Jamz3k

Nothing major i may add but with the way jobs are going etc etc I would like the advice of Scoobynets financial boffins.

Basically my debt consists of
£5000 loan
£1000 Credit Card
£3000 Credit Card
=£9000 Total Owned out

Now I have been managing quite well to pay this off lately without much fuss but over christmas i was informed that my job may be at risk and that has set the alarm bells ringing.

I have been thinking of getting a bigger fixed rate loan to cover the total of £9k that has a security against losing my job. Does this sound like a good idea or should i just get a smaller loan for the Credit cards as my loan is already secured against lose of job?

Any Advice on how to shrink my outgoing whilst paying the most off are welcome.


Cheers guys.

SteveScooby

iTrader: (2)

MoneySavingExpert.com Forums

Try here

mamoon2

Have you not got protection on your cards? This normally comes as standard, at least it does on mine.

salsa-king

is that all you owe? panic when you have £10k just on credit cards.

Move your CREDIT CARD Dept to an interest Free card.. try Virgin Credit cars.. 0% on transfers for about 15months.... BUT don't spend on the card.. put it away safe and DON'T UE IT!!!!

pimmo2000

iTrader: (6)

Its fraud to get a loan with Job protection when you know your job is at risk !

mamoon2

Where's your source for this? surely lots of jobs are at risk all the time and especially at the moment.

Jamz3k

fraud or not i'm just trying to cover my back.

dpb

You could very well be the 500th richest person in the uk

- one of Gordans golden boys ..!

Jamz3k

I would like to add i blame Alfa Romeo for my current financial situation. I was told upon buying my car get a credit card and keep it safe just incase things go wrong.....well £3k later i need another emergency credit card

richardg

mamoon2-
source? read the small print! no insurer in their right mind would insure against a risk they know is potentially heightened! that's like insuring your car after you had it stolen

jay -
having said that, it is clear that most are at more risk than say 12 months ago due to the current financial climate in general, so taking out a loan with protection payment wouldn't necessarily ring any alarm bells louder than for any other borrower at the moment

LanCat

Don't get a consolidation loan if you can avoid it. As has been said already live like a monk for a while, pay off the cards as much as you can each month. Obviously concentrating on the larger one if the interest rates are equal. Anything you can sell to get some lump sums?

dunx

iTrader: (3)

O% credit card transfer, 15 months @ Virgin !

I did, so only eight months till I'm free !

LOL

dunx

P.S. Get another card add £6K to it and go bankrupt.... IVA (?) debt written off, but no credit for a while !

bootsy

go and see citizen advice

Jamz3k

i'm not actually that concerned about it to hit citizens advice or go bankrupt just trying to gauge the best way to safely and securely pay it off

kingofturds

iTrader: (1)

Do you have a canoe?

Hanley

No it's not.

If it were then a question would be asked during the application process...."Do you have any knowledge of your employment being at risk?"

And a large percentage of the population would have to answer yes.

nixxon

They don't ask this during application, but are quite happy to tak your premiums, and then point out that you might have had an inkling your job was at risk when you claim. If you suspect your job is at risk, however slightly, when you apply, then you're not covered. Been there, done that!
Read the smallprint very carefully!

HankScorpio

If you've been notified officially that your job is at risk of redundancy, it would be considered fraud not to declare it when attempting to take out insurance against that risk.

Most of those policies will have an initial exclusion period anyway and you don't think that if you make a claim that the company would look into the declarations made?

If you haven't been notified officially, no problem but premiums will be steep in the current climate.

yoza

Your worrying for nothing.

Your loan, I take it is unsecured?

The credit cards are unsecured.

So if you come out of work and cant get another job, wait for the summons which will be a long time coming. Go to the magistrate explain your situation, and pay £5 a week, job done.

This happens hundreds of times each week.....loan companies and credit card companies are too quick tto give out money and they tempt people out of their depth, so I think they deserve it.

A guy I work with had 7 grand debt wiped off two cards, a store card and credit card, because when he applied for them, and maxed them out he claims was suffering with mental illness (depression), so he was not in control of what he was doing.....Unbelievable..DEAL ME IN.

J4CKO

iTrader: (1)

No magic cure, as has been said, do without stuff, every penny saved is one towards the debt, make butties for work, walk if possible rather than usign the car.

Our culture has removed the link between earnings and what you can buy via credit, people with no money can look rich and its a compelling way to be but in the long run, it doesnt work, collectively as a society (globally) it doesnt work as has been proven, some manageable credit makes the world go round but it all got out of hand, not saying yours has as 9 grand is not the national debt of the US but its a substantial chunk of cash.

The problem is, for now at least, this profligacy has affected the sensible and prudent which is annoying, again, noo comment on your situation as its no insurmountable but look around at those descending into meltdown.

Its amazing how the banks got so blase with credit, I remember getting a two grand car loan in the early 90's and wanted to do an acceptance speech I was so thrilled, I was earning well and in a secure job, it got to the point where the banks just loaned any ammount to anyone without guarantee.

Anyway, rant over, good luck, learn to love Value Beans, Shopping at Aldi, Driving a Metro and being skint, I did it for a few years !

EddScott

If you have anything of worth you may have problems. If you don't own anything, do as yoza says. If you have nothing what are they going to take off you?

My wifes aunty made her self bankrupt early 08. £11k in cards, 4 kids and living in housing association. What could they do? And its made no difference to her life or her spending. 3 laptops and a PS3 were the main presents this xmas for the kids.

J4CKO

iTrader: (1)

Perhaps that part of the problem, people with no money buying expensive stuff, those who borrow should not be able to get away with not paying, bankruptcy should be a final option not a choice, the banks should be responsible for what they loan, I paid for my (second hand) PS3 from money I had earned, had to decide whether I could afford it as my investments are on their **** due to feckless banks and individuals getting carried away lending money the didnt have people borrowing money they had no intention of paying back, tell your aunty to have a long hard think about her financial way or J4CKO will send the boys round

Jamz3k

i think some of you are getting this a bit wrong, i'm not trying to get out of paying my "debt", i'm not broke, i'm not going bankrupt and i'm not reaching for the razor blade, to be honest this isn't a big worry for me, i was just looking for a good secure way of paying off the above amounts that would be cost effective and secure.

Ben2563

Ha ha, I like that.

On Insurance- Correct, I believe some contracts state if you lose your job in the first 3 months the insurance is not paid. When making redundancies companies have to notify the government. 90+ means a 90 days consiltation period, if your then selected this means from the first day of consiltation you were aware of the possibility of losing your job. Hence insurance is void. My specifics may be off but you get the idea.

0% rates- Only worth it if you pay off the sum within the given period. If your likely to run over the you better of going for a low interest one for the life of the balance (I do this).

This is because after 0% the rate normally jumps to 15.9% +. So for every month you run over your paying a lot. Where as with mine I pay something like 6.4% for the life of the balance as I would not have paid it off in 12 months, more like 3 years. Again rough figures but you get the idea.

Also dont forget the balance transfer fee, they often leave this till the last min.

Deep Singh

Or just go see Gordon Brown, I'm sure he'll be happy to write off the debt and fund it by taxing others at 45%++

Ben2563

Wish I earned enough to be in the 45% bracket.

Deep Singh

Why? Gordon Brown will take half of it anyway!

Jamz3k

well i just submitted an application for a Virgin Credit Card and hopefully will know if its went thru ok within 7-10days. to transfer the balance was 2.98% which is about £113 which i think is acceptable for the amount i should save my transferring. Heres hoping i've made the right decisionl.

LanCat

You've made an effort and taken some action. That's the right decision.