Help me... I guess it's time to just reach out and touch...

PanickingHARD

Karmacat wrote: »

PH, sorry, I don't get it.
If the loan is to repay your debts, then you wouldn't have the other payments any more, surely? The £600 would be the only thing that you would pay out, wouldn't it, it wouldn't be on top of everything else? Apologies for not understanding when you're obviously feeling really down again, just wanting to make sure the logic is right.

Sorry... I did write a load, but the forum crashed and I lost it... I'm writing a big reply now (a debt only SOA and all my logic), in word, and will post asap...

And I'm not down, just stressed... no time for fluency (or Dragons hehehe got em in!)...

The upside is I am now recognising the difference between those two things!!



xxx

PanickingHARD

Ok...

This is the situation...

I currently owe, ALL IN, £27,766.25. That's to settle EVERYTHING, now... Scumbags... do I have some diary entries to come about this kind of thing... anyway... this is supposed to be my "all business" entry...

Firstly, that's too much to get on a personal loan. £25k tops, yeah? *sigh*

Anyway...

OK...

I will amend this on Sat aft, as I'll know about the £12k then (and I know this could change the picture significantly), but for now (and to show my logic and priorities etc) I'm going to work on worst case...

1, My Dad will do WHATEVER it takes to sort this, which ever way I tell him to... He has put his trust in me, and my ability to solve this 100%... *deep breaths, deep breaths* ... As I said, my TOTAL debt today is £27,766.25... At an APR of something like 23% (Thank you MBNA)... He is my biggest responsibility... I have to sort this ASAP and in the best possible way that is available, anywhere... this is a MASSIVE thing for them and me, and though I've made him promise me that it won't, I think that if this takes me more than 3 years to solve, he will be delaying his retirement... I will die if that happens... I cannot explain to you how much that will hurt me... I CANNOT LET THAT HAPPEN...

2, I need to try and keep this payment down, as low as possible... As far as I can tell, my best option is to get as low an APR as possible, over as long a term as possible (APR the important bit), with a MIN payment as low as possible, BUT, it needs to be flexible for overpayment, as I WILL be over paying... The amount that comes off the loan every month as a min WILL NOT be my payment, but whatever I have left... ALL OF IT... EVERY PENNY at the end of every month...

3, If I get the money from his mortgage, I HAVE to pay it off in 3 years... I would (literally) kill myself before I'd extend their term. To do this, I'd have to make a minimum payment of circa £620 p.m.; While I expect to do this (I'm HOPING to be able to manage £800ish p.m.), this leaves me, in my current position, with NO room for manoeuvre... One bad month, one thing goes wrong, and I'm defaulting on their mortgage... I WILL NOT allow that... This may look different with £12k off the total... but remember, worst case... I will take money from a loan shark, at any rate, rather than miss ONE payment...

4, If I get him to loan £25k unsecured, yes, I will have debts remaining outside the solution, but I will hit them with my overpayment money, first and hardest... And, POSSIBLY, I can even leave the remaining debt OVER the £25k as some of what I already owe them... I am LOATHE to do that, as it was part of my conditions of letting them do this for me... That the cash I owe them went into the solution, like any other... I would feel like this was a compromise (or a let off) and would, I think, set the wrong tone from the start for me and them...

What I am looking for is guidance... I am willing, happy, to make evey sacrifice I can to obliterate this debt monster (I think I am going to call him Breog, henceforth - I'm REALLY going to root out the dragon nerds with that one...) but I cannot jeopardise my Mum and Dad's financial status... I just cannot... and while I am SOOOOO fired up about slaying Breog, once and for all... There is a line I cannot cross...

This is why I need to know that NO MATTER WHAT, I can cover the min payment required...

Any thoughts/suggestions/comments on my ideas and thoughts would be worth more to me than I can ever explain to you... If this isn't very clear, sorry, I'll try to do better, but I'm so tired I'm falling asleep...

Thank you all in advance...

XXXXXXXXXX

sammy115

Can you do a revised SOA - that would take into account your incomings and outgoings taking into account the new loan and new loan payments.

And make it a realistic SOA. I know you are saying that you will pay it off in three years and will overpay whatever you have got to throw at the debt, BUT and a big BUT - you are in danger of debt burnout!

You need to be putting money aside every month for the one thing that WILL go wrong. Believe me I know as it happened to us last year. If you want to protect your parents you will do this. Perhaps rather than throwing all your spare money at your loan every month you put the spare money into a high rate savings account that is in both you and your dads name - which means you can only get to it if your dad allows you. And then when the savings get to a certain level pay a lump sum off.

