013..... assuming you haven't got your £6000 yet I am calculating from May to November!!

Just depends on how commited you are?

Onwards and Upwards!!

seriouslackofpounds

Thank you for your post, your right I do need to tighten my belt further.

I currently live with my Girlfriend. We put £300 into a kitty to spend on everything extra to what I mention not just food. So that will include food, going out, trips etc.

Your advice is welcomed and I will be taking it (almost)
A bit more advice would be welcomed.
Should I save the money in a bank account until I have all of it. What I mean is that the credit cards are on an arrangement at 0%
So save up the £10,000 in probably 7-8 months then make them offers to pay the balance off if they remove any defaults off my credit file. Also try and see if they will take a lesser amount to close the account(s)?
My plan is to get married, get a mortgage in about 5 years time so want to get a mortgage before the defaults drop off. (My last default was this month)
Am I living in cloud cuckoo land?

Thrifty_Pixie

seriouslackofpounds wrote: »

Hi everyone, when I posted some 3 years ago I was deep in debt. The picture is a bit more rosy now. I do however (if you will give it) need the lovely people of this forum advice.
I will list my debts and then tell you my problem or rather asked your opinion on what I should do next.

Here are my debts and situation.

Debts were £48,000 but now quite a bit less!!!)
My Debts are (Interest per annum)
Barclaycard £4000 (Limit £4800, I pay £40 p/m agreed shortfall payment at 0%)
BOS Card 1 £3100 (Limit £3400, I pay £80 to apex managing this at 0%)
BOS Card 2 £3200 (Limit £3400, I pay £40 to BOS agreed lower payment at 0%)
Moorgate (formerly EGG Loan) £4500 (I pay £501 p/m at 6.9%)
Barclays O/D £640 (I pay £30 per month into reducing this, 9% p/a interest)
Capital One £243 ( I pay this off in full and reuse the credit each month. Interest 32%)

I earn £3200 a month. Pay £450 on rent, £300 on food, £85 Golf, £35 Gym, £260 Petrol and £57 on phone.

Here is the advice I need:
Just had EGG agree to pay me £6000 back for PPI as a refund.
I have suspended my payments to Moorgate. Stating I want a review of all charges and interest applied to my account. I have said I will settle the loan with some of the money in the PPI refund. Here is the advice - EGG (now called Canada Sq Operations) have offered me settlement on the PPI. Can I get them or moorgate to cancel/refund the interest and charges applied. These charges and interest would not have been applied as I could have used the £6000 to pay the loan off. I have said this to them. Am I correct? I am going to ask for a settlement figure is this the right thing to do?

To add to all of this. Lets assume the loan is paid off, I then will have about £1500 to pay off some of the credit card bills. Any further comments on getting rid of all of this debt. As in what to do on a monthly basis would be appreciated.
By credit statement according to Experian is poor. I had defaults with moorgate which I am also looking to ask them to remove.

you have nearly £16k of debt and you are still paying £120pm on golf and gym???

£57pm for mobile is incredibly high too.

seriouslackofpounds

After the PPI refund I will have around £10k I think.
Golf is a must lol
The mobile is used for work - yes it is a fancy iphone but I do need it. It is has 18 months left to go on the contract so can't really change it.

Thrifty_Pixie

oh well, your choice, but you did ask for advice on a monthly basis. cancelling those and throwing the money at your debts would be mine.

it looks like you're on a decent wage, but without the willingness to make sacrifices it's hard to believe that you are committed to budgeting to get rid of your debts ASAP. windfalls are all well and good to help, but if your attitude to money has not changed at all from when you got into debt in the first place, i worry that i'll be seeing you back here in a few year's time.

(i know this might sound incredibly self-righteous, but i really don't mean it that way...i just see this here all the time).

however, as i said, your choice. good luck