Best Way Forward

Noobie2011

Hi All,

I am looking for some good advice on how to deal with my debts going forward. Now firstly I will say this is not a post because I am in trouble financially or a way to try and get out of paying my debts because the interest is crazy as it is my responsibility to pay all these as I got them in the 1st place and have benefitted and still am from what they allowed me to purchase.

I am currently paying what I need to all of them but obviously looking for any clever ways to maximise the amount going to all debts without avoiding payment.

My financial and my partners financial background is we earn together a total of 55k a year with and combined bonus around June every year which can range from 800-1500. In terms of credit score none of our is that good likely because of all the credit commitments and my partner has 2 defaults on her file which are not due to come off until another years time.

So below I have listed the debt outgoings, summary of standard bills and living costs and what we are left with to see if there is any other way of using that money more wisely towards debts. Also I will be renewing our Mortgage in October 2016 so I know I will nt be debt free by then but wanted to be in the best place possible.

Standard Bill Total: £1250(includes Mortgage payment)

Debts
118118 Money Loan: £5,614 Remaining
Monthly Payment: 255.17
Last Payment: May 2017

DFS Furniture: £2,466.56 Remaining
Monthly Payment: £60.16
Last Payment: Dec 2018

Fashionworld: £2500 Remaining
Monthly Min Payment: £140

Car Loan: £14,623
Monthly Payment: £250
Last Payment: May 2020

2nd Mortgage Charge: £16,500
Monthly Payment: £385
Last Payment: May 2019

Card Limit Min Payment % Interest
Barclaycard £1,200.00 £65.00 5.42%
VANQUIS BANK £500.00 £25.12 5.02%
VANQUIS BANK £2,000.00 £115.00 5.75%
Ocean £1,000.00 £46.00 4.60%
CREDIT CARD £650.00 £41.40 6.37%
CAPITAL ONE £2,550.00 £98.09 3.85%
BARCLAYCARD £1,200.00 £60.96 5.08%
CAPITAL ONE £200.00 £5.81 2.91%
Barclaycard IHG £5,000.00 £123.00 2.46%

Usually then for Petrol, Food and Social we are left with around £550 a month

So I am hoping with the amount we are shelling out there may be some options to redistribute money in a better way or maybe not.

Thanks in advance

Fireflyaway

I guess the only way ( sorry if this is not that helpful!) is to pay back as you are to protect your credit score ready for our mortgage change in October.

Are you making the min payment on everything? Perhaps increase the smallest debts payment to get rid of it quicker and then use what you use to pay for that to add to the next debt and so on ( snowballing method - check out Dave Ramsey).

Minty123

I don't really have much constructive advice, but I would suggest in order to get the best advice from people, you would be best to post a fully complete statement of affairs (I'm pretty sure there is a link in one of the stickies on the forum).

This will help people identify where you can make cuts, and how much money you actually have to throw at your debts.

A few pointers though - can you transfer any of your cards etc to 0% cards? This would mean you could stop paying interest and start paying money off your debts.

Noobie2011

Fireflyaway wrote: »

I guess the only way ( sorry if this is not that helpful!) is to pay back as you are to protect your credit score ready for our mortgage change in October.

Are you making the min payment on everything? Perhaps increase the smallest debts payment to get rid of it quicker and then use what you use to pay for that to add to the next debt and so on ( snowballing method - check out Dave Ramsey).

Thanks for the reply and thought there would not be much I could do as I am paying the minimum on everything so to pay more to one thing would mean not paying another and missed payments etc. My only thought was I know it is not much but the minimum payment on each of the Credit cards does leave a small amount paid off so could some how use whatever that is every month to pay extra to another debt or as my minimum payments go down i use the extra to pay to toher debts

Noobie2011

Minty123 wrote: »

I don't really have much constructive advice, but I would suggest in order to get the best advice from people, you would be best to post a fully complete statement of affairs (I'm pretty sure there is a link in one of the stickies on the forum).

This will help people identify where you can make cuts, and how much money you actually have to throw at your debts.

A few pointers though - can you transfer any of your cards etc to 0% cards? This would mean you could stop paying interest and start paying money off your debts.

Cheers, before posting on here I have gone through all my finances with a fine tooth comb to make sure I am not wasting money elsewhere that could go on these debts. Yes I have sky and things like that but as I am not struggling with bills I can justify the reward I get with paying a little extra for it. So there is not much to reduce now apart for my food budget which I am looking into

With my bad credit I might find it hard to transfer to 0% cards unfortunatly otherwise that would have been a good idea

bennyhill_2

I think you may have some errors on the APR's in terms of mixing up monthly APR's with yearly APR's. For example Barclays are unlikely to be 5.02% per month?

Can you double check as there may be a way of shifting some of the higher interest debt on to lower (ideally 0%) rates.

Noobie2011

bennyhill wrote: »

I think you may have some errors on the APR's in terms of mixing up monthly APR's with yearly APR's. For example Barclays are unlikely to be 5.02% per month?

Can you double check as there may be a way of shifting some of the higher interest debt on to lower (ideally 0%) rates.

I am presuming to get 0% rate would need to apply for another 0% credit card. I did do an eligability test on here but only came back with Capital One that said 70% chance and 0% for 6 months with a 3% fee. But I am not sure what the balance transfer process is

andyfromotley

Hi,

fill in an SOA, it helps us to understand your financial picture (and were used to seeing it in that format) I'm sure we can help.

I'm confused by your APR's are they all the annual APR?

Ilona

Hello Noobie. Looking back at your previous posts it seems you were asking similar questions in March 2011. Four years on your income has increased and so have your debts, so juggling is not working for you. You need to be paying more than the minimum and to do this you need to look at your spending. The best thing would be to complete a Statement of Affairs listing all your incomings and outgoings, then we could advise accordingly.

You say you are not wasting money, but in 2011 you owed £88 to Fashion World, now it's £2,500, which makes me think you are buying a lot of clothes. You gave back your company car and now you owe £14,623 on a car loan. Maybe you should have bought a cheaper car.

Basically you are spending more than you earn and no amount of juggling will get you out of the spiral. You need to cut your spending to the bone and throw every penny you have at your debts. Post an SOA and we can help you.
Ilona

owlet

Below is the link to the SOA calculator to use for this. Format for MSE at the end.

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

sourcrates

Ilona wrote: »

Hello Noobie. Looking back at your previous posts it seems you were asking similar questions in March 2011. Four years on your income has increased and so have your debts, so juggling is not working for you. You need to be paying more than the minimum and to do this you need to look at your spending. The best thing would be to complete a Statement of Affairs listing all your incomings and outgoings, then we could advise accordingly.

You say you are not wasting money, but in 2011 you owed £88 to Fashion World, now it's £2,500, which makes me think you are buying a lot of clothes. You gave back your company car and now you owe £14,623 on a car loan. Maybe you should have bought a cheaper car.

Basically you are spending more than you earn and no amount of juggling will get you out of the spiral. You need to cut your spending to the bone and throw every penny you have at your debts. Post an SOA and we can help you.
Ilona

This post hits the nail on the head, your debts are spiriling out of control, as is your spending, it must stop if you ever want to clear these debts, you seem to be living well above your means, and it's all funded by credit.
It seems to be a familiar story, were a lifestyle funded by credit is the norm, and unless you can start paying these down substantially, you may be looking at a more formal debt solution, but then radical situations, sometimes call for radical measures.

This is going to take a complete turnaround in your thought process to tackle this mess, if it were me, I'd be looking at some kind of debt remedy, the interest on some of those loans is exceptionally high, it's likely to cost you a fortune whatever you do.