My SOA

winkle1 · 18 August 2007 at 4:28PM

I've been on these boards for ages and I've never posted my SOA, but as I am coming up to paying off the last bit of my debt, I would love for some ideas/tips/help.

So here goes:

Income: £1,667.06

Outgoings (monthly):

Rent: £360 (this includes council tax as well: live with my OH in his sisters flat, so she doesnt charge a lot)
Travel: £64.20 (Train fare)
Student Loan: £127.24
Food/Housekeeping: £150 a month (this includes anything we might need for the house, gas and elec bill - they are on meters and usually use around £15 each a month) - and all food, inc lunches taken in from home etc)
Mobile: usually around £40, I have a really low line rental because I renewed with them (around £5 a month), and i've recently stopped using it as much and got a text bundle instead.
AOL: 7.50
Savings: £600 (this is explained why later)

TOTAL: £1348.94

Debts:

£500 overdraft with HSBC (not sure on the % but usually get charged around £6 a month)
£500 overdraft with first direct (not sure on this as well but usually get charged around £1 on this).

£2604 on Morgan Stanley, currently on 0% which is running out. tried to get another 0% deal but MINT rejected me and I didnt want to try too many cards so I transferred the following:

£1900 on to Egg 3.9% for 6 months
£704 on to HSBC 5.9% for 6 months

TOTAL: £3604

The credit card debt is a mix of a graduate loan which I BT'd and another credit card which I BT'd back in March. Since then I have been putting £600 aside in a savings account and an ISA (this is the amount I was putting towards the loan PLUS £250 which I was used to saving because I was saving to pay off that loan, although I admit this has been a struggle and I have to watch every penny to do this) so I currently have £2367.91 saved.

So this leaves me with arond £318 a month (around £75 a week), which in London, isnt really that much.

So what do you guys think?

I have considered using my savings to pay off the debt, but as I have more debt than savings, I'm reluctant to do it. I would then feel like I am still in debt and I've spent all my savings!!

Also, my OH and I are thinking of buying our own place around June next year so I want to have SOMETHING to contribute.

In the past few months I have cancelled the gym, cancelled my contact lenses, stopped going for the odd drink after work, stopped having BIG friday nights; just really cut down on my spending.

I would love to be debt free by the time we start looking to buy next June. I am prepared to use some of my savings, if necessary, just good me a good enough reason!

Thanks for listening and looking forward to your replies.

newleaf · 18 August 2007 at 4:41PM

I would definitely use the 'savings' to pay off the OD's and CC's, and in another 2 months or so you could clear the remainder with the £1200 you would otherwise have 'saved'. The important thing to remember is that your 'savings' aren't really savings at all, you owe it all (and more besides) to somewhere else. Once you have cleared the debt you'll be amazed how quickly the true savings will pile up.

winkle1 · 18 August 2007 at 4:44PM

yes but even 'saving' that £600 a month has been a struggle!!

lynzpower · 18 August 2007 at 4:50PM

Why are you struggling on 75 a week in LOndon? Im in london too, and I dont spend anywhere near that, after all once your lunch is paid for ( out of housekeeping) and you have your travel sorted?

What sort of things are you doing, maybe I know of ways to do that cheaper?

msmicawber · 18 August 2007 at 4:51PM

I'm not sure why you won't at least use part of your savings to pay off the debt that you're paying interest on. If you're looking to buy property, I would think that having debt would impact your mortgage application and, once you're paying a mortgage, you'll have a lot less money to pay towards your debt, so could end up paddling that famous creek if you're not careful.

At the moment, your housing costs are minute and your income isn't that high - what are you projecting your mortgage to be?

What about a second job, or overtime in your current job to increase your income and then use that to clear your debt and hopefully save towards your goal?

winkle1 · 18 August 2007 at 4:58PM

I am prepared to use some of the savings, but what do you think would be the best debt to use it on?

boyf and I will get a mortgage together so we can get a deal on our combined salary.

I've been doing overtime recently and I've had this week off work, but from next week I'm going to get back into doing it. I think increasing my income is def the way forward as I'm struggling with this at the moment.

winkle1 · 18 August 2007 at 5:00PM

lynz things like seeing a friend costs near on £15 - cab home and a bottle of wine, birthday lunches/dinners at work at least a tenner, maybe a night out for a mate's bday can cost nearly £50, dinner out with OH...

or should I just learn to say no?

winkle1 · 18 August 2007 at 5:04PM

even things like getting my eye brows waxed is £9.50, electrolysis which is £13, getting my clothes dry cleaned for work etc etc

or are these classed as luxuries? is being poor also equal hairy?!

msmicawber · 18 August 2007 at 5:08PM

winkle1 wrote: »

I am prepared to use some of the savings, but what do you think would be the best debt to use it on?

If it were me - I'd spend all the savings to pay off as much as possible, but since you're reluctant to do that: pay off HSBC (highest interest) then the Egg card then close both accounts. Before your 0% deal runs out, look for a new one to apply for. With the Egg and HSBC accounts paid off and closed, you're more likely to be accepted for a 0% balance transfer elsewhere.

msmicawber · 18 August 2007 at 5:12PM

I've just seen your latest post - how very dare you! I may be poor, but I assure you I'm not hirsute :eek:

Why don't you invest in a pair of tweezers and an epilator and do it yourself for free? (That's what we povs do)

winkle1 · 18 August 2007 at 5:14PM

msmicawber wrote: »

I've just seen your latest post - how very dare you! I may be poor, but I assure you I'm not hirsute :eek:

Why don't you invest in a pair of tweezers and an epilator and do it yourself for free? (That's what we povs do)

ooh no, I wasnt taking the mick honest! I was having a little joke! I have tried to tweezer them and it scares me! I really can't stand the pain! My old housemate used to do it for me which was free and great! At the moment I usually leave them right to the last minute and just wear my glasses LOL

My SOA

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