Unsecured debts

dk250

Just trying to get rid of unsecured debts asap

Current list is

1) 19k Tesco loan settlement figure paying £434 a month until jan 2021 at 7% interest
2) 2.9k on Tesco credit card pay minimum payment of £30 - month 12 more months 0% interest
3) MBNA 2.2k balance £35 minimum payment 0% until April 2017
4) fluid £925 balance £25 minimum payment 0% until October 2017

£25 k in total and paying £524 a month

Credit situation is good and eligibility checker shows chance of a loan with nationwide at 4.9% - can't apply for new loan with Tesco until made 3 more payments but their rates are also low.

glentoran99

Without further details (earnings etc) I would guess a 25k loan would be out of the question, You owe 25k so unless your earning would allow 50k of unsecured debt the chances are slim


Im willing to bet the 19k loan was a consolidation loan too and you ran up more debt?

dk250

Earnings are £42 k -yes I did cut up cards but moved house 12 months ago and had various moving costs which i had no other option for.

glentoran99

dk250 wrote: »

Earnings are £42 k -yes I did cut up cards but moved house 12 months ago and had various moving costs which i had no other option for.

I may be wrong but I think you are likely at the limit of borrowing and need to explore other ways, You cant borrow your way out of debt (been there tried that)

dk250

I know hence coming on here just wondered any one in a similar boat or any advice greatly received

EssexHebridean

First step is to put together your SOA (Statement of affairs) - you will find the link in the "Sticky" thread at the top of this board. Fill it in accurately, and make sure it reflects the way things are financially now, not what you think you *should* be doing. 12 months of bank & card statements will help you track down accurate figures for all the monthly, bi-monthly and annual things, plus things like grocery shopping.

Format the SOA for MSE as instructed at the bottom and post it in here and we can take a look and see where you may be able to make savings that you've not spotted. You need to act now as you have 0% deals coming to an end. As you've already consolidated once it would be strongly advised that you don't do this again.

enthusiasticsaver

Consolidating debts on to a new unsecured loan is not getting rid of them just moving them. As you have said you have consolidated before and are back again with the loan and more credit card debts. This is a classic issue of consolidation not working so please do not do it again.

You have two advantages - First you have some of your debt on 0% and an excellent credit report so chances of getting more 0% deals are high. The loan is not a bad rate but my suggestion would be that you focus on cutting costs and living within a budget and focus on paying off the MBNA card, then the fluid and then Tesco before tackling the loan. Second you have a reasonable salary so should have a fair amount of disposable income to pay off the debt to stop it going any higher.

If you continue to spend more than you earn before long that £25k will be £30k and so on. Stop using cards and focus on paying off the ones you have. Post an SOA as EH suggests above.

dk250

font=courier new]Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2660
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2660

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 243
Rent.................................... 708
Management charge (leasehold property).. 0
Council tax............................. 116
Electricity............................. 45
Gas..................................... 35
Oil..................................... 0
Water rates............................. 23
Telephone (land line)................... 0
Mobile phone............................ 33
TV Licence.............................. 12
Satellite/Cable TV...................... 40
Internet Services....................... 25
Groceries etc. ......................... 140
Clothing................................ 25
Petrol/diesel........................... 150
Road tax................................ 20
Car Insurance........................... 55
Car maintenance (including MOT)......... 0
Car parking.............................
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 38
Buildings insurance..................... 15
Contents insurance...................... 0
Life assurance ......................... 25
Other insurance......................... 50
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 75
Holiday................................. 50
Emergency fund.......................... 0
Total monthly expenses.................. 1933


Assets
R
Mortgage...................... 0........(0)........0<
Car lease .....................0........(243)......6
Total secured & HP debts...... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Tesco loan ....................19000.....434.......7
Tesco credit ..................2900......30........0
MBNA ..........................2300......35........0
Fluid .........................925.......25........0
Total unsecured debts..........25125.....524.......-


Monthly Budget Summary
Total monthly income.................... 2,660
Expenses (including HP & secured debts). 1,933
Available for debt repayments........... 727
Monthly UNsecured debt repayments....... 524

enthusiasticsaver

Is that soa accurate in that do you have £200 spare each month?

