Need some help about debt

urb

Hi there,

Firstly I would like to thank anyone for taking the time to read this, I think I'm posting in the right place.

I am increasingly worrying about my growing debt and really want to try and clear it.

Here are the big debts that are worrying me:

Mortgage: 14,000 left over 20 years = £96 month + £170 rent (Shared ownership)
Capital one credit card: £500 = minimum payment £25
Aqua Credit Card: £500 = minimum payment £25
Evans Store card: £1000 = Minimum payment £40
Very £1000 = £100
Next £1200 = £120 per month but dropping slightly each month
Mobile phones £140
Overdraft 2700 = £35 fee's from Barclay

Take home pay is £1710 and I normally have £30-£0 left at the end of the month after other smaller bills and daily living costs.

Barclay sent me a letter to say that from June I will be charged £2.50 per day for my overdraft which has always been £2700 for some time, this will mean I have to find an extra £75 per month. I have cut everything that I can from my monthly bills, such as lowered the sky bill, broadband, gas/electric, insurances and cut back on food and other things. These bills are not worrying me that much as they can be adjusted each month to make ends meet. The big debts are the ones that are causing me a lot of stress and the new overdraft situation is really going to put me into a situation where I can't even afford to feed my family. I am a single parent with 3 children (16, 19 and 20) My one child is disabled with Arthritis and is currently studying at university so he can't get a job to help make ends meet, my other child is in full time college and works part time in McDonald so he does try to help towards things like paying for his mobile phone and social life but sometimes needs a little help from me. My 15 year old can't get a job and help.

I would be greatly appreciated if somebody could give me some advice on any way to sort these debts out? I know a lot of them are bad debts such as credit cards and catalogues but it was the only way I have been able to have certain things such as washing machines, cookers and a new tv when I don't have enough money to save for one.

Ideal situation for me would to be able to borrow the whole amount in one lump sum and add it to my mortgage but I don't think this is possible due to it being shared ownership? I own 50% of the property but I did invest 40,000 of my own money to build an extension, I'm not sure if that has any impact or not. I am currently 45 so am happy to pay for example £300 mortgage + rent until I am 65.

I have also looked at personal loans but the repayments really don't make that much of a difference in my monthly outgoings and would rather struggle for money than have an extra £25-50 month spare.

Thanks in advance for any help!

*Edit* I forgot to add, I'm a nurse who works 5 days a week from 7:30-6:30PM there is the option to do over time on the weekend but I really don't think I can do any more hours without having a breakdown

DanFish

Have you looked at opening a new bank account elsewhere?

NHS_worker_bee

Hello and welcome

urb wrote: »

Ideal situation for me would to be able to borrow the whole amount in one lump sum and add it to my mortgage but I don't think this is possible due to it being shared ownership? I own 50% of the property but I did invest 40,000 of my own money to build an extension, I'm not sure if that has any impact or not. I am currently 45 so am happy to pay for example £300 mortgage + rent until I am 65.

Have you looked at the snowball calculator?

http://www.whatsthecost.com/snowball.aspx?country=uk

Put in all your debts and the APRs (this is the important bit) and it will show you how to prioritise your debt repayments based on what you can afford to pay. Looking at your creditors, I think some of the interest rates will be quite high but again, the snowball calculator will tell you what to tackle first.

The whatsthecost.com site says, "If you're considering a consolidation loan, think carefully about it. It's almost always cheaper to snowball your debts, and often people who consolidate their debts end up in more debt because they haven't addressed the main issue: They spend too much."

It will also show you how much more interest you would be paying if you consolidate the debts into your mortgage (this is often much much higher than paying them off one by one). Paying them off slowly and steadily might feel like "the hard route" but it means you can pay your debt off without getting into more debt. It's what I'm trying to do (with lots of motivation from this site) You are in the right place

Here's an example of how I'm taking it a step at a time: If you look at my signature, I'm tackling my highest APR credit card first using the "1%" method, so I originally owed £3000, each time I pay off £30 that's 1% of the debt cleared. Obviously you have to take into account interest, so each month I make my minimum payment plus an overpayment (I'm currently overpaying by £300 each month) so that's 10% a month cleared. There is a thread on the 'debt free challenges' board where people support each other to use this method. (I have direct debits/standing orders set up to make the minimum payments on my other debts too, once I have paid off this CC, I will start with the next highest APR debt as shown on the snowball calculator...) I hope that makes sense and helps. It stops it all feeling overwhelming.

Having said that about trying not to take on more debt, could you switch the credit cards to a 0% balance transfer CC? This has saved me so much money in interest that I'm now making dents in my debt.

urb wrote: »

*Edit* I forgot to add, I'm a nurse who works 5 days a week from 7:30-6:30PM there is the option to do over time on the weekend but I really don't think I can do any more hours without having a breakdown

I feel your pain, no you do not want to feel so exhausted you have a breakdown (but it's good to know the overtime is there as an option if you really need it). Could you post up a SOA (statement of affairs) on here and the good people on this forum will be able to advise you on how you can cut your outgoings without needing to increase your income? (Although there are also lots of ideas on the forum for how you can increase your income in many different ways that don't involve overtime, including eBay, car boot sales etc)

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

You can do this

ViolaLass

Has your eldest approached the university for financial help? There may be bursaries etc that he could be eligible for.

sourcrates

Hi there,
Time and again people take on more and more credit, believing that they can cope with the increased payments, I know, been there, done that, now it seems Barclays raising there OD charges has been the "straw that broke the camels back" so to speak, in your case, I assume your credit is good at the moment yes ? problem is, you are going to struggle here, given that your a nurse, you are probably unlikely to be able to take on extra work as you guys work hard enough as it is, so the only other thing that you can do, hard as it may seem, and this will ruin your credit im afraid, is to stop paying your non essential credit for a while, until you have re-paid your OD, then look at maybe a debt management plan, self managed, or through one of the free charitiy sites that are available, ie stepchange, never pay anyone a fee for this service, you need to work out how much you can afford to pay your creditors then offer them this amount, unfortunately unless you can up your income, or reduce your outgoings further, then this is the only viable option for you, tough as it may be to trash a good credit rating, you cant go on with your expenditure at this rate any longer.

longtermplanner

Your oldest. Is he away at uni? If he is at home, is he taking out the maximum stent loan that he can? Also is he getting Disability Living Allowance? He should be contributing to your household budget. It isn't right that you have unmanageable debts because he isn't.

Your 19yo. - going to uni next year? If so, same question. his child benefit will also stop.