OK so what should I do?

RoastUK

Hi everybody,

1st time poster so im hoping i can get some good advice. I'll apologise upfront if this is a bit long winded.

Was going through my finances and well im in an absolute state. Ive had a look online and used a SOA so I hope this helps...


My wages per month £920
total £920

outgoings

Halifax unsecured loan - £10,000 paying £ 289.98 per month
Halifax Credit Card £350 limt used £300 - pay £10 p/m
Natwest Credit Card £500 - pay £10 p/m
Capital One Credit Card £3800 limit used £3700 - pay £100 p/m
HFC Finance £600 - pay £35 p/m
GE Capital £200 - pay £10 p/m
Petrol - £80 p/m
Board - £90 p/m
Gym - £30 p/m
Phone bill - £35 p/m

I also have 2 student overdrafts at £2000 for Natwest and £2500 for Halifax, both maxed out so to say.

I live at home with my parents and from what I have checked I have no 'priority debts'. I want to consolidate but I cant get a bigger loan.

I put my details into a website and yesterday I received a call from Baines and Ernst. They have suggested that I go for a IVA where I only pay £210 p/m for 5 years.

At the time it sounded just what I needed, so I have got the wheels in motion for that, but having checked further online it seems that they are not that good.

I have made an appointment to speak to CSSS (I think thats right) and ive also been told that Payplan is also good.

Another problem I have is that I missed my payment for my Halifax loan last month, and im not going to make it this month. Its due for the 19th. Is there anything I can do in that time that will stop me getting into further trouble.
I can afford to give them £100 now, then when i get paid (at end of the month) about £400, but I will still be in arreas.

Can anyone give me any advice on how I should tackle my problem.

Many thanks

kazwookie

What happens to the other £260 per month?

Petrol £80, where is the car tax per month and ins?

I suggest try ringing the Halifax and telling them what you can offer.

I am sure others will be along shortly to offer more advise.

RoastUK

I only passed my driving test last month so im on my parents insurance at present.

**Amy**

:hello:

Welcome to MSE.

Firstly well done on looking at your finances and realising you need to sort them out.

I would not try and consolodate your debts, as generally this is not a good plan. With regards to IVA's i have heard they are not great, but to be honest someone who knows more will be along shortly.

With regards to your debts, would you please post the APRs you have on them. That we we can try and work out which one to tackle first.

Also, have you accounted for MOT etc. for your car? Also in board does that include all bills and food?

Re: your loan payments, please phone the bank and explain the situation. They may be able to help you.

xx

RoastUK

Hi Amy

In regards to APR's, I dont have them all now but from I know my APR's are

Halifax Loan - 8%
Both overdrafts I pay £22 p/m on interest

The others im not too sure...

As for my car, I only passed last month and im using my parents, so im insured under them. My board pays for this which is about £10.

The board also includes food at home, but sometimes I have to buy lunch at work, so that would be on average £20 p/m.

The one thing that concerns me if I phone my bank about my loan is that they will call it in straight away and then that will leave me screwed. Any advice on what they would do?

Thanks

**Amy**

RoastUK wrote: »

Hi Amy

In regards to APR's, I dont have them all now but from I know my APR's are

Halifax Loan - 8%
Both overdrafts I pay £22 p/m on interest

The others im not too sure...

As for my car, I only passed last month and im using my parents, so im insured under them. My board pays for this which is about £10.

The board also includes food at home, but sometimes I have to buy lunch at work, so that would be on average £20 p/m.

The one thing that concerns me if I phone my bank about my loan is that they will call it in straight away and then that will leave me screwed. Any advice on what they would do?

Thanks

I would definitely suggest getting all of your APRs and going to the snowball calculator (which is somewhere at the top of the forum). This then gives you an estimated Debt Free Date and also helps you prioritise your debts.

Im afraid i dont really know about your bank. They could claim it, but if you havent got the money, i dont think they can really.

I would still suggest phoning them, the longer you leave it the more inclined they will be to just take it.

x

RoastUK

Been a busy night for me, had to sack off the gym cos I want to get this sorted out.

Ive been reading that if I take off the PPI that I have on my loan I could save myself some fair wonga. I've never suffered from any long term illness but it is a risk incase something bad happens, what do you guys think?

I also spoke to Halifax, they have said that I can pay £590 at the end of the month (when I get paid) so I can get my self up to date on payments.

I have to admit I really am not sure what to do. Im starting to want to try and avoid the IVA as much as I can but unless I get a higher paid job (and trust me I am trying) then I think im literally going to be living on the line for a while.

PS. when I spoke to Halifax I initially said that I want to make a token payment of £10 and that I was speaking to Payplan. The person I spoke to kinda went crazy saying that, and I quote 'screw your credit rating' if I did this. He offered me the option of paying at the end of the month but said if I dont i'll be breaking the agreement and that id be in big trouble.

I know they would make threats but it kinda freaked me out tackling it for the first time.

Sorry if this is all incoherent and a load of babble but I just want to make life easier for me. Thanks for your help guys

poorandindenial

Hi Roast UK

Screwing your credit rating is kind of inevitable if you end up defaulting because you can't meet repayments so I wouldn't worry about it too much as you seem to think this is likely to happen if you don't get a higher paid job. A DMP possibly won't screw it quite as much as an IVA (which is a short step away from bankruptcy), but yes, your credit rating will be shot on a DMP and after it is finished you will only be able to get rubbish credit if any at all (while you are on a DMP you aren't allowed to get more credit or you break the terms of the agreement)

The bank would go crazy because it will take them longer to get their money and they may end up freezing interest.

With the PPI I it is totally up to you but personally would ditch it. If you are reasonably fit and healthy then it is unlikely you will need it and there can be issues about what they do and don't pay out on. Check your employment T&Cs - my employer does 6 months full pay and 6 months half pay, it is unlikely that wouldn't cover whatever I neded covered. Also if you have a pension checkl the terms of that too as it may pay out in the event that you are unable to ever work again.

As for being in big trouble - sod them, it is a loan not murder, they are often just trying to scare you into paying them rather than other creditors or into buying more products from them.

Credit companies recognise problem debt to the point that they actually fund CCCS so don't let their reps bully you.

regularsaver1

The problem is the only way to cancel the ppi is to do a new loan without ppi to repay the old - but at the moment you may not be approved and also you probabaly would not get an 8% rate right now, hence your payments could still be the same without ppi.

RoastUK

The problem is the only way to cancel the ppi is to do a new loan without ppi to repay the old - but at the moment you may not be approved and also you probabaly would not get an 8% rate right now, hence your payments could still be the same without ppi.

Ahhh well I guess there is no point in that as I know I will not get a different loan.

Still whilst researching I found out I was paying this PPI on my Burton account. So i'll be sending them the template for sure. I shall be asking HFC and Capital One if im doing the same with them as well and they will also be hearing from me.

poorandindenial

If you count the PPI money as interest it is worth seeing if you would be reducing the debt faster by redoing the loan anyway. If you have an 8% loan and then when you factor in the PPI it comes out as about 15% then you might pay less in the long run. (but do check carefully as you don't want to do yourself over because of a miscalculation). If the difference is between you repaying the loan and you going on a DMP and them getting money slower then you may be able to talk to 'retentions' and be able to get a much better deal. Have you done the debt remedy tool at CCCS website (link) to see what debt resolution is available to you ate the moment??

Sorry - just remembered you had spoken to Payplan, what did they suggest?