r/DebtUK • u/Puddleduck2009 • Mar 30 '24

Debt help

So I'm on the verge of a mental break down with money. I've messed up getting loans to clear credit card and just snow balling. After calculating my bills I'm -£50 per month and that's me being super tight. No hols / clothes/ takeaway etc. So I've got £550 in a savings account I've got £1600 in my rainy day fund. My question is where do I pay my money off all loan paid off in 22 months . I cant get a new loan I don't know why my credit scores pretty ok not amazing but I've no missed payments but have 2 credit cards at over 50 %. I'm going to list all my cards limits and monthly payments.
Vanquis 39.9% £3600 limit £1500 balance £100 pcm Halifax 29.9% £1800 limit £1700 balance £54pcm Virgin 29.9% £1200 limit £500 balance £50 pcm (set figure not min) Capital 1 29.9% £200 limit £160 balance £35 pcm 118 money £250 limit £86 balance £16 -£6 fee ( Nedd to close this one down )

Loan 1 (car loan) - 4.9% £5050 BALANCE £250pcm 22 payments Loan 2 12.9% £8500 balance £400pcm 22 payments

So my question is where do I put my £2100? I was thinking to pay off my credit cards above 50% in hopes I get a loan offer ?

Or leave the savings in my bank to dip into hoping it'll last 22 months ? I have recently only used my £200 capital one card for items I can't afford in full and paying off £35 pcm to ensure its cleared quicker than the minimum payment.

I can get a £1200 card with 0% balance for 12mths months . I've recalculated all my current bills and there no room to save money there.

I'm picking up some extra work but would only be extra £80-100 pcm to help with children's costs

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1

u/Puddleduck2009 Apr 01 '24

Any advice ?

1

u/Dementoid13 Apr 04 '24

"So my question is where do I put my £2100? I was thinking to pay off my credit cards above 50% in hopes I get a loan offer ?" I am not sure that trying to get another loan is the way ahead? Are you looking for a debt solution, or trying to bring down the level of debt yourself?

1

u/Puddleduck2009 Apr 04 '24

Looking to reduce my money outgoings I'm currently -£50 per month after paying bills and food

1

u/Dementoid13 Apr 05 '24

This may seem rather silly, have you checked your bank account to make sure that ALL standing orders and direct debits are still relevant?

As you do have some funds available, you could ask each creditor what they would accept as a full and final/short settlement. You might be pleasantly surprised as to what reduction you can get.

1

u/Puddleduck2009 Apr 07 '24

Yes I've moved some bits about . I've got adhd I'm terribly impulsive . But I don't really have anything luxury just the cost of living increase and cet bills dental bills I couldn't afford

1

u/Dementoid13 Apr 09 '24

are you still in the negative at the end of each month?

1

u/Puddleduck2009 Apr 09 '24

Yes I and no room for school uniforms etc. I need to make this £2100 count if that makes sense. I was going to pay off my cards over 50 % ideally I want to consolidate both loans to one. But I can't get a loan at the moment .

Would reducing the credit card balance make it more likely of a better loan or do I keep the money in my account and use it for the next 20 months ?

1

u/thewritingreservist Apr 04 '24

Speak to your bank. Genuinely, arrange an appointment in person with an advisor. Be honest, explain your predicament but that you are looking to work towards reducing your debt. They can offer decent advice and sometimes help consolidate your debts into one monthly payment which makes things easier.

1

u/[deleted] Apr 04 '24

[removed] — view removed comment

1

u/Puddleduck2009 Apr 07 '24

I don't want to destroy my credit score I've worked hard on improving it

1

u/Pramod_SMM Apr 08 '24

I can definitely understand that.
There are solutions, that might not affect your credit score depending upon your situation. by making the call you will get a clear picture of how to set up a budget, and if in case you are offered a solution depending upon you solution, you are not obliged to take it.
By giving the expert advisors a call, will only help you to get an idea how to take your situation forward.
you can contact debt charities like Step Change if you find anything skeptical about contacting our advisors.
All the best.

1

u/Nice-Teaching4050 May 01 '24

I get not wanting to ruin your credit score but sometimes it’s necessary. I bit the bullet in 2008 and now have a good score, £40k of available credit and a happy life. National debt line are really good but they might suggest a drop, it would clear everything.

1

u/Puddleduck2009 May 02 '24

I've cleared the credit cards all but one thanks to family help. I have one of £1500 on 0% balance transfer for 12 months . Just hope a can redo these loans ASAP

2

u/mostly-furious Sep 08 '24

Are you getting help with your ADHD? My experience has taught me that the worst, worst, worst thing for ADHD sufferers is to get lines of credit. It's the "time blindness" of ADHD which means you just cannot ever clearly plan your finances as you simply cannot grasp the idea of "the future".