Advice needed on debt.

Mark4524 · 15 August 2018 at 4:39PM

Hi.

Basically, I'm here for advice.

I took out a personal loan of £12,000 with Lloyds, back last year.
I now also have a 0% credit card for 36 months which has been maxed out at £5000.

My current income is around £1300 a month.
I am paying the credit card off at £100 a month.
I am paying the personal loan off at £353 a month.

I am being charged around £155 a month interest on my personal loan, so my payments don't seem to be making a huge difference.
I don't have any disposable income at the end of each month, and I have a big bill coming up which I can't afford.

I just need advice really. Should I extend my personal loan? Could I pay it off with something else? I really don't know! Any help would be much appreciated.

P.s I should also mention, when I took out the personal loan, I was in a much better-paid job, but circumstances have changed.

Willing2Learn · 15 August 2018 at 4:43PM

Hi Mark4524 and welcome to the forum

It is possible to pay off the loan using a 0% money transfer card. But you may fail on affordability. Try the eligibility checker first if you do choose to go down that road.

For full advice we need to see your Statement of Affairs (SOA). Please complete the form, click on the 'format for MSE button' and post it up here.

http://www.stoozing.com/calculator/soa.php

spadoosh · 15 August 2018 at 5:01PM

Theres something a miss.

I just cant see Lloyds offering what appears to be a loan in the region of thousands of % APR. To someone who had a better job than they do now and can get a 0% credit card.

Im guessing the loan is over 3 years at a pretty generic rate of about 4-6%. Youre not paying £155 per month on interest.

You are paying however £453 a month on debt whilst earning £1300, whilst it might be affordable for some id imagine the typical person would struggle.

Id also suggest doing SOA and you will be given as much helpful advice as your are willing to listen to. A tell tale sign of someone struggling with managing ther emoney is the use of inaccurate figures. Using terms like 'around' always delivers ambiguous results, try and be as accurate as possible.

Mark4524 · 15 August 2018 at 5:30PM

I will complete an SOA.

I am paying 'around' £155 a month interest. I got a few details wrong last time. It is a flexible loan, 21.3% APR. I have paid off £3000 so far.

National_Debtline · 15 August 2018 at 6:05PM

Hi Mark4524 and welcome to MSE,

I agree with other posters that you need to post the SOA so that we can help further. Can you also please clarify what the bill is, that is due, that you are worried you won't be able to pay?

Debts are either a priority or a non priority based on what action they can take to enforce the money owed, rather than how much you owe. The loan and card are non priorities as they do have a limited means of enforcement compared to other debts. You may need to reduce the payments to them if they have become unaffordable, long term or maybe short term - especially if the new bill is a priority. If that is the case, we can go through the different options to negotiate to help you.

Laura
@natdebtline

Ms_Chocaholic · 15 August 2018 at 6:06PM

Do you have any items you can sell to help you out?

zippygeorgeandben · 15 August 2018 at 7:59PM

Mark4524 wrote: »

Should I extend my personal loan?

No. I would advise against this.

Advice needed on debt.

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