My Debt Free Challenge

truCido

Hi Robflh

Thanks for all your advice by the way! I've been looking at selling my car and I've found quite a few people that are interested and it would leave me with approx £800 left over to buy another, but I am quite attached to this car lol.

Also I'm going to ask around work and all my mates if they want somewhere to stay!

I also spoke to the company my store finance is with and somehow I ended up with payment protection on there so I've cancelled that immediately and that should probably save me quite a bit. However I did notice that I took out finance with them for just under £800 and it says on my forms if I want to pay it off a 1/3 into the finance I have to pay back over £1000?? I don't understand how it could possibly rise £200? Anyway I'm waiting on a settlement figure from them and hopefully I can then settle that with a 0% rate.

Robflh

Hi truCido

Ask friends and family if they know of anyone in need of accommodation or that are not happy with their current accommodation. If you can get someone, you could keep the car.

Have you had a chance to ask Sky and Virgin if they do cheques at a BT rates and while you are at it ask them what rate they can do you if you transfer money to your bank account.

Another option would be to take out a new loan for £3,600 over 36 months and to use it to pay off the Halifax loan and the Shop Finance.

The new loan could cost you as little as £112 and that would be a saving of £61 on the old loan plus a saving of £39 on the shop finance. That would be a total saving of £100 a month.

Click on the link below to find out more.
www.moneysupermarket.com/loans

PS. Update your SOA as and when things change. Write it down somewhere as it is now (on your computer will do fine) and in two or three months time write it down again and compare the two. It is always a boost to see how well you are doing.

truCido

I'm waiting to speak to Virgin (will give it another week before I hassle them lol)

I've looked into loans and at the moment my credit history isn't the best its been so I would get a bit of a crap rate, however I will speak to my bank and see what they say about "topping it up" so to speak but at a different rate.

Also I've come up with a bit of a business idea as I've noticed there's something lacking in the world of money saving etc. Well I say lacking its just not out there really so I'm developing my own and then I'll launch it in the next month hopefully. It won't make me big money but should hopefully bring a little bit in, every little helps an all

Robflh

Hi truCido

truCido wrote: »

my credit history isn't the best its been, so I would get a bit of a crap rate.

That may or may not be true. However, the important thing is finding out just what rates you are offered and if they are less then 16% (the Halifax loan) applying for two of them.

At money supermarket .com, you can fill in their smart search and it will show you what APR you are likely to be offered.

If the rates are higher then 16% or you are turned down for the loans you then and only then go to Halifax and ask to redo the loan you have with them. As an existing customer with a loan that you have not defaulted on, they are more likely to say yes but first you need to see if you can get it cheaper else where.

truCido

I had a look and there wasn't anything decent that money supermarket could come up with

Also I just got my settlement figure for my store finance and its £987.50, which I don't really understand as the finance I took out was for approx £850 (I estimated £1000 on my SOA because I was suspicious). Does anyone know how it could possibly increase so much? As the payments are so low technically if interest got it up to that amount from £850 it would be impossible for me to pay it off!!

Robflh

Hi truCido

It is a shame you cannot get anything decent via money supermarket. So, that will just leave Halifax. Make an appointment to see them ASAP and redo the loan you have with them.

If you continue to pay the shop finance loan, it will cost you £39 x 33 = £1,287. Paying it off now will cost you £987.5 and that is a saving of £299.50

Multiply £39 by the total number of payments and then take away from that what you borrowed. What you are left with is the amount of interest you will have to pay for borrowing that money, minus any fees you had to pay for taking out the loan.

You may also be charged a fee for paying it back early.

truCido

ok I tried halifax and they also declined me lol apparantly its because I missed a single payment on my halifax credit card (my own silly fault tbh I just forgot but I did pay it the next day)

Also I found out that my loan was only taken out over 24 months which I didn't realise and I have less payments left than I thought

Robflh

Hi truCido

It is a shame that Halifax turned you down as well. Unfortunately, this credit crunch thing means they will say no to people for the slightest of reasons. That leaves a BT cheque from Virgin or Sky. Do not forget to ask them both what the APR would be if you did a BT to your bank account.

If a BT is a no go, you will need to get a lodger ASAP or you will have to sell the car. Have a word with your local council, just so that you have an idea how getting lodgers through the council would work.

Depending on when you work, you could also try getting an evening/weekend job. Try all the supermarkets in your area. They often have part time vacancies.

In the mean time, you are going to need to do something a bit drastic. Pay for everything you can with the Sky card and at the end of the month or when ever the Sky card payment is due. Pay off as much as you can.

Most months you will pay off more then you have spent but on occasions, you will pay off less. It may seem silly to do this but it will guarantee that you will have enough cash each month to make all your card and loan payments. It will also give you breathing space, while you are sorting things out.

Robflh

Hi truCido

Out of curiosity if nothing else, give Lombard Direct a ring and see if they would give you a loan for £3,500 and if so what the APR would be. Tel: 0800 051 8448

Tell them that you have been foolish. You took out a store loan without checking what the APR was. Also tell them that you already have a loan with Halifax and that by taking out a new loan for £3,500 you can pay off both of them, have one loan with a much better APR and you would be paying less each month for the new loan then you are now for just the Halifax one.

Also, can you find out who the HP is with. You may have took it out with the place you bought the car from but it will have been underwritten by a company.

For example, Lombard Direct is underwritten by Direct Line Life Insurance Company Limited. The Sainsbury's credit card is underwritten by HSBC.

Will maternity leave affect your income in any way.

truCido

Hi Robflh
Out of interest why Lombard Direct? I'm going to try Virgin again and see if they can offer anything.

I know who my HP is with, what can I do about that?