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Financial issues - £32k debt
trickycomper
Posts: 47 Forumite
in Loans
I have always had issues with managing my finances and wasn’t ever given any help growing up. I am 28 and self employed. Over the past four/five years I have spent beyond my means and racked up the following debts
Ivanko 5 year loan - £14,000
Sainsbury’s 5 year loan - £16,000
Mbna cc- £5,000
Overdraft - £7,500
Over the past few months I have really taken a look at myself and my spending as life is getting pretty stressful at the moment.
I make around £2,000 a month at the moment but I am finding that between all these repayments I am left with very little if any cash at the end of the month.
I bought my own flat a couple years back and there is around £20k of equity there.
A part of me just wants to get an IVA and start all over again but I to this date haven’t ever missed a payment and my credit score is pretty good. I beat myself up all the time for getting myself into this situation but just don’t know where to turn.
I wondered if there was a way to lump it all into one debt on a 10 year term to lower the monthly interest or what.
Any advise would be great.
Ivanko 5 year loan - £14,000
Sainsbury’s 5 year loan - £16,000
Mbna cc- £5,000
Overdraft - £7,500
Over the past few months I have really taken a look at myself and my spending as life is getting pretty stressful at the moment.
I make around £2,000 a month at the moment but I am finding that between all these repayments I am left with very little if any cash at the end of the month.
I bought my own flat a couple years back and there is around £20k of equity there.
A part of me just wants to get an IVA and start all over again but I to this date haven’t ever missed a payment and my credit score is pretty good. I beat myself up all the time for getting myself into this situation but just don’t know where to turn.
I wondered if there was a way to lump it all into one debt on a 10 year term to lower the monthly interest or what.
Any advise would be great.
Owe to Capital One CC - [STRIKE]£750[/STRIKE] 20/08/11
Owe to Natwest CC - [STRIKE]£1,050[/STRIKE] 01/12/11
Owe to Tesco CC - [STRIKE]£1,000[/STRIKE] 01/01/12 £750
Santander iPad loan - [STRIKE]£450[/STRIKE] £300 23/01/12
0
Comments
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Consolidation rarely succeeds, especially for serial borrowers who just build up further new debts.
I suggest you head to Debt free Wannabe on the forum drop down, post a statement of affairs and start cutting back on life's luxuries.
TV package, phone contract, food shop, work lunches, going out, coffee etc are things that's will typically give room to save money. Saved money can then be allocated to reducing debt through overpayments which can then get you out of debt faster.0 -
Unless I have missed something your total debt is 42500 not £32000.
Are you up to date with your tax?
Go to the debt free wanabe board and start by making a statement of income and expenditure.0 -
Post your SOA before you jump into consolidation (which rarely works, even with the best intentions).
There will be a solution but the information you've provided isn't quite enough for the kind posters to tailor suggestions. A SOA will paint a bigger picture.I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
If you can't be the best -
Just be better than you were yesterday.0 -
Consolidation rarely works at all. You suddenly get all this money and start spending it on things you know you shouldn't be spending it on!Savings as of April 2023 Savings account - £26460.50(14474.88)Current account - £2140.24(4576.79)Total - £28600.74(19051.67) £1010 (£65pm CS/BS) £250 CS/BS/JS0
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Can't see you getting a loan, your spending wouldn't be resolved. Follow the advice thats posted.0
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