Other half help

eyespy

I have already posted asking for a bit of help with my money but I wonder if you can help with my other half. I've managed to sit him down and diclose his financial outgoings etc. He banks with natwest and has a £33908 loan which was refinanced in June no payment protection over 7 years and is 10.7% APR and is the biggest killer financially. He is on sick leave until Sep with a shoulder injury so money is slightly tighter. He lives with his mum at the moment in their house which is paid for and works out beter for me and babby as we woud lose a lot of benefit entitlements if he lived with us.
I'l give it a whirl anyway
Monthly Incomings:

My salary - £857.34 (currently on sick leave until Sep)

Total - £857.34

Monthly Outgoings:

Loan – 339.08
Council Tax - £105
Phone - £15
Food - £90
Insurance - £15
Mobile - £10
Car Insurance - £32
Car tax & MOT - £25
Petrol £40
Sky £15
Savings £80 (not every month when I can)
Catalogue - £25
Credit card - £40 (natwest)£3700 limit £1800 on there at mo


Total: £863.58

Hope you can help you lovely bunnies
xx:T

msmicawber

Hi,

I'd recommend getting rid of Sky for a start and replacing it with a freeview box.

Presumably, your OH isn't paying into savings at the moment, but does he have any savings built up? If so, he'd be advised to withdraw them and use them to pay off the highest interest debt.

What's the Catalogue £25? Is there interest on this as well? How much is left to pay?

Best wishes.

eyespy

Hi yes £600 pound in savings. The catalogue is littlewoods and there is about £80 left to pay

msmicawber

Hi eyespy,

In his position, I'd use the savings to pay off the catalogue and close the account, then use the balance of the savings to pay some off the credit card. With an extra £40 each month (£15 from the cancelled Sky and £25 from the paid catalogue), that would mean him paying £80 each month off the credit card, which will reduce it much more quickly.

What's his credit report like? If it's good, then he could apply for a 0% or low life of balance credit card to transfer the balance to, which should speed up its repayment. He must make sure that he closes the catalogue and NatWest credit card accounts once they're paid off, though, both to discourage him from getting into greater debt and so he doesn't look over-extended on his credit report.

Once the other debts are out of the way, can he overpay the loan to get rid of it quicker? (he'll have to check the T&Cs as not all loans allow this without penalty).

In the meantime while he's off work, can he go through all his 'stuff' and see what he can sell on Ebay or carboot sales or whatever and chuck anything he earns towards his debt?

I hope those ideas help a little.