Rescue My Finances

moneymoron1

Hello,

Here is my situation with a SOA to analyse, i have managed to get myself into a mess from various unexpected expenses when living in my overdrafts.

I am wondering what options i have given the my situation, i have a car which is up for sale, my other asset is my house which is due remortgaged soon, i want to explore the possibility of a secured loan to resolve my main problems which are crippling my finances.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 2500
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 600
Total monthly income.................... 3100
Monthly Expense Details
Mortgage................................ 500
Secured/HP loan repayments.............. 0
Rent.................................... 600
Management charge (leasehold property).. 13
Council tax............................. 95
Electricity............................. 30
Gas..................................... 11.5
Oil..................................... 0
Water rates............................. 12.5
Telephone (land line)................... 0
Mobile phone............................ 25
TV Licence.............................. 7.5
Satellite/Cable TV...................... 25
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 10
Petrol/diesel........................... 100
Road tax................................ 15
Car Insurance........................... 80
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 5
Life assurance ......................... 13
Other insurance......................... 7
Presents (birthday, christmas etc)...... 25
Haircuts................................ 10
Entertainment........................... 25
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1789.5

Assets
Cash.................................... 0
House value (Gross)..................... 135000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 140000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 97000....(500)......4.69
Total secured & HP debts...... 97000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card 1..................1700......75........24.9
Credit Card 2..................2250......50........24.9
Credit Card 3..................2500......75........22.9
Overdraft 4 lloyds 2...........50........5.........0
Overdraft 3 lloyds.............1500......30........0
Overdraft 2 halifax............2880......85........0
Overdraft 1 abbey..............2750......50........0
Credit Card 5..................450.......25........34.9
Credit Card 4..................750.......25........28.9
Total unsecured debts..........14830.....420.......-

Monthly Budget Summary
Total monthly income.................... 3,100
Expenses (including HP & secured debts). 1,789.5
Available for debt repayments........... 1,310.5
Monthly UNsecured debt repayments....... 420
Amount left after debt repayments....... 890.5
Personal Balance Sheet Summary
Total assets (things you own)........... 140,000
Total HP & Secured debt................. -97,000
Total Unsecured debt.................... -14,830
Net Assets.............................. 28,170
Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

The overdrafts arent interest free, and the monthly payments are just to service the debts

Now for the expenses that are causing me the most problems, the dreaded payday loans. I am absolutely disgusted in myself for this and i am trying to resolve it, DMP i don't believe to be an option due to the default situation remaining on my record for 6 years, i hope to buy a house with my wife at some point, she doesnt know about the debts and would find out if we went for a mortgage and i had defaults.

Wonga 1655, minimum payment to rollover 312

Quickquid 1375, minimum payment to rollover 275

Lending Stream 587.5, due monthly payment of 248.6

Lending Stream 89.7, final payment due of 89.7

Safeloans 290, due monthly payment of 176.3

Safeloans 158.22, due final payment of 158.3

Quid 451.5, due monthly payment of 136.5

All payments due in the next fortnight when i get paid

Any help and/or advice would be greatly appreciated

Regards

mm1

RAS

One income, one person and wife???

loveka

Sorry you are in this situation, you must be very stressed.

A secured loan seems like a good idea I know, and seems obvious, but that way you are making an unsecured loan secured, and you could lose your home if you can't meet the loan repayments for some reason in the future.

Why do you feel you can't tell your wife? I was told about 50k of debt 6 months ago. I went mental as you can imagine, but when I knew the truth I could help and we have managed to clear a lot of it together.

You could probably save yourself a good amount of money by remortgaging to a better rate if you can, unless you are in a fixed rate. You should also do this before your credit rating is impacted. Realistically it will be,if you are struggling now you will continue to do so, sorry to be blunt. A DMP would. take so much pressure off you...

Please tell your wife. I was so upset that I hadn't been told earlier, as I could have started to help sooner and we would have saved ourselves a lot of money, i.e.the interest he had been paying for 5 years. You need her help.x

Trajal

I won't shout "Tell your wife!" because I don't know about your particular circumstances.

What I will say is that you are not alone in this sort of thing. Many people have been through similar feelings - for some it's gone well, for others not so well, but the vast majority of cases I have seen they have gotten through it together.

You may feel that it will be hard to tell her now, but imagine how upset she will be if she has to learn about it from someone else. Or if you have to explain how you can't get a better mortgage because you have hidden defaults etc.

