help needed

norm79

Hi

having a bit of a lightbulb moment here and need some help. Here is my situation.

Debts:

HSBC Loan £12750 7.9% (this includes PPI which i am trying to get claim back)
HSBC Card £4370 16.9% (limit £4100)
Egg Card £950 18.9% (full)
MBNA Card £2300 18.9% (full)
Overdraft £2000 (full)

Incomings

Salary £1275 (net)

Outgoings

rent 325
loans 249
credit card repayments 200
food 100
fuel 80
car insurance 60
phone 30
council tax 60
electric 15
gas 10
internet 10
tv license 5

This does not leave me hardly anything spare. My main issue is I had a mint card years ago and it was left with a £10 balance form interest that gave my credit rating a hammering. Due to this i can't get any new credit cards to balance transfer. I top my earnings up with matched betting every month, but i know this is not a long term solution. Ideall what i need is to get everyting in one payment, however i do not own a house to consolidate plus i do not want to pay over the odds with a rip off company.

All help would be welcome and any ideas.

Thanks

poppy10_2

Bankruptcy?

madmoney_2

hiya, i would definately give cccs or payplan a ring - they can stop all the interest on most cards, and will set up a debt management plan for you, hope this helps xxx

CLAPTON

I see no realistic prospect of your obtaining any more credit except at a very high interest rate which will only make the situation even worse. You already have debts of over 20,000 on an fairly low income.

Your budget is unrealistic in that it leaves out too many things. you seem to have a car but you have made no provision for car tax, mot, repair/servicing fund, nothing for clothes, socialising, haircuts, the odd xmas expense or present.

So I would suggest you

-forget about consolidating
-rework a realistic budget... one you can live on year on year and not just for this month
-try to cancel the PPI although this might be very difficult with HSBC who will probably try to persuade you to refinance the deal and take out a new loan to replace the old but at higher APR of course.
-consider ways of increasing you income... overtime, parttime job?

without seeing that new budget its difficult to see if you are actually spending more than your income or slightly less; although the fact that all your CCs seem to on their maximum suggests you are exceeding your income.

david_hellier

As Clapton says, can you please let us have more detail on the car costs and also the repayments for the HSBC loan.

Thanks

norm79

hi thanks for your help so far.

Car costs

Tax 190 per year
service/mot/maintaing £500 per year.

HSBC loan is £249 per month over 5 years. Started repaying Dec 06. this was a 10k loan + interest + PPI. this means if i settled now would be a lot less.

I am getting vey close with a few new jobs and my salary is likely to increase to 25k by the end of the year which will be a massive help.

As for a PT job, i do make more money matched betting than i could earn working. be putting time into this i am managing to generate an extra £200 a month average.

I am not keen on IVA's or anything like that as i wantto be able to purchase a house at some point (i am 27 now). For example, if i can get 5k for a house deopsit and raise my slary to 25k, then i could get a northern rock mortgage with an extra unsecured loan with it, leaving me with plenty spare each month. I just need to be able to get to that point.

rayday2

You cannot work your debts out on what you could be earning you have to base it on what you are earning now and make the best of it.

What if the £25,000 job does not come off. Also how are you financing the matched betting that is ringing alarm bells with me.

You really need to work out what you are spending a month and tackle things or your mortgage dreams are a long way off!

norm79

i do take on board what you are saying about the job and i am not budgetting for that at all, will just be a bonus if it does.

most of my matched betting is done in the ealry part of the month as i do not pay rent until later on.i have over a week form getting paid to paying anything so can do a lot then.

rayday2

That is risky you should proritise your rent and bills then see what you have to play with, you could come unstuck!

Obviously something is wrong with your finances as you are at limits with nearly all your creditors, it is time to do a thorough SOA see what you are doing and take it from there.

david_hellier

Hi,

According to my figures you have £41.77 per week to spend on food and anything else. I suggest you write this in a little note book (a spending diary) on a monday and keep a note of what you spend/withdraw by subtraction.

I have included an amount of £50 towards your od, so ignore your bank balance, go by your book.

I also suggest you contact your CC people and see if you can get the interest reduced or frozen. Set up SOs not DDs for fixed repayments to the cards and do not use them for any more purchases; best cut them up.

Good luck, the figures:

incomeweeklymonthlyself £ 1,275.00 partner total0.001275.00divide by 4.33 £ 294.23 £ 294.23 total weekly incomespendweeklymonthlyrent/mortgage £ 325.00 council tax £ 60.00 elec £ 15.00 gas £ 10.00 water £ - secured loans £ - TV licence £ 5.00 fines £ - loan £ 249.00 cc payments £ 200.00 fuel £ 80.00 car ins £ 60.00 phone £ 30.00 internet £ 10.00 od payoff £ 50.00 total0.00 £ 1,094.00 divide by 4.33 £ 252.46 £ 252.46 total weekly spendStart= income - spend = £ 41.77 per week