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  • FIRST POST
    • DebtFreeWannabeHezza
    • By DebtFreeWannabeHezza 8th Apr 18, 10:46 PM
    • 5Posts
    • 1Thanks
    DebtFreeWannabeHezza
    Frustration of unaffordable rates
    • #1
    • 8th Apr 18, 10:46 PM
    Frustration of unaffordable rates 8th Apr 18 at 10:46 PM
    My husband and I have been through a rough couple of years between mental health issues and an absolute nightmare with a huge case of dry rot in the house we live in (the agreement we have is that we don't pay rent but we're responsible for maintenance, which normally works out well, but not this year). In that time I've made some bad financial choices and we now have about 39k of unsecured debt. I've managed to get about 8k of it onto low interest (0% to 4.9%) credit cards, but the rest is on at least 17.9%.

    I've switched our fuel to the lowest provider and have spent all weekend working out our income against our essential and flexible outgoings. The rest would be manageable if we could convert our highest 15k into a loan with a monthly repayment around 330. The banks' headline rates of 3.9 or 4.6% are easily inside that figure (they work out at something like 270 per month), if I spread the loan over 5 years, but of course I'm not offered the headline rate. Instead, I'm offered rates of over 15% (my bank offered me 19.5% - really, what is the point?!), which would make my monthly payment more like 500 or more, and just compound the problem. I'm a member of the MSE Credit Club and my credit score is 726 so I'm basically not eligible for any Balance Transfer cards.

    Has anyone found a viable way out of this situation?
Page 1
    • DCFC79
    • By DCFC79 8th Apr 18, 10:51 PM
    • 32,556 Posts
    • 20,486 Thanks
    DCFC79
    • #2
    • 8th Apr 18, 10:51 PM
    • #2
    • 8th Apr 18, 10:51 PM
    My husband and I have been through a rough couple of years between mental health issues and an absolute nightmare with a huge case of dry rot in the house we live in (the agreement we have is that we don't pay rent but we're responsible for maintenance, which normally works out well, but not this year). In that time I've made some bad financial choices and we now have about 39k of unsecured debt. I've managed to get about 8k of it onto low interest (0% to 4.9%) credit cards, but the rest is on at least 17.9%.

    I've switched our fuel to the lowest provider and have spent all weekend working out our income against our essential and flexible outgoings. The rest would be manageable if we could convert our highest 15k into a loan with a monthly repayment around 330. The banks' headline rates of 3.9 or 4.6% are easily inside that figure (they work out at something like 270 per month), if I spread the loan over 5 years, but of course I'm not offered the headline rate. Instead, I'm offered rates of over 15% (my bank offered me 19.5% - really, what is the point?!), which would make my monthly payment more like 500 or more, and just compound the problem. I'm a member of the MSE Credit Club and my credit score is 726 so I'm basically not eligible for any Balance Transfer cards.

    Has anyone found a viable way out of this situation?
    Originally posted by DebtFreeWannabeHezza
    Ill tell you now that your score isn't worth much since lenders don't see it, they see your credit history.

    It sounds like you need the debt free wannabe board more than a loan.

    I get your idea for the loan but lenders will see it as extra debt your taking on.

    Either reduce your spending or get a second job.

    Theres 2 other agencies in the mix, they may well rate you differently, may as well check them to see if they are all ok.
    Last edited by DCFC79; 08-04-2018 at 11:00 PM.
    • PeacefulWaters
    • By PeacefulWaters 9th Apr 18, 7:33 AM
    • 8,318 Posts
    • 10,670 Thanks
    PeacefulWaters
    • #3
    • 9th Apr 18, 7:33 AM
    • #3
    • 9th Apr 18, 7:33 AM
    Spend less.

    Earn more.

    Refinance.

    They're your choices. And the third one has been ruled out.
    Last edited by PeacefulWaters; 09-04-2018 at 7:35 AM.
    • iolanthe07
    • By iolanthe07 9th Apr 18, 10:01 AM
    • 5,064 Posts
    • 4,750 Thanks
    iolanthe07
    • #4
    • 9th Apr 18, 10:01 AM
    • #4
    • 9th Apr 18, 10:01 AM
    The bank's headline figure is offered to 51% of successful applicants, but successful applicants with a less than excellent credit history will be offered higher rates - sometimes much higher. From the bank's point of view it is all about risk. Your credit score of 726 is more or less meaningless because the bank won't see it. It is credit history that counts.
    I used to think that good grammar is important, but now I know that good wine is importanter.
    • RedFraggle
    • By RedFraggle 9th Apr 18, 12:41 PM
    • 734 Posts
    • 2,032 Thanks
    RedFraggle
    • #5
    • 9th Apr 18, 12:41 PM
    • #5
    • 9th Apr 18, 12:41 PM
    I'd suggest heading to the debt free wannabes board and posting a statement of affairs (SOA). The folks on there are great for this kind of thing.
    Officially in a clique of idiots
    • jonesMUFCforever
    • By jonesMUFCforever 9th Apr 18, 8:32 PM
    • 25,181 Posts
    • 12,434 Thanks
    jonesMUFCforever
    • #6
    • 9th Apr 18, 8:32 PM
    • #6
    • 9th Apr 18, 8:32 PM
    Have you considered moving?
    What goes around - comes around
    give lots and you will always receive lots
    • John-K
    • By John-K 9th Apr 18, 10:11 PM
    • 654 Posts
    • 1,023 Thanks
    John-K
    • #7
    • 9th Apr 18, 10:11 PM
    • #7
    • 9th Apr 18, 10:11 PM
    As you!!!8217;ve seen, lenders view you as a bad risk, so need to charge you high rates to offset the high risk of default. Refinancing looks to be unavailable for you.

