3 Loans + Counting

Butterfly1010

Hi,

I'm new to the site and need some help/advice basically!

I was living debt free last year up until March 2014 and since then I have lost control of my spending (I bought a house). I kept spending on my Barclaycard buying stuff for the house/clothes and then I took out a loan at a cheaper interest rate to pay off the debt. I've done this 3 times now and currently owe £22,475.43 to the one lender plus another £5,000 sitting on my credit card at the moment. Total - £27,475.43.

I do have a spending problem which my partner is aware of but I can't seem to stop 'living beyond my means'. My partner knows I'm in debt but thinks it's in the region of 10k.

I want to consolidate all the debt once and for all as the monthly payments are getting too much to handle and get some counselling for my spending problem but am not sure the best way possible of doing this. My partner and I have a small mortgage of under £35,000 and my partner is also in debt (10k), has a bad credit rating and is self-employed. Can anyone offer advice please?

Gaz83

Butterfly1010 wrote: »

Hi,

I'm new to the site and need some help/advice basically!

I was living debt free last year up until March 2014 and since then I have lost control of my spending (I bought a house). I kept spending on my Barclaycard buying stuff for the house/clothes and then I took out a loan at a cheaper interest rate to pay off the debt. I've done this 3 times now and currently owe £22,475.43 to the one lender plus another £5,000 sitting on my credit card at the moment. Total - £27,475.43.

I do have a spending problem which my partner is aware of but I can't seem to stop 'living beyond my means'. My partner knows I'm in debt but thinks it's in the region of 10k.

I want to consolidate all the debt once and for all as the monthly payments are getting too much to handle and get some counselling for my spending problem but am not sure the best way possible of doing this. My partner and I have a small mortgage of under £35,000 and my partner is also in debt (10k), has a bad credit rating and is self-employed. Can anyone offer advice please?

No mainstream lender is going to touch you with a bargepole.

You have £27k of unsecured debt. You would need to borrow another £27k and, quite frankly, no lender would trust - with good reason - that you wouldn't blow the lot and end up with £54k debt.

Not going to happen. You need to get over to the debt-free wannabe board, and call someone like Stepchange to go onto a Debt Management Plan.

And come clean to your husband.

DCFC79

Tell your husband/partner, it will only come out if you don't tell him, be honest with them.

You don't need a loan, you need to call step change or another free but reputable DMC.

[Deleted User]

Butterfly1010 wrote: »

Hi,

I want to consolidate all the debt once and for all

For the fourth time? You'll just get deeper into debt.

You have to work on reducing the debt. More debt isn't going to help.

andyfromotley

Hows that debt consolidation thing worked out for you so far?

Please go to the debt free wannabe board and post an SOA.

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

We can the try to give you the best advice for your circumstances. The answer will lie in reducing your spending, increasing your income and repaying your debt. It won't lie in moving your debt around and building up more. It may involve debt relief, it may not, depends on the figures.

Don't worry, every situation has a solution. Good luck.

wiltsguy_2

i know exactly how you feel! I was in the same boat as you a couple of years ago.

You feel that 'this would be the last time you need to borrow to consolidate all your loans into one affordable monthly payment' , truth is, it never works out that way. If you are honest with yourself did you think that the last time you done it? The banks will also see this. You may be able to get a loan, but at what rate.

Please listen to the advice given above, go to the debt free wannabe board, post a SOA and take any good advice given.

IMO less than £30k debt-it's not that bad-i know people with more and clearing it does become easier over time. Can you get mor ehours/overtime at work? sell stuff on ebay? downsize cars etc to help? The more you clear, the more you have every month to clear it. Before you know it you will be calling up your last debt to make a final payment..

Also share this problem with your OH, at least the two of you can work together at it.

Good luck

owlet

As others have said, a loan will just increase your debt again. Bad move. Take note from the thousands of us that have done exactly that & ended up with even more debt.

Go to the debt free wannabe board & post your soa. The lovely people there will be able to guide you on decreasing your spending.

Also posting your daily spends & making a diary of it on the debt free wannabe board will make you really think before you spend.

The old style board are great for producing meals etc from almost nothing too & this will help your housekeeping budget.

Get started now & let everyone help - you can do this without more credit :-)

MNM2903

ive been there, not as much as that but i was in a position where i felt that borrowing and consolidating was the answer. In the end i was just looking for a quick fix to the problem. Best thing is to do as all the above have said post your SOA see where you can save money and put every penny in to clearing the debt.

peaceandfreedom

Butterfly1010 wrote: »

I do have a spending problem which my partner is aware of but I can't seem to stop 'living beyond my means'. My partner knows I'm in debt but thinks it's in the region of 10k.

I want to consolidate all the debt once and for all as the monthly payments are getting too much to handle and get some counselling for my spending problem but am not sure the best way possible of doing this. My partner and I have a small mortgage of under £35,000 and my partner is also in debt (10k), has a bad credit rating and is self-employed. Can anyone offer advice please?

I am just thinking if that if your OH thinks you owe 10K and it's actually 27K, could it be possible that it also works the other way around - i.e. you think your OH owes 10K but they really owe a lot more?

In any case, I agree that the consolidation loan thing is clearly not working for you (strangely enough, it didn't work for me either - in fact the only thing that worked was cutting up all credit cards and paying off the debt bit by bit ). The DFW board is your best bet. Also you and OH need to sit down and list ALL your debts properly to get to grips with the real situation. The DFW people will guide you on the best steps to take, they know their stuff.

Forget about trying to borrow any more money.

MEM62

Forget further debt consolidation loans. These only work if you have the self discipline to address your spending issue. As you have been unable to do this so far these loans have only served to make your situation considerably worse.

Any further financial solutions will only prove to give you additional spending ability - which you are unlikely to resist. I would suggest that, before you look at any financial solutions, you seek professional help to address your spending issues. Only when these are under control will any financial rescue plan work.

robatwork

Just something positive I noticed in your post. You just bought a house and yet have under £35,000 in mortgage debt. There aren't many house buyers in such a fortunate position - this is a tiny mortgage!

So if you both earn there is every chance you can bite into your debt seriously. Follow the advice above, you may even be able to contact your mortgage provider and take a repayment holiday which will let you tackle the loans with most interest (prob credit card) rather than the mortgage which is doubtless 4% or less.

Bear in mind once you both start tackling this and paying it off, you will start to feel much better as you see the debts reduce but you must do this together.