# Falling behind



## onyourbike (12 May 2009)

Age: 35
Spouse’s/Partner's age: n/a

Annual gross income from employment or profession:  40,000
Annual gross income of spouse: n/a

Type of employment: Private sector 

In general are you:
(a) spending more than you earn


Rough estimate of value of home  200,000
Amount outstanding on your mortgage:  180,000
What interest rate are you paying? 3.25%

Other borrowings – car loans/personal loans etc 
  Mortgage arrears : 1,366 (overpaying by 150 each month agreed with bank)
  Loan : 7,500
Credit card : 3,200
  Overdrafts 2,200
  Other (bills friends ect) :  3,200

Do you pay off your full credit card balance each month? No
If not, what is the balance on your credit card? 3,200

Savings and investments: Zero

Do you have a pension scheme? Yes but has stopped adding to it

Do you own any investment or other property? No

Ages of children: n/a

Life insurance: Yes


*What specific question do you have or what issues are of concern to you? 
*I am just about to sign a loan for 12,500 to cover the overdrafts, credit card and loan @ 275 a month for 5yrs. For the 3,200  I have managed to fix payment terms with all which will be about 400 to start but going down to 200 after 2 months finishing in 10 months.

Would you say this is the way to go or is there a better way to do this?


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## Guest110 (12 May 2009)

Hya,

I reckon a consolidated loan is the way to go. Did you get a good interest rate on the loan itself ? Also, did you get a fixed or variable rate . From a personal previous experience - fixed is much better than variable.

I would also recommend that any money you pay monthly towards the overdraft and the credit card - you should keep ringing up both companies at the end of each month and ask them to reduce the limits to the new specified owed amount. Just get them into a reasonable state and then if you can get rid of the overdraft and probably just keep the Credit Card. 


Good look with your bills, you have a long way to go with that 5 year loan, but you seem to be going the proper route.


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## onyourbike (12 May 2009)

thanks Alexandra
All loans and credit card are with the same bank so once the load comes they will be zero. I will than cancel the ODs and bring the credit card limit down to half it is now.


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## markowitzman (13 May 2009)

mobile phone, sky tv, restaurant, pub etc etc.......must be forfeited now,
are personal loans secured
could you rent a room
introduce a very sharp scissors to credit card now


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## dusmythb (14 May 2009)

The aul credit credit card is your biggest danger and temptation, however there will always be a time when you genuinely need it. Reducing the limit is the way to go but I remember a previous post a while back making a suggestion that rather than destroying the card you could remove the strip at the back hence limiting its use but still maintaining access.


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