    That leaves earning more, or spending less. You need to work out how you can achieve one or preferably both of these.
  • National Debtline
    • #8
    • 10th Apr 18, 11:16 AM
    • #8
    • 10th Apr 18, 11:16 AM
    Hello DebtFreeWannabeHezza and welcome to the forum.


    I can only echo the suggestions of others that you post your query on the main DFW board as opposed to this one, where it should get more attention and feedback. The statement of affairs (SOA) referred to above will make it a lot easier for us to assess your options - you can find it at


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


    and it can then be easily pasted into a conversation thread like this one.


    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • DebtFreeWannabeHezza
    • By DebtFreeWannabeHezza 10th Apr 18, 2:56 PM
    • 5 Posts
    • 1 Thanks
    DebtFreeWannabeHezza
    • #9
    • 10th Apr 18, 2:56 PM
    • #9
    • 10th Apr 18, 2:56 PM
    Assuming that we don't have a hellish year for household disasters like last year, moving house definitely won't help - we don't pay any rent here so wherever else we moved we'd have another payment for which to find money. We can't take second jobs because we're in the process of starting a new business, which is why my husband's income is so low at the moment (he's only taking odd jobs around the work of building the new business) - after around this time next year we'll have an extra 1,000-2,000 of income each month but somehow I've got to find a way to tide us over the next few months.

    The reason I posted here rather than the Debt Free Wannabe board is because whenever I click to post something there, I see a message without the MSE forums header that says:

    IMPORTANT NOTE:
    The Grabbit Board is for telling people about Top Deals & Offers
    If you!!!8217;re asking not telling about a top deal, you!!!8217;re in the wrong place.
    Instead please go to the I wanna board.
    Are you sure you want to start a new thread here?

    So I figured it's been hacked or something. If there's any way for an admin or someone to move my thread, I'd be more than happy - it was the DFW board that I wanted to post on.

    I did the SOA thing:
    [font=courier new]Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 0
    Number of cars owned.................... 0

    Monthly Income Details

    Monthly income after tax................ 2200
    Partners monthly income after tax....... 800
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 3000


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 149.22
    Electricity............................. 112.68
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 25.54
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 101.58
    Clothing................................ 10
    Petrol/diesel........................... 0
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 34
    Pet insurance/vet bills................. 903.48
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 29.25
    Presents (birthday, christmas etc)...... 20
    Haircuts................................ 0
    Entertainment........................... 128.98
    Holiday................................. 0
    Emergency fund.......................... 0
    Bank Accounts........................... 22
    Magazines............................... 21.77
    Total monthly expenses.................. 1558.5



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................ 0


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Bank Loan......................5933.83...182.9.....17.5
    Credit Card 1..................7623.34...120.8.....4.5
    Credit Card 2..................7523.21...78........19
    Credit Card 7..................3027.92...0.........0
    Credit Card 6..................900.......8.77......0
    Credit Card 5..................4666.99...46........0
    Credit Card 4..................2290.73...22.91.....0
    Credit Card 3..................7337.89...292.7.....29.9[b]
    • BorisThomson
    • By BorisThomson 10th Apr 18, 2:59 PM
    • 1,586 Posts
    • 3,435 Thanks
    BorisThomson
    Pet insurance/vet bills................. 903.48
    Is this a mistake?
    • Superscrooge
    • By Superscrooge 10th Apr 18, 3:31 PM
    • 1,089 Posts
    • 786 Thanks
    Superscrooge
    I don't know if it is a mistake. But I do know vet bills can be very expensive if a pet needs an operation
    • iolanthe07
    • By iolanthe07 10th Apr 18, 3:55 PM
    • 5,064 Posts
    • 4,750 Thanks
    iolanthe07
    Perhaps the 903 was for a whole year of vet's bills, and OP didn't divide by twelve. Unlikely that vet's bills would amount to 903 a month!
    I used to think that good grammar is important, but now I know that good wine is importanter.
    • Superscrooge
    • By Superscrooge 10th Apr 18, 4:22 PM
    • 1,089 Posts
    • 786 Thanks
    Superscrooge
    Good point. I was thinking more of a one off vets bill, than a monthly charge
    • PeacefulWaters
    • By PeacefulWaters 10th Apr 18, 4:27 PM
    • 8,318 Posts
    • 10,670 Thanks
    PeacefulWaters
    Maybe it's a pet crocodile.
    • ViolaLass
    • By ViolaLass 10th Apr 18, 4:57 PM
    • 5,434 Posts
    • 7,488 Thanks
    ViolaLass
    Even with the pet crocodile, you're managing with (ish) your income per month. What's happening to the 800 your OH is earning?
    • John-K
    • By John-K 10th Apr 18, 6:55 PM
    • 654 Posts
    • 1,023 Thanks
    John-K
    11,000 a year on vet expenses for a pet?

