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  • FIRST POST
    • asoe209
    • By asoe209 11th Oct 16, 9:48 AM
    • 330Posts
    • 167Thanks
    asoe209
    Advice on my debt please
    • #1
    • 11th Oct 16, 9:48 AM
    Advice on my debt please 11th Oct 16 at 9:48 AM
    Morning, just looking for some advice really as I seem to be at a sticking point in repaying my debts.


    A friend advised that I should look at getting a loan. but there are a couple of different factors involved.


    So the break down is,
    I owe a total of 16,252
    to over draft - 1450
    Online Retailer - 7950
    Credit Cards 0% - 2954
    Credit Card - 0% - 3898


    I'm paying about 510 a month on all.


    I take Home 1800 a month and I am about to take in a lodger that will pay 365 per month.


    All my other outgoings total approx 950 per month.


    I had a look a getting a loan for the full 16k but that is not likely, but I could get one to pay off the retailer as this I the most and the highest interest.


    This difficult bit is I need to also get a new car, this is due to work and the car allowance policy which I have put off for a year now but my current car is has been braking down a fair bit this year so its getting to the point where I need to change it soon any way.


    My salary is due to go up I would estimate in the next 4 months, if all goes to plan.


    so can any one give there suggestions on what may be the best solution?
Page 1
    • EssexHebridean
    • By EssexHebridean 11th Oct 16, 10:09 AM
    • 8,213 Posts
    • 42,686 Thanks
    EssexHebridean
    • #2
    • 11th Oct 16, 10:09 AM
    • #2
    • 11th Oct 16, 10:09 AM
    First thing is to do a full SOA (Statement of Affairs) - you can find the link in the sticky post at the top of this thread. Format for MSE as per the instructions and post it in here - people will then be able to take a look and see where you may be able to make savings.

    Consolidation can work in some circumstances, but generally speaking is not advised.

    You say your take home is 1800 a month, you're paying out 950 on all other outgoings and 510 to your debts - where is the other 340 going? Savings? At the moment you'd do better to pay off debts than save, beyond your obvious emergency fund, of course.

    Don't rely on a salary increase that "might" happen - it also "might" not.

    Lodger is a great idea - that's an extra lump sum to go to the debts then, yes? You need to "snowball" your debts too - that is pay off the ones that are costing you the most, soonest. So the 0% cards are low priority at the moment - when are the 0% periods due to run out?

    Can you explain what you mean about the car? Car Allowance policy? What have your garage said about yours? How old is it? Is the issue causing the breeakdowns something that they can sort out or are they advising you not to throw good money after bad?
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 1229.00/632.77 (20/11/17)
    SOA Calculator for DFW newbies: Stoozing.com SOA Calculator
    • Bedsit Bob
    • By Bedsit Bob 11th Oct 16, 10:29 AM
    • 9,779 Posts
    • 51,247 Thanks
    Bedsit Bob
    • #3
    • 11th Oct 16, 10:29 AM
    • #3
    • 11th Oct 16, 10:29 AM
    I had a look a getting a loan for the full 16k but that is not likely
    Originally posted by asoe209
    Why would you even consider taking out a loan, to pay off 0% Credit Cards

    What are the APRs on the Online Retailer and OD debts?

    Also, as advised by EssexHebridean, post an SOA.
    Last edited by Bedsit Bob; 11-10-2016 at 10:31 AM.
    My job is Top Secret. Even I don't know what I'm doing.

    Amount I have so far denied the BBC - 1161
    • MEM62
    • By MEM62 11th Oct 16, 10:30 AM
    • 1,374 Posts
    • 988 Thanks
    MEM62
    • #4
    • 11th Oct 16, 10:30 AM
    • #4
    • 11th Oct 16, 10:30 AM
    Advice from friends is often well meant but not always sensible.

    Almost 7K of your debt is currently interest free? Why would you include that on a loan and pay interest? Madness! Particularly as the interest rate on a consolidation loan is likely to be relatively high.

    At first view your situation is far from unmanageable, as you will have at least the 365 rent to throw at it - and I expect probably a lot more.

