new job - more money - new soa

Treacle1983 · 21 November 2009 at 11:28PM

I live with my partner but haven't listed his income etc - he pays £275 towards the rent, all the car costs, the council tax which is £108 a month, and then own mobile phone and debts. he also pays the same as me towards food shopping etc..

I started my new job last month and have calculated this new soa on my monthly pay. For about a year I have been made redundant from various jobs and only been able to get temp work etc.. so i have only been able to pay the min amount on my debts.

I don't get charged any interest on any of my debts - all frozen - ta very much.

So how much more would you pay towards the debts if you had what I do?

Bear in mind for the first time in over a year I can afford to get my hair cut, go clothes shopping and possibly go on holiday - even if it is a b and b. So I don't want to put it all towards my debts.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1100
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1100
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 200
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 0
Mobile phone............................ 5
TV Licence.............................. 22
Satellite/Cable TV...................... 0
Internet Services....................... 15
Groceries etc. ......................... 80
Clothing................................ 30
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 8
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 5
Entertainment........................... 5
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 475

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
black horse personal ..........2200......70........0
studio.........................220.......5.........0
natwest cred/card..............200.......15........0
Total unsecured debts..........2620......90........-

Monthly Budget Summary
Total monthly income.................... 1,100
Expenses (including HP & secured debts). 475
Available for debt repayments........... 625
Monthly UNsecured debt repayments....... 90
Amount left after debt repayments....... 535
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -2,620
Net Assets.............................. -2,620
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

DarkConvict · 21 November 2009 at 11:34PM

An option you may not have considered is not to increase payments, but instead save it. And i mean save it don't dig in for a rainy day. Then when you have a bulk amount offer a full and final offers in maybe 12 months, to creditors for about 30-50% of the remaining amount and see if they accept.

Looking at the sheet thou,

You have £535 spare, but only £2600 of debt left. Have you consider just increasing the payments from £90 to £500 between them and getting rid of the debt within 5-6 months?

Treacle1983 · 21 November 2009 at 11:42PM

not really thought of much at the moment - it's only just kicking in that I actually have a reasonable income.

but yes - it would be brilliant to be debt free within the next 6 months to a year. It's got better was about £8k a few years ago - but has just hung round my head since then. none of it is new debt - just old stuff from when I was 18 and realised I could get credit for stuff.

would black horse accept full repayment offers or would it just be for the smaller 2?

I did a part payment offer on another cred/card I had and it shows up on my credit score still... and that was over 2 years ago.

Tixy · 21 November 2009 at 11:44PM

Well done on the new job.
Understand about you wanting to spend some of it on yourself. This is what i think I would do (personal opinion only because I know I'd need to spend more on myself than you have in your budget).

I'd increase presents to £15, haircuts to maybe £15, entertainment to £50, then £50 savings for an emergency fund and £50 savings towards other items (perhaps holiday) that would take your surplus to £400.

Then first month I'd pay off studio and natwest so that you just have one debt.

the_cat · 21 November 2009 at 11:46PM

Congrats on the new job!

Obviously it is a personal decision, there is no right and wrong answer. Assuming you want to canvas a few opinions in order to come to your decision, here is mine....

Month 1 pay off studio
Month 2 pay off nat west
from then on pay £200 plus the old minimum payments (so a total £290) to black horse

Even doing this it will only take you about 9-10 months to clear the debts. You could be stricter with yourself if you wanted but I think I would rather build up an emergency fund and use a small amount of it as you have described for cheapish treats

Treacle1983 · 21 November 2009 at 11:50PM

thanks guys - I think perhaps I will try clearing the 2 smaller ones over the next couple months and then up my payments on the loan.

it's so nice to not only see the light at the end of the tunnel but feel the wind on my face too.

next year I will hopefully be debt free!

that's something i've been aiming at for years now.

bazwod · 22 November 2009 at 11:37AM

I agree with the cat; pay the first two off then £290 to Lloyds and then you'll have more money than you know what to do with (well sort of anyway!!). You must be pretty excited that you're going to be able to get rid of it all, congratulations. Very pleased for you!!

DarkConvict · 22 November 2009 at 2:02PM

I did a part payment offer on another cred/card I had and it shows up on my credit score still... and that was over 2 years ago.

It will show for 6 years, but should either be marked as satisfied or partially satisfied, and the account marked as closed. If it is showing a remaining balance contact the company and tell them to update your report

Verbatim · 22 November 2009 at 9:02PM

Well done on the new job.
When do the 0% deals end on the 3 debts? If you can be sure of repaying all before then it doesn't much matter which order they're paid off . Otherwise I'd concentrate on bringing down the big debt in case you won't be able to get another 0% deal.

new job - more money - new soa

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