Would welcome some advice!

JackyHappy

Hello, newbie just signed up.

I've not long returned from my bank (Lloyds TSB) with the aim of reviewing my account. It's basically in a mess and I'm touching the borders of spoiling my credit rating.

I currently have an loan which has 3.5 years left with balance of £6700 left paying £205.18 per month. However, I'm overdrawn £2,500 every month and £12k on credit cards. The are advising me to keep the existing loan as it's at a good rate (just over 6%) and to take out a loan to cover the rest of the debt a total of £11100 over 60 months at 13.9% APR (£315.78 per month) which means two loans at a total cost of £519.96. My salary is £1372 per month and I have a 13 year old son.

The Payment Protection ont he new loan works out about £90 I believe and as it's optional I'm tempted not to go with it and seek a cheaper alternative. However, as my credit rating is slightly "off" ie: late payments I'm at a loss as to the best option for clearing the debts at a practical level financially. I need to get back on track as I'm the only provider in my home. I'm concerned that if I ask the bank to waive the PPI, they'll increase the APR.

Would welcome any advice.

regards

Horace

Welcome to the forum.

I am not an expert with money by any means it would help us to advise you if you put up your SOA so that we can see where we can save you money and prevent you being continuously overdrawn.

RedDino308

Hi JH,

Welcome and well done for posting.

First of all don't make any rash decisions. Lloyds (like all banks) have only got one purpose - to make money - so don't assume that the advice they gave you was unbiased.

Secondly, consolidating debt is considered a poor move in general. I'm sure that more experienced people than me will be along to explain why.

Are you able to post an SOA so that people can look at how you could amend your spending and repay your debts sooner.

RD308

RAS

Hiya and welcome

it may be a good idea to contact one of the debt charities http://www.moneysavingexpert.com/loans/debt-help-plan#help

jak

I would be loath to get loans which would mean nearly half your salary goes into paying them back! Could you get them over a longer term so the repayments went down but with an option to overpay? You need to be able to live! Post your SOA. People will give you loads of advice and it'll make things clearer for you too!
J
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jak

DO NOT GET PPI!!!!!!!!!!!!"!!!!!!!!!!
I can't stress that enough! Put in a search on PPI on this site and read what comes up!Most of it isn't worth the paper it's written on due to exclusions!

JackyHappy

Thank you guys for responding so quickly.

An SOA?? Not worked out the anagrams yet!

Ok, seen it: Statement of Affairs.

jak

No problem:Do'nt forget to include things like haircuts and gifts as they can sometimes get over looked. It's important to get a realistic idea of spends. Alos there are lots of challenges on here. I'm ding Christmas for free this year. Saving vouchers and stuff, pennys and any excess budget to take the stress out of it. There is a sticky for challenges at the top. This site has saved me a fortune!
I hope it does you!
J
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tallyhoh

Did you say £90?? Thats totally outrageous!As already stated most of the PPI are worth *&%£$**. Try looking through the T & C's & you will see that you would probably have a hope in **** of claiming.

An SOA is a good idea, the people on here are excellent. My bills have reduced by £300 a month since I found this site.:j

JackyHappy

Completed the SOA, clicked "save data" now I don't know where it is!!!

GeorgeUK

Nice try Jackhappy, but we can't see anything you've put on that site. There should be a way of getting the info off it in MSE format (for the moneysavingexpert board). Then just do a copy and paste into your message.