    You need to post an SOA and the good people on here will offer some great advice on getting to grips with this. Do not forget that dealing with clearing the debt is only part of the solution. You also have to honestly address the seasons why you are in this situation in the first place.
    • MrsTinks
    • By MrsTinks 11th Oct 16, 10:41 AM
    • 14,993 Posts
    • 23,026 Thanks
    MrsTinks
    • #5
    • 11th Oct 16, 10:41 AM
    • #5
    • 11th Oct 16, 10:41 AM

    Can you explain what you mean about the car? Car Allowance policy? What have your garage said about yours? How old is it? Is the issue causing the breeakdowns something that they can sort out or are they advising you not to throw good money after bad?
    Originally posted by EssexHebridean
    This is quite standard in some jobs - part of a car allowance in a job where travel is essential or you might reasonably be expected to represent your company on client sites will have a generous car allowance policy instead of a company car. Usually the requirements is that the car must be under 3 years old and in some jobs it must be of a certain type - ie it would not be seen as appropriate for a senior director to spend 20% of his allowance on an old Fiat Panda and pocket the rest... it's not considered PAY it's to make up for any cost incurred by having to drive a car that is appropriate for the company image...

    Husband forexample has to drive a car of a certain type due to his senior position. They don't get iffy about a 4 or 5 year old car if it LOOKS appropriate and is reliable. They WOULD flip if he turned up in a Morris Ital that never started... Or they can stop the car allowance... breach and all that
    DFW Nerd #025
    DFW no more! Officially debt free 2017 - now joining the MFW's!

    My DFW Diary - blah- mildly funny stuff about my journey
    • sourcrates
    • By sourcrates 11th Oct 16, 10:48 AM
    • 12,432 Posts
    • 11,842 Thanks
    sourcrates
    • #6
    • 11th Oct 16, 10:48 AM
    • #6
    • 11th Oct 16, 10:48 AM
    They WOULD flip if he turned up in a Morris Ital that never started... Or they can stop the car allowance... breach and all that
    Originally posted by MrsTinks
    Just slightly off topic, but you mentioning Morris ital awoke a memory in me.
    My brother, to whom a car is just a method of getting from A to B, once had a Morris marina, from new, had it ten years, then sold it, missed it so much, be bought it back two years later, and kept it till it finnaly fell apart lol you can't teach taste can you lol
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    • asoe209
    • By asoe209 11th Oct 16, 11:12 AM
    • 330 Posts
    • 167 Thanks
    asoe209
    • #7
    • 11th Oct 16, 11:12 AM
    • #7
    • 11th Oct 16, 11:12 AM
    Thanks you all so far.


    I will do that SOA and post that up.


    The remaining money which I have spare I put into savings and other things which crop up over a month.


    250 is saved each month and the remainder is my spending. I often dip into these saving though to pay for anything that crops up like car repairs or bills.


    I drive a 2005 vw polo, its got 56,000 on the clock but this year its undergone repairs some from breakdowns some preventive maintenance. to be fare the car runs but its more the company I don't believe they want any thing driven older than 5 years. but I have been adamant not to change until I am financial more stable.


    the car allowance works out at about 300 after tax, so this is sort of what I am saving.


    As for the pay its 100% happening its just a case of when as my pay will change once I pass my exam for the job in which I am doing.
    • MrsTinks
    • By MrsTinks 11th Oct 16, 11:27 AM
    • 14,993 Posts
    • 23,026 Thanks
    MrsTinks
    • #8
    • 11th Oct 16, 11:27 AM
    • #8
    • 11th Oct 16, 11:27 AM
    Just slightly off topic, but you mentioning Morris ital awoke a memory in me.
    My brother, to whom a car is just a method of getting from A to B, once had a Morris marina, from new, had it ten years, then sold it, missed it so much, be bought it back two years later, and kept it till it finnaly fell apart lol you can't teach taste can you lol
    Originally posted by sourcrates
    And I had an orange morris ital that I HATED lol bought because it was cheap when my Fiat x1/9 had a slight gear box malfunction I went from 2 seater 70's cool to... a knackered satsuma. Darned thing only started about 75% of the time so I had to park it on the top floor of the work multistory so I could push it to the ramp and bumpstart it if it had a mood... This was only 15 years ago... the satsuma was old then!
    DFW Nerd #025
    DFW no more! Officially debt free 2017 - now joining the MFW's!

    My DFW Diary - blah- mildly funny stuff about my journey
    • EssexHebridean
    • By EssexHebridean 11th Oct 16, 11:27 AM
    • 8,213 Posts
    • 42,686 Thanks
    EssexHebridean
    • #9
    • 11th Oct 16, 11:27 AM
    • #9
    • 11th Oct 16, 11:27 AM
    Got you on the car thing - HOWEVER your figures are currently wrong on the question of where your money goes...

