Loan to pay off credit cards?

AliceBanned

ps my car has just been taxed and MOTd for the year. I can already see I can cut down petrol to £20 pm and remove clothing (ie budget for clothing lol) completely for a few months. So that gives me enough to repay debts, also after I have got rid of the £260 pm season ticket. I will be paying £220 instead over 10 months, ie subtracting annual leave and working from home days. I am aiming to repay £200 pm on the two credit cards.

I also have £750 o/d with Halifax. No idea how to tackle that one. I have opened a Santander account so hopefully after a few months they will give me a free overdraft. I have put my direct debits there as they get some cashback. I need to keep an eye on it all as I now have three current accounts and have to transfer some money to each each month.

AliceBanned

Sedge123 wrote: »

Whilst I agree that the gym can be important £67 does seen very steep. I live in an expensive area and our local leisure centre gym is about £40.

.

It's my one luxury.:(. It's nearby in St Albans. it is an expensive area. It's a really positive thing in my life. It's good value for what it is - two amazing pools, yoga classes from 6.30am-9.30pm, all my other favourite things. The most I would do is freeze membership for 3 or 4 months and then go back next winter. If they allow me. I get out of shape and miserable without regular gym visits, though I also do long distance walking and enjoy exercising outdoors. I'm also new to the area so it gives me a place to go, and is friendly.

[Deleted User]

AliceBanned wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1820
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1820
Monthly Expense Details
Mortgage................................ 374
Secured/HP loan repayments.............. 0
Rent.................................... 334
Management charge (leasehold property).. 100
Council tax............................. 90 - Over 10 or 12 months? Are you getting the 25% discount?
Electricity............................. 22
Gas..................................... 35
Oil..................................... 0
Water rates............................. 12
Telephone (land line)................... 10
Mobile phone............................ 36 - This is high for one phone. Cancel and go PAYG/sim only (about £10pm), ASAP.
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 15
Groceries etc. ......................... 120
Clothing................................ 20
Petrol/diesel........................... 40
Road tax................................ 12
Car Insurance........................... 26
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 260
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 7.6
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 13
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 12
Haircuts................................ 10
Entertainment........................... 60
Holiday................................. 40
Emergency fund.......................... 0 - You need something in here.
Gym..................................... 67 - Can you cancel/reduce this?
Total monthly expenses.................. 1737.6

Assets
Cash.................................... 460
House value (Gross)..................... 68000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 69460

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 52930....(374)......5.69
Total secured & HP debts...... 52930.....-.........-
Unsecured Debts[/FONT]
Description....................Debt......Monthly...APR
Halifax mastercard.............3200......50........21.9
Barclaycard1...................1047......20........7.293
Barclaycard2...................2720......50........19.85
Total unsecured debts..........6967......120.......-

Monthly Budget Summary
Total monthly income.................... 1,820
Expenses (including HP & secured debts). 1,737.6
Available for debt repayments........... 82.4
Monthly UNsecured debt repayments....... 120
Amount short for making debt repayments. -37.6
Personal Balance Sheet Summary
Total assets (things you own)........... 69,460
Total HP & Secured debt................. -52,930
Total Unsecured debt.................... -6,967
Net Assets.............................. 9,563
Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

You are spending more on taxing, insuring and maintaining the car, than you are spending on fuel for it.

Do you really need the car?

AliceBanned

Thanks Bedsit Bob.

Yes I do need the car. Or, selling it wouldn't get me much money, and I use it to go out at weekends. It has high road tax, but other than that isn't expensive and has not needed any major repairs, has sailed through MOTs. I have considered going without a car for a few months. I have considered other things today and decided to cancel my gym membership from April. . I can go swimming once a week at the local authority pool, do online yoga and go on walks with the Ramblers which are free apart from £30 per year membership (which I already do). Decided gym just has to go, at least until the end of this year. I would rather put the £67 pm towards paying off the credit cards.

AliceBanned

The mobile phone is on a contract, with 16 months to go. After that I will do PAYG as I agree it is expensive. It has been a rip off as I have been charged for mobile data etc before I knew what I would be charged for. So one month it was £75!! With EE but you know what the mobile co.s are like. It is a Galaxy S4 so I also use it as a tablet, use fitness apps and satnav apps - when my satnav stopped working it was good to not need to buy a new one.

The price we pay for convenience..

AliceBanned

Yes I am getting the council tax discount. It is steep - I don't know the exact amount but it is close to this - over 12 months, I asked to pay this way. However as I only moved here last October, I was sent a huge belated bill from then which I am still trying to repay. they wouldn't let me pay it by end March - I have to pay by end Feb, with £220 still to go. .