    If you want a viable way out of it then I can see a glaring, huge expense that is digging you into a deep hole.
    • iolanthe07
    • By iolanthe07 11th Apr 18, 11:16 AM
    • 5,064 Posts
    • 4,750 Thanks
    iolanthe07
    11,000 a year on vet expenses for a pet?

    The OP hasn't been back to clarify, but it surely must be a mistake.
    I used to think that good grammar is important, but now I know that good wine is importanter.
    • thriftylass
    • By thriftylass 11th Apr 18, 11:33 AM
    • 3,381 Posts
    • 27,788 Thanks
    thriftylass
    Household Information[/b]
    Number of adults in household........... 2
    Number of children in household......... 0
    Number of cars owned.................... 0

    Monthly Income Details

    Monthly income after tax................ 2200
    Partners monthly income after tax....... 800
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 3000


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 149.22
    Electricity............................. 112.68
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0 nothing?
    Mobile phone............................ 25.54
    TV Licence.............................. 0 nothing?
    Satellite/Cable TV...................... 0 nothing?
    Internet Services....................... 0 nothing?
    Groceries etc. ......................... 101.58 that seems low for two for a month to eat sensibly
    Clothing................................ 10
    Petrol/diesel........................... 0 nothing?
    Road tax................................ 0 nothing?
    Car Insurance........................... 0nothing?
    Car maintenance (including MOT)......... 0 nothing?
    Car parking............................. 0
    Other travel............................ 0 (how do you travel?)
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 34
    Pet insurance/vet bills................. 903.48 (others already asked)
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 29.25
    Presents (birthday, christmas etc)...... 20
    Haircuts................................ 0
    Entertainment........................... 128.98
    Holiday................................. 0
    Emergency fund.......................... 0
    Bank Accounts........................... 22
    Magazines............................... 21.77
    Total monthly expenses.................. 1558.5



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................ 0


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Bank Loan......................5933.83...182.9.....17.5
    Credit Card 1..................7623.34...120.8.....4.5
    Credit Card 2..................7523.21...78........19
    Credit Card 7..................3027.92...0.........0
    Credit Card 6..................900.......8.77......0
    Credit Card 5..................4666.99...46........0
    Credit Card 4..................2290.73...22.91.....0
    Credit Card 3..................7337.89...292.7.....29.9 definitely to one to pay of first[b]
    Originally posted by DebtFreeWannabeHezza
    Good luck. I agree borrowing more at a good rate is unlikely. Try snowballing and chucking every penny (bar minimum payments on the others) into the highest interest rate debt.
    Last edited by thriftylass; 11-04-2018 at 11:37 AM.
    • Sncjw
    • By Sncjw 11th Apr 18, 12:32 PM
    • 1,916 Posts
    • 1,129 Thanks
    Sncjw
    Surely this isn!!!8217;t a time to start a new business. I think your husband should get a job that will give a steady income to enable you to put money to debts.

    If you have a smartphone you can download and app and pay 7.99 a moth for magazines on your phone it!!!8217;s called Readly and you get hundreds of them to read and also past editions as well.

    The vet bills need looking at does the insurance not pay out? Also entertainment can that be reduced.

    Do you really only spend 25 a week on food shop. Does the amount include top up shops during the week
    • DCFC79
    • By DCFC79 11th Apr 18, 8:40 PM
    • 32,556 Posts
    • 20,486 Thanks
    DCFC79
    OP the debtfree board is the next 1 down from where you fiund the loans board.

    The vet bills must be an error and you forgot to divide by 12.

    I agree your husband needs to get a job. Dont ypu think you should start the business when you dont have these debts ?
    Last edited by DCFC79; 11-04-2018 at 8:50 PM.
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