    250 is saved each month and the remainder is my spending. I often dip into these saving though to pay for anything that crops up like car repairs or bills.
    When you do your SOA, you need to budget for things like car repairs on a monthly basis. For example - we have two cars - and pay 155 a month into a dedicated account which then covers MoT, Tax, Insurance (paid annually), Service, Tyres etc. One of our cars is older than yours and higher mileage, the other is 2 years newer but with more than twice the mileage.

    On the car allowance - so I assume you would be looking to sort out a loan for the amount to be paid, then pay the 300 a month off against that? Are you currently saving the car allowance in a savings account to put towards the cost of a replacement?

    Another thing on the SOA - base it on your pay now, not what you expect to get in the future - then any increase just improves your situation.
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 1229.00/632.77 (20/11/17)
    SOA Calculator for DFW newbies: Stoozing.com SOA Calculator
    • asoe209
    • By asoe209 11th Oct 16, 11:29 AM
    • 330 Posts
    • 167 Thanks
    asoe209
    Statement of Affairs and Personal Balance Sheet
    Monthly Income Details

    Monthly income after tax................ 1888
    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
    Electricity............................. 50
    Gas..................................... 40
    Oil..................................... 0
    Water rates............................. 23
    Telephone (land line)................... 17.4
    Mobile phone............................ 25
    TV Licence.............................. 37
    Satellite/Cable TV...................... 22.5
    Internet Services....................... 0
    Groceries etc. ......................... 100
    Clothing................................ 30
    Petrol/diesel........................... 70
    Road tax................................ 12
    Car Insurance........................... 33
    Car maintenance (including MOT)......... 100
    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)...... 30
    Haircuts................................ 0
    Entertainment........................... 60
    Holiday................................. 0
    Emergency fund.......................... 100
    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
    Current Account OD.............1450......40........0
    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

    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.
    • Bedsit Bob
    • By Bedsit Bob 11th Oct 16, 11:29 AM
    • 9,779 Posts
    • 51,247 Thanks
    Bedsit Bob
    The remaining money which I have spare I put into savings and other things which crop up over a month.
    Originally posted by asoe209
    Aside from an emergency fund (the size depending on whether you own or rent), I don't think you should worry about savings, while you have interest attracting debts.
    My job is Top Secret. Even I don't know what I'm doing.

    Amount I have so far denied the BBC - 1161
    • asoe209
    • By asoe209 11th Oct 16, 11:33 AM
    • 330 Posts
    • 167 Thanks
    asoe209
    I completed this. based on my earnings alone.


    some areas are a bit funny like petrol, entertainment, car maint etc. as I don't have a set amount that I put away for things like this or if it happens every month. so I have gone with the general cost of what I would spend it does come up if that makes sense.
    • MrsTinks
    • By MrsTinks 11th Oct 16, 11:37 AM
    • 14,993 Posts
    • 23,026 Thanks
    MrsTinks
    Soooo... you can see the issue with this already can't you?

    Statement of Affairs and Personal Balance Sheet
    Monthly Income Details

    Monthly income after tax................ 1888 How much is car allowance?
    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 Quite high really... I assume you have looked for cheaper accomodation to help speed up getting debt free?
    Management charge (leasehold property).. 0
    Council tax............................. 86 paid over 10 or 12 months?
    Electricity............................. 50 for one person these seem high - are there arrears?
    Gas..................................... 40
    Oil..................................... 0
    Water rates............................. 23
    Telephone (land line)................... 17.4
    Mobile phone............................ 25
    TV Licence.............................. 37 WOW... every month?
    Satellite/Cable TV...................... 22.5
    Internet Services....................... 0
    Groceries etc. ......................... 100
    Clothing................................ 30 360 per year?
    Petrol/diesel........................... 70
    Road tax................................ 12
    Car Insurance........................... 33 for the age of your car and it's value I'd say this is possibly a little high - have you shopped around recently?
    Car maintenance (including MOT)......... 100
    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)...... 30
    Haircuts................................ 0
    Entertainment........................... 60
    Holiday................................. 0
    Emergency fund.......................... 100 You have the same amount in your over draft as your emergency fund... are you sure it's 0% apr as usually only a small amount is?
    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 Check if you qualify for any 0% offers that you can BT this to - 39% is way high as I'm certain you know!
    Current Account OD.............1450......40........0
    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
    How much will your salary go up and how soon?
    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.
    Originally posted by asoe209
    DFW Nerd #025
    DFW no more! Officially debt free 2017 - now joining the MFW's!

