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Debt.......Oh dear.....and a bit confused?

(50 Posts)
KatyMac Mon 20-Jun-05 21:23:03

OK I bought my DH a new car in September £11,000

In October our income went down by £700 every 4 weeks.

Currently our income = our expenditure apart from the loan

I have managed to get £3000 on interest free until Sept and £6,500 at about 8.9%

Can I do any better?

If not for the miscalculation we would have paid off £7000 more (damn)

GeorginaA Mon 20-Jun-05 21:32:02

Can you stick the rest of the debt on some 0% credit card deals? (disadvantage of that, of course, is that you need to really work hard at remembering to swap to a new 0% deal when they expire as the interest is EXTORTIONATE after the initial period).

Can recommend The Money Saving Expert to read up on best ways of managing debt and cutting expenditure costs.

Crazymama Mon 20-Jun-05 21:34:45

Have you tried to get the whole lot at 0%? (Sorry if this is stating obvious!). Even if the debt is spread over a few cards. Have you tried Egg?

Think Cahoot do 7.5% on a loan. I suggest you check out which will tell you the cheapest rates, and give you places to search for 0% cards.

KatyMac Mon 20-Jun-05 21:38:50

The 8.9% is a cahoot loan
I will look arround at the 0% interest - I think I will have to get several cards

GeorginaA Mon 20-Jun-05 21:41:44

The only thing to be wary about 0% cards is that some of them force you to spend a certain amount each month on them (obviously you need to minimize this) and then put a horrendously high percentage rate on the "new" debt (payments clear out the 0% debt first, of course). As I say, worth reading the Money Saving Expert to find the best deals and help navigate the small print, but worth it financially.

KatyMac Mon 20-Jun-05 22:01:13

I am going round in circles on that website.

Shuffle/Tart/Superbalance transfer it's all a bit much

KatyMac Mon 20-Jun-05 22:01:39

And how would I get the loan on to a cc?

GeorginaA Mon 20-Jun-05 22:08:07

Hmm, flipping through some cards let you transfer money straight into a bank account - so you could then use that to pay off the loan?

GeorginaA Mon 20-Jun-05 22:10:46

Otherwise, if you're not sure you'll remember to transfer, then shopping around for the cheapest APR will be your best bet. Crazymama's link would be a good starting point, but remember most lenders use "typical" APR which can be totally different by the time you get through with it!

Another way to get costs down is not to take their payment protection insurance out. They'll be a bit arsey about it - but it's usually a very expensive insurance for very little protection. If you feel you need payment protection then shop around for a separate income protection insurance to cover yourselves should anything happen.

KatyMac Mon 20-Jun-05 22:31:15

Well - that's not much good.

I've applied for an Egg card and been accepted - but with a Credit Limit of £750

GeorginaA Mon 20-Jun-05 22:38:41

urk ... that's not going to get you very far

KatyMac Mon 20-Jun-05 22:39:55

And I think that has effective reduced my credit worthiness (iyswim) cos more credit applications are bad - I think?

GeorginaA Mon 20-Jun-05 22:41:00

I think if you try to fund £6000 of debt in £750 increments then it'll be an issue, yes. I don't think you've damaged anything just by applying for a couple of loans and a card.

KatyMac Mon 20-Jun-05 22:43:00

So I still have £5750 to get on to a lower rate...

GeorginaA Mon 20-Jun-05 22:44:34

There's an article on credit scoring here

Does look like the cahoot loan is going to be the likely route?

Can you cut other expenditure anywhere? Cheaper electric/gas? Cheaper phone supplier? Cut down on food bills?

GeorginaA Mon 20-Jun-05 22:45:31

The other obvious solution (although hard to do, I know) - do you have any close family who would be prepared to lend you the money at 0%?

KatyMac Mon 20-Jun-05 22:47:35

Yep but 8.9% is a real bu**er

The credit score thing doesn't look too bad as cahoot loan is quite old so the only new thing is the Egg CC

I just resent paying too much interest

GeorginaA Mon 20-Jun-05 22:53:19

No I agree. And I really HATE it when they use "typical" APRs and change the ballpark when you phone up. Think you're going to have to bite the bullet and do a lot of phoning around tomorrow, tbh

KatyMac Mon 20-Jun-05 22:57:16

I am feeling a bit resentful (as it's not my fault) I should have paid it all off by now

DH works 44 hrs a week and I work 50 - we are earning a pittance

I know I sound like a petulate 5 yo - but Life's not fair

GeorginaA Tue 21-Jun-05 08:55:54

No, I know {{{hugs}}} hope you get some good quotes today.

HellyBelly Tue 21-Jun-05 08:57:17

Only skimmed through the thread so sorry if I'm duplicating. I saw Egg Card mentioned. I just wanted to let you know that there's something in the small print which stopped me using it to transfer my scattered debts. It's 0% interest bla bla but they now charge (since May) around 2% on EACH balance transfer (max £50).

Just wanted to point that out as I very nearly got caught out!

Good luck on getting it sorted.

If anyone knows a card you can transfer credit cards and overdrafts to for 0% interest and NO balance transfer fees, please let us know!!

GeorginaA Tue 21-Jun-05 12:15:59

Katy - just received the Motley Fool newsletter and it's about the cheapest loans available at the moment. Will try and CAT you so I can forward it on.

Crazymama Tue 21-Jun-05 20:01:40

The interest you are paying on the Cahoot loan is not the worst! As it will be constant for the life of the loan, its not too bad - some of the 0% cards charge huge rates when the time is up, so if you can't get the money moved in time it costs you big time.

Can I suggest you contact Cahoot and tell them you are considering moving the loan to a better rate - I got an e-mail from them today saying 'typical' apr 6.2% on loans? You never know they might just change the rate you pay. Let us know if this works.....

Also suggest Someone else on Mumsnet mentioned it, and I find it really good - especially the discussion board on Dealing with Debt. You could post all of your monthly income and outgoings on there (with no names of course) and get some constructive advice on how to reduce them/ restructure your debts.

Crazymama Tue 21-Jun-05 20:04:57

Another thought - have you considered selling the car, repaying the loan, and buying a much cheaper car? This would either eliminate or reduce your debt.

Probably not ideal, but then it's the choices we have to make. Live with debt and a new car, or without debt and an old car. You decide what suits your lifestyle.

KatyMac Tue 21-Jun-05 20:11:43

Yep I gave myself to September to decide.....the car may go

But I have just had an enquiry for the Summer Hols and at £2000 (for 3) I might be able to pay off the interest free - If I can't the cahoot is a flexible loan and I can just add it in to that.

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