Trying to clear debt...Help Please :-(

striker14

Hi everyone.

I have 2 credit cards, both filled to the limit, one being £1,600 and the other being £1,500, I have also filled up a store card of £600.

I earn around £1200 each month at work, but my monthly outgoings are causing me to go overdrawn every month and leaving me with no money for food.

I have been trying to get a loan to reconsolidate these debts but have been unsucessful with around 8 different banks.

Does anyone know of any companies who may be able to give a loan to someone with a poor credit rating? and is this really the best move?

Any help/advice would be greatly appreciated.

Thanks
Sean

mrsmortenharket

Hi Sean>

Post your statement of means, all your incomings & all your outgoings.

We can then see where you can make cutbacks so you can clear the debts.

Consolidating is not the answer unless you know you will NEVER EVER run up the same debts again.

Lisa

RAS

Here's the details on how to do the Statement of Account.

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

You need the APRs on your cards and the minimum payments. HThese have gone up a lot recently, so check them with your latest statements.

You are talking about fairly small amounts and it is difficult to get decent loans on these when the financial climate is good. At the moment, it will be harder.

If you have made more than 3 applications for credit in the last 3 months, then your credit rating will plummet. You would be best advised not to try again for 6 months, by which time, it may be possible to sort things out anyway.

If not, you can contact one of the debt chrities and they can help you make arrangments with your creditors

http://www.moneysavingexpert.com/loans/debt-help-plan#help

MrsTinks

If you have been turned down by 8 companies then DON'T APPLY FOR ANY OTHER LOANS! More than 3 failed applications will usually flag alerts for any more you try to apply for - you need to wait 3-4 months I think it is before the searches drop off. This will also give you a chance to start rebuilding your credit by paying on time etc. and not going over your over draft etc.
Give us a full SOA (thanks for the links RAS) and we'll see what we're dealing with

striker14

Hi.

Ok here goes -

Wages - 1183

Outgoings -
Mortgage and bills - £750
Mobile Phone - £100
Sky (TV, Broadband, Phone) - £55
MBNA Credit Card - £65
Halifax Credit Card - £55
Store Card - £20
Petrol - £200
=1245

Leaving me overdrawn each month, and I get charged for going overdrawn, and I am unable to buy food.

mrsmortenharket

striker14 wrote: »

Hi.

Ok here goes -

Wages - 1183

Outgoings -
Mortgage and bills - £750 CAN YOU BREAK THIS down further?
Mobile Phone - £100 - THIS IS VERY EXPENSIVE. I bought a PAYG for £50 & put at the most £10 a month on it
Sky (TV, Broadband, Phone) - £55
MBNA Credit Card - £65
Halifax Credit Card - £55
Store Card - £20
Petrol - £200 HOW MUCH?!
=1245


You have no allowences for food or car tax/insurance/mot/xmas etc etc...

RAS

Striker

Can you break down mortgage and bills into their components

Mortgage/rent, food, CT, gas, electric, etc Also how many are you buying food for/

Also if you are paying petrol, then where is car tax, MOT, repairs etc?

Do you pay for the TV licence?

Do you need a car?

What's your current OD?

Would you be able to get an Alliance and Leicester Account - with free OD for 12 months if you are in the black for at least 2 days each month.

MrsTinks

OK... you need to break down bills a bit more I'm afraid... We need to know electricity, gas etc
Sky... I hate to break this to you but right now you can't afford this. Use broadband at the library or get something cheaper (like madasafish or talktalk) for internet access.
Mobile phone... HOW MUCH! I use mine ALOT and my bill never crosses the £40 threshold... I think you need to think about a PAYG phone or look for a much better deal.
Petrol seems high too. Can you cut down on car travel? Maybe car pool?
Even without paying any debts off, buying food and clothes or anything you are simply not earning enough money to make the wheels go round.
Can you take a second job? Is your house big enough for a lodger too?

striker14

Oh forgot to mention that due to not being able to afford the council tax for the last 3 months, I know owe them £288, and as I couldnt afford to pay my mobile phone bill last month, I have now been cut off and owe them £198.

And forgot to add in the money I pay out each month for my 2 border collies ... that must be atleast £40 - 50 a month

Verbatim

striker14 wrote: »

Hi.

Ok here goes -

Wages - 1183

Outgoings -
Mortgage and bills - £750
Mobile Phone - £100
Sky (TV, Broadband, Phone) - £55
MBNA Credit Card - £65
Halifax Credit Card - £55
Store Card - £20
Petrol - £200
=1245

Leaving me overdrawn each month, and I get charged for going overdrawn, and I am unable to buy food.

Hi there striker,

The problem here is that you're spending more than you're earning. OK, I know I'm stating the blindingly obvious but until you address this you're heading into deeper and deeper water.

Even if a lender did approve you for a loan this would mean more interest for longer and a bigger debt the next time you couldn't meet minimum payments.

Can you increase your income with a second job, take a lodger. sell something (your car??) and decrease your outgoings?

Although your monthly budget is already in negative territory you haven't got all outgoings there. If you have a car you need to save towards MOT, insurance, road tax and servicing/maintenance. What about other insurances, xmas, birthdays, clothes. haircuts, dentist etc. I'd guess that food and these other expenses have been put on the ccs but now that they're maxed out you need to sort out how you'll cope.

Have you spoken to one of the debt charities? cccs gets an excellent press on here. Their details are at the top of the page. They are free to use unlike the many commercial firms who will take a chunk of your money, (and therefore aren't liked by creditors) and will often not do a particularly good job for their enormous fees.

I'm glad you posted and hope you haven't been frightened off!

striker14

RAS wrote: »

Striker

Can you break down mortgage and bills into their components

Mortgage/rent, food, CT, gas, electric, etc Also how many are you buying food for/ - Mortage is £550, food if im lucky £160 a month (only buying for 1), gas and electric are quarterley and i believe i pay £40 for gas quarterley and around £60 quarterley for lekky, im with e-on)

Also if you are paying petrol, then where is car tax, MOT, repairs etc? - dont have any money aside for tax, MOT and/or repairs :-(

Do you pay for the TV licence? - pay for the tv license monthly £25ish

Do you need a car? -definately, i start work at 7 and travel 16 miles to work

What's your current OD? - dont have one, they wont let me have one because i keep going overdrawn, with barclays at the moment)

Would you be able to get an Alliance and Leicester Account - with free OD for 12 months if you are in the black for at least 2 days each month.

Hadnt thought to open a new current account, might be an idea.