You just need to give yourself room to breathe.. And you must look at your budget every month and constantly revise it and review it and adjust and look for savings. Don't ever let your eye off the ball.....

lynzpower

4, If I get him to loan £25k unsecured, yes, I will have debts remaining outside the solution, but I will hit them with my overpayment money, first and hardest... And, POSSIBLY, I can even leave the remaining debt OVER the £25k as some of what I already owe them... I am LOATHE to do that, as it was part of my conditions of letting them do this for me... That the cash I owe them went into the solution, like any other... I would feel like this was a compromise (or a let off) and would, I think, set the wrong tone from the start for me and them...

Hi PH

Im tempted to suggest that they should only take on part of the debt. ( the expensive stuff)

I expect they would be able to get a loan around 6%

If for example 20k of the debt was settled at 6% then you would have 7k odd left over.

I expecxt in a couple of months once the 20k debt is showing up as "settled" on your account, you should be offered some tasty 0%s.

theres no point in having all debt consolidated at 6% when a quarter of that debt can be at 0%.

It might be seen as a risky strategy, but Id be confident this could be sorted.

Your parents might think its a good idea to have it all consolidated into one easy monthly payment, but Im inclined to think its not moneysaving. Additioanly, this could mean the debt is paid off quicker too, given less interest.

Whatever happens make sure they dont choose a oan where the interest is front loaded. Next year you might get an amazing job and a huge payrise- you want to be able to settle up fairly easily and not have wasted money on FL interest IYSWIM.

Why not show your folks this thread? Print it off for them and discuss with them.

YOU HAVE to have adecent budget. there is no point not pu8tting some money away for the inevitable . 1) you need to budget for life, so why not start now? 2) if you dont budget with room to breathe, you will end up needing debt again to get you through lifes predictable crises.

hypno06

Don't know if it is of any use, but Egg are one of the loan providers that allow overpayments without any penalty, and without interest being front loaded. I don't think there are that many around that allow you to do this, so you need to hunt them out!

Karmacat

Revised soa....... lump sum saved in a high interest account to take account of emergencies and *prevent burnout*.....only consolidating part of the debt and then putting the rest on 0% after a few months......avoiding deals with front loaded interest...showing your mum and dad this thread.
Sammy115 and lynzpower have made some great suggestions up there - there's probably someone else posted something really good by now. I don't have anything to add, just sending hugs and best wishes, supporting what's been written.

Wishing I could sidle up to a dragon and rub behind its ear too....

debtmonster

[QUOTE=PanickingHARD;5467580What_I_am_looking_for_is_guidance..._I_am_willing,_happy,_to_make_evey_sacrifice_I_can_to_obliterate_this_debt_monster_[/QUOTE]



Hey, you leave me alone, what did i ever do to you.:rotfl:

PurpleTeddyBear

Hi PH -

Firstly - a big :kisses3: for you along with a hug as I think you may need one just now.

Secondly - I can only reiterate what has been said above; you are truly truly blessed to have such wonderful parents. I know you know that, but you have, so there we are

Thirdly - I think you'll risk upsetting your wonderful parents even more if you don't take them up on the offer, as you've said above yes you will still have the debt and it will be yours and you WILL, with everyone's help and support, pay it all off sooner rather than later.

Fourthly - you need to do a realistic new SOA and get it up here for all to see (says she who hasn't done hers yet! :eek: )

Fifthly - stay here..........

Sixthly - RECLAIM THOSE BANK/CREDIT CARD CHARGES!! It really is easy - I'm in the process of reclaiming with 3 accounts at the moment after being successful already with one (thanx - £3k received)

Seventhly - you will slay Breog (:D got the dragon reference in!)

Eighthly - stay here

Ninthly - remember we're all here for you to give advice, support, suggestions and just general being-thereness.

Tenthly - think that's all for now!

Seriously, huge decisions to be made, and I can't offer any other advice re the loan/repayment or whatever as there are people about who have much more experience than I.

All I can offer is virtual support and friendship - along with everyone else.

You are a star, remember that!

Love

Purps xx :A :grinheart

momisa

Hi PH

I just did a wee search for you using the fool. Only entered the loan sum of £25k and the monthly min payment of £600. It came up with Northern Rock with a typical 6.5% APR. However, it came back suggesting 48 months but it was the ONLY one which allowed for extra payments to be made with no early repayments charges.

However, I just threw this into the snowball and if you paid £700 every month the last payment would be Oct 2010 - which aint bad going!!

As for the potential £2-3k of debt over and above the £25k I'd suggest you look for a 0% credit card deal and transfer it to that and put all remaining funds into paying that off to avoid interest on it.

Can't stress enough that in order for us to help you - and we really want to - then we need to full a new revised SOA before you take this plunge so that we can suggest money that you need to put aside for MOT, tax, and other items you may not of remembered.

Finally, reclaim bank charges and credit card debts

:j

PanickingHARD

OK...

I'm gonna address some of the points that stick out...

