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Debt Advice Needed
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No.
You have already seen that consolidation doesn't work and you have 5k more debt than when this thread started.
Securing more debt against the house would be a massive mistake that would make your situation more difficult to get out of.
Your new budget balances if you knock out entertainment and the new debt is at 0%. Keep the card debt at 0% for as long as possible.
I don't think you need a dmp yet but obviously you are nearer it than when you started the thread.0 -
Looking at the figures from January the debt is now £5k higher. Is that because of the gambling relapse or are you still spending on the cards to live? You need to stop using them altogether. Have you cut them up and removed them from websites etc? As @fatbelly says consolidation does not work. You have moved half the loan on to 0% credit cards which works when your budget is under control but it is very difficult if you are still adding to the debts.
Your priorities should be.
Stop gambling
Live within your budget and do not use credit at all. No more consolidations.
Focus on clearing the cards rather than overpaying the loans for now as the cards will charge a lot more than 9% if you do not clear them within the deal period. You have a deadline as the mortgage will go up next year so I would use this year to really get on top of the debts. If the payments are unaffordable when the mortgage goes up next March then consider a DMP.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment 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.
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Thank you both for your replies. Part of it was due to gambling relapse and the other thing was for my orthodontist treatment which I completely missed off original SOA.I will focus on the Asda card until July and will do 100 to my emergency fund. Obviously it’s going to take a while to build this back up.If I manage to get another 0% do you think to close the Asda card?0
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Goober:If I manage to get another 0% do you think to close the Asda card?
And if you haven't already, factor medical and dental into your SOA, going forward.If you've have not made a mistake, you've made nothing1 -
RAS said:Goober:If I manage to get another 0% do you think to close the Asda card?
And if you haven't already, factor medical and dental into your SOA, going forward.0 -
Hi All,
I'm back again, I think I have made a mistake, I have been looking into secured loans and was offered a 26000 loan over 10 years with re payments of £280 per month, my current debts total around £750 per month. My only fear is when the 0% period ends on the 3 credit cards I have around October next year and if I can't get any more deals then I would be in a bad position and hit with hefty interest rates. Would you cancel the loan whilst I still can?
I have updated my SOA and this is below:[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]Household Information[/b]Number of adults in household........... 1Number of children in household......... 0Number of cars owned.................... 1[b]Monthly Income Details[/b]Monthly income after tax................ 2340Partners monthly income after tax....... 0Benefits................................ 0Other income............................ 0[b]Total monthly income.................... 2340[/b][b]Monthly Expense Details[/b]Mortgage................................ 502Secured/HP loan repayments.............. 0Rent.................................... 0Management charge (leasehold property).. 110Council tax............................. 119Electricity............................. 100Gas..................................... 0Oil..................................... 0Water rates............................. 30Telephone (land line)................... 0Mobile phone............................ 5TV Licence.............................. 0Satellite/Cable TV...................... 0Internet Services....................... 33Groceries etc. ......................... 200Clothing................................ 20Petrol/diesel........................... 25Road tax................................ 13Car Insurance........................... 30Car maintenance (including MOT)......... 30Car parking............................. 0Other travel............................ 25Childcare/nursery....................... 0Other child related expenses............ 0Medical (prescriptions, dentist etc).... 0Pet insurance/vet bills................. 0Buildings insurance..................... 0Contents insurance...................... 10Life assurance ......................... 0Other insurance......................... 37Presents (birthday, christmas etc)...... 20Haircuts................................ 12Entertainment........................... 40Holiday................................. 20Emergency fund.......................... 100[b]Total monthly expenses.................. 1481[/b][b]Assets[/b]Cash.................................... 200House value (Gross)..................... 260000Shares and bonds........................ 0Car(s).................................. 1000Other assets............................ 0[b]Total Assets............................ 261200[/b][b]Secured & HP Debts[/b]Description....................Debt......Monthly...APRMortgage...................... 94000....(502)......1.69[b]Total secured & HP debts...... 94000.....-.........- [/b][b]Unsecured Debts[/b]Description....................Debt......Monthly...APRTesco Bank Loan................8000......380.......9.9Barclaycard....................3500......35........0Natwest........................5000......50........0Asda...........................700.......20........26Tabeo Loan Invisalign..........3600......170.......9.9Capital One....................5127......100.......0[b]Total unsecured debts..........25927.....755.......- [/b][b]Monthly Budget Summary[/b]Total monthly income.................... 2,340Expenses (including HP & secured debts). 1,481Available for debt repayments........... 859Monthly UNsecured debt repayments....... 755[b]Amount left after debt repayments....... 104[/b][b]Personal Balance Sheet Summary[/b]Total assets (things you own)........... 261,200Total HP & Secured debt................. -94,000Total Unsecured debt.................... -25,927[b]Net Assets.............................. 141,273[/b][i]Created using the SOA calculator at www.LemonFool.co.uk.Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]0 -
Please do not shift unsecured debt to a secure loan.
Default on consumer debt and there are limited consequences.
Default on a secured loan and you could lose the roof over your head.If you've have not made a mistake, you've made nothing1 -
Thank you RAS.
The main reason I considered it again was if I had of done it then I would have closed the cards down and really focus on becoming debt free.I would also have extra money I can put in my emergency fund or pay off the loan.0 -
Are the debts that you've listed as 0% actually zero percent. If so, put everything you have against the ASDA account. And check the MSE pages for possible 0% transfers for the other debts.If you've have not made a mistake, you've made nothing0
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RAS said:Are the debts that you've listed as 0% actually zero percent. If so, put everything you have against the ASDA account. And check the MSE pages for possible 0% transfers for the other debts.
Yeah the Barclaycard, NatWest and Capital One credit cards are at 0% until around October 2026.I did check that but I am not eligible for any 0% transfers unfortunately. I think because my credit score is pretty bad at the moment. Could it be worth looking at a secured loan to clear the Tesco loan and dental as would be lower interest rate at 5.99%?
Many thanks
Andrew0
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