My ship is sinking

simonts

Oh dear..Like many others I had my lightbulb moment today when I had a letter from Virgin stating my credit card interest rate would be going to 29.9% and minimum payment 5%!!

This year has certainly not been my year, I broke up with my partner six months ago and life still seems to be kicking me while I am down now.

To make it worse she still lives here (she wont leave as long as her name is on the mortgage), We are on a joint mortgage for the house but the redemption fee is £7500 that I cannot afford to break away now or to take her from the mortgage..There lies another issue in that the fixed rate runs out in 9 months and I just dont know what will happen them.

My issue of debt I think is two things...well maybe one always trying to give my partner a good life and spending to try and fix when things were already going wrong but I was blind to it.

I'm shocked at how much debt can bring you down mentally especially when you look at whats there and just think I cannot see a way out, To me it seems that in another 9 months I will be probably declared bankrupt and loose the house I so desperatly want to keep.

I feel aged with stress like a man old before my time yet I only just turned 26

So the money bit I suppose:

Monthly Incomings:
Salary: £24,000 (£60 is taken off before tax is applied for pension plan, im debating stopping this happening)
Wages: £1466.75
Other: £200 (I get this as a contribution for my ex partner still living in the house)

Total - 1666.75 (I should have noticed 666 is a bad number huh!!!)

Monthly Outgoings:
Mortgage: 667.90
Council Tax (Paid By Ex)
Gas: £35.00
Electric: £41.50
TV License: (Paid by Ex)
Sky: (Paid By Ex)
Phone: £11-16
Broadband: £21.49
Car Insurance: Paid in full due may 2008
Petrol: £100
Water: £15
Dog Food: £30 (German Shepherd)
Mobile: £20
PruHealth: £17.90 (I will get rid of this I just got BUPA with work for free)
Pet Insurance: £13.64
Direct Debit AXA INSURANCE UK P: £12.56
Direct Debit AXA INSURANCE UK P: £23.13 (Not sure what these are one should be house insurance through lloyds but the second DD of 23.13 only started this month...very odd)
Going Out: £0 I dont go out not having many friends
Food: Whatevers left to scrape through usually hitting my overdraft at £250


Credit Cards:
Virgin(MBNA): £5900 going to 29.9% and 5% monthly payment + £5 (calling to negotiate tomorrow as they did this three months ago then put its straight back down again...not sure about the 5% part though. Last Monthly £75

Egg: £6300 29.9% as of about 3 months ago, refused to negotiate the rate. Last Monthly £127

Capital One: £2500, Interest rate I think is 15.9% next payment is £75 (Last time I spoke with them they offered me a 0% balance transfer, I have £2500 sapre on that card perhaps I should move some from the egg card?)

Nationwide: £960, 17.9% I pay off £50 on this by standing order

Total Owed: £15,690
Total Outgoings: £1341.12

Thankyou if you read this, I knew it was bad but having just seen the number at the bottom I didnt know it was that bad..

immoral_angeluk

I had a similar thing with capital one.. they wanted to increase my APR to 34.9% :eek: When I complained they gave me the option to remain at my current interest rate I could agree to continue paying the usual apr and payment as long as when the balance was clear I closed the account and didn't use the card until it was paid off..
Maybe that would be an option for you?

simonts

immoral_angeluk wrote: »

I had a similar thing with capital one.. they wanted to increase my APR to 34.9% :eek: When I complained they gave me the option to remain at my current interest rate I could agree to continue paying the usual apr and payment as long as when the balance was clear I closed the account and didn't use the card until it was paid off..
Maybe that would be an option for you?

That certainly sounds like a start for Virgin, It sounds like they are having a clear out of non prime customers.

immoral_angeluk

It's definately worth a shot... What was your APR before?

tallyhoh

Have I got my figures right?

Income= £1666.75

Outgoings= £991.38 plus food

Leaves £675.37 without groceries etc to pay debts.

Do you have 2 insurances for the house? building + contents £12.56 & £23.13.

My combined one is only £12.77 from Esure.

I am not saying that surplus income is a lot, just checking my adding up.

simonts

tallyhoh wrote: »

Have I got my figures right?

Income= £1666.75

Outgoings= £991.38 plus food

Leaves £675.37 without groceries etc to pay debts.

Do you have 2 insurances for the house? building + contents £12.56 & £23.13.

My combined one is only £12.77 from Esure.

I am not saying that surplus income is a lot, just checking my adding up.

Outgoings are £1341.12 + food, I did think that with the insurance but it was about £17 when I signed up for it..unless I missed a letter (my mortgage lender charges a £60 admin fee if i change insurer)

£325.63 left...I cant even work out how there is that much..It certainly does not feel like it. Looking through my statement I have spent £226 in supermarkets :O £45 on debit card for petrol and withdrawn £80 cash (I have £7 left)

simonts

immoral_angeluk wrote: »

It's definately worth a shot... What was your APR before?

About 18.9% If they will do that again I may benefit from moving some from Egg to Capital One...Im not sure how to calculate the difference between the balance transfer fee and the interest that would not be accruing.

Lazy_Runner

Hi

Welcome to the DFW forums. Some people more experienced than me will be along to give more advice, but as a first pass here goes:
If you don't know where that £325 is going, please keep a spending diary. Jot down everything you buy. Even the smallest purchases (especially the smallest purchases). That will give you a better idea where the money is going.

Also shouldn't you add your overdraft to your list of debts?

With your expenses:
Food bill; get your self over the the Oldstyle money savings board for lots of friendly helpful advice on how to reduce your food bill.

Hope that helps as a starter.

Good luck, though it is possible luck has nothing to do with becoming DF.

Regards

LR

nomoneytoday

simonts wrote: »

Im not sure how to calculate the difference between the balance transfer fee and the interest that would not be accruing.

The BT fee is a straight 2-3% of the debt. So if you owe £1000 with a 2% BT the cost is £20, if the BT is 3% then the same debt would cost £30 to transfer.

18.9% APR is a little under 1.5% per month, so a 3% balance transfer and 0% interest rate would make you better off if the rate stayed at zero for more than 3 months

tallyhoh

Sorry - I meant outgoings before payments on cards & loans

simonts

nomoneytoday wrote: »

The BT fee is a straight 2-3% of the debt. So if you owe £1000 with a 2% BT the cost is £20, if the BT is 3% then the same debt would cost £30 to transfer.

18.9% APR is a little under 1.5% per month, so a 3% balance transfer and 0% interest rate would make you better off if the rate stayed at zero for more than 3 months

I see...29.9 on egg is 2.49 a month so if they offer me interest free for a few months im saving straight away