Newbee looking for advice

GFUNK83

Hi folks

I'm a 34 year old male , married , homeowner with a 6 year old kid.

I have racked up debts on 3 separate credit cards totalling £16000 with total outgoings for these monthly of £350 only covering the minimum payment on each

These cards were balance transfer cards that had big available credit on them and surprise surprise I ended up spending on them

I have changed my job from quite a highly paid job to now since the beginning of the year I now earn about 60% less annually !!

As these are on balance transfer cards I don't think I can then transfer them to other cards so I'm really struggling with the outgoing payments.

I would like to consolidate them to one lump sum payment but as I have changed jobs recently within the last 6 weeks I don't think I would qualify for a loan of around £15k !!

What are my options because I can't go on like this

Looking for some help folks

Pablosammy

Consolidation is very rarely the answer - time after time it ends up badly. Trust me, I've been there. Are you sure it's not manageable? With that drop in pay you'll have to make some lifestyle changes, but that's not to say you'll be totally under water. It's a bit of a cliche on this board, but I'd suggest filling out a frank and honest Statement of Affairs (SOA) and doing one of two things - use it to set out in your own head what's going in and out of your bank account, or if you can face up to it (remember, it's all anonymous!), post it on here and let people make some suggestions.

Try this link... http://www.stoozing.com/calculator/soa.php. It doesn't actually seem to be working for me at the moment, but it might just be my PC!

La_escocesa

Just because they are balance transfer cards doesn't mean you can't still transfer the balances to another balance transfer card...

But as Pablosmammy pointed out if you just transfer the balance but don't address the drop in salary/tightening your belt then you may well end up just spending on them again.

Once you've got your SOA done you'll have a better idea of where you stand.

EssexHebridean

Echoing what has already been said - before you think about ANY kind of consolidation or balance transferring you need to address the issues around working to a proper budget and making savings where you can.

Another trick for you though - if you're no longer using the cards and won't be tempted to either - set the monthly DD on each to a level just above where the minimum payment amount is now - so round up to the nearest pound for example. This then means your monthly payment remains at a static amount (which you have said you're managing to make) and so each month you pay a little more off the capital, rather than with a classic "minimum payment" DD where it drops slightly each month as money is paid off. You get a little more benefit, the extra few pennies each month don;t just stay in the bank account to get frittered, and you pay everything off that bit faster. Any extra payments you can make on top, of course, mean you shift it even faster!

GFUNK83

Hi folks , just logged back into this after quite some time so thought I would update ;

I have secured a new job with slightly better salary but alas ! I have spent a bit more on the cards over xmas’s and Critical repairs at home etc .

My debts on cards are
1@ 10k paying £260 p/m
1@ £3700 paying £100p/m
1@ £3450 paying £50 p/m

I approached my bank about a £17k loan over 6 years which would’ve reduced my monthly outgoings by around £130 every month which I thought was the best solution - they declined due to affordability (mega frustrating as I “afford” it currently although it’s a struggle and I know I could reduce the monthly repayments)

Attempted a few times since the OP at gaining a Balance Transfer card to switch some of the balance from the highest apr balance to , but only the likes of Marbles , Aqua etc willing to help.

I have enquirered about a loan again and anyone who is willing to accept is wanting me to secure this against my home which just frightens me to death so I’m not keen on that .

As it stands I have never missed payments to them but just so frustrating that I am never clearing anything really and I don’t see me being able to increase the monthly amount anytime soon either

I’m in contracts with things like mobile phone , tv , car etc that there is no way of saving anything anywhere else monthly

adg89

An SOA is still the best way to go as forum users can usually spot a saving somewhere e.g Grocery shopping - are you shopping at the likes of Aldi/Lidl or using own-brand as opposed to branded items?
Meal planning will help with a grocery budget as you will have a feel for how much you need to spend.


Also, a lot of people don't account for how much they spend on entertainment (not just things like cinema/days out but also the occasional coffee with friends, drink down the pub etc) and this could be somewhere you could tighten the belt if you haven't already, however without a comprehensive, frank and honest SOA, users may not be able to help so much.


Most importantly - are you still relying on credit? If so, it would suggest that you still need to figure out your budgeting to be able to live within your means.


The offers you're being given suggest that your credit rating isn't great - I'd suggest seeing if you can use the MSE Credit Club to access your credit file and see if there is anything on there affecting your rating that shouldn't be there?


Does your spouse work? If so, are they able to help you in some way to at least make more than the minimum payments to bring the capital down on the debts?


Again - an SOA would be a great thing for you to fill out, even if you don't post as it will help you see what's going on across the course of the month.

[Deleted User]

In March 2019 you were declined for a consolidation loan and said there was no fat to be trimmed from your budget. Now in January 2019 you're still being declined for a loan, claiming there is no fat to be trimmed but your credit card debt has increased.

Put together a statement of affairs and post it here. I bet the regular money savers can help you make savings and/or suggest a more suitable debt solution.

https://www.lemonfool.co.uk/financecalculators/soa.php

DCFC79

Lover_of_Lycra wrote: »

In March 2019 you were declined for a consolidation loan and said there was no fat to be trimmed from your budget. Now in January 2019 you're still being declined for a loan, claiming there is no fat to be trimmed but your credit card debt has increased.

Put together a statement of affairs and post it here. I bet the regular money savers can help you make savings and/or suggest a more suitable debt solution.

https://www.lemonfool.co.uk/financecalculators/soa.php

Have you by any chance posted this on the wrong thread ?

sourcrates

Hi,


As advised in your other posts, a statement of affairs is the first step, otherwise we can only make generic suggestions.


If you want personalised advice, we must see a fully completed SOA.
The link has been kindly provided in the two posts above.

sourcrates

DCFC79 wrote: »

Have you by any chance posted this on the wrong thread ?

Refers to OP`s other thread on the loans board.

[Deleted User]

DCFC79 wrote: »

Have you by any chance posted this on the wrong thread ?

No. I was bumping this thread after the OP reappeared on the loans board about being turned down again for a consolidation loan.

https://forums.moneysavingexpert.com/discussion/6088241/refused-consolidation-loan-on-affordability-makes-no-sense