newbie wanting advice

MDB90

hi all

i thought id sign up after been lurking for a while.

i wouldn't say im worried about debts, but i really dont want them to get worse.
im 24, had a mortgage for 1 year now, but have 15k of separate debts (loans/credit cards)

me and my partner spend more than we earn, and only just realised

just want to know how should i structure my debt to help me pay it better, all direct debits are paid each month, but we have very little to live off for the month, which is leading to credit card use.

i have 1700 on mbna card and 1600 on Barclay card, but the with the latter being on its limit, however they have upped my limit to 4200 next month
i have 2 loans at 325p/m and 165p/m
i pay nothing on the mbna and 100p/m on Barclay card
i thought i cpould consolidate everything, over 5 years at 360p/m thus reducing monthly spend and stopping me from using the cards more.

but it dosent look promising with not great credit scores.

so what should i do????

i was thinking using the extra credit on the barcay card, to ring them up and ask them for a cheap balance transfer rate over say 30 months? this will make the debt cheaper although may not reduce my monthly spend.

im currently looking at budgeting more but thats for a different thread. lol

thanks for any help

grumbler

MDB90 wrote: »

i wouldn't say im worried about debts,

With £15K and spending more than you earn you really have to be worried.

me and my partner spend more than we earn, and only just realised

Very strange as it's not a rocket science.

just want to know how should i structure my debt to help me pay it better, all direct debits are paid each month, but we have very little to live off for the month, which is leading to credit card use.

i have 1700 on mbna card and 1600 on Barclay card, but the with the latter being on its limit, however they have upped my limit to 4200 next month

'Structuring' by itself doesn't change anything. You have to earn more and spend less instead of upping the limits to borrow more.

i thought i cpould consolidate everything, over 5 years at 360p/m thus reducing monthly spend and stopping me from using the cards more.

Possibly, but you have to concentrate on cutting your spending in the first place and on reducing the interest you pay, not the monthly payments.
Switch your mind and start thinking in terms of the interest, not monthly payments.
360*60=21600
For 15000 borrowed it's 16.5% APR, not cheap. And are you sure you can borrow £15K more?

im currently looking at budgeting more but thats for a different thread. lol

Absolutely, but nothing funny IMO.

You can ask Barclays, but your current lenders are unlikely to offer you long-term deals. Why would they cut their profit? Any chance of getting new card(s) with 0% or low interest rate?

fuzzyduck22

Head over to the Debt Free Wannabe board, people are nicer there and understand that we are not all as perfect as some...Many people on here have found themselves in debt after realising they had their head buried and are now trying to do something about it

Good Luck

MDB90

grumbler thanks for the reply but im just get to get my head around different ways to do this moneysaving thing, i signed up here to change my mindset, and reduce my debt situation.
fuzzy duck, yeah i did think i may of put it in the wrong board, but nevermind. i have tended to borrow again to consolidate in the past but this time it aint happening.

thanks for both your help, il head over to the board