Help/ Advice. It seems so simple...

rsjg80

Hi All,

Newbie here. My mum suggested this site (I know it's supposed to be the younger ones showing parents the internet but...)

Anyway, I won't go in to loads of detail but I need a little help. In a nutshell I owe about £15k due to University and subsequent retraining. All of this is spread over overdraft and credit cards which is becoming unmanageable with ever increasing rates.

Well finally I've got a job which is permanent (teacher) which starts in September but am currently on a guaranteed income of £500 (before tax) a WEEK doing supply teaching (don't get paid hols etc) but can not get on top of my finances.

I applied for a loan but was refused. It was over 5 years and cost £250ish a month, less than an eighth of what I earn a week now and so easily affordable come September. I'd actually be paying money off rather than paying £2 debt off and £250 interest plus a month! Plus being teaching my wage is guaranteed to go up ever year.

Ok, my credit rating is probably not great as I've occasionally missed a payment (Once max in last year) or gone overdrawn (Twice max in last year) but I have never had a CCJ, never been bankrupt, never defaulted etc etc.

I felt if someone actually looked at my situation they'd see I'm a professional teacher who currently pays over £600 a month off nearly 100% of the time and can easily afford a restructuring of finance. But it's all computers now and matching unrealistic figures. I'm not prepared to be held to ransom by 27%+ interest rates for the companies who will give me a loan.

As it stands I will have to apply for IVA or the like and cost other people, companies and the economy. I WANT to pay of my debt, can easily afford to do so and actually make a company money but can't get a loan.

So in summary is there any common sense out there?! Any advice would be greatly appreciated.

hypno06

Are you ABSOLUTELY sure that an IVA is right for you - it is NOT right for most people.

Please please please speak to CCCS, Payplan, CAB or National debtline to get their advice about your options. You can also do an online debt remedy thingy with CCCS which will give you some ideas.

There are other alternatives, and I am sure on your salary etc you have options.

Someone cleverer than me will post the link to do your SOA.....then we can get cracking on getting you debt free!

red_bertie

Hello RSJ

Just to say welcome and in just a wee while, one of the DFW gurus will be along to help.

RB

rsjg80

hypno06 wrote: »

Are you ABSOLUTELY sure that an IVA is right for you - it is NOT right for most people.

Please please please speak to CCCS, Payplan, CAB or National debtline to get their advice about your options. You can also do an online debt remedy thingy with CCCS which will give you some ideas.

There are other alternatives, and I am sure on your salary etc you have options.

Someone cleverer than me will post the link to do your SOA.....then we can get cracking on getting you debt free!

Sorry all those things made no sense to me!! lol. Have enough abbreviations at work. I fully agree an IVA would not be right for me, in fact as i understand it it would adversely effect my career options. I know I can easily afford to pay off every penny I owe in 5 years, make a company some money and it just seems silly that I (and PEOPLE) can see that but a computer can't.

hypno06

Sorry!

CCCS = Consumer Credit Counselling Service (be careful though, some unscrupulous sharks have remarkably similar names)

CAB = Citizens Advice Bureax - they have specialist debt counsellors

SOA = a statement of affairs - what you owe, what comes in, what goes out etc. The more info the better, and there is an excellent template to use on here.

poppyg_2

Can you post up an SOA including details of the debts please hun then we people will be able to advise properly x

Merlot

Consolidation is rarely the answer, and I think an IVA would not be the right option for you, you need to speak to one of the debt charities regarding your situation, like the CCCS.

Post an SOA (incomings and outgoings) and a list of your debts with APR and we will see what we can do to help.

Merlot.x.

LilacPixie

welcome to the board.

Consolodating your debt is rarely if ever a good solution. pretty much the same with an IVA plus some employers will not look favourably on an IVA so it may hurt your job prospects.

Firstly (if it was me) I would be looking at my incomings and outgoing and finding out what i am spending money on and what can be cut back.

I am rubbish at links but at the top of this board there is a post called SOA calc feedback or something similar, if you look in there there is a link to an calculator for putting all your income outgoings and debts.

red_bertie

Here's a link for you:

http://www.makesenseofcards.com/soacalc.html

HTH.

RB

rsjg80

Merlot wrote: »

Consolidation is rarely the answer, and I think an IVA would not be the right option for you, you need to speak to one of the debt charities regarding your situation, like the CCCS.

Post an SOA (incomings and outgoings) and a list of your debts with APR and we will see what we can do to help.

Merlot.x.

I'll try my best although I don't have the exacts - probably that's part my problem!!

Income:
Currently £2000 a month (not hols though) to £21k per year from Sept.

Outgoings (p/m):
All the below minimum payments.
Rent about £250 - I live with my girlfriend so everything roughly halved.
Council Tax/ Utilities approx £150
Entertainment/ Clothing etc basically zero. Stay home and have no life literally because can't get cash out for such luxuries!!!

Debts:
Overdraft £3000 and basically always around max (Barclays Graduate)
Credit cards (all these are near max basically)
Credit Card 1: £300 (24.9% - 27.9%)
Credit Card 2: £2000 (21.9% - 27.9%)
Credit Card 3: £3200 (24% approx)
Credit Card 4: £4000 (24% approx)
Credit Card 5: £2500 (24% approx)

I know it's stupid to have that many credit cards but it was the only way to survive when retraining to become a teacher. This has coincided with rising interests rates has crippled me. But I can afford it easily and it's just so annoying!!

I can't move the balances and basically all the cards 'became' MBNA over time and no other companies will give me a card now. I tried Egg about a year ago and they said no.

Merlot

Well done for posting the above, we do however need a break down of your utilities etc, everything from mobile phone to fuel for the car.

Ok, the way I see it, and I need to have a look at a full SOA really, is that you shouldn't enter into a IVA with these debts, you can repay them, but you do need the advice of the CCCS or Payplan, they can advise you how to get the creditors to freeze interest which would help you greatly.

Your debts are not huge by any means, and I think there is real light at the end of the tunnel on this one, but please post a SOA and others will help you.

Merlot.x.