Help I don't know where to start

teasolvesit · 14 March 2017 at 12:03AM

I have been extremely careless over the last two years and accumulated a huge debt. I had been avoiding it for some time but sat down today and decided to crunch the numbers. I didn't realize I had accumulated £30000worth of debt!!!! panic set in early but I had done some research and I think I've started to accept the amount. But I just needed some advice on how to tackle it and what to pay first. below is my statement of affairs.

My set income is about 1700 a month, it can go up to about £1900 depending on the number of unsocial hours I get rostered to do each month but this varies. However, I have now started to pick up extra shifts and hoping to make an extra 300-400 a month. I'm also very fortunate to have recently moved back in with my parents which means I'm not paying any rent at the moment, only have to cover the internet / TV bills.

I would be grateful if anyone could help me understand what I should tackle first. I have also read up on debt management plans and IVA's but, at present, I haven't defaulted on any of my cards and I don't really want to go down that route if it is avoidable. My credit rating isn't great but i don't want to make it any worse.

Statement of Affairs and Personal Balance Sheet

Household Information[/b]
Number of adults in household........... 3
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1700
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1700

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 25
TV Licence.............................. 12.13
Satellite/Cable TV...................... 47
Internet Services....................... 38
Groceries etc. ......................... 150
Clothing................................ 50
Petrol/diesel........................... 70
Road tax................................ 17
Car Insurance........................... 53
Car maintenance (including MOT)......... 50
Car parking............................. 70
Other travel............................ 300 (train)
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......................... 10
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 60
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 952.13

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 3000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds.........................6862......159.......17.7
Capital one....................2510......128.......34.08
virgin atlantic................1662......25........22.9
barclaycard....................7298......178.......17.18
virgin money...................4550.93...47........17.48 (interest-free until 11/2/19)
vanquish.......................2937......135.......34.08
aqua...........................753.11....22........24.9
santander......................2012......21........17 (interest-free until 20/08/17)
MBNA...........................2270......25........26.9 (interest-free until 21/11/17)
Total unsecured debts..........30855.04..740.......-

Monthly Budget Summary
Total monthly income.................... 1,700
Expenses (including HP & secured debts). 952.13
Available for debt repayments........... 747.87
Monthly UNsecured debt repayments....... 740
Amount left after debt repayments....... 7.87

Personal Balance Sheet Summary
Total assets (things you own)........... 3,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -30,855.04
Net Assets.............................. -27,855.04

DCFC79 · 14 March 2017 at 12:14AM

Do you need the car ?

You have 2 cars listed at the top of your SOA ? Can you not use the other car ?

[Deleted User] · 14 March 2017 at 12:20AM

No mortgage/rent/council tax/gas/electric/water rates ?

teasolvesit · 14 March 2017 at 12:21AM

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.

teasolvesit · 14 March 2017 at 12:23AM

Nope not at present as I have moved in with my parents to help clear this debt. They onnly ask for me to pay TV and internet

[Deleted User] · 14 March 2017 at 12:34AM

£600 pa on clothing? :eek:

Only buy clothes if absolutely necessary, and use what you already have.

£1,020 pa on internet and pay TV? :eek:

Get rid of the pay TV, and find a better deal on the internet.

You could also get a better deal on the Mobile Phone. There are some good PAYG deals, for around a tenner a month.

Also, you could probably trim a bit off the grocery bill, and knock the entertainment on the head for a while.

I reckon you could easily reduce expenditure by around £100 per month.

teasolvesit · 14 March 2017 at 12:38AM

Bedsit_Bob wrote: »

£600 pa on clothing? :eek:

Only buy clothes if absolutely necessary, and use what you already have.

£1,020 pa on internet and pay TV? :eek:

Get rid of the pay TV, and find a better deal on the internet.

You could also get a better deal on the Mobile Phone. There are some good PAYG deals, for around a tenner a month.

Also, you could probably trim a bit off the grocery bill, and knock the entertainment on the head for a while.

I reckon you could easily reduce expenditure by around £100 per month.

Thanks for the reply.
Yes after doing the SOA i reliased i could cut out alot of things. Im wondering could I cancel my sky subscription before the 12month contract? also that applies with the internet, would they let me terminate my contract before hand?

[Deleted User] · 14 March 2017 at 12:45AM

teasolvesit wrote: »

I'm wondering could I cancel my sky subscription before the 12 month contract? also that applies with the internet, would they let me terminate my contract before hand?

You won't know unless you ask.

Even if you can't cancel, you may be able to downgrade.

enthusiasticsaver · 14 March 2017 at 12:55AM

If you have only just signed up to new contracts with sky and internet they may let you cancel if you ring and explain you cannot afford it. £38 a month for internet is really expensive. Did you shop around beforehand? There are other savings though and as you have not included your parents details you should remove your mums car from the soa. Is the groceries for all 3 of you?

Tackle the capital one and vanquis cards first so any additional income should go to these. On a fairly low income though with little disposable income unless you do extra shifts it will be a long slog. What did the borrowing go on? Can you sell anything?

teasolvesit · 14 March 2017 at 1:05AM

enthusiasticsaver wrote: »

If you have only just signed up to new contracts with sky and internet they may let you cancel if you ring and explain you cannot afford it. £38 a month for internet is really expensive. Did you shop around beforehand? There are other savings though and as you have not included your parents details you should remove your mums car from the soa. Is the groceries for all 3 of you?

Tackle the capital one and vanquis cards first so any additional income should go to these. On a fairly low income though with little disposable income unless you do extra shifts it will be a long slog. What did the borrowing go on? Can you sell anything?

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?

[Deleted User] · 14 March 2017 at 1:06AM

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

Are you still within the "cooling off" periods?

Help I don't know where to start

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