Some advice please

ArtV

Hi,

I visit this site quite regularly but this is my first post on the forums. I just wanted some advice on my financial problems. My debts are as follows:

Lloyds TSB Overdraft - £1001.97
Lloyds TSB Credit Card - £3524.41
Natwest Overdraft - £436.82
Capital One Credit Card - £907.44
Loan from Family members: £4000
Loan from a Friend: £3000

Total £12,870.64

I have quite a low income, approx £700 per month. No savings. My monthly expenditure is £500 but my main problem is cash flow as i am self employed, i never have the cash in my account in order to make any payments on time, which means i have to use my cards etc to pay for things which of course then means more interest and more fees. All my personal debts are unsecured. I do not own a house or any other assets as I live with my parents.

I also have a £5000 bank overdraft debt in my business, it is in the company name not my name but it is unsecured and unguaranteed, however i am responsible for its repayment while the business is running.

If i can help it then i do not wish to go down the bankruptcy route as this would be inconvenient from my companies point of view.

I have enquired about an IVA but apparently the amount of debt isnt high enough for this, amazing isnt it, i dont have enough debt, perhaps i should go and get more!! just kidding.

My only problem is short term... the next 8 - 10 months, but after that i will be in quite a positive financial situation which will enable me to pay all of my debts off at once and have money in the bank. This money will be coming from a business i am involved with, which is why i do not wish to declare bankruptcy as it would affect it.

Any comments or suggestions would be really appreciated.

Many Thanks.

Art

wannabemoneysavingstar

Congratualtions on your LBM. I can't give any advice cept to say you will get asked to post an SOA so people can help you and they are really good.

GeorgeUK

Hi Art

If it's savings you need to make then we need to see what you are spending. I know that can be difficult when you don't know what your income will be when self employed, but can you fill in the details you can on an SOA?
http://www.makesenseofcards.com/soacalc.html

There may be some bills we can cut back on unless everything but rent is paid for by your folks.

Usually i would suggest trying to get a 0% card such as virgin, especially as it is a short-term solution you are looking for. Only problem is i am aware that getting credit while self employed can be a nightmare. Might be worth trying if you aren't going to need to try to get credit in the next 6 months. (you can usually have 3 credit searches within 6 months before your credit score is affected)

Have you reclaimed bank and CC charges?