Falling behind

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?

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.

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.

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

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.