New loan what’s the chances

Dolly123 · 19 February 2019 at 9:31PM

In 4 years it will be gone and he has a company car but he’s not meant to use it for personal use at weekends so he’s just a runaround for taking the kids swimming on a Saturday when I am at work.

What’s an SOA?

The debt is
£7500 on hubbys credit card
£2500 on mine
£1800 on a store card
£2600 on my loan
£1600 on his loan

Like I explained earlier we saved £38k in 2 years for house deposit and stamp duty and a wedding so when we have to we can save I just find other things to spend money on and consolidating will save me approx £600 per month in payments which I can save to have the garden landscaped 😉

macman · 19 February 2019 at 11:27PM

You are not 'saving £600 per month'. You are paying less each month and extending the loan term by x months to 48 months. Try actually working out the total you will pay over the full term-that is the only figure that matters, and the odds are that it is thousands more.
If you saved £38K in 24 months then you can save at least £1600 a month and pay off your entire debt inside 10 months.
Then you can start the gardening...
PS: SOA = Statement of Affairs. Assets and liabilities; like the liabilities you've listed above. But you need to add the APR on each loan as well. Then target the loans with the highest rates first.
I still can't see why you can only save £19K a year, given your high gross income, which makes me think that there are a lot of savings to be made on the expenditure side.

Dolly123 · 20 February 2019 at 9:29AM

Ok I’m not saving £600, my monthly payments are £911 at the moment for those accounts, the attraction is the reduced interest I looked last night at the interest on the credit cards are 34.9% for mine and 22.9% for his. And the store card is 24.9% Even if the new rate was 10% I’d still be saving money. I’d be happy to actually just have a loan to clear those off as those interest rates are terrifying!

I’ve run a SOA and it says I have plenty left over but I like a nice lifestyle and there is many things such as a cleaner and the childrens clubs I could quite easily reduce but I don’t want to I just have frustration that my basic is low and that’s what a lender goes off. Even my mortgage took into consideration my commission and we quite comfortably got our mortgage with no questions. Getting this loan is more stressful than that!!

poppasmurf_bewdley · 20 February 2019 at 10:41AM

Dolly123 wrote: »

the daft thing in 2015-2016 we saved £15k for our wedding and last year we saved £23k in a year for our house deposit so we can do with it there is a target I just struggle when there isn’t one a and I’d rather spend the money on the new house ha I’m a nightmare!

Oh dear. Spend and spend until something goes wrong. You sound just like my ex wife, who since the divorce has had numerous run in's with bailiffs and debt collectors, had the family home repossessed despite me giving her the mortgage money (yea, I know), and now lives in a caravan in a field so she's untraceable and intends staying there for a minimum of six years so all her debts become statute barred.

Please change your ways before the nightmare happens!

macman · 20 February 2019 at 11:25AM

But you don't need to take a loan to clear your high interest CC debts. If you just reign in your expenditure for 3 months you could clear at least two of those cards/loans entirely. You are burning through nearly £500 a week in expenditure that can be avoided.
And you are fixated on the lower APR rather than the real cost of the loan.
The reason your bonus is disregarded is because it is not guaranteed. Lose that and your income reduces by about 60%, and then you will be unable to service your debts.
Fundamentally, you are spending more than you earn, but in denial. If you cannot increase your income, then you have to reduce your expenditure. It's that simple.

Dolly123 · 20 February 2019 at 11:34AM

poppasmurf_bewdley wrote: »

Oh dear. Spend and spend until something goes wrong. You sound just like my ex wife, who since the divorce has had numerous run in's with bailiffs and debt collectors, had the family home repossessed despite me giving her the mortgage money (yea, I know), and now lives in a caravan in a field so she's untraceable and intends staying there for a minimum of six years so all her debts become statute barred.

Please change your ways before the nightmare happens!

Im not quite sure how I compare to your wife who lives in a caravan in a field avoiding all her debts? We work hard for what we have and are paying for it?

Dolly123 · 20 February 2019 at 11:45AM

macman wrote: »

But you don't need to take a loan to clear your high interest CC debts. If you just reign in your expenditure for 3 months you could clear at least two of those cards/loans entirely. You are burning through nearly £500 a week in expenditure that can be avoided.
And you are fixated on the lower APR rather than the real cost of the loan.
The reason your bonus is disregarded is because it is not guaranteed. Lose that and your income reduces by about 60%, and then you will be unable to service your debts.
Fundamentally, you are spending more than you earn, but in denial. If you cannot increase your income, then you have to reduce your expenditure. It's that simple.

I know what your saying, I think I just like having a nice lifestyle. up until last week we'd never even considered a loan we have just paid it and got on with it its just now I have the idea in my head! I over pay on my credit card each month and we were doing on my husbands until they wacked the minimum payment up and now its £330.

My own out goings are only about £850 a month and the remaining money we just saved and some months I was taking £3400 a month home after tax. Joys of having a commission based job eh!

poppasmurf_bewdley · 20 February 2019 at 11:47AM

Dolly123 wrote: »

Im not quite sure how I compare to your wife who lives in a caravan in a field avoiding all her debts? We work hard for what we have and are paying for it?

So did she until redundancy came around and reduced household income by more than half. Unfortunately, she couldn't understand what controlled spending was and carried on regardless. I'm afraid you have the same mindset as her, as is shown by your reply to my post.

May I ask, with this £100k income you have, how much do you have in savings?

Dolly123 · 20 February 2019 at 12:50PM

poppasmurf_bewdley wrote: »

So did she until redundancy came around and reduced household income by more than half. Unfortunately, she couldn't understand what controlled spending was and carried on regardless. I'm afraid you have the same mindset as her, as is shown by your reply to my post.

May I ask, with this £100k income you have, how much do you have in savings?

At this moment in time one months mortgage payment and about £500 'just incase' money. Plus £3k in a work share scheme. I also pay £250 a month into my pension. We have moved into our first home 6 months ago so all our savings went into that.

macman · 21 February 2019 at 10:16AM

So, do you want to have a 'nice lifestyle' with never ending debt, or do you want to clear your debt within a year, as you easily could, and then you will have the income you are currently wasting on high interest payments to spend as you wish? It's your choice.
Sorry, but your figures make no sense to me. If you are only spending £850 a month then you must have substantial surplus left between you. Do you even know where that is going? I suggest you do a full SOA for your joint income and expenditure.
£500 savings on £100K is no safety margin at all. Suppose you need a new boiler tomorrow-that would wipe out your contingency.. On your income you could easily save £500 a month.

New loan what’s the chances

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