I'm in a mess

crystal101

My partner and I do live together yes. But he can't help out with this debt at current. I don't really understand what an SOA is - but I don't pay for the dentist (I am still on my parents old family plan, visit once a year, never need any work, don't pay), I haven't bought medicine for literally ages, and I cut my own hair (and if I didn't my partners sister is a hairdresser anyway). The stuff that keeps popping up IS the stuff I haven't budgeted for - my family decided to holiday where I am for my dads big birthday and wanted to do things (extra petrol), my car failed its MOT recently and that cost me £200+, my insurance was recently renewed and increased due to a stupid accident I had with a work vehicle where someone else parked badly the vehicle in the dark and to move it I had to reverse in the pitch black (bumped a wall), lots of people keep getting married as I am that age...I don't have any kind of secret spending that I am not disclosing, if I need clothes I buy them seondhand off ebay, I haven't even bought new work jeans even though mine have holes in. Its just that things keep coming up which I haven't budgeted for.

I have an old notebook where I was going to write down every thing I spend and will start seeing if there is anywhere else I can cut back and will look into getting multiple credit cards, but it absolutely terrifies me to do so - just reread the YNAB thing, going to google now.

I don't have poor credit, I have great credit and am eligible for quite quite a lot (I have checked plus my bank offered me a £3k loan recently, which I didn't take obviously). I just haven't actually gone through with the applications yet as the transfer amounts were so low...but I will do so and have multiple cards...eek

I will look into changing my bank account to something where there is a payment to do so. I have strong feeling my car isn't going to last as I can hear a sound, so I may be in big trouble anyway.

Thank you for your advice.

crystal101

One last question; how do you know if you have had PPI? I am useless with this sort of stuff and don't really understand?

patchwork_cat

Out of £17k annual salary you should take home about £1230 per month. Is the £1100 pcm correct?

fatbelly

An soa is one of these

http://www.stoozing.com/calculator/soa.php

You fill it out, format for mse, then cut & paste.

Re ppi, if you look at your statements (going back as many years as you can) if you see something that says 'payment cover', 'protection plan', 'ASU', 'loan protection', 'retail payment protection', 'loan care' or similar and there is a monthly premium, that will be ppi.

sourcrates

crystal101 wrote: »

Hello....I need some advice desperately!

I have a lot of debt left over from my younger years and don't know what to do to get rid of it.

I currently earn £17,000 per year and have £6000 on a credit card...

Once again, is the 6k your total debt, or is there more from your younger years ?

Pugblue

I have been their, that feeling where you get paid you have a plan and then, car breaks down, family wants a day out arc, it took me a few years but with s bit of planning you will get out. It's also worth noting it will go wrong, you will miss something and someone will plan something when you can't afford it arc.

Listening to you thread you have two big debts, credit card and mortgage, when is your mortgage due for renewal? The rates are very low historically it might be worth consolidating all debt onto mortgage and seeing if this is cheaper? If it's not maybe extend term? Get that break and go for it, book a meeting with a good independent mortgage advisor and just see what can be done?

Pixie5740

Holidays, weddings, MOT, insurance, those are all things you should be budgeting for though. The SOA includes these items.

If you can't afford to go to a wedding or a hen do or a family holiday or whatever just start saying, "no." I went through a phase where a lot of my friends were getting married, some in some right fancy pants places nowhere near where anyone lived. I just started saying, "no," because the costs to attend some weddings was becoming ridiculous. You don't have to tell people the reason you can't go is because you're in debt. On the other hand if you do want to attend the wedding you need to start putting money aside as soon as you get the invite. Drive there if it means you can save money on accommodation and at the bar.

Pixie5740

Pugblue wrote: »

I have been their, that feeling where you get paid you have a plan and then, car breaks down, family wants a day out arc, it took me a few years but with s bit of planning you will get out. It's also worth noting it will go wrong, you will miss something and someone will plan something when you can't afford it arc.

Listening to you thread you have two big debts, credit card and mortgage, when is your mortgage due for renewal? The rates are very low historically it might be worth consolidating all debt onto mortgage and seeing if this is cheaper? If it's not maybe extend term? Get that break and go for it, book a meeting with a good independent mortgage advisor and just see what can be done?

I would not advocate turning unsecured debt into debt secured against your home. Furthermore, just because mortgage interest rates are at a historical low that doesn't mean that adding the credit card debt to your mortgage will save money, quite the opposite in fact since the debt will be repaid over a longer term.

crystal101

Yes this 6k is the only debt I have, well, other than the mortgage obviously!

My mortgage came up for renewal a year ago and it was reduced, wont be up again for a while.

I will look at a proper SOA and yes I know I need to say no more and I am going to do so in future!

Pugblue

It depends on your point of view and crucially mentally your opinion. Maybe I should make it a little clearer. You have two big credit debts a secure mortgage and unsecured credit card,

Option 1 reduce mortgage mortgage payment, take extra saving and pay down credit card with most expensive rate first - pro low risk, debt on c.c. unsecure - con (in my view) mentally high pressure

Option 2 reduce mortgage mortgage payment, take extra saving and pay down credit card with most expensive rate first, transfer cc debt to new 0% balance transfer cards, pro low risk, debt at cheapest - con takes some time, must keep eye on finish dates, lots of credit applications in short period on history

Option 3 remortgage cover cc debt, pro no more feeling of stress to make payments, con larger debt, or less you overpay it's more expensive!

As a guide I went with option 2, I was stressed at points and was very disciplined with attacking highest debt first, but remortgage not only reduced my monthly payments the money I saved really helped with debt, like I said find a good independent mortgage advisor and get a whole of market view, it's your biggest debt so give it your biggest focus