Need advice on debts

Cydney14 · 13 January 2018 at 12:58AM

Thread deleted.

ani*fan · 13 January 2018 at 7:09AM

Hi there and welcome to the boards. :wave:

Well done for getting your overdraft paid off, that's great! So now you're thinking about getting the other debts paid off, at the same time as pondering 'moving out'? You have a good wage which is a great start. Are you hoping to rent somewhere? Do you live with your parents at the moment?

I think you need to do 2 things. The first is draw up an soa for us to have a look at. All the helpful people on here will comment on how you can reduce your expenses, and we can also help you work out ways of keeping your debt costs low. It may be that a dmp is the answer but we don't know until we see the figures. Then, we can compare this to an imaginary, expected budget when you move out. So you can see how that would work, and if there are any expenses you need to save up for first.

Best of luck, you have come to the right place for help.

fatbelly · 13 January 2018 at 9:04AM

http://www.stoozing.com/calculator/soa.php

Let's have a look at the detail

Cydney14 · 13 January 2018 at 3:14PM

Hi! thanks for your reply, at the moment i do still live with my parents as its kind of impossible to move out with my current situation. Me and my girlfriend would love to move out at somepoint this year but i need to sort my debts out first. Heres my soa for you to look at

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 3
Number of children in household......... 0
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1850
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1850

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 400
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 63
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 40
Petrol/diesel........................... 60
Road tax................................ 13
Car Insurance........................... 57
Car maintenance (including MOT)......... 30
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...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 0
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 753

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
loan 1.........................17000.....400.......0
loan 2.........................4000......235.......0
credit card 1..................1000......50........0
store card.....................1300......98........0
credit card 2..................300.......30........0
Total unsecured debts..........23600.....813.......-

Monthly Budget Summary
Total monthly income.................... 1,850
Expenses (including HP & secured debts). 753
Available for debt repayments........... 1,097
Monthly UNsecured debt repayments....... 813
Amount left after debt repayments....... 284

Personal Balance Sheet Summary
Total assets (things you own)........... 500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -23,600
Net Assets.............................. -23,100

Created using the SOA calculator.
Reproduced on Moneysavingexpert with permission, using other browser.

sourcrates · 13 January 2018 at 3:33PM

Hello,

And welcome to the DFW forum.

Your budget is about average to be honest, not much to cut there, do you really have £284.00 left at months end ?

Do you own two cars, or is one your parents ?

The other two adults been your parents, is that correct ? I suspect mum is feeding & keeping you at present, if you were to get a place of your own, your rent and other costs would rise considerably, it would not be doable with your present level of debt, obviously this budget does not include your GF`s income.

You have two choices really, each with there own pro`s and con`s, either, throw all you can at the debts, starting with the smallest, (little victories boost the ego) pay them off as and when funds allow, this method will ensure your credit file stays clean.

Option 2 is the DMP, yes it will ruin your credit file for 6 years, but, it will allow you to, hopefully, get the interest stopped, and pay the debts off quicker.

The further back in time negative information is, the less effect it will have on you going forward, maybe try the "debt remedy tool" on the stepchange website, always interesting to see what that spits out, the choice, as they say, in the end, is yours.

theroamingnomad · 13 January 2018 at 3:38PM

Good luck on your journey

fatbelly · 13 January 2018 at 5:46PM

As far as your 'household' is concerned you are a single adult and I suspect are running one car - total £160 for the car is about average. Mobile phone's a bit high though.

You have a good deal from your parents at £400 all in. Do you ever buy food for yourself - perhaps at lunchtime? I'm impressed if you say no!

If your credit cards are actually not on 0% deals, maybe they could be - lots of info on this site about 0% balance transfers.

You do need to find out the aprs of your debts as you are in a position to hit those with the highest aprs first - suspect that's the store card. On your figures you could clear that by mid-year. If that doesn't happen then there is something adrift with your figures and you may well have to consider a dmp.

If you can get your debts below 20k that may open up another option somewhere down the line. Realistically, what sort of timescale were you looking at for moving out and getting your own place?

phizzimum · 13 January 2018 at 5:56PM

Hi Cydney

A few questions

How did the debt build up? You have a lot of debt for someone with so few outgoings, were you living on your own at some point?

Its hard to pay debt off without changing spending habits, so is your SOA realistic or do you find yourself still overspending?

What are the interest rates on your debts? You need to know this to work out how quickly you can pay them off.

Well done for making a good start though!

Need advice on debts

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