Consolidating Debts

angiecinnamon

Hi

I have approx 3400 in three bad credit credit cards and numerous catalogues (littlewoods, very, jd williams, simply be). I have dreadful credit due to a bad relationship, losing my job and struggling for a few years. I am now working full time and have an income of approximately 1600 a month including benefits.

I added up all the debts and the monthly outgoings are costing me about £275 a month.

My boiler has now broken and I need to find a way to get some money to replace that, reduce the monthly costs and maybe make a few home improvements.

I am a homeowner I have approximately 15k in equity in the house. the mortgage company I am with does not allow me to remortgage to release any of that.

How should I get all these debts reduced. I have very little money left at the end of the month and no savings.

Thanks

FireWyrm

I know it looks tempting, to get a consolidation loan, maybe you are even thinking of a secured loan, but take the advice...dont. Consolidation loans rarely work and almost always leaves the person in twice as deep a hole as they started with. Your best course of action is to post an SOA and think about restructuring your outgoings to get you where you need to be. There are no quick routes unfortunately.

With regard to the boiler...exactly what is wrong with it and can it be fixed rather than replaced? You should definately consider using an independent GasSafe certified engineer rather than a subcontractor for the likes of BritishGas as BG have a habit of falsely claiming that boilers are 'condemned' (something they have no actual authority to do) in order to steer you into an expensive and largely unnecessary boiler replacement. Often, an hour of an independents' time is all you need to solve the problem and not the £3500 that BG will charge you.

longtermplanner

With poor credit you stand no ca=hance of a large loan to consolidate your existing debts and provide some extra for a new boiler, it just isnt going to happen.

You need to look at how you can improve your finances without a new loan. Cut up your credit cards and stop buying from catalogues for a start!

Look at how you can cut your expenditure. Take sandwiches to work. Start meal planning so you never need to get takeaways. Ditch Sky.

Investigate increasing your income,. Could you get a second job? Rent out a room?.

DD265

FireWyrm wrote: »

I know it looks tempting, to get a consolidation loan, maybe you are even thinking of a secured loan, but take the advice...dont. Consolidation loans rarely work and almost always leaves the person in twice as deep a hole as they started with.

This entirely. Been there done that and regret it. You'll also find countless similar stories on here. Generally the advice is unless the root cause of why you got into debt in the first place is fixed, don't risk it.

egrescrimp

Do you get Tax Credits? you might be entitled to use a scheme like http://www.help-link.co.uk/affordable-warmth to replace your boiler.

angiecinnamon

Hi thanks for all the advice.

I have a really good budget planning spreadsheet I have been using to see where all money comes in and out. Same with meal planning and not using the credit accounts anymore. I don't have sky TV. I'm a single Mum and my spare room is too small to rent out.

Someone mentioned posting and SOA. Excuse my ignorance buy I've no idea what that means.

The boiler broke and was flashing to say a sensor had a problem. It is not yet two years old. I contacted biasi who claim I have not had it serviced by them even though I have and they also claim to have sent me a letter for this year's service which I never received. Due to this it is out of warranty. An independent gas safe advisor has reccomended replace it as he came and fixed the sensor and after than the fan broke and the part is £215.

I don't think I am entitled to a new one on the current scheme as it is under 7 years old

Thanks again

mrsscattercushion

morning,


SOA means Statement of Affairs, basically a breakdown of all income and outgoings, including the debts. The good people on here are great at analysing it and giving suggestions on ways to cut back/manage the debts etc.


Link to it should be below


http://www.stoozing.com/calculator/soa.php


Less than 2 years old and need a new boiler? Have you got proof that you have had it serviced by them, despite them saying no? Worth trying to push this further as I'd be livid if needed replacing in such a short space of time

FireWyrm

angiecinnamon wrote: »

The boiler broke and was flashing to say a sensor had a problem. It is not yet two years old. I contacted biasi who claim I have not had it serviced by them even though I have and they also claim to have sent me a letter for this year's service which I never received. Due to this it is out of warranty. An independent gas safe advisor has reccomended replace it as he came and fixed the sensor and after than the fan broke and the part is £215.

I don't think I am entitled to a new one on the current scheme as it is under 7 years old

Thanks again

You dont need a new boiler, you need a second opinion.

Also, who did you buy the boiler from? Speak to Biasi again and tell them that you have a boiler service document (you do dont you) and in any case, you would expect a boiler to last longer than 2 years. Tell them that you will be speaking to Trading Standards if they do not deal with this immediately. Generally, boilers are warrantied for at least 3 years. If it isnt Biasi who are picking up the tab, then the boiler manufacturer will be. Speak to them as well and demand action and your consumer rights.

tizerbelle

angiecinnamon wrote: »

I'm a single Mum and my spare room is too small to rent out.

So re-jig the bedrooms - rent the largest room out and you and your child use the two smaller rooms. It may not be ideal or something you want to do but needs must.

poppasmurf_bewdley

FireWyrm is correct in what he says. Before you do anything else, follow his advice.

And how, exactly, can your mortgage provider "not allow me to remortgage to release any of that"?

I am sure you could remortgage at any time provided you can afford to, and meet all requirements.