In lots of debt and need help getting out.

spareapenny

Hi all

No judgement please I know what I did was stupid, I was desperate, but I want to look forward.

Income 2600

Bills and due dates

Rent 1150 (29th)

Energy and Gas 50.00 (1st)

Broadband 30.00

Council Tax 136.00 (1st)

Food shop around 80.00-100.00 a month

Loan repayments (The problem)

I'm not going to be going into more detail than necessary should the lenders be lurking here and figure out I'm up the creek without a paddle and want all their money back.

Loan 1 (A) 181.00 DD every last day of Month

Loan 2 (B) 131.24 every last Day of Month

Loan 3 (C) 141.60 every 10th of the Month.

(I always pay more as this is the worst for interest rate)

payment days and situation

I get paid every four weeks. My next payday is 5th of June. I start the month (JUNE) with £1891.64

I have an overdraft of 1500 with Monzo.

Some good news is that my landlord has agreed to push the rent for June into July as the pay days and due date are like 5 days apart. This takes me out of my overdraft!!

Loans overview

Loan 1 (A)

Loan amount £7000

Interest rate 17.7% APR

Repayments 180.00 over 5 years

Balance £6882.67

If I follow their payment plan I will pay £3000 in interest (I will not be doing that)

This loan is the one that will take forever to clear off

--

Loan 2 (B)

Loan amount £2000

Repayments 131.24 over 2 years

APR is 57.9% applied to the loan for the duration of the loan at contract. I can get the interest which has not been applied back if I pay early.

This loan has pre-applied interest so the balance is £3000.

Interest 1149.76

--

Loan 3 (C)

Loan amount £2000

Repayments is 141.60

Interest rate is 96.2% (!) APR

Balance is still £2000

—

I am tackling the Loan C as aggressively as possible as that grows by like £3.19 per day at the current balance. So I have allocated £600 to pay on the June payday on the 5th.

In terms of growing money I have been looking at a bank switch, but the problem is I have already opened accounts with Nationwide etc hoping to do the offer but I had to rely on the Monzo overdraft and so missed the deadlines to switch. I wonder if I close and reopen my accounts if I will count as a new customer!!

I also have a few things I could sell but that is absolutely a last resort (things I need for work etc)

I have no credit options, no credit cards available (ie money transfers) I am fingers crossed as I reduce my debt I will get some offers and be able to stick the remainder on a 0% money transfer but that's just wishful thinking ATM.

Thanks all.

MasterG83

Hi, add an SOA and then we can offer advice in a bit more detail. (available in the pinned threads)

What is your actual question?

Growing money is great longer term, but now we need to help you with a plan to clear your consumer debts.

spareapenny

https://forums.moneysavingexpert.com/discussion/comment/82013191#Comment_82013191

Hi, thanks. I will do this SOA when I'm home so in about half an hour or so.

I forgot to mention in the original post but I have allocated £300 to Loan C every month after June's pay. I mentioned I paid more than the minimum but it did not occur to me to mention what I paid

dnpark38

Christians against poverty (CAP) are a well respected organisation at helping people get out of debt and are often mentioned by Martin Lewis.

spareapenny

Hi unfortunately something has come up so I can't do the SOA today

lordmountararat

Without seeing your SOA, what becomes immediately apparent is that your rent is almost 50% of your income, so it is no wonder that you are having problems. Is there any way you could move into a cheaper property?

Brie

You've spotted the obvious in that paying off the loan with the highest rate of interest will help you the most.

But yes without an SOA (see my signature for the link) it's hard to comment or advise. Do ensure that you use actual figures not guessimates. Best to look at 2 months worth of statements to get the true picture.

You might find it helpful to read up a bit on debt solutions too.

Debt solutions - what is your best option?

RAS

It does help if you can share the names of your creditors. This is a big thing for you but it's very rare for a human to review anything to do with your account unless you ask them too. Their computer won't be reviewing this thread.

At very least if you owe Amex or a credit union, please let is know.

ManyWays

please fill out an SoA with the names of the lenders. You may be able to win affordability complaints against them and have the interest removed.

spareapenny

Hi all, here is the SOA, I had some time to complete it.

Just to add a few things in response to some people

1: I know rent is a significant chunk of my paycheck. Unfortunately, I am not in a position to afford the security and holding deposits for moving out. Funny that.

2: I really don't want to go down the road of affordability complaints, not only because they could make me pay the loan back in one go (which I don't even have enough money to), but also because I'll fall flat on my face as it was very much affordable when I took the loans out, and I am not falling behind on essential bills (just barely) so playing victim is probably not going to work

3: The below balance sheet is modelled based on my position at the end of this month, before I get paid on 5th of June. Keep in mind that as I haven't got a rent payment in June, I am going to be able to finish June with around £203 to spare, putting £250 towards my most expensive loan.

I have the option of going into overdraft (around -£1000) to clear my expensive loan, and then be back in the green in July instead and I am half tempted to do that as Monzo's overdraft of 39% is far cheaper than the 96% I am being charged on that loan.

I also have two paydays in July (3 and 31), which is great as it means one payday goes to bills, and the other, well, it also ultimately goes on clearing the debt, but it gives me more flexibility

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Monthly Income Details[/b]
Monthly income after tax................ 2602
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0[b]
Total monthly income.................... 2602[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 1150
Management charge (leasehold property).. 0
Council tax............................. 136
Electricity............................. 44.14
Gas..................................... 27.35
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 0
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 30.49
Groceries etc. ......................... 60
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0[b]
Total monthly expenses.................. 1467.98[/b]
[b]

Assets[/b]
Cash.................................... -1263
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0[b]
Total Assets............................ -1263[/b]
[b]
No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
Monzo Loan.....................6882.67...181.1.....17.7
Oakbrook Loan..................3018.52...131.2.....57.9
Drafty Loan....................2011.4....146.6.....96.2
Klarna BNPL....................796.11....265.3.....0[b]
Total unsecured debts..........12708.7...724.2.....- [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 2,602
Expenses (including HP & secured debts). 1,467.98
Available for debt repayments........... 1,134.02
Monthly UNsecured debt repayments....... 724.2[b]
Amount left after debt repayments....... 409.82[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... -1,263
Total HP & Secured debt................. -0
Total Unsecured debt.................... -12,708.7[b]
Net Assets.............................. -13,971.7[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.
Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

spareapenny

Ah great, can't edit posts, I also don't want to do anything that will ding my credit score badly (hence I am doing everything to avoid defaulting) if I'm looking at a mortgage six years down the line or something.

In addition, I don't think I can keep my job while bankrupt…