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  • FIRST POST
    • galeroke
    • By galeroke 13th Jan 19, 7:21 PM
    • 2Posts
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    galeroke
    Non-priority debts and budget summary
    • #1
    • 13th Jan 19, 7:21 PM
    Non-priority debts and budget summary 13th Jan 19 at 7:21 PM
    My husband and I are currently drawing up a budget summary to send to creditors due to spiraling debt . We have 2 non-priority debts which we're not sure whether we should be making priority debts? Our mortgage / gas / electric / council tax payments are up-to-date. We have good salaries but have been living on credit and made poor financial decisions since a period of unemployment 10y ago.



    1. a loan which outstanding balance is 725 and we only have 3 payments left. We have not defaulted on this loan, hence keen to get it paid off and then focus on the others ie make it a priority. Or should we include in non-priority debts and offer reduced payments but ultimately extend length of loan



    2. a credit card with balance of 1500 which we (stupidly in hindsight) agreed a 6 month payment plan of 101 per month as we had arrears. It is still accruing interest. Can we default on this payment plan and include in our non-priority debts?


    Finally, we have an arranged overdraft of 2450 which we basically live in. We have intially included it in our budget summary with a monthly payment offer to reduce it but does anyone have a template letter to send to our current account provider to offer a repayment but also request reduced interest / charges. Should we switch accounts too as we have cc debts with them?



    Any advice on these would be greatly appreciated.
Page 1
    • Karonher
    • By Karonher 13th Jan 19, 9:44 PM
    • 528 Posts
    • 2,187 Thanks
    Karonher
    • #2
    • 13th Jan 19, 9:44 PM
    • #2
    • 13th Jan 19, 9:44 PM
    If you are going to default and ruin your credit rating it would seem most sensible to do it for all non priority debts and free up some money each month as soon as possible.

    Why struggle for another 3 - 6 months when there is nothing to be gained from it?
    Getting ready for Christmas 2019

    Aiming to make 5,000 online in 2019.
    • Willing2Learn
    • By Willing2Learn 13th Jan 19, 10:01 PM
    • 1,966 Posts
    • 1,532 Thanks
    Willing2Learn
    • #3
    • 13th Jan 19, 10:01 PM
    • #3
    • 13th Jan 19, 10:01 PM
    Why not post up your SOA so that we can see your exact circumstance? Then you can get more targeted advice, support and guidance. If you were to get 0% APR Money Transfer card, would that help you?

    http://www.stoozing.com/calculator/soa.php
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • galeroke
    • By galeroke 13th Jan 19, 11:12 PM
    • 2 Posts
    • 0 Thanks
    galeroke
    • #4
    • 13th Jan 19, 11:12 PM
    • #4
    • 13th Jan 19, 11:12 PM
    Thanks for responses

    1. I don't mean default on the payment plan entirely - I mean we would include them in our non-priority debts and offer the cc company a repayment we could afford and request a freeze on interest / charges (if we can do this????)

    Our credit rating would not enable us to get a 0% transfer card

    SOA:

    My salary - 2000
    Partners salary - 1850
    Benefits - 137 (2 dependents < 16y)

    Total - 3987 per month


    Monthly Outgoings:

    Mortgage/Rent - 811
    Council Tax - 122
    Gas & Electric - 120
    TV License - 13
    Sky & internet & phones (3 mobiles & landline) 170
    Food - 500
    Car Insurance - 81 (2 cars)
    Petrol - 200 (cars essential for work commutes)
    Life Insurance 20
    Childcare 10
    Plus School uniforms / school trips / household repairs / car maintenance / factor fees / contents insurance / unions fees / professional fees / road tax / gifts / clothing / entertainment
    Total: 2567

    Loan 725 (3 monthly payments left)
    CCs / Store cards / overdraft: 49,000

    ie approx 1400 for non-priority debts

    any help gratefully appreciated
    • Willing2Learn
    • By Willing2Learn 13th Jan 19, 11:30 PM
    • 1,966 Posts
    • 1,532 Thanks
    Willing2Learn
    • #5
    • 13th Jan 19, 11:30 PM
    • #5
    • 13th Jan 19, 11:30 PM
    Hi,

    We need a more comprehensive SOA. Please use the SOA link provided in my last post.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

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