I wouldn't convert your unsecured debt to secured debt unless it really is the final option and with your level of debt it doesn't feel like it is. In fact, with your income, it looks like it's possible that you could deal with it all in a reasonable timeframe using a bit of planning and getting some support from the Mrs.

Have a bit of a think, let us know if you are able to tell her because that will have a huge impact on any advice we are able to provide.

Good luck. Keep your chin up. Think about what is best for the both of you in the long term, not just what is less pain in the short term.

By way of explanation, my wife had no idea that i'd taken out a considerable amount of credit both prior to meeting her and when we were first living together and struggling. I explained all the options and she went for the default suggestion, saying 'well at least we have six years to save for a mortgage so we'll have a much bigger deposit'.

People can surprise you sometimes.

moneymoron1

RAS wrote: »

One income, one person and wife???

I have put the figures in completely separately. We have no joint back accounts and aren't linked with any credit.

She knows I have debt problems, she knows about the credit and the overdrafts to an extent. She does not and will never know about the payday loans, we have had conversations before about my debts and she will definitely leave me if I go through it all with her.

The reason I am considering the secured loan route is I am on a good wage (35k), that will increase to 45k in the next month, and the repayments aren't actually the problem on anything other than the crippling payday loans. My job is also secure for at least the next few years.

I will note I was on 22k 18 months ago and that's when I rattled up a lot of the problems due to interest free periods ending. Payday loans were down to a series of unforeseen expenses.

No excuse I know but it's all I have

moneymoron1

Trajal wrote: »

I won't shout "Tell your wife!" because I don't know about your particular circumstances.

What I will say is that you are not alone in this sort of thing. Many people have been through similar feelings - for some it's gone well, for others not so well, but the vast majority of cases I have seen they have gotten through it together.

You may feel that it will be hard to tell her now, but imagine how upset she will be if she has to learn about it from someone else. Or if you have to explain how you can't get a better mortgage because you have hidden defaults etc.

I wouldn't convert your unsecured debt to secured debt unless it really is the final option and with your level of debt it doesn't feel like it is. In fact, with your income, it looks like it's possible that you could deal with it all in a reasonable timeframe using a bit of planning and getting some support from the Mrs.

Have a bit of a think, let us know if you are able to tell her because that will have a huge impact on any advice we are able to provide.

Good luck. Keep your chin up. Think about what is best for the both of you in the long term, not just what is less pain in the short term.

By way of explanation, my wife had no idea that i'd taken out a considerable amount of credit both prior to meeting her and when we were first living together and struggling. I explained all the options and she went for the default suggestion, saying 'well at least we have six years to save for a mortgage so we'll have a much bigger deposit'.

People can surprise you sometimes.

Please advise on not being able to tell her, I can't negotiate that unfortunately

moohound

If you could hang on until you get the pay rise, you might not need the secured loan. once the PDLs are dealt with, the rest is not too bad and could easily be snowballed. A secured loan might look like a quick fix that you could end up regretting.

Evidence of the PDLs will stay on your credit file for 6 years anyway I believe.

Angry_Bear

I'm unclear - what exactly are you thinking of securing the loan on?

You've got enough "spare" to address your debts quite quickly once you get over the payday hurdle but I can't see any way over that hurdle other than contacting the payday companies and coming to a monthly repayment plan.

Going by your SOA, I assume you've worked out how you managed to get into so much debt and have addressed the issue?

Also, I think your wife may well find out about the debt as over £15k of debt (some of which is payday loans) may well have an impact when you come to remortgage even if your payment history was squeaky clean.

Sorry to be quite so blunt about it.

Trajal

Quick point, if you are on 35k then your SoA is wrong. It is closer to 2200 rather than 2500. Please use confirm or explain and use your correct numbers.

lynz68

My personal opinion is that it is never a good idea to turn unsecured debt into a secured debt. From your SOA you appear to have ample left every month to start dealing with your payday loans but are these figures accurate? I can't tell you how to live your life but keeping it secret from your wife is not a good idea she will find out one way or another. Are you aware of the negative effect of payday loans on your credit rating? The fact you have taken them out at all rings alarm bells for banks as it is a sign of not being able to manage your money even if it had been paid back straight away and may well have an effect when you go to remortgage.

moneymoron1

Trajal wrote: »

Quick point, if you are on 35k then your SoA is wrong. It is closer to 2200 rather than 2500. Please use confirm or explain and use your correct numbers.

Very true, regular shift pattern provides additional income each month but I didn't want to include that in case it stops, wage heads towards 40k a year and will go to 48k in a month or so