mortgage advance to clear debts

slimjim

skintchick wrote:

Someone once said to me: "If you fail to prepare, prepare to fail."

You asked us for help, and we are giving you the benefit of our experience, but if you want to assume it will all be OK, then go ahead.


And are you sure your friends aren't just getting into debt???

Believe me i appreciate all the advice! But the option of a lodger is a definite no-no. As is not buying the house. To rent somewhere is almost as expensive as buying.

I've decided to sell my car which was a tough decision. I can get £5000 minimum, pay off the remainder of my car loan, buy a cheaper one and have a couple of thousand left to pay off some debt. Running a cheaper car with no car loan should make me £250 approx better off each month.
I'm also going to aim to do 8hrs overtime per week which equates to £600 pre-tax per month. If this stops then i'd have to look at a part time job.

Things are looking less scary today...

nadnad

ok now what are the amounts on your loan and cc's? and what interest are you paying?
The car isn't too bad cos you can see the end of that one. By the way do you need a car? is public transport not an option - I know its a horrible thought to be without one when you're used to it but sometimes they're just to expensive. You may also want to think about cutting out the gym - you can go for a run and thats free - or join a football/rugby/whatever club for free and there's some socializing as well!

Post the amounts of your cards and we'll take it from there.

Also please do not ask your girlfriend to move in just for the sake of your finances - its not a good idea, its not very romantic and I don't think she'd appreciate it. However if you were thinking of asking her anyway this is an excellant way to cut your bills in half! But do make sure you have all financial things worked out before she would move in cos it could cause arguments further down the line!

slimjim

nadnad wrote:

ok now what are the amounts on your loan and cc's? and what interest are you paying?
The car isn't too bad cos you can see the end of that one. By the way do you need a car? is public transport not an option - I know its a horrible thought to be without one when you're used to it but sometimes they're just to expensive. You may also want to think about cutting out the gym - you can go for a run and thats free - or join a football/rugby/whatever club for free and there's some socializing as well!

Post the amounts of your cards and we'll take it from there.

Also please do not ask your girlfriend to move in just for the sake of your finances - its not a good idea, its not very romantic and I don't think she'd appreciate it. However if you were thinking of asking her anyway this is an excellant way to cut your bills in half! But do make sure you have all financial things worked out before she would move in cos it could cause arguments further down the line!

Cahoot Loan £7800 @ 6.9%
Morgan Stanley CC £4500 @ 14.?%
Barclaycard £700 @ 18.?%

Really could'nt manage to live without the car, getting to work on public transport would be a nightmare because of where i work. My car's expensive to run so getting a more efficient one would help. I left my previous gym which cost £45 pm to join this one. £25 pm is pretty good considering i use it 5 times per week.

I am thinking of asking my gf to move in a few months down the line but it will be cause i want her there, not to make my life easier.

Glad i came on this site because it's making me look at my finances and I really look forward to being debt free now. I realise how helpful everyone's being. I know i will clear this debt. Forgive me if i sound too optimistic but I know better than to let worry overtake me and continually look at the negatives.

By the way, I just got offered a part-time job with vodafone

nadnad

ok good job on getting pt work. - How much will that get you?

Heres some little action points:-
1. You need to apply ofr a 0% card or one with low life of balance card you are just throwing mney away on your Morgan Stanley and barclaycard. Get that sorted and when you do - cancel the cards you aren't using read martins http://www.moneysavingexpert.com/creditcards for tips.
2. basically this isn't going to work for you without a lodger or your girlfriend you have £1234 going out and £1300 coming in but thats not including:-
Food, House insurance, TV licence, phone bill, mobile phone, internet, water etc so obviously you're going to be in the minus figures.

I know that isn't much help right now.

Are you really committed to buying this house - there's no way out? You are going to have to face it its going to be a real struggle on your own. I know you said you didn't want a stranger moving in but what about a mate - maybe on a short term lease say 6 months - your bills are halfed immediately and you would get a good bit towards your mortgage. Its a small sacrifice to make to stop yourself going bankrupt!!

I know you have this part time job which of course will help but seriously you've given yourself an almighty task. Anyway post back about your income from part time job and I'll try and think of other things to help. Meanwhile - sort out those credit cards!

slimjim

nadnad wrote:

ok good job on getting pt work. - How much will that get you?

Heres some little action points:-
1. You need to apply ofr a 0% card or one with low life of balance card you are just throwing mney away on your Morgan Stanley and barclaycard. Get that sorted and when you do - cancel the cards you aren't using read martins http://www.moneysavingexpert.com/creditcards for tips.
2. basically this isn't going to work for you without a lodger or your girlfriend you have £1234 going out and £1300 coming in but thats not including:-
Food, House insurance, TV licence, phone bill, mobile phone, internet, water etc so obviously you're going to be in the minus figures.

I know that isn't much help right now.

Are you really committed to buying this house - there's no way out? You are going to have to face it its going to be a real struggle on your own. I know you said you didn't want a stranger moving in but what about a mate - maybe on a short term lease say 6 months - your bills are halfed immediately and you would get a good bit towards your mortgage. Its a small sacrifice to make to stop yourself going bankrupt!!

I know you have this part time job which of course will help but seriously you've given yourself an almighty task. Anyway post back about your income from part time job and I'll try and think of other things to help. Meanwhile - sort out those credit cards!

I thought of switching to 0% cards, however i've applied to two companies and been turned down. Not sure why as i've always kept up with payments. May be due to the current level of debt I have. The part time work may bring in £100 per week pre tax, not fully sure yet.
My outgoings will decrease by £250 at a guess if i sell my car and buy a cheaper one.
My monthly pay of £1300 is minus any overtime I do. I've just recently started working saturdays. As long as this continues I could earn £600 per month pre-tax.

I have no friends who want to move out of living with parents!

Bestthingsinlifearefree

Hi Slimjim,

I am impressed you are doing well and if you carry on with this motivation and discipline I think you will clear your debts and be a home owner.

Yes things will be tight in the begining but you are taking control of your financial future !

Good Luck !!

Best things in life are free !

slimjim

Bestthingsinlifearefree wrote:

Hi Slimjim,

I am impressed you are doing well and if you carry on with this motivation and discipline I think you will clear your debts and be a home owner.

Yes things will be tight in the begining but you are taking control of your financial future !

Good Luck !!

Best things in life are free !

Appreciate the encouragement!

I know i should've thought more before going into this. The finish of a long term relationship recently threw me into a period of spending far too much and running up debts. But i'm sure if i'm determined enough i can make it work.

Just applied for part time work with Royal mail too...

skintchick

Just a thought - you've just finished a long term relationship and you're thinking of asking your new girlfriend to move in with you? Living together is, or should be, as big a commitment as getting married. Don't rush into it.

slimjim

skintchick wrote:

Just a thought - you've just finished a long term relationship and you're thinking of asking your new girlfriend to move in with you? Living together is, or should be, as big a commitment as getting married. Don't rush into it.

Financial and relationship advice on one site!

Believe me i won't be rushing anything!

southernscouser

Slimjim,

Just a word of caution, if your loan was with the car company quite often you are not allowed to sell the car until you have paid it off. Not sure if that applies to you though.

Have you got any room to tranfer some balances to your Cahoot account! Will save a few quid there!

Good luck.