Financial advice please guys and gals appreciated thanks

MRDOLLAR

Hi there , I’m not very financially minded I need to be especially during the current corona situation.

Im a home owner £147,000 mortgage remaining on home valued at 175-180,000 29 years left, one year left with HSBC at £560 a month. Fixed. 

Currently ERP is £1100.
I have a credit card with 6 months left at 0% with £6000 debt on with Virgin payment is £70 a month.
I have a Halifax credit card with debt of £1100 and 10 months left at 0% payment is £50 a month 

And I have a PayPal credit account with 10 months 0% with £1000 debt payment is £50 a month  

Lastly I have a car on HP settlement figure is £6000 or continue to pay 4 years 5 months at £133 a month.
would it be better to own the car now eg get a loan and settle it or Contine on H.P?

what would be the best way to bring monthly payments down consolidate as a loan ? Remortgage now or wait until next year as mortgage finishes. Fix term.
£303 is paid monthly on the above debts.

I would like to free myself extra cash if possible I dont seem to be getting anywhere.
Also I’m hoping my job is safe but I’d like to know is it better to own car now via loan or continue on HP? 

Just looking for comfortable stability. 

I’m pretty much spending what I earn 
£2000 a month so any help and advice is appreciated x thanks 

monetxchange

Getting loans to pay off cars or to consolidate debt are a recipe for disaster. Don't do it! You're just taking on more credit to push your debt sideways and not actually clear it. This forum is full of people that did that and ended up with twice the debt a couple of years down the line.

What you need is a tight budget so you can get financially stable while tackling your debts. If you post an SOA, everyone will be able to advise where you can trim and where to budget more etc. 

First off, is the car really affordable if you carry on paying the monthly payments? Is it better to just cut your losses at the balloon payment stage by handing it back and getting a cheap run around to see you through instead? I'm debt free yet run a £1700 12 year old run around that flies through the MOT and is cheap on insurance and petrol and parts. I think it's a bit of a fallacy that brand new cars are more money efficient as they're less likely to break down. It's not money efficient if the monthly payments are killing you!

Best way to get your monthly payments down is to start overpaying them. Your monthly "payment" at the moment is the minimum payment. You should be aiming to greatly increase what you pay every month to get them cleared quicker to save on all the interest they'll start charging you. Any chance of getting the 0% extended by shifting them with balance transfers when the current 0% is up?

enthusiasticsaver

Consolidating is not the answer.  It will inevitably lead to higher debt.  You should be paying as much as you can to Virgin to try and get that £6k as low as you can before you have to apply to Balance transfer it as it will not be repaid within the 6 month period if you are only paying £70 per month. I would not apply for a loan for the car at the moment as that will jeopardise any application for a 0% card to move the Virgin balance to.  

To  get better control of your finances you will need to cut back as much as you can.  You have £14100 of unsecured debt and are spending pretty much all you earn by your own admission so that needs to change or you will have to earn more. Go through your budget and cut out all unnecessary spending and tackle those credit cards then the car finance.  

curlytop12

consolidation rarely works, and don't add your debt to your mortgage.
can you fill in this Statement of Affairs? this is your key to money management. there are loads of people here to advise you, good luck
https://www.lemonfool.co.uk/financecalculators/soa.php

Andyjflet

Please dont borrow any more money, it never works. The debt is a result of bad habits, I'm in the same please, borrowing your way out of debt without tackling the problem is the issue. Its like fixing a new tap but the pipe running up to it is still leaking.
Check out Dave Ramsey and his baby steps, I think you are perfect for this, check out his podcasts and you tube videos.
Basically

• Baby Step 0 – Create a budget
• Baby Step 1 – Create your emergency fund £1000
• Baby Step 2 – Pay off all your non mortgage debts smallest to largest
• Baby Step 3 – Save a fully funded emergency fund 3-6 months of outgoings
• Baby Step 4 – Invest in your pension
• Baby Step 5 – Fund your children’s education
• Baby Step 6 – Pay off your mortgage

bamgbost

I like these baby steps advice. I need to follow it.