£100k unsecured debt!!!!!!!!!!!!

Woby_Tide

I am thinking of selling the car, as nice at it is.

63k debt, nice car, 63k debt, nice car, 63k debt, nice car.....


it's what I'd term a no-brainer

get it sold, get a small diesel runabout, shouldn't need convincing it's the right thing to do!

Freddie_Snowbits

All Right John, Got a New Motor! ??? ???

I think that at least you have got yourself on the Property Ladder, you should at this juncture, ensure you can stay on it.

Don't think, take the hint, if you can release some cash from selling the car do so.

deemy2004

To degzy

How much has your house gone up ?

Sell it pay off your debts, live in rented accomodation or downsize.

At least you get a 2nd chance - debt free !

Rafter

Roadrash,

Be very careful about what you are signing with Freedom finance.

Although your monthly outgoings will fall you are just spreading your existing borrowings over a longer period of time. You may also end up paying a higher rate of interest. These companies also charge huge up front commission and arrangement fees which get added to your loan, so you are immediately £1000+ more in debt than when you started.

You may be much much better off extending the term of your existing borrowings with NR and EGG rather than consolidating - at least this way your monthly outgoings will fall a bit without committing yourself to a very long loan.

Freedom finance is a SECURED loan too. If the worst happened and you or your partner lost your job for a while, at the moment, apart from your mortgage all your borrowing is unsecured. That means that the lenders cannot force you to sell your house to repay your debt. With a secured loan that is not the case and you could end up homeless.

What you need to do is schedule all your debts and the interest you are paying.

You also need to schedule all your outgoings in detail.

You then need to reduce your outgoings as much as you can for a couple of years to get things back under control. This might mean cutting mobile costs, loosing a sky package if you have one, and certainly look at the car (as long as you aren't going to have to pay loads to walk away from your current agreement.

Here are some other ideas for you:

1. Find a cheap diesel car (eg a 306 DTurbo) that will halve your insurance and fuel bills)

2. Work out which credit card is most expensive and pay off as much as you can of that one each month. It might also be worth trying to see if a card company with cheap rates will take on your existing borrowing. Eg Capital Ones no-hassle card or Texaco 3.9% for life of balance?

3. Cut up all but one of your credit cards and only use that for emergencies. Try to live from your current account.

4. Start shopping at Aldi or Lidl!

5. Do stuff that you enjoy that is free or cheap rather than expensive.

Final thing about the rent arrangement with your partner. £500/month is above the 'rent a room' limit so you may be liable for income tax. It may be worth getting him to pay £354 for rent and bills and the rest of the £500 towards your food and other bills to avoid a nasty tax bill.

Good Luck.

R.

mini

Do you kow what interest rate you would be paying with Freedom finance? I have to admit the alarm bells were ringing at the name & if it's one of those awful daytime tv adverts which makes it sound such a quick fix I think you could do with getting advice from CAB or National debt line mentioned earlier https://www.nationaldebtline.co.uk

Also it may be worth giving up your car this was a few years back a friend was paying way too much on his car monthly payments he used a free 30 minute appointmnet with a solicitor to see if there wasa way out of the deal, it was agreed he could notify Ford stop payemnts & they collected the car, it was very difficult for him to give up his car but it made a huge difference to his money situation, got a runarond & saving a fortune, don't take my word on this as it was years ago, get advice then you are better informed on what you are dealing with.

Is money a partner pays towards housing costs taxable? I wouldn't have thought so only if it was a lodger. I am not a tax expert either though.

Keep visiting here too, have you read Rochdale guys thread on the credit card board?http://forum.moneysavingexpert.com/cgi-bin/yabb/YaBB.cgi?board=Questions;action=display;num=1066498800

May also be worth telling friends & family of your situation with Christmas coming, you don't want to get yourself into more debt with more expense.

May also be worth reposting your story as your own thread, more people may read it that way.

mini

mini

Roadrash

I heard a bit of Martin talking on radio 2 yesterday about debt, briefly you shouldn't be paying people to pay your debt payments for you & a secured loan is a last resort, check out this first http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1094132767,59163,

This may require a bit of your time to work it out & try different options but is a cheaper way out of your debt.

roadrash

A big thank you for all your help of my debt issue.

I did get in contact with payplan.com, but decided not to take this option, as I am not in defaults or arrears yet! *touch wood*

I have sold my little sports car, which I worked out was costing me: (a month)
PCP - £286
Petrol - £250
Insurance £60
Not including maintenance or anything!!
Total about £600!!!

So, went out yesterday and brought a nice little diesel.
PCP - £199 a month
Petrol - £125 a month
Insurance - £28 a month
Not inc maintenance, which will be less than my sports car!
Total £352

I also have to pay £1500 to get rid of the sports car tho, but on my cc at 3% inc intrest this will be about £50 a month, but its still a saving

So I continue paying off debt and will keep u updated.



Note to degzy, I hope you dont think I have high jacked your thread here! :-[