FIRSTLY!!! I love you all... I'm sick of saying it because I REALLY, REALLY mean it... I hope its effect is not wearing off... As the feeling gets more every time I post it... if you know what I mean... babble, babble, babble... sorry...

THANK YOU ALL...

Ok…

1) Debtmonster... I'm sorry, it's nothing personal, at all... but you are history... Assuming your name is Breog that is... If you are some other debtmonster (or dragon), then I'm obliterating mine first, then you are next!!! I will get them all... as repayment to everyone one here... Viva La Revolution!!!

2) No-one has, as yet, told me who Breog is... Perhaps your dragon knowledge is not what I thought it was...

3) Get on with it... Right... None of you need worry about me disappearing... I promise... I owe you so, sooooo much already... do I seem like the kind of person who’s promises mean nothing? I SWEAR IT... Just because this debt is going to be 'handled', DOES NOT mean I am going to be doing anything other than getting MORE in the DFW mindset... And once I have less complication, I can have more time to post… And focus on moneySAVING, not just moneyHANDLING… I swear to you all now that I will approach this with the same vigor I have done everything else so far… In fact, scratch that… more… WAY more…

4) I like the idea of not loaning it all, Lynzpower... and balance transferring... will investigate over the weekend... QUESTION - Will transferring balances affect my credit rating? I have heard both yes and not to this, from various people/Institutions over the years…

5) I love you... Yes... you... you right there... *knocks on your screen*... x

6) I intend to use this opportunity to HAMMER these swine’s... Once I am sorted I am in the TSB today and I'm going to be playing holy hell with them... THE WILL RUE THE DAY... LOL… With a half decent credit rating, I SWEAR they will not get another PENNY from me as long as I live... My M&D are so disgusted with their treatment of me, they are moving their current accounts, savings accounts (of ALL types, inc Pension, ISA, TESSA) etc etc, (once this is sorted, of course) and will be writing to the Bank Chairman and the Regional Manager, (who they both know socially, the RM, that is), as will I, to explain EXACTLY why they are doing it... They have never used another Fin Inst for ANYTHING their entire lives... They have been customers for 41 years, I have for 15… This has ended. YAY!!!!

7) I am in the process of setting up my own high rate, on-line savings acc for ‘special occasions’ money, and I LOVE the idea of a joint savings fall back with my Dad... Great suggestion... As, not that I will, but it SHOWS my Dad I will not let him down… I mean business… And will increase his comfort factor… Massive to me…

8) New SOA will be on as soon as is sensible to do one… But I think it’s pointless until after the weekend, when I know EXACTLY the task I am faced with… ie £12k thing.

9) On that, if I can get it now, I will… I trust her… with my LIFE… I understand everything you are saying, and thank you, but it isn’t an issue… To show you how confident I am, she is the first person I told about all this after my LBM… She is the soundest, most sensible money-head I have ever known… How she handled me for 13 years, I will NEVER know… We are still best mates, and always will be… even if we don’t really talk now. And as you all say, what is the point in savings/tied up money when you have debt? I am a DFW now… I think like one…

10) I have some good news… My tax is sorted… Long story short, my monthly will now be about £130 p.m. higher (I think)… I won’t know this til after July pay for certain, but this month, due to the over payment so far, payroll just confirmed I will also have an extra £500 in my pay! STRAIGHT OFF MY DEBT… GET IN!!!!

11) To Sammy’s ‘debt burnout’ point… I kinda agree… And I know I will need to have the odd splurge… I’m not naïve enough to think I can live for the next 3 years on 20p apples and tap water… this is why I want the MIN payment as low as I can get it… this means I will always have breathing space if I NEED it…

12) FL interest loans… NOTED! Thank you

13) Show M&D this thread… Hehehehehehehehehehehehehehehehehehehehehe… No…

14) Egg loans, looked at them… The APR is a little higher, but the flexibility thing would be GREAT… Esp as I’m going to be snowballing this… can anyone tell me if they will let me just pay any amount off the total… ie, I find £20 in the street, or I unexpectedly win 2nd prize in a beauty contest and collect £10 (or whatever it is… ) What I mean is, if, by chance, at any time in the month, I find I have some money in my account, from whatever source, can I just pay it onto my debt immediately, or can I only make one payment a month?

15) Stick with me… please… I feel your boredom and pain…

16) Bank charges will do done, THE SECOND I have a plan in place… I PROMISE

17) Thank you all for the hugs… and PTB… GET YOUR SOA DONE NOW YOUNG LADY… DON’T make me come round there…

18) I need to get some work done…

19) I’m off to ring dad… I just got the following text… Exact… “Rg me pl.. urg”… That is his way of saying, “Son, give me a quick bell when you can… I’ve had a thought…” I guarantee it’ll be nothing… Hehehe…

20) PLEASE keep helping… you are making this all possible for me…

21) xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx