advice please !(be gentle )

katie_jane_2

hi all this is my 1st post although ive lurked for yonks.so please be nice i would really appreciate any constructive advice on my debt management
here goes;
cahoot loan 6898.77 @5.8%
woolwich 981.09 (dont know the apr its tied to my mortgage but the
loan pot interest is about £5 a month and i pay 25 amonth off)
virgin c/c 2224 (about 70 quid a month i pay on that)
b/card 114 (can pay this off on pay day)
overdraft 850 (permenantly in it only ever clear on pay day)
jjb store card 40 (will be rid of this at the end of the month also)

right my mortgage is fine fixed for 5 years at 4.something
my husband is on a decent wack 24,600
(im on maternity pay for 6 months nipper number 3 due at christmas)
and i have the dosh put aside to cover christmas.
as im not planning on going back to work how can i get us more solvent and stop paying so much interest will gladly listen to anyones advice with an open mind.we arent sinking but are treading water .
cheers katex

Katgoddess

Check out the money saving old style board for help on reducing your shopping and cleaning bills

katie_jane_2

cheers im already on it.buying cheap cola tomorrow instead of loo cleaner!!!
thanks, kate

YorkshireBoy

Katie: I'm working on a reply but it's a little complicated and, so I don't waste my time, please post...

1. Is the Cahoot loan a flexible one, with no early repayment penalty?

2. What's the credit limit on the Virgin card, and whose name is it in?

3. How long have you had the Virgin card?

4. Have you both got good credit history's?

IN_LIKE_EVERYONE_ELSE!

You are right to get organised before you need to stop work.

Is there any equity in the house?

Nipper 3 is already causing you to worry!

katie_jane_2

hi
here we go
1 no its fixed over 5 years i think there is early repayment weve only made the first payment

2 3100 on the virgin and 3000 on barclaycard

3 about 3 years i think

4 yes we both have good credit but im no longer working i receive maternity allowance from the government as i was working but am no longer employed (dont know if that makes a difference)
thanks,
kate

katie_jane_2

sorry forgot to say both credit cards and loan are in husbands name mortgage is joint
cheers
kate

katie_jane_2

yes mortgage is for 66
house was worth 85 when we bought it in febuary so we are in equity but im not sure of 2 things
1 can we remortgage when we are at the begining of a fixed period
2 can we remortgage to more than they agreed to borrow us in the first place as it was pretty tight on the wage scale they used for the amount we borrowed.
although husband has had pay rise since then.but then ive finished work!

rumblytum

Hi Katie Jane,

If you feel up to it, please could you post a detailed income and expenditure list (maybe using Martin's budget).

It would make it much easier to see areas that you could cut back in.

Also list all the debts, APRs and minimum payments.

You've taken an important first step to dealing with your debt.

Well done!

Kind regards
rumbly

YorkshireBoy

OK, not had time to "doctor" it to include your last post (dinner's ready!!). Have a look at the following and see if you can grasp the fundamentals of what I'm trying to say. Just one thing, if you're on maternity leave , are you still "employed" by the Government? Might help if you were!

katie_jane wrote:

cahoot loan....£6,898.77 @ 5.8%
virgin c/c.......£2,224 (about 70 quid a month i pay on that)
overdraft.......£ 850 (permanently in it only ever clear on pay day)

Assumptions:
1. You are treading water and NOT sinking!
2. Your credit rating is good (must be to get 5.8% loan)
3. Ignoring the 2 debts being settled this month
4. Ignoring the Woolwich thing (because I don't understand it!)

Sequence of events:
* Pay off and close Barclaycard
* Pay off and close JJB card
* Wait a month and check your credit report (£2 copy should do) and ensure everything is OK.
* Edit: you might need to apply for an increased credit limit with Virgin here.
* One of you apply for an IF credit card with 0% for 9 months (asking for at least a £5K limit).
* One of you apply for an RBS/NatWest credit card with 0% for 9 months (asking for at least a £5K limit).
* Super balance transfer £7,750 from your current account to the Virgin card (you can then settle both your loan and the overdraft with this money).
* You now have a balance of £9,974 on your Virgin card.
* BT whatever you can to the IF card.
* BT the rest to the RBS/NatWest card.
* All your debt is now on 0%.
* Throw every single penny at the IF and RBS/Natwest card debts. This includes your original cahoot payment, the £70 you paid Virgin before, family allowance, childrens tax credits, and anything else you make from cutbacks elsewhere.
*Keep your noses “clean” with the repayments and shift the debt to other cards in 9 months time.

Possible issues:
1. You can’t get sufficiently high enough limits.
2. You’re moving debt to 0% but might not be able to get it back to 5.8% next year if you can’t get more 0% credit cards.

And finally, cut up the plastic and use cash instead!!!!!

Does this sound workable?

katie_jane_2

hi yorkshire boy thanks for the plan but as im no longer in employment i wouldnt get a credit card in my name and as we have upped limit within last 3 months on virgin card im not sure they would help but thankyou so much to everyone with suggestions i cannot believe how helpful everyones being
thanks will post ingoings and outgoings asap
cheers
katex