Repayment to Interest Only

Noobie2011

Jhoney wrote: »

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.

Thank you for the advice and totally agree. My issue is I have not got enough disposable to plough into one CC and get it closed and then onto the next etc.

I actually highly doubt my Mortgage company would allow me to go IO and the savings would not make the impact I think and just reduce down my equity going into one of my main assets.

My other option is to try and negotiate payment breaks with debts where it will not penalize me to do so. I have managed to arrange this with the 118 debts where the next few months the payment will be cut down to £25 a month and then the arrears for those months once I go back to the normal payments will be spread over the rest of the period. Working this out it is not much but the savings now give me the opportunity to put it all into a CC and get it paid off and start the snowball effect. I have asked my car finance too and will see what they say but I am conscious that I will only do this as long as it helps my monthly spend quickly and doesn't leave me with extended loan agreements or massive higher payments down the line

Jhoney_2

Noobie2011 wrote: »

Thank you for the advice and totally agree. My issue is I have not got enough disposable to plough into one CC and get it closed and then onto the next etc.

I actually highly doubt my Mortgage company would allow me to go IO and the savings would not make the impact I think and just reduce down my equity going into one of my main assets.

My other option is to try and negotiate payment breaks with debts where it will not penalize me to do so. I have managed to arrange this with the 118 debts where the next few months the payment will be cut down to £25 a month and then the arrears for those months once I go back to the normal payments will be spread over the rest of the period. Working this out it is not much but the savings now give me the opportunity to put it all into a CC and get it paid off and start the snowball effect. I have asked my car finance too and will see what they say but I am conscious that I will only do this as long as it helps my monthly spend quickly and doesn't leave me with extended loan agreements or massive higher payments down the line

As you currently seem to be getting by on what you have at the end of the month after expenses, why not stop using the car e.g lose the petrol outgoings and buy a bus/rail ticket short term? or only use it for work?

That reclaimed disposable income can then go straight to your highest APR to reduce the capital - then your minimum payment and interest comes down and off you go getting it sorted and if you can snowball as well you attack on two fronts.

win, win.

Thrugelmir

andys15 wrote: »

Maybe so. But if they don't intend to move, and apply for anymore credit( they couldn't have anyway), then what problems does it cause? It seems you wait the magical 6 years and all is forgiven. And they still got the holiday of a lifetime.

6 years is a fallacy. Like elephants lenders now never forget. Easy to maintain a database of never deal with again customers. The world of mainstream finance isn't as big as it looks either. There's a lot of interconnected parties.

Noobie2011

Jhoney wrote: »

As you currently seem to be getting by on what you have at the end of the month after expenses, why not stop using the car e.g lose the petrol outgoings and buy a bus/rail ticket short term? or only use it for work?

That reclaimed disposable income can then go straight to your highest APR to reduce the capital - then your minimum payment and interest comes down and off you go getting it sorted and if you can snowball as well you attack on two fronts.

win, win.

Is a good thing to point out but it is not possible unfortunately with where I live and to get to work. We did have 2 cars and often went separate to work even though work at the same place so decided to travel together and get rid of the 2nd car which is the minimum we can do now. My driving has got a lot more economical though now I am trying to save fuel money.

On my saving with 118 I am looking at £230 a month now to work with each month for 3 months so nearly £700. So need to decide where best placed this money should go to reduce my monthly expenses the most.

ViolaLass

You could try reducing your expenses e.g. phone, which you seem to be ignoring.

Noobie2011

ViolaLass wrote: »

You could try reducing your expenses e.g. phone, which you seem to be ignoring.

I am not ignoring it but have it down as a possibility but what do you do if you are in contract?

Noobie2011

Not sure I understand this stoozing or managing CC's exactly.

So for instance say I pay all my minimum payments this month on CC's, looking at past months it works out I would have around £120 available over all CC's. Now instead of leaving the available spread over all cards would it be an option to transfer this all onto say a card I want to pay off.

So for instance a Vanquis Card I have at £500 limit with high Interest I could use the £120 to transfer to this and also the £230 I have saved from 118 could g on this card also bringing the Balance down to £150 and also the Interest and monthly payment down. Then if I did the same the next month I could pay the £150 off Vanquis and close that account and then use the £230 from 118 again to pay on the next card.

This would mean the minimum payments of the remaining cards I am not paying off would stay the same as the Balances would be at the limits but that is no different to now where the minimum is not paying much off after Interest and at the moment I am always very close or end up using some of the available.

Noobie2011

Also it would mean after 2 months I was 1 CC closed and another on its way down and a saving of nearly £45 a month that was going onto the Vanquis card every month

andys15

You can only balance transfer up to a certain percentage of the limit. Usually 90-95%. Plus you usually get charged a fee to balance transfer. Plus you need to have the offer of a balance transfer on your card, well for 0% you do. In your case, with everything maxed out, then it is not an option.

andys15

Yes I would use the money from 118 to pay the vanquis, but you are going to find that soon 118 will be about £45 a month higher because they will still the money back with interest. I cannot see you getting out of this situation without increasing your income significantly, losing the car and mobile phones etc etc. As you say you cannot do this, you need to stop the interest on the credit cards, as it will cripple you. Each month you are getting in more debt. The 118 solution is getting you in more debt. I wish you luck, but you need help.