Advice for newbie

Mattb78

Hello everyone,

Just came across your forum today and started losing hours reading through the threads!.

I guess I've had my lightbulb moment earlier this week when I put together a budget sheet of my in\out goings. While I can meet all my minimum payments on my cards I see trouble ahead and like everyone else I'm fed up of just paying the interest. I have switched balances around but at the moment I have 4 cards all with higher interest rates. I last tried for a another card in October last year and was refused and haven't tried for credit since. I have my credit rating from Experian and this is shown as good, but I missed a payment on a Mint card around 4 years ago which is still effecting my records.

I'm not sure if this is the right place for me to go through my outgoings but please move my thread if needed.

My current debt is £43,000 unsecured, 19k on a loan with 5 years to go. and the remainder split across 4 credit cards, payment to these cards cover the minimum and gives me enough money left over to live within my means. My current income is £1900 after tax and can increase with commission and bonuses. After speaking to various debt organisations I am not in a position of taking a debt management or IVA scheme (well not from the free agencies!) as I'm covering my minimum payments. Despite my argument of not seeing the light at the end of the tunnel!.

Ideally I would like the flexibility to move the balances around to hit one card more than another but my credit record won't allow it or a consolidation loan for £25k over 5 years which would leave me with two large loans but an added benefit of a finishing line again I unable to borrow this amount at a sensible APR and not able to secure against a property.

Look forward to hearing your advice on my situation,

Thank you.

Matt

RAS

Welcome

Here is the best starting point in your situation.

http://forums.moneysavingexpert.com/showthread.html?t=107280

Put up your SOA, inparticular listing your debts, APRS, minimum payments and maximum credit limits.

Also have a play with the snowball on www.whatsthecost.com, which will tell you how long it will take to pay everything off.

jackiegibbo

Welcome to mse you will get lots of help and advice here:T :T

Mattb78

SOA
Monthly Incomings:
My Salary - £1899

Monthly Outgoings:
Rent - £300 (Rent off a friend, includes all bills, sky\broadband etc)
Mobile Phone - £10
Petrol - £100
Health Insurance - £65
Car Insurance - £45
Life Insurance - £30
Food - £150
O\D charges - £35

Total outgoings - £605

Bank Loan,
25k over 7 years, Lloyds TSB, settlement figure £19,968 , 5 years to clear.
Monthly payment - £383

Credit Cards
Lloyds TSB Airmiles
Limit £7,500
Balance £7429
Min Payment £145

MBNA
Limit £5,000
Balance £4,727
Min Payment £126

EGG
Limit £5,000
Balance £4,677
Min Payment £97

BARCLAYCARD
Limit £5,000
Balance £3797
Min Payment £100

OVERDRAFTS
£2,800.00

£851.00 paying loan and min payments per month.

As you can see from the above I am left with some cash, and I’ve been told my situation doesn’t warrant any support from debt management schemes, IVA’s and certainly not bankruptcy. However this good news doesn’t make me sleep easy nor does the fact I’m paying purely the interest rates on my credit cards and unable to take out further cards or loans as mentioned in my original post.

[FONT=&quot]Thank you to everyone who has taken the time to read my SOA.[/FONT]

RAS

Mattb78 wrote: »

SOA
Monthly Incomings:
My Salary - £1899

Monthly Outgoings:
Rent - £300 (Rent off a friend, includes all bills, sky\broadband etc)
Mobile Phone - £10
Petrol - £100
Health Insurance - £65 this is massive. Please go to http://www.moneysavingexpert.com/insurance/ and check out your options, then make any transfer viia www.quidco.com or another site that offers cashback
Car Insurance - £45 Please go to http://www.moneysavingexpert.com/insurance/ and check out your options, then make any transfer viia www.quidco.com or another site that offers cashback
Life Insurance - £30 this is massive given you age. Please go to http://www.moneysavingexpert.com/insurance/ and check out your options, then make any transfer viia www.quidco.com or another site that offers cashback
Food - £150 - you can cut this
O\D charges - £35

Total outgoings - £605

Bank Loan,
25k over 7 years, Lloyds TSB, settlement figure £19,968 , 5 years to clear. Monthly payment - £383

Credit Cards
Lloyds TSB Airmiles Limit £7,500 Balance £7429 Min Payment £145 14.4%


MBNA Limit £5,000 Balance £4,727 Min Payment £126 21.6% !


