Repayment to Interest Only

Noobie2011

andys15 wrote: »

What are the interest rates in the cards? That would be my biggest concern, especially if they start increasing them. They usually wait until you are maxed out, and then increase. I suppose you don't have to accept the increase, but you can never use them again. If the car is worth 10k, you owe 14k in it, then you need to give it up. If it's on pcp you can hand it back after you have repaid over 50%. Obviously the mobile phones have to go and the entertainment. With so little available at the end of the month you cannot sustain this. The car needing new tyres or your washing machine breaking will send you over the edge. I think you really need to speak to someone today. Going interest only and cutting back here and there will not help. The credit card debt will never get lower.

I stuck the % into the SOA so not sure why it hasn't come through. As you say on the car giving it back will help but needs to be 50% paid first so that is a while off but on the list as an option when it comes available. When I have spoke to people about this before then things like DMP etc have come up however I do not want to go down that route and regret doing something that may damage me going forward. Also how will that affect things like re-mortgaging etc

getmore4less

Thanks,

SOA usually take a while to fine tune if you don't have accurate spending records, will take a look now.

-taff

Post your SOA on the debt free wannabe board. You;'ll get more help and less censure there.

andys15

Well I got turned down for a remortgage with a couple of high street lenders. But my current mortgage company wont turn me down. They don't do any checks. I am with the post office through the bank of Ireland. If you are left with £100 and not an awful lot of leeway on your SOA (mobile phones, might save a few quid on your council tax), it's not really going to make much difference to the high interest credit cards. I am not sure, but can you just hand the car back now, and say you cannot afford it. You are not that far away from possibly defaulting on it anyway. You need to either increase your income or stop all interest on the cards, and that will involve professional help, sooner than later.

getmore4less

If you don't want a DMP then you have to strip out everything.

Mobile Phones(get 3 payg 123 emergency use only)
TV package
can't afford pets.

The car is the real killer £200pm fuel and £800py insurance £275 tax.
Probably close to £4k when all the other bits get added and on top of that £250pm, £3k

What car is it how many miles a month?
£200pm I would be doing close to 2000miles.

got a spare room for a lodger.

Stick the debts in one of the snowball calculators and see what it says..

DFW board is the place to go for more concentrated advice, this is more than just a mortgage issue.

Noobie2011

getmore4less wrote: »

If you don't want a DMP then you have to strip out everything.

Mobile Phones(get 3 payg 123 emergency use only)
TV package
can't afford pets.

The car is the real killer £200pm fuel and £800py insurance £275 tax.
Probably close to £4k when all the other bits get added and on top of that £250pm, £3k

What car is it how many miles a month?
£200pm I would be doing close to 2000miles.

got a spare room for a lodger.

Stick the debts in one of the snowball calculators and see what it says..

DFW board is the place to go for more concentrated advice, this is more than just a mortgage issue.

That mobile bill is for 2 phones as 2 adults costs in there
not sure what you are saying about TV package
I might be classed as unwilling to listen but my dogs cannot juts be given away and I will not do that

The car is the killer but I have checked and cannot give it back without severe consequences

I did the snowball thing and it advised I start overpaying the Vanquis card and then to the next from there. Did not understand as it seemed to think I had money to overpay in the 1st instance

andys15

Yes I assumed the mobile phones were for 2 people. It's a ridiculous amount of money to spend in your position. That's £1200 a year. Could clear one of your credit cards. I wouldn't get rid of the dog either. You might have to face the consequences of handing the car back. They might try and charge you but, they cannot get what you don't have. That's again reason you need professional help.

libf

I pay £7.50/month for my mobile on rolling monthly with GiffGaff. £50/month for each of you is crazy.

getmore4less

Noobie2011 wrote: »

That mobile bill is for 2 phones as 2 adults costs in there

You can't afford mobiles, get a PAYG sim and stop using the phones

£50pm for each phone is a lot of money

not sure what you are saying about TV package


Telephone (land line)................... 0
TV Licence.............................. 12.12
Satellite/Cable TV...................... 30
Internet Services....................... 0

you can't fford this.

I might be classed as unwilling to listen but my dogs cannot juts be given away and I will not do that

Where are the other costs for the dogs like food? needs to be seperate. it is upto you how you prioritize and what has to give.

The car is the killer but I have checked and cannot give it back without severe consequences

Expand it may still be an option as the running costs are so high.

I did the snowball thing and it advised I start overpaying the Vanquis card and then to the next from there. Did not understand as it seemed to think I had money to overpay in the 1st instance

The snowball works by allocating everything but min payments to the highest rate.

Step one is getting to the point where the debts don't go up(even if respending on them)

Step two is where you move debt from the high rates to the low rates by doing a bit of spending to use up any credit the min payment released and paying off more on the high rate card.

Step three is you stop respending and have enough to do a bit of snowballing.


The issue is you have a SOA that has very little room to make cuts and does not have any contingency.

The only thing left to cut is the interest and that means some kind of debt management.

or earn more money, second jobs rent a room.

Jhoney_2

I don't know how the SOA works, but if you owe 14k and it's worth 10K why would this be in the assets at this point? its costing you in excess of 550pcm.

I also agree with you re your pets, I know it's hard, but pets are for life so if the car stays (perhaps for the time being? it is over 1/3 of your debt after all), the pets should NOT go IMO.

PAYG -text/visit/meet up with your contacts! This is not the way to tackle your Financial issues in the way you say wish to e.g NOT via DMP.

The only thing that you are paying off in a effective way atm, is the one you wish to change, imho. I understand what you are saying in your post, but it's got to be better to pull your belt in on other things and pay off the cc debt - higher interest one first obviously - rather than wait until this comes home to roost.

That £550 could be closing your credit account debt, creating breathing space and overpaying your mortgage!

Not criticism, just willing you on.

It is not easy, but I think you can do it if you adjust your mindset enough to make some necessary changes and stop justifying them. You can of course continue as you are, but your posts suggest you wish to end this situation.

All the best.