I do wanna be debt free!

dhassen

Hi all... I've posted this in the 'loans' bit but never seem to get (m)any good responses.. I figure in here may be a bit more sympathetic.... rather than the usual 'talk with your feet and go somewhere else' brigade.

I've just been refused a consolidation loan from my bank (rbs)

I have a (grrr) 8000 cahoot flexi loan
and want to pay that off, borrow 2k more so we can move house, and pay off a
2k overdraft and a 1500 credit card (I also have 2 more credit cards, the gf has one and an overdraft). We worked out the payments would be way cheaper than currently, even with the extra 2k we need for furniture and a deposit on a new (200£ a month cheaper) flat.

I was refused on the grounds that I don't have enough income. I earn 23175, all the above debt is in my name but me and th gf pay it off together, she earns 20000(ish) and has a standing order for 625 a month going into my account to cover rent and bills etc. I know the bank refused me because they cant account for the money she gives me, nor the fact that she pays half the rent, therefore it looks like I have way too much outgoing. They also can't account for the fact that I currently pay (every month, without fail!) all the bills, repayments, which work out more a month than the loan repayments.

We're stuck in an expensive flat, with a 1100 deposit due, but only when we move out, which we cant because we cant afford the deposit on a new place.

Anyways... would we be better off applying for a joint loan with her bank (or another bank). Surely with both our incomes we should be ok??

As an added thing ive made over 300£ on eBay in the past 2 months woop! and I've stopped going for my much loved daily unneccessary lunchtime coffee (worked out thanks to MSE forums etc that it costs me over £300 a year!) So we're trying to save money as well as get cheaper debt!

Any help / comments would be great! cheers! Dave

btw sorry if this is all a bit random bits of information.... it's just all my thoughts at once!

KittyKate

2k for furniture!? My friends have just moved house on a budget and spent less than a quarter of that. Your ebay takings would easily pay for what you can't get free - try freecycle, your local freeads, relatives etc. You only need a bed, maybe a sofa, table & chairs..when I first moved I had a £3.99 hanging rail from IKEA as a wardrobe for 6 months!

I'm also unsure as to why you need 2k to actually move - can you break this cost down a bit? Do you not have a current deposit returnable on your present place?

I suggest you look at moving house as a priority as it will free up money for debts. A consolidation loan isn't always the answer. The bank sees you as high risk. I'd be wary of paying off your debts with your gf's money too (for her sake).

Post your SOA and we can show you how to save money - move house, then pay off a debt at a time (highest APR first). This is a far more sensible long term approach than simply getting in more debt as a 'solution'. HTH.

Storm

Hi and welcome :hello:

Generally consolidation loans are not recommended on here, mainly because so many DFWs have got caught in the trap of - consolidate, have more money each month, run up CCs again, consolidate again etc etc. As consolidation loans are over a much longer period, even with the lower APR you'll often find that you'll pay more back in the long term.

In terms of getting your bank to understand your financial obligations more though, could you not set up a joint bank account where all the rent & bill payments come out of?

Generally we ask people to pop up a SoA (see SouthernScousers sticky) listing income, expenditure, debts, aprs etc - then we can see if there's anywhere you can cut back on, normally for people to clear debts faster but in your case to raise the money you need to move.

Good luck!

Lucy1982_2

I agree that 2K for furniture does seem a lot. A friend of mine has just moved and she has beg, borrowed and been given enough to furnish her new house. It's not ideal, she's not overly happy that she's had to do it this way, but she's in and has enough to last her for now.

She'll replace it as she can afford it.

betti911

All my furniture for my new flat is 2nd hand but I'm going to gradually replace it when I get debt free and have the money to do so.

Why don't you look at:

http://www.whatsthecost.co.uk/treats.aspx

to see how much treats like this cost you when you are in debt.

Well done for having your lightbulb moment though :T

dhassen

cheers for the responses...

the 2k isnt just for furniture as I said up there... it's for a deposit on a new place too... and as I said, there is a deposit on our current flat of £1100 but obviously we cant get hold of that until we've moved out and had the place checked over, so that's no help for the next deposit and any furniture.. I thought I'd be quite prudent with the budget for furniture, but we would need a fridge freezer and washing machine, as well as a bed, and wardrobes, and somthing to sit on. I see these as essentials unless people differ?

Yea I hear that consolidation loans are the best, but its the cahoot that's going to absolutely kill us, the interest rate's gone up, so has the minimum monthly repayment, which means that we'll have to pay £192 a month which would only pay off £60 off the outstanding balance a month. I really want to get shot of the cahoot!

All the debts are joint debts by the way, it's not my debt that im asking her to pay, its hers and mine, more of its hers as nearly 4k of the cahoot was to pay for her uni tuition fees. If we hadn't got the loan, she wouldn't have qualified, and wouldn't be working now.

*sighs*

I really dont like the idea of old furniture, maybe im a snob I'm thinking we may need to go for another furnished flat, just to get the rent down, but that still would need a deposit and we'd still be stuck with a hideous cahoot.

Cheers for all the input so far tho people!!

dhassen

dhassen wrote: »

2k we need for furniture and a deposit

lol see...

dhassen

My First SOA

Joint monthly income: 2596

Rent: 725
Council Tax: 100
BT: 30
Internet: 15
Mobiles x 2: 70
Car insurance x 2: 83.50
Petrol x 2: 200
Food & household stuff: 150
Fags  : 180
Contact lenses: 20
TV license: 11

Total: 1584.50

I really can’t think of much else for up there ^

Cahoot Loan: Limit 8000, outstanding 7569 APR 19.9%, minimum payment: 192
Virgin CC: Limit 1500, outstanding 1450 APR 15.9%, minimum payment: 22
Abbey CC: Limit 1500, outstanding 1470 APR 15.9%, minimum payment: 8 (will rise next month)
RBS CC Limit 1000, outstanding 960 APR 18.9%, minimum payment: 21
Lloyds TSB CC APR 17.9%, minimum payment 21
GF overdraft 2000 APR dunno, interest each month 25
My overdraft 2000 APR dunno, interest each month 6, going up end of June 07

Student loans x 2 don't count

Total: 295 (only minimums remember!)

Grand total minimum outgoing: 1879.50

2596-1879.50 =

716.50 spare……… eh? It must be going somewhere we’re always broke!!!

Northernbird_2

More experienced people will probably help more, but for my 2 cents worth if at all useful:

Rent: 725
Council Tax: 100
BT: 30
Internet: 15
Mobiles x 2: 70 can you go to PAYG?
Car insurance x 2: 83.50
Petrol x 2: 200
Food & household stuff: 150
Fags  : 180 Wow! You spend more on cigarettes than you do on food. If you can't quit, how about cut down or go to rollies?
Contact lenses: 20
TV license: 11

The following appear to be missing: gas, electricity, water, contents insurance, road tax, birthdays, christmas, TV licence...

Also - do you both need cars? Can you go to one, or could you manage without? And start a spending diary to find out where your surplus goes... you'd be surprised how much it helps.

DAVETHE_CARDBOARDBOX

Depends how serious you are, you want it to hurt for a long time or shorter time ? Brand new furniture, two cars, two mobiles wont keep you warm on the streets unless they are firewood

atypicalblonde

How many people is £150 food for? Are the lenses standard soft monthly ones? Boots own brand are £6 month.