EGG Limit £5,000 Balance £4,677 Min Payment £97 EGG 16.9%

BARCLAYCARD Limit £5,000 Balance £3797 Min Payment £100 14.9%


OVERDRAFTS
£2,800.00 - this needs clearing

£851.00 paying loan and min payments per month.

what are the APRS on these CCs?

Car cost, MOT, tax etc.

Holidays, clothes, going out?

Mattb78

Thank you for re-structuring, please see interest rates below,

Airmiles Duo 14.4%
MBNA 21.6% !
Barlcaycard 14.9% (Just finished interest free period)
EGG 16.9%

poorandindenial

Mattb78 wrote: »

SOA
Monthly Incomings:
My Salary - £1899

Monthly Outgoings:
Rent - £300 (Rent off a friend, includes all bills, sky\broadband etc)
Mobile Phone - £10
Petrol - £100 (this seems quite high - where are you going from-to (eg using it to get to work) Could you get the bus etc)
Health Insurance - £65 (do you have a specific reason for needing this, my advice would be ditch it if you don't)
Car Insurance - £45 (I don't have a car but this seems reasonable, when is it due for renewal, you could get cash back through Quidco)
Life Insurance - £30 (do you have a specific reason for needing this, my advice would be ditch it if you don't)
Food - £150 - you can probablytrim this down a a bit but I have seen worse. buy through quidco and get delivered and you can get cashback - it will stop you buying extras. You can often find promo codes for free delivery otherwise you might not get as much cashback as you spend on delivery
O\D charges - £35 ~(do you keep on going over your limit?? what is your limit?? I end up paying about £2-3 a month for £500 overdraft and I am always in the overdraft by the second week of the month)

Total outgoings - £605

Bank Loan,
25k over 7 years, Lloyds TSB, settlement figure £19,968 , 5 years to clear.
Monthly payment - £383

Credit Cards
Lloyds TSB Airmiles
Limit £7,500
Balance £7429
Min Payment £145

MBNA
Limit £5,000
Balance £4,727
Min Payment £126

EGG
Limit £5,000
Balance £4,677
Min Payment £97

BARCLAYCARD
Limit £5,000
Balance £3797
Min Payment £100

OVERDRAFTS
£2,800.00

£851.00 paying loan and min payments per month.

As you can see from the above I am left with some cash, and I’ve been told my situation doesn’t warrant any support from debt management schemes, IVA’s and certainly not bankruptcy. However this good news doesn’t make me sleep easy nor does the fact I’m paying purely the interest rates on my credit cards and unable to take out further cards or loans as mentioned in my original post.

[FONT=&quot]Thank you to everyone who has taken the time to read my SOA.[/FONT]

If you ditch the life insurance and health insurance (if poss) then you wil save almost £100 per month that can go into debts.

I can't see clothes, going out, birthdays, MOT, Car tax etc in here and there are probably other random things that should be budgeted for

Mattb78

My holiday costs, are nil, haven't been on any for a few years and non planned for this year, I also haven't brought clothes for a while but a fair cost would be £20 per month.

Car expenses would be £30 per month to cover Tax and MOT. running costs etc, dentist\optician - £20
Going out - £30

As for health insurance I'm stuck with my premium for now, I've had 6 operations in 6 years and find it difficult to transfer policies, my car insurance will come down to £34.00 as of next month, I've actively looked at changing all my out goings for better rates.

Thanks again for the advice.

RAS

OK

So we know that the MBNA card is the one to hit hard, although we still do not know the OD rate.

This requires a lot of discipline, but over the next couple of months can you shift c £1000 from the MBNA card across to the Barclay card by using the BC to pay for things that would normally go on debit card then the same day, pay exact the same amount off the MBNA card.

Then cut the limit on the MBNA card by £1000.

Can you get any other cheaper rate cards onto which you can do a balance transfer. Even 3% fee would be worth it to move the MBNA card.

Amd keep a spending diary so you can work out what else you are buying.

Can you sell anything on e-bay, amazon or at a card boot etc.

Mattb78

I've looked at Quidco's website and it looks very interesting, every little helps as Tesco's would say!, thank you for highlighting my bank charges, I do need to find out why they are so much and if I have a case for claiming any back.

Mattb78

I will try and find out my overdraft interest rates, the statements don't give me a rate just a charge!. I agree the MBNA is killing me, I opened a statement today and the min payment had increased by £12 from last month. Certainly selling some posessions which are no longer used and contributed towards this debt is very good advice and I've opened a ebay seller account. I guess I know alot of this myself but sometimes it easier to put your head in the sand!.