I suppose I will have to put it on a credit card. If I go into arrears on that it will be serious so as for everything I end up putting on cards if there is a deadline. I could phone them and ask whether I could pay half from this month and half from next month's pay. After that I have asked them to put me on direct debit over 12 months to make it easier. It is quite high but it is a fairly expensive area.

[Deleted User]

AliceBanned wrote: »

Or, selling it wouldn't get me much money

It's not what you would get from selling it that matters, but rather what you wouldn't spend if you weren't running it.

Before you even turn a wheel, it is costing you £48pm, which is £576pa.

Add on the fuel, and it's £88pm, which is £1,056pa.

and I use it to go out at weekends.

Could you use an alternative method of transport, that would cost less than £20-30pw?

Alternatively, any chance you could car share?

AliceBanned

I suppose I'm used to being very independent. I do sometimes go out in London and then come back on my season ticket. But I'm used to having my car to meet groups for walks. Don't think I could expect to get lifts everywhere. Didn't realise it was costing me that much though. I have looked into car share schemes but that wouldn't be any cheaper and it might be difficult where I live (Hemel Hempstead).

I've been in transport poverty almost for some years. So depressing. An easier option would be get refund for my season ticket, drive to work say 2 days a week (where I can usually park for free at work and avoid congestion charge as it is just outside) and/or get a bus in for £8 return a day. Both of these as opposed to £260 a month on the train. I can't realistically carry on doing both, and keeping the car, you're right.

I even considered getting a small motorbike lol. I'm ok on two wheels. As it is 25 miles to work but the congestion is the worst thing meaning it would take a long time unless I leave at 6am. Any slightly crazy scheme i think i could do temporarily, say for six months, to get on top of things.

AliceBanned

Received a letter today from Barclaycard. My actual balance is £3848.75. I have gone overlimit since being charged the interested - think I miscalculated. I didn't get any warning.

Anyway, I am so depressed about my debts. I also owe £3200 on Halifax Mastercard and am up to my overdrafts on FD and Halifax Reward, of £500 and £750 respectively. I have max of £200 to repay on all of these every month. The FD isn't charging much interest but the Halifax is £1 a day.

I am beginning to get scared. .

I owe my parents £2500 and am paying at £50 pm and I know they would let me pay a bit less but I really want to repay them. Not sure where to turn really, just feel so defeated as I have had years of debting and am trying to get out of it. I did spend too much when I bought a flat recently but have stopped spending now. It is just so hard getting by each month.

The Barclaycard started off as 0% but I ended up spending on it. So I really need to just stop using cards I think. I am thinking of consolidating with a credit union loan as it so hard living with this hanging over me. The credit union would charge 12.9% and I owe £1500 with them at the mo. also have £500 in savings that I can't access from them as I have the loan. Would it be better to cut up the Barclaycard and try and pay it off? I'm so low that it brings me down more. Also if the credit union turned me down, not sure what I would do. But I think they would lend me maybe £1000 or even more. Maybe not.

I am making lifestyle changes already but there is not a lot more that I can do. Sell my car perhaps and give up the gym. But I am miserable enough as it is. Just so scared and depresssed and keep trying but then find I'm really stressed and tearful. I have even given up coffee - good as it is expensive - but mainly because my nerves are shot and I have terrible low blood sugar and panic attacks.
__________________
DFW :A

pickle_me

Oh poor Alice. I'm not an expert like some of the DFWs here but you sound so down, I couldn't read and run.

Looking at your SOA I suspect you either have to pare it down to the bone for a few months and throw every last penny at the debt, to make some headway, or consider a DMP.

Can you cancel the gym any earlier than April or do you have to give two months' notice?

You mention that you like buying good quality clothes - are there any that you could sell on Ebay? Labels from the better end of the high street like Jigsaw can sell quite well on there.

If you only use the car to get out a weekends then I agree with Bob, I would seriously think about selling it. Can you find local things to do at the weekend that don't require a car, or that you could access by public transport? How about a cheaper sport to take the place of the gym? I joined a local running club two years ago, as an absolute (and not remotely athletic) beginner, and a year later I ran my first half-marathon. For £15 a year I've made new friends and always have someone to run with. The most expensive bit of running is buying a good pair of shoes (plus a decent sports bra!); once you have these you can exercise just about anywhere, at any time, for free.

Can you ask your parents if you can hold off paying them back for six months just to give you a bit extra to throw at the debts which charge interest?

And yes, you must, must stop spending on cards. Whatever you have to do, stop using them.

Hopefully someone else will have some bright ideas. I'm sorry you're finding it so tough at the moment