Advice and Help before taking out further Debt

kattin

Hello

Im new to MSE and feel quite ashamed and ill with worry

We have just applied for a secured loan which upon recieving the paperwork fills my heart with woe:eek:

My partner and i have a mortgage and £56000 unsecured loans at the moment!!!! My partner feels that going for a secured loan to pay off some of the debt would be our only option

I have spoken to National Debtline who have gone through the options of DMP and IVA but my partner feels that we would no longer have a life and be able to do anything. Essentially the vast amount of debt is mine and i feel guily and as if i have no say as it is my fault but the idea of a further loan with a risk of losing the home scares me to death:eek:

Any advice would be greatly appreciated as this is consuming my every waking hour and making me feel so sad

Thanks

jo1972

Hi Kattin and welcome to MSE

Well done on recognising your debts before you get yourself any further in, you don't need to feel guilty anymore as you can now do things to help your situation.

Have a look at the sticky post at the top of this board by Southern Scouser for first time posters, this will tell you how to do your SOA (statement of affairs), list down everything that goes in and out and then the kind posters on this board will go through it with you and find ways to cut your outgoings and help you manage your finances better so that you don't have to take out anymore credit.

Good luck, keep posting, you are going in the right direction now

Jo.x

kattin

Thanks feel a little better although my partner does not agree....

SOA

monthly income:-

My salary £1440
Partners salary £1200

Total Income £2640

monthly outgoings

Mortgage £520
Council Tax £99
Gas £65
Electric £35
Tv Licence £11.32
Water Rates £23.29
Phone £25
Mobile Phones £70
SpecSavers £13
NSPCC £5
Axa Life insurance £9.62
Home Insurance £34.93
PC world cover £8.99
3G phone cover £6.99
My Car Insurance £48.29
Partners
Car
Insurance £89.84
HP £159.26
Broadband £24.99
Food £300
Cigs etc... £350

Total £1650.99

Personal Loans:-

RBS balance £130000 APR 11.5% 45 months remaining
Co-Op balance £3400 APR 6.1% 35 months remaining
Amberloan Balance £11500 APR 6.5 38 months remaining
Yorkshire Bank Balance £12500 APR 4.12% 56 months remaining

Credit Cards

Unison balance £10938.42 Cash APR 26.75% Purchases 15.94%
Capital One Balance £4000 Cash APR2.59% Purchases £2.59%
RBS balance £850 APR 0%

Store Cards

Harvey Nichols Balance 282.55 APR 21.9%
House of Fraser balance £487.59 APR 29.3R%

What a mess!!!!:eek:

kraft_2

Hi, having a quick look, i reckon you can see if you can reduce your payments for these -->

Mortgage £520
Council Tax £99
Gas £65 ========== combine your gas and electric.£100 seems a lot!!
Electric £35
Tv Licence £11.32
Water Rates £23.29
Phone £25
Mobile Phones £70 === are you on contract?.. maybe look at PAYG
SpecSavers £13
NSPCC £5 ==== is that for charity?.. maybe stop this until you are sorted!!
Axa Life insurance £9.62
Home Insurance £34.93 === get quotes from other until you find a much cheaper one
PC world cover £8.99 === do you know any PC ppl in case of a "crash".. cancel this
3G phone cover £6.99 === same as above
My Car Insurance £48.29 == shop around online for car insu. i saved hundreds by going to Privledge insurance online!!
Partners
Car
Insurance £89.84 ===== as above
HP £159.26
Broadband £24.99 === find a cheaper supplier?
Food £300
Cigs etc... £350 === look to quiting smoking/drinking or drastically cut down.



just some pointers hope this helps.

kattin

We both have are tied into 18month mobile phone contracts and the same with broadband..foolish i know

I will cancel the NSPCC and cover for mobile and PC seemed to get sucked in to the cover in the first place!!

Home Insurance due in October and will definately shop around Vehicle insurance due in December and will do the same.

Think the worry has led to far more excess on the smoking and alcohol front!!!

My partner is adamant on getting a secured loan how do DMP work do they allow you to have some form of quality of life...we both work long hours and i cannot see the wood for the trees yet but am trying!!

yellowmonkey

Hi
Just a quick one. I am on a DMP and i now have a better quality of life now than before. Knowing my debts are being paid instead of struggling with Min payments etc makes me feel better all round. I do not own a property but i would not turn unsecured debts into secured debts at all.

ym

kattin

Thanks everyone is so helpful and kind.

Forgive me if this sounds silly but can you go on holidays and budget for treats etc whilst under a DMP.

Also what happens if every now and then you earn a little extra with overtime over the Christmas etc???

In_Search_Of_Me

Just wanted to send a hug for you!
I think your OH needs to understand that you are in dire straits and in my opinion getting a secured loan is just making matters worse. At the end of the day companies have no qualms in having your house so much better to tighten your belt now & go it alone or using DMP than end up homeless a year down the line...dont want to alarm you but he needs to understand that! Getting a secured loan and then carrying on as you are is a recipe for sure disaster.
I think the first thing you need to do is see where you can cut down and save. Yes, it will be a change of lifestyle but is something you need to do. We all do but support each other in the adventures of becoming debt free! You may be able to do it without a DMP (not sure what your income/outgoings works out as but you have some fairly hefty interest there) but I really would get advice before taking out a secured loan....Does OH understand that these companies are ruthless? They really do care nothing for you - only the money & if you find you can't pay they just say I'll have the house back thanks! I think you are sensible in being reluctant to do it! Have a look round the boards and get famillir with the site; see where you can get savings and get advice before you do anything! I know from my experience that I learned this lesson too late & will be paying loand for the next 4 years & paying over 10,000 in interest (no - sadly thats not a typo!) because I didnt....What is the interest payment on the secured loan over the term?!! That may help!
Where you are now is an awful, scary & panicky place to be but DONT rush into a decision that you will both regret! Also remember that you are surrounded by people who understand! Hang in there!

kattin

I have to get over the guilt as the majority of the debt is mine.

My partner helped me out last year by applying for a joint remortgage to release dome of the equity, i purchased the property before i met him

I find it hard coming to terms with it but am adamant i do not want a secure loan and will have to stick to my guns and ride the bumpy ride!

I know we can make cut backs and i have to learn not to feel like such a bad person and sort it out!!

Thanks for all your support and will let you know the progress:beer:

kraft_2

kattin wrote: »

I have to get over the guilt as the majority of the debt is mine.

My partner helped me out last year by applying for a joint remortgage to release dome of the equity, i purchased the property before i met him

I find it hard coming to terms with it but am adamant i do not want a secure loan and will have to stick to my guns and ride the bumpy ride!

I know we can make cut backs and i have to learn not to feel like such a bad person and sort it out!!

Thanks for all your support and will let you know the progress:beer:

Seriously, dont beat yourself down about it, see it as a challenge. There is soooooo many of us in the same situation which must mean its a normal thing to do .;) .. The strong are the ones that realize it and do something about it. Just ride through it, and tackle one thing at a time. Time goes so quickly and so will the debt. I have been sorting my finances out for over a year now and already paid off nearly £13,000 of it.



and just thought of another money saving idea...---> Be really concisous (spelling?) of electric, turn stuff off when you not using it, walk out of a room?.. turn the light off etc etc.. it really adds up!!!



cheers

In_Search_Of_Me

http://www.moneysavingexpert.com/banking/Budget-planning

This may help? What's done is done...just move on in the right direction & remember your OH will also have some share in what's been spent!