Advice on my debt please

Why is the TV licence so high? It shouldn't be £37 a month. I would see about getting a loan from your bank, a personal loan of around £8,000, and pay off the online retailer. 39% interest is way too high. Just go and see the bank your salary goes into. HSBC are offering great personal loan rates at the moment of less than 5%.


If your bank won't come to the party, I would consider switching banks, but before you do, talk to other banks and see what they are offering you. So not to go to them cap in hand saying I need a loan, but transferring to them as a package, so you get the things you want out of them. If it were HSBC, for example, you earn enough to be an advance customer. That has various advantages, including rebates on loan interest.


Zero interest on a current account overdraft is a great deal. Do you mind if I ask what bank offers that?

asoe209 wrote: »

Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 1888 The car allowance is included in this, is it?
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1888
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 700
Management charge (leasehold property).. 0
Council tax............................. 86 Assume this includes the single person discount? Remember though that you'll lose that when your lodger moves in
Electricity............................. 50 Waaaaay too high for one person!! We're in a not-very-well-insulated 1950's built flat and pay around ££45 a month on average for our gas & electric combined
Gas..................................... 40 See above
Oil..................................... 0
Water rates............................. 23
Telephone (land line)................... 17.4 This includes internet?
Mobile phone............................ 25 Are you in contract? Can you switch to a cheaper sim only deal?
TV Licence.............................. 37 Per month? Sure this isn't per quarter?
Satellite/Cable TV...................... 22.5
Internet Services....................... 0
Groceries etc. ......................... 100
Clothing................................ 30 No - this needs to go for the time being. Essential spends (underwear and shoes when they are NEEDED) only.
Petrol/diesel........................... 70
Road tax................................ 12
Car Insurance........................... 33 Are you paying this monthl;y? IOf so, when you renew, stop and pay upfront, it'll work out cheaper.
Car maintenance (including MOT)......... 100 This is probably an over estimation however you DO need to actually start putting it aside - if you're not currently doing so this is skewing your SOA
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 In with your rent?
Contents insurance...................... 0 Unless by some bizarre means this is in with your rent also, you MUST have this. It'll cost you under £10 a month
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 0
Entertainment........................... 60
Holiday................................. 0
Emergency fund.......................... 100 You don't have this money. Your figures show this.
Total monthly expenses.................. 1535.9

Assets
Cash.................................... 1400
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1250
Other assets............................ 0
Total Assets............................ 2650

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Online Retailer ...............7795.94...360.......39 Ouch. This either needs moving or you need to target getting rid as priority #1
Current Account OD.............1450......40........0 No fees or charges on this at all?
Card 1.........................3898.45...45........0
Card 2.........................2954.11...40........0
Total unsecured debts..........16098.5...485.......-

Monthly Budget Summary
Total monthly income.................... 1,888
Expenses (including HP & secured debts). 1,535.9
Available for debt repayments........... 352.1
Monthly UNsecured debt repayments....... 485
Amount short for making debt repayments. -132.9 Ahhh....so now you see the value of doing the SOA, I'm guessing?
Personal Balance Sheet Summary
Total assets (things you own)........... 2,650
Total HP & Secured debt................. -0
Total Unsecured debt.................... -16,098.5
Net Assets.............................. -13,448.5
Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

Can I ask, do you rent furnished? If so I would consider ditching that £1400 in savings right across to your overdraft and wiping that out as a priority. Then hammer the £40 per month you're paying to that at the moment over to the high interest debt.

I'm guessing this has come as a shock to you bearing in mind you thought you had money spare.

When does your lodger move in? I take it you have permission from your landlord to let out a room? At the moment that extra monthly income will make all the difference. If you work now on cutting your power useage, it'll be easier than trying to cut it down once the lodger has moved in, and any increase for the second person living there should be minimal/ If you water metered? If so remember that will increase, and you'll see an extra £29 a month on your council tax bill, so need to account for that.

I hate to break it to you, but at the moment, until you sort yourself out, you simply can't afford to do anything with the car.

Hit this now, and hit it hard, and you can deal with it. You need to be brutal though, at least in the fi

dktreesea wrote: »

Not sure about funding the overdraft, if it incurs no fees or charges. Putting most of your savings against the 39% debt though strikes me as a good idea. That's like getting a return of 39% p.a. on your savings.

If it's possible to shift that debt as a lump to somewhere with lower interest, I'd disagree. However, if it isn't, that may well be the best way forwards.