Help with finances

likklemisssunny

Hi, we recently took out a loan to consolidate our debts totalling £10,000. It felt fantastic! One repayment a month instead of 4 seperate ones!
Anyway not long after I lost my job, so we had to start using the credit cards again to get through with things like car breaking and solicitor fees and general food!
Anyway our credit cards are Vanquis at 30.4%apr and a capital one at around 30% too. We havent maxed out well not on the vanquis but are at £1,800 and on the Capital one £2,085.
I have since got a new job but paying half of what I was earning, these interest rates are high but as you know we never have any option if these are the only cards we can get. I just tried to get a Sainsburys loan in my husbands name so we can clear them both again, again to pay a lower interest rate but got rejected. We have mobile phone contracts so dont understand why we get rejected. Anyway we are now back in more debt what with the £10,000 loan and the credit cards totalling around £3000, so any advice on how to sort this would be great! xxx

sourcrates

Hi,
Sorry to hear of your situation, consolidation loans are rarely the answer to debt problems, as too many people have life events such as this happen to them, and then find themselves back at square one again, with even more debt.
National Debtline may be able to advise on your next move.
Please don't apply for any more loans, you are been declined because of the debt you already have most likely, as opposed to your income.
You need to see where cuts can be made in your budget and throw all you can at those cards.

tbourner

You could try this:
https://forums.moneysavingexpert.com/discussion/2976812
It's quite old, I need to update, but the advice I think is still sound.

likklemisssunny

Have redone our budget sheet, and made it so I am paying £100 off each credit card a month so in a year thats £1200, is that good? Im not sure if it will make any real difference what with interest rates?

~Beanie~

If you put the balances and interest etc into the snowball calculator, it says you can pay both cards off in 27 months if you continue to pay £100 on each. Have a look here: http://www.whatsthecost.com/snowball.aspx

likklemisssunny

that is soooo helpful, thank you so much

longtermplanner

Have you stopped spending on the credit cards? That is the essential first step!

If you want to try to 'automate' paying off the cards and are sure you can afford 3100 a month to each, why not set up a standing order to pay that amount each month?

likklemisssunny

I have done on the Capitalone card already,just need to on the Vanquis, if we cut right down on irrelevant stuff and literally buy the basic then yeah should be ok, I can get overtime at my work so will be doing that x just sick of living in a vicious circle x oh and yeah, we arent spending on them x

jodles16

If you wanted to fill in a Statement of Affairs to share some people find it helpful to see all the incomings and outgoings!

Good luck,

Jodles