Help/Advice

Ranger1912

HI id just like a little advice. Im looking to consolidate some debts. The problem is i was a bit silly when i turned 18 getting over drafts and phone contracts i couldn't afford. This has left me with a awful credit rating leaving me with little option for loans. Ive found a half decent one through credit expert site but still big intrest . Ive not missed any payments or got in serious debt for a long time and trying to improve my credit score as im lookin to buy a house in the next 3 years. I am self employed and have just got back from a few months traveling i have been home 2 months now and i can't get a wage to stick after rent and bills to pay anything off. Basically im wondering if thie loan is my bedt best way?? i just seem to be in a continues circle I can not get out off Thanks

asparagus1968

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


Hi, could you fill out the above and post please?
Consolidation rarely works out well- you get a loan to pay off cards, then rack up balances on the cards again, and end up with twice the debt!
better idea to really get a budget going, which the DFW's on here will help you with once they have seen your statement of affairs .
good luck

sourcrates

Hi,
This "continuous circle" seems to be a recurring theme with a lot of people, and this same question is asked many times on this forum, i always give the same answer to it, a resounding No.

Its never a good idea consolidating debts, unless, you can be 100% sure, that the lines of credit you consolidate, are closed off, so you cant re-use them, because so many people do this, then take out the credit again, and limp back here 10-12 months later, in an even worse position, with twice the debt.

You need to examine the cause of your money troubles, and change your ways, so this do-sent keep happening, you would be must better advised, to seek some kind of help in tackling your debts that does not involve further borrowing.

Have a look on the stepchange website, they offer free impartial advice on how to deal with debt :

http://m.stepchange.org/?WT.srch=1&WT.mc_id=270049&WT.seg_1=stepchange&gclid=CJWin8H4ysQCFevJtAodjw4AWA

You would be much better served by some kind of free debt management remedy, rather than a very costly, consolidation loan, which could very well lead you into much worse debt.

Ranger1912

Thanks guys. its not huge debt at all just want rid. Having a look at both those sites now. Hopfully find away around it all

Ranger1912

Results I got

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1200
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1200

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 400
Management charge (leasehold property).. 70
Council tax............................. 100
Electricity............................. 40
Gas..................................... 0
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 10
Mobile phone............................ 40
TV Licence.............................. 20
Satellite/Cable TV...................... 20
Internet Services....................... 10
Groceries etc. ......................... 80
Clothing................................ 40
Petrol/diesel........................... 100
Road tax................................ 40
Car Insurance........................... 40
Car maintenance (including MOT)......... 100
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 100
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1260


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................550.......40........0
Family Loan....................600.......0.........0
Friend loan....................800.......0.........0
Total unsecured debts..........1950......40........-


Monthly Budget Summary
Total monthly income.................... 1,200
Expenses (including HP & secured debts). 1,260
Available for debt repayments........... -60
Monthly UNsecured debt repayments....... 40
Amount short for making debt repayments. -100

Personal Balance Sheet Summary
Total assets (things you own)........... 1,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -1,950
Net Assets.............................. -950

Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using Firefox browser.

Vikipollard

100 a month on car maintenance?
100 council tax - is that over 12 months or 10, and does that take account of you living alone?


You don't have any spare in your budget to pay a loan, so I would forget that. At best, it would temporarily alleviate the situation, but as soon as that was spent you would be in a worse position.


Is moving in with family a cheaper option? You are paying 470 a month just in rent and management charges.


Can you take a second job (employed) to increase your income?

f0nz

Ranger1912 wrote: »

Results I got

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1200
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1200

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 400
Management charge (leasehold property).. 70
Council tax............................. 100
Electricity............................. 40
Gas..................................... 0
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 10 you're £40 for tv phone and Internet you could get a cheaper bundle
Mobile phone............................ 40 this is high! Can you switch yet or are you stuck in contract?
TV Licence.............................. 20
Satellite/Cable TV...................... 20
Internet Services....................... 10
Groceries etc. ......................... 80
Clothing................................ 40 could you half this or buy every other month
Petrol/diesel........................... 100
Road tax................................ 40 really? £480 a year!
Car Insurance........................... 40
Car maintenance (including MOT)......... 100 this could be halved
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0 you should have this £5 a month is worth it for peace of mind
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 100 could you maybe cut down just for a few months?
Holiday................................. 0
Emergency fund.......................... 0 should have something in here
Total monthly expenses.................. 1260


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................550.......40........0
Family Loan....................600.......0.........0
Friend loan....................800.......0.........0
Total unsecured debts..........1950......40........-


Monthly Budget Summary
Total monthly income.................... 1,200
Expenses (including HP & secured debts). 1,260
Available for debt repayments........... -60
Monthly UNsecured debt repayments....... 40
Amount short for making debt repayments. -100

Personal Balance Sheet Summary
Total assets (things you own)........... 1,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -1,950
Net Assets.............................. -950

Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using Firefox browser.

You don't have a huge debt so making cuts right now could help you clear it relatively quickly. Any chance of any overtime or a 2nd part time job? That way you could clear them quickly and then set aside a nice little emergency fund for yourself

19lottie82

£100 a month on car maintenance, that's a lot....is this a realistic figure?

£40 on your mobile? When is you contract up? Switch to sim only.

Why are you paying a service charge for a flat you rent? This is the LLs responsibility.

To be brutally honest, youre not on a high wage and can't really afford your own place and to run a car.

I'd be looking for a second job, or one with a better wage, and considering a house share........

Ranger1912

Car maintance is propbaly a bit high i just went high end everything. I am a self employed plasterer. A 2nd job really isnt a option. And i need a work van so can not get rid of it . Some months i proabaly make more some months I make less its the joys of been self employed. I dont really have anywhere to live with family. I rent my flat off my aunties already got it cheap. I pay ground maintnce on the flat which is the £70. My phone contract is up in 6 months already got in mind to switch to sim only

19lottie82

Ranger1912 wrote: »

Car maintance is propbaly a bit high i just went high end everything. I am a self employed plasterer. A 2nd job really isnt a option. And i need a work van so can not get rid of it . Some months i proabaly make more some months I make less its the joys of been self employed. I dont really have anywhere to live with family. I rent my flat off my aunties already got it cheap. I pay ground maintnce on the flat which is the £70. My phone contract is up in 6 months already got in mind to switch to sim only

Would it be worth looking for a paye job, rather than working for yourself? By the time you take off your motoring expenses, you're not even clearing minimum wage.

rising_from_the_ashes

Have you asked if you can downgrade your bundle?

Def worth a shot - and yes, when it runs out, switch to a SIM only deal and keep the handset

Entertainment needs to go (sorry) - you just can't afford it just now. You have Sky ... that's your entertainment budget! You need this money to a) balance the books as you have a deficit atm and b) put something into the missing things (emergency fund, insurance etc)

Realistically you need to cut your housing costs - nearly 50% is going on rent, the maintenance charge and council tax ... before adding utilities ..... could you look for a flatshare?

How were you proposing to actually pay the loan?

TBH it's a really bad idea - many (many) of us have done it and unless the reasons for the debts are addressed eg an increase in income, reducing outgoings, then you're going to end up in the same situation except with more debt