Hi - newbie here

Sparklechick_2

Hi everyone

I was in no debt at all until a while ago when my fiancee and I were going for a mortgage and I found letters from a debt collection agency for debt totalling £3500. I (stupidly) agreed to lift cash from my credit cards to pay them off (this was in November). But now I have one creditcard exceeding my £3900 and one with £2.29 left from my £2000.

We are renting a house at the moment and need savings because it'll be so hard to get a 100% mortgage with fiancee's defaults.

We are getting married next week and want to get everything sorted straight after the wedding.

I am only on £12,000 a year and fiancee is on £24,000 a year but we never seem to have any money - we have no kids and I really don't know where all our money is going.

I tried to get a personal loan to cover both my credit cards but was turned down - they said it was nothing to do with my credit rating but because I have moved house 2 times within the last year and a half.

H2B tried applying for a credit card but was turned down - I would like to consolidate all my cards into one payment a month.

Any help gratefully appreciated.

mrcow

Sparklechick wrote:

I really don't know where all our money is going.

There lies your real problem.

You need to sort out your budget before you do anything further, or buying a home is just going to be a pipe dream. Start with the budget planner on this site and work out what you can afford to throw at your debts. It's going to be a long term commitment, but it's completely feasible if you both work at it together.

With regards to consolidating the debt, fine, but only if you end up paying less interest over a shorter period of time. If not, you'll save yourselves little.

Work out what your budget is, cut back where you can, and then maybe look towards a loan from your bank? who may accept you if you have a good credit history with them (Who are they?) or look at switching your cc debt onto a 0% deal.

Good luck for next week!