help! debt getting out of control :(

silly_girl_5 · 10 January 2008 at 9:34AM

Hi Guys, I've heard you are really good at giving advice so I hope you can help me, My partners account has just been closed because its been over its limit for ages, the credit company are demanding money as this is over its limit too

here is what we earn and owe:

partners wages £996 month
my part time wages £336 month
child tax credit £181 month
child benefit £72 month

total amount for the month £1585

Barclaycard £4920 we just paying minimum amount so getting into trouble!
barclays account -£503 od limit is £250
fashionworld £440
Great universal £265
studio £130
hsbc £200
gas £33 month this is with n power i haved switched so this will come down
electric £81 a month same as above
food £45 a week already reduced this
petrol £20 a week
rent £55 a week
c/tax 22.50 a week
mobile bill £30 a month
sky £18 a month changed to cheaper package
digital insurance £4.99 a month
talk talk £15 a month
VIRGIN broadband £19.99 a month

Please help if you can

Many thanks

Michelle silly_girl

Rowan9 · 10 January 2008 at 9:39AM

You've taken the first step by posting here! Someone with more expertise will come along and help soon but i just wanted to say 'WELL DONE' for adding it up and laying it out so people can advise.
Good luck
W

angelavdavis · 10 January 2008 at 9:53AM

Hi Michelle, welcome to DFW.

Well done for posting and taking the first step.

Some comments below, hope they help:

silly_girl wrote: »

Hi Guys, I've heard you are really good at giving advice so I hope you can help me, My partners account has just been closed because its been over its limit for ages, the credit company are demanding money as this is over its limit too

here is what we earn and owe:

partners wages £996 month
my part time wages £336 month
child tax credit £181 month
child benefit £72 month

total amount for the month £1585

Barclaycard £4920 we just paying minimum amount so getting into trouble! What is your apr for this cc? What is the minimum payment?
barclays account -£503 od limit is £250 What charges are you incurring for this? It would be worth keeping an eye on the bank charges test case that is due to be held any day now.
fashionworld £440 I hope you have binned the catalogues for the time being! How much are you paying per month toward this?
Great universal £265 As above
studio £130 What is this - is it another catalogue? If so, please provide minimum payments
hsbc £200 What is this for? Is this a month payment?
gas £33 month this is with n power i haved switched so this will come down
electric £81 a month same as above
food £45 a week already reduced this 195.00
petrol £20 a week 87.00 per month
rent £55 a week 261.25 per month
c/tax 22.50 a week 97.50 per month
mobile bill £30 a month Is this for one or two phones, if just one, you need to reduce the tariff or go pay as you go and cut down using it.
sky £18 a month changed to cheaper package Why not see if you can combine phone and broadband and compare pricings? You are currently paying £54 approx per month - its got to be cheaper combining these.
digital insurance £4.99 a month What is this for?
talk talk £15 a month
VIRGIN broadband £19.99 a month

Please help if you can

Many thanks

Michelle silly_girl

Do you have contents insurance? What about running costs for the car? You need to include tax, car insurance, mot, servicing, birthdays, christmas etc.

I suggest you open a no-frills basic bank account and have your income paid into there and put aside money each month toward your overdraft.

I also suggest you do two things: go through the house and see what you can find to ebay to throw towards your debts and also that you keep a joint spending diary for a couple of months so you can really see what you are paying out.

If you can specify whether the above payments are monthly and also, where they are missing, fill in the apr gaps, etc and repost here - it will help everyone on here point out other areas.

silly_girl_5 · 10 January 2008 at 10:07AM

Many thanks for replying I will fill in the gaps

Barclaycard £4920 we just paying minimum amount so getting into trouble!
What is your apr for this cc? What is the minimum payment? apr is 17% £64 is the minimum payment
barclays account -£503 od limit is £250 What charges are you incurring for this? It would be worth keeping an eye on the bank charges test case that is due to be held any day now. we are paying x2 £30 payments a month
fashionworld £440 I hope you have binned the catalogues for the time being! How much are you paying per month toward this? £30 a month yes the catologues have been binned
Great universal £265 As above £25 a week
studio £130 What is this - is it another catalogue? If so, please provide minimum payments yes another catalogue minimum payment being paid £15 a month
hsbc £200 What is this for? Is this a month payment? Bank loan for laptop £7.14 a month
gas £33 month this is with n power i haved switched so this will come down
electric £81 a month same as above
food £45 a week already reduced this 195.00
petrol £20 a week 87.00 per month
rent £55 a week 261.25 per month
c/tax 22.50 a week 97.50 per month
mobile bill £30 a month Is this for one or two phones, if just one, you need to reduce the tariff or go pay as you go and cut down using it. This is one phone and i think i have to be with them 12 months before changing the tariff (i'm due for some cashback on this phone)
sky £18 a month changed to cheaper package Why not see if you can combine phone and broadband and compare pricings? You are currently paying £54 approx per month - its got to be cheaper combining these. Thanks will look into this but unsure if i'll be able to get the broadband in my area
digital insurance £4.99 a month What is this for? insurance for the sky box
talk talk £15 a month
VIRGIN broadband £19.99 a month
water bill £26 a month
tax for car £63 every 6 months
mot for car £55 every 12 months
insurance for car £21 a month

Michelle

meyore · 10 January 2008 at 10:37AM

You have talk talk for phone I take it? I get my phone and internet from them for £17 a month, so maybe you could try that to cut costa a little?

Well done for taking the first steps in sorting your problems and wlecome to the forums

Xx

angelavdavis · 10 January 2008 at 10:47AM

Going through these costs, I total it as 1075 per month - so I think a spending diary is a critical thing to do here as it will help highlight other costs.

If you are left with residue funds after some careful penny watching - you would be better off getting rid of HSBC loan as it is small and clearing off Great Universal - freeing up over £100 per month to throw at the overdraft. I really really think you need to move your money out of the OD account and pay it off to stop incurring further bank charges.

Your electricity bill is huge - you need to replace lightbulbs with energy efficient lightbulbs and ensure electricals are switched off - not left on standby.

I also suggest you visit the snowball calculator and enter in your debts, plus the available funds to pay them, and then it will show you which order to pay them off in (I suspect the Barclaycard would be the first big one to start on) and when your debt free date is likely to be.

help! debt getting out of control :(

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