New Start - Step 1

Tom159753

First-time poster, Very nervous.

My monthly outgoing debts payments are currently more than our mortgage and bills combined. Thankfully I managed to recently remortgage to repay my help to buy equity provider so that I now own 100% of my own home. I would like to be debt-free, certainly a long way down the road in two years' time so that we can move house.

I suppose my first step is to collate all my debt details and take it from there.
Lender name
Amount
APR
Intro Rate Date End

I am currently thinking that a consolidation loan would be best as we are talking about an astronomical amount of debt here.

Anyway, I am here because I am sick of feeling sick with worry and these types of discussions with my wife usually end in raised voices and slammed doors.

I am off to gather my debt data.

Wish me luck

Tom.

Karonher

Good luck. There are just 2 points - you will be told consolidation does not work but it did for me - it was the shock I needed to sort things out. My debt was relatively low however. Which is the other point. If you already have a lot of debt you may not be accepted.

They only have your word that the money would pay off your other debts and due to all the criticism about un-affordable lending the banks may be reluctant to let you have more.

Tom159753

Just one more account info needed then I am done with the data collection

Summery APR APR end date Balance Monthly Payment
Credit Card 16.82% variable -£14,588.73 £344.81
Credit Card 15.94% variable -£7,770.97 £174.83
Loan 5.20% EOL- 1/1/2022 -£8,814.68 £314.81
StoreCard ?? ?? ?? ??

joedenise

People will be able to help you better if you fill out the Statement of Affairs, there is a sticky at the start of the section. Fill it out and format for MSE to post here.

Consolidation very rarely works and as said above it's unlikely you'd be able to consolidate anyway.

Blackcats

Wishing you luck. Very wise people here will give you sound advice but you also asked us to wish you luck, so here's some good wishes too. Sticking with a diary keeps you accountable and the folks here are full of inspiration and good ideas too.

Tom159753

Thanks for the replies I will fill out the stickied format tomorrow.

We are feeling very lost this evening. We applied for a consolidation loan from our bank, it was rejected.

I applied for the full amount of all the listed debts below over 7 years.

What I don't understand is that I am currently servicing these debts at over £900 a month with no missed payments ever. And yet the bank thinks I cannot afford £550 a month for the consolidation loan.

Back to the drawing board in the morning. I'm trying not to let it get to me mentally, but it's a heavy toll.

Fed up.
Tom

ratrace

Tom159753 wrote: »

Thanks for the replies I will fill out the stickied format tomorrow.

We are feeling very lost this evening. We applied for a consolidation loan from our bank, it was rejected.

I applied for the full amount of all the listed debts below over 7 years.

What I don't understand is that I am currently servicing these debts at over £900 a month with no missed payments ever. And yet the bank thinks I cannot afford £550 a month for the consolidation loan.

Back to the drawing board in the morning. I'm trying not to let it get to me mentally, but it's a heavy toll.

Fed up.
Tom

i know what you mean tom, but you have to look at it from their point of view you own about £30k ish already and now you asking for 30k more without any guarantee that you will pay the debts off and close the accounts down

as you applying for an unsecured loan there is no collateral for them to take just in case you dont do what you said you will do ie: pay the debts off with the new cash, so for them its not worth the risk as they as in business to make a profit, i know you may not do this but people have done just that consolidated and then just ran up more debt and doubling what they own

hence the reason consolidating is not reccomended on here as we have seen it to many times, but for me i did just that took out a loan paid all the high % cc's off and cut up the cards but for me the debt was built up due to unforeseen circumstances and not from buying things if that makes sense...


all the best mate ill try to chip in to help, post a soa so we can help you cut some expenses and free money upto over pay and get you out of debt fast

Tom159753

I can't seem to find the SOA link anywhere on here. Am I missing something?

[Deleted User]

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

Don't forget to format for MSE at the bottom

CoffeeCakeYarn

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

It helps to look through the last years worth of account statements to see where the money has gone, good luck!

Tom159753

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 2312
Partners monthly income after tax....... 1200
Benefits................................ 138
Other income............................ 0
Total monthly income.................... 3650

Monthly Expense Details
Mortgage................................ 655
Secured/HP loan repayments.............. 111
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 122
Electricity............................. 41
Gas..................................... 41
Oil..................................... 0
Water rates............................. 45
Telephone (land line)................... 35
Mobile phone............................ 0
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 400
Clothing................................ 100
Petrol/diesel........................... 250
Road tax................................ 11
Car Insurance........................... 56
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 120
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 23
Contents insurance...................... 0
Life assurance ......................... 12
Other insurance......................... 0
Presents (birthday, christmas etc)...... 120
Haircuts................................ 25
Entertainment........................... 400
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2600


Assets
Cash.................................... 0
House value (Gross)..................... 160000
Shares and bonds........................ 0
Car(s).................................. 2
Other assets............................ 0
Total Assets............................ 160002


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 134000...(655)......0
Hire Purchase (HP) debt ...... 5100.....(111)......0
Total secured & HP debts...... 139100....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
CC.............................14588.....343.......17.8
CC.............................7770......175.......15.9
Store Card.....................3200......161.......17.5
Loan...........................8331......315.......5.2
Total unsecured debts..........33889.....994.......-


Monthly Budget Summary
Total monthly income.................... 3,650
Expenses (including HP & secured debts). 2,600
Available for debt repayments........... 1,050
Monthly UNsecured debt repayments....... 994
Amount left after debt repayments....... 56

Personal Balance Sheet Summary
Total assets (things you own)........... 160,002
Total HP & Secured debt................. -139,100
Total Unsecured debt.................... -33,889
Net Assets.............................. -12,987

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