Help I don't know where to start

teasolvesit · 14 March 2017 at 1:10AM

Bedsit_Bob wrote: »

How recently have you signed up to these Internet and Pay TV contracts.

Are you still within the "cooling off" periods?

I signed up for them in October last year. so i'm 5months in

enthusiasticsaver · 14 March 2017 at 5:42AM

teasolvesit wrote: »

To be honest I didnt shop around before hand regarding the intrenet. I will have a look at other options regarding this.
Groceries are for all 3 of us but I know I can get this down further by shopping around.
I am trying to sell all of the designer bags i own so hopefully that will genrate some extra income. I have about 4 left to sell and then will start selling my small designer leather goods.
Looking at the SOA i will alsobe cutting down on the entertainment per month, hopefully saving me some there.
Do you think i should look at maybe a IVA or dmp?

I think a DMP is your best option with low outgoings so the interest is frozen and paying £700 per month will see you clear in around 3.5 years but stepchange have a debt remedy tool where you can put all your information in and it will recommend a solution. They are helpful if you call them. This relies though on your outgoings being low so you continuing to live with your parents.

barbarawright · 14 March 2017 at 8:32AM

teasolvesit wrote: »

I need the car as I babysit my niece on my days off and drop and pick her up from daycare.

The second car is my mum's who requires it for work.

If this is the only reason you have a car, it's costing you £250 a month to babysit your niece. Can you not use public transport or a cab/zipcar? Or talk to your family about the costs - even if you weren't in debt it seems an awful lot to pay to help out your brother/sister

Re tv - the cheapest option for Sky is NowTV which gives you Sky for £6.99 a month (more if you want moves and sport but nowhere near what you're paying) and all the catch up services and a zillion boxsets. Even if you did Netflix as well you'd still save £20 a month

enthusiasticsaver · 14 March 2017 at 8:50AM

teasolvesit wrote: »

I need the car as I babysit my niece on my days off and drop and pick her up from daycare.

The second car is my mum's who requires it for work.

That is costing you £260 per month which is more than £3k over the year. This is a massive chunk of your income which could go to debt as you spend £300 per month on other travel costs too. Is your sister aware of your money difficulties and can they not pay transport costs if you are doing them a favour?

anna_1977 · 14 March 2017 at 9:51AM

I think the car really has to be thought about - I understand you are helping family out by having your niece but actually you're just getting yourself into more debt.

DCFC79 · 14 March 2017 at 10:11AM

anna_1977 wrote: »

I think the car really has to be thought about - I understand you are helping family out by having your niece but actually you're just getting yourself into more debt.

My thoughts exactly, its just making the OPs situation worse.

enthusiasticsaver · 14 March 2017 at 11:58AM

If you were able to get rid of the car then you could pay off either the Capital one or Vanquis straight away with money spare to go to the other one. That is your two highest debts sorted. It depends on whether you need the car for work though as I know you say you work anti social hours but presumably the £300 is for a train ticket? I realise you use it to help out with child care for your niece but if you explained to your sister perhaps she could get you named as a driver on her car?

[Deleted User] · 14 March 2017 at 1:56PM

I've just been over you debt payments.

Firstly, you need to immediately, slightly increase the monthly payment to the Virgin Atlantic card, as you are currently not even covering the interest, meaning the balance is going up each month.

A year from now, the balance will be £1,745.34, and two years from now it'll be £1,849.90.

Increasing the monthly payment by £10, will at least get the balance reducing, albeit by only a tiny amount each month.

Now for the actual clearing of the debts.

Based on your current situation, it's going to take 46 months to pay off these debts, and cost you £9,570 in interest.

However, if you changed your Mobile Phone to a £10 PAYG deal, and cut out entertainment and clothing purchases completely, that would give you an extra £125 per month.

That £125, put toward your debts, would reduce the repayment period to 37 months, and the interest to £7,045.

That's a reduction of 11 months and £2525, for just £125 extra per month.

You see where I'm going with this?

The more you can cut back, the more you can put toward your debts, and the faster and cheaper it will be, to clear them.

kindofagilr · 14 March 2017 at 2:09PM

I think you can do it without entering a DMP, when we started a couple of years ago, we had payments bouncing etc.
We stripped back all spending, and cut everything back till we got to a point where we weren't having payments bounce.
We were able to pay minimums and a little bit more on the cards.
Then last year we managed to move all the debt onto 0% cards (I really was amazed and didn't think we could have but we did) and so now it's all spread onto 0%

But you need to do the initial claw back on spending etc first to see if you have the wiggle room xx

teasolvesit · 14 March 2017 at 6:44PM

Thanks everyone for the response.

My sister recently died so hence helping my brother in law out with the kids. Selling the car Is an opition I have thought about and will I will look at again. I dont really want to speak to him about it as hes under alot of stress himself.

I will start by revalutating my budget and cutting back on as many things as possible. No entertainment no clothes and have already started to search for a new phone deal. And any extra shifts I do and the selling of my designer goods will hopefully give me an extra bit of cash to put towards the debt.

Thanks again for all your input.

Help I don't know where to start

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