The mobile phone could be reduced by going sim only when contract finishes. The cable could be cancelled and you just use freeview. There are a lot of insurances so are you getting best deals and are they all necessary. There is nothing in presents or emergency fund and where are you saving holiday money and why is it not showing under assets?

zippygeorgeandben

Have you put your debts into whatsthecost.com and snowballed them?
The mbna is a priority. What are the APRs on all these debts once the 0% has finished?
That Tesco loan is pretty high for an APR for such a high sum too. There is a possibility you could shift that to a personal loan paying say 3% interest, pay more off each month and not increase the time it takes to pay it back.

EssexHebridean

dk250 wrote: »

font=courier new]Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2660
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2660

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 243
Rent.................................... 708
Management charge (leasehold property).. 0
Council tax............................. 116 Single person discount being applied to this? Are you currently paying over 10 months? If so remember you have this amount extra this month and next to throw at debts. Ongoing it may be helpful to ask the council to switch you to a 12 month payment plan.
Electricity............................. 45 I take it you use gas for heating? If so this is very high - we pay less than this for our electric and that includes our heating as well! Check you're on the best deal and also have a "walk round" switching off anything unecessary.
Gas..................................... 35 Turn the thermostat down 2 degrees and pop on a jumper and some thick socks.
Oil..................................... 0
Water rates............................. 23
Telephone (land line)................... 0
Mobile phone............................ 33 Are you in contract? If not you can probably reduce this a good amount by going SIM only
TV Licence.............................. 12 12.12 - you know what they say, look after the pennies...
Satellite/Cable TV...................... 40
Internet Services....................... 25
Groceries etc. ......................... 140
Clothing................................ 25 If you're trying to pay down debt then it's probably a good idea to reduce to just buying essentials for a while
Petrol/diesel........................... 150 Read Martin's guide to driving economically on the main site.
Road tax................................ 20 Do you actually pay this monthly? If so there is a loading for doing so - better to try to pay in 6 or 12 monthly lumps.
Car Insurance........................... 55
Car maintenance (including MOT)......... 0 There needs to be something here - particularly bearing in mind it looks like you do a lot of miles. It may be your maintenance is covered by a lease but there will still be things that aren't I'd guess - tyres, wiper blades, screenwash?
Car parking.............................
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 38
Buildings insurance..................... 15 Guessing this should actually be contents insurance - and if so it's high. Head for the comparison sites and bring this down a bit.
Contents insurance...................... 0
Life assurance ......................... 25 As a single person, no dependants, and renting, do you need this?
Other insurance......................... 50 What's this? It's a big old lump going out every month.
Presents (birthday, christmas etc)...... 0 Never? Bet you're popular in your family..
Haircuts................................ 10
Entertainment........................... 75
Holiday................................. 50 Are you actually saving this each month?
Emergency fund.......................... 0 I'd prioritise this over a holiday fund in the first instance, to be honest...
Total monthly expenses.................. 1933


Assets
R
Mortgage...................... 0........(0)........0<
Car lease .....................0........(243)......6
Total secured & HP debts...... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Tesco loan ....................19000.....434.......7
Tesco credit ..................2900......30........0
MBNA ..........................2300......35........0
Fluid .........................925.......25........0
Total unsecured debts..........25125.....524.......-


Monthly Budget Summary
Total monthly income.................... 2,660
Expenses (including HP & secured debts). 1,933
Available for debt repayments........... 727
Monthly UNsecured debt repayments....... 524

Do you actually have the surplus that the SOA suggests you have? If not, and bearing in mind you're already budgeting an amount for entertainment, you need to start a spending diary to track this down.