Where to turn

[nonnynonny]

A bit of advice on which way i should go with my debts would be great as they are starting to play on my mind a little now.

 

Background

I earn £1880 a month, my wife (who is not liable for any of my debt, is aware, but leaves me to manage it) earns £750.

 

We bought a house with a £10k deposit as a gift in March this year, for £88k, our mortgage being £492 a month.

 

Outgoings

This is what i pay each month

 

Northern Rock £129 (Due for another 5 year payments) £7740 balance

 

Cahoot Flexible Loan £155 (at present) £6200 from £8000 balance

21.9% APR

 

Cahoot overdraft £6 a month at £1000 used

Lloyds TSB Overdraft £5 a month at £400 used

Alliance & Leicester Overdraft £5 a month at £400 used

 

Tesco Loan 1 - £175 (Due complete May 2011). £4k balance

Tesco Loan 2 - £155 (Due complete Sept 2011), £4k balance

 

Virgin Card £25 (0% transfer rate) until December 2009, £3500 owed

 

Halifax Card £15? - i recently took out a further 0% interest card for 9 months to transfer from Barclaycard balance of £1500 not yet sure of monthly payment.

 

Summary

Northern Rock £129

Cahoot £160

Tesco £331

Virgin £25

Halifax £15

£660 Outgoing on unsecured debt

 

Mortgage £492

Council Tax £100

TV Licence £11

Water £40

Car Insurance £37

TV/Phone £25

£705 Outgoing on expenses

 

Leaving me with £515 monthly for food, shopping, petrol e.t.c and my wife has disposable income of around £500 a month usually, which we spend on home improvements or holidays e.t.c

 

I see my options as below :

 

1) Pay amounts as they are until 2011 when £330 will be available from fulfilled loans, then take out a loan to clear flexible loan and credit cards, replacing the minimum monthly payments and clearing the debt. Pay this out alongside northern rock until completion.

 

2) Possible DMP? Although not sure i would qualify?

 

3) Dont want to re-mortgage and drag my wife into the mess.

 

4) I dont think an IVA is applicable.

 

Am i making a mountain out of a mole hill and when you look at my details we are actually quite well-off as a family and i should go for option 1 and manage things myself?

 

~Just some clarity, to get my head around things really.

[PGH7447]

wish I had a £1000 pound disposable income a month after all my outgoings

 

sounds like you are on top of it all, but to make it easier pay off more on the high interest items first then when that is gone cascade the payment down to the next and so on, also cut up the cards so you dont use them

[nonnynonny]

Hello,

 

Thats what makes me think i am making something out of nothing, when i say nothing it is obviously an issue but a manageable issue.

 

When the 0% balance transfer rates end i will try and find some more offers like that to keep transferring balances until the tesco loans are finished in 2011, and £330 a month becomes available.

 

It really helps to have people review and give a little clarity to a muddled head!

[nonnynonny]

Just to clarify on the cards :

 

Virgin, £3500 owed, £3600 limit, 0% balance transfer rate until December 2009 paying £25 at the moment, 15.9% APR from end of offer.

 

Halifax, £1500 transferred, £4500 limit, 0% balance transfer rate for 9 months, then 21.9% APR, not received montly payment amount as yet.

 

Barclaycard, £0 balance, £1900 limit - i think i will close this account.

[PGH7447]

Just to clarify on the cards :

 

Virgin, £3500 owed, £3600 limit, 0% balance transfer rate until December 2009 paying £25 at the moment, 15.9% APR from end of offer.

 

Halifax, £1500 transferred, £4500 limit, 0% balance transfer rate for 9 months, then 21.9% APR, not received montly payment amount as yet.

 

Barclaycard, £0 balance, £1900 limit - i think i will close this account.

 

if not using an account the I would close it, and for the other 2 pay off the halicrap one first it has the highest interest rate, unless you can transfer to another zero balance, but to be honest they are becomming a bit rare.

 

serioulsy compared to some stories on here you aint in bad shape, as long as nothing happens.

 

good luck

[nonnynonny]

My job is fairly stable, i am on the first 4 months of a 5 year fixed mortgage payment of £492, and i am 27 years old, so hopefully nothing should crop up that can make things worse, my wifes job is also stable.

 

Its just so frustrating that i made bad decisions in my youth, or i could literally be rolling in it at the moment.

[PGH7447]

My job is fairly stable, i am on the first 4 months of a 5 year fixed mortgage payment of £492, and i am 27 years old, so hopefully nothing should crop up that can make things worse, my wifes job is also stable.

 

Its just so frustrating that i made bad decisions in my youth, or i could literally be rolling in it at the moment.

 

Bad decisions happen anytime, I was doing well in my youth, now I am repaying for what I did in my 30s and will be until I am old and grey:)

[nonnynonny]

Is it best to close inactive accounts or leave them open at the zero balance?

[PGH7447]

best to close them, if you leave them open then when/if you need further credit an open unused one would show on the credit search and maybe detremental

[wigworld]

You could also look at any payment protection you are paying or have paid. Often it has been mis-sold, and you can claim it back under some circumstances.

[nonnynonny]

I have done that. Approx 3.5k from Northern Rock, HFC and Egg.

[nonnynonny]

I made an erroneous second balance transfer from barclaycard to halifax of £1570, barclaycard couldnt transfer this back to halifax so the funds have been deposited into my current account.

 

Should i get it back onto the Halifax card (They have said they will refund the balance transfer fee) or should i transfer it into the Cahoot flexible loan account currently at 21.9% APR, and save the interest on it for 9 months that way?

 

(And attempt to pay some off the card in that time).