    My DFW Diary - blah- mildly funny stuff about my journey
    • dktreesea
    • By dktreesea 11th Oct 16, 11:39 AM
    • 5,552 Posts
    • 8,676 Thanks
    dktreesea
    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?
    • Bedsit Bob
    • By Bedsit Bob 11th Oct 16, 11:45 AM
    • 9,779 Posts
    • 51,247 Thanks
    Bedsit Bob
    Statement of Affairs and Personal Balance Sheet
    Monthly Income Details

    Monthly income after tax................ 1888
    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
    Electricity............................. 50 - This and the gas is 90 pm (over 1,000 pa), which, for someone living alone, and presumable out at work all day, is Check comparison sites for a better deal.
    Gas..................................... 40
    Oil..................................... 0
    Water rates............................. 23
    Telephone (land line)................... 17.4
    Mobile phone............................ 25 - You should be able to get this down a bit.
    TV Licence.............................. 37 - TV Licence costs 12-12 pm. Why are you paying 37 pm?
    Satellite/Cable TV...................... 22.5 - Living alone, and being out at work all day, how much use do you really get out of this?
    Internet Services....................... 0
    Groceries etc. ......................... 100
    Clothing................................ 30
    Petrol/diesel........................... 70
    Road tax................................ 12
    Car Insurance........................... 33
    Car maintenance (including MOT)......... 100
    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 - You need this. Costs ~ 10 pm.
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 30
    Haircuts................................ 0
    Entertainment........................... 60
    Holiday................................. 0
    Emergency fund.......................... 100
    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
    Current Account OD.............1450......40........0 - A 1.45k OD, that is interest free
    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

    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.
    Originally posted by asoe209
    My comments in red.

    You really need to be hitting that Online Retailer debt hard.

    At your current payment rate, it's going to take you 36 months to clear it, and cost 5,072 in interest.

    Increasing the payments by just 40 pm, would reduce it by 6 months, and more importantly, save you 990 in interest.

    You can see how, even a small increase in payments, can make a bit difference in the time, and interest, involved in clearing a high APR debt.
    Last edited by Bedsit Bob; 30-10-2016 at 8:43 AM.
    My job is Top Secret. Even I don't know what I'm doing.

    Amount I have so far denied the BBC - 1161
    • EssexHebridean
    • By EssexHebridean 11th Oct 16, 12:08 PM
    • 8,213 Posts
    • 42,686 Thanks
    EssexHebridean
    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.
    Originally posted by asoe209
    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
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 1229.00/632.77 (20/11/17)
    SOA Calculator for DFW newbies: Stoozing.com SOA Calculator
    • dktreesea
    • By dktreesea 11th Oct 16, 12:13 PM
    • 5,552 Posts
    • 8,676 Thanks
    dktreesea
    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.
    • EssexHebridean
    • By EssexHebridean 11th Oct 16, 12:23 PM
    • 8,213 Posts
    • 42,686 Thanks
    EssexHebridean
    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.
    Originally posted by dktreesea
    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.
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 1229.00/632.77 (20/11/17)
    SOA Calculator for DFW newbies: Stoozing.com SOA Calculator
    • dktreesea
    • By dktreesea 11th Oct 16, 1:11 PM
    • 5,552 Posts
    • 8,676 Thanks
    dktreesea
    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.
    Originally posted by EssexHebridean


    Sure, but in the meantime, putting 1,400 towards that debt is going to save a massive 10 a week. Once a loan comes through, the emergency fund could be built up again quite quickly, I would have thought.
    • asoe209
    • By asoe209 11th Oct 16, 1:11 PM
    • 330 Posts
    • 167 Thanks
    asoe209
    Statement of Affairs and Personal Balance Sheet
    Monthly Income Details
    Monthly income after tax................ 1888- this is including the car allowance
    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 - This is a good price for where I am living other places are in the 800+ for a lot less. this has just gone up from 670
    Management charge (leasehold property).. 0
    Council tax............................. 86 - Yes single persons
    Electricity............................. 50 - Over estimate, again a lot of these vary general put on 40 per month.
    Gas..................................... 40 - same with this its more in the region of 20-30PM
    Oil..................................... 0
    Water rates............................. 23
    Telephone (land line)................... 17.4 - Just the phone internet is free at the moment but this does seem over the odds
    Mobile phone............................ 25 - Over estimate if it goes over average 21 pM
    TV Licence.............................. 37 - 3 monthly payments
    Satellite/Cable TV...................... 22.5 - Cancelled down to freeview. cancelling the multiroom which is 10 towards this
    Internet Services....................... 0
    Groceries etc. ......................... 100
    Clothing................................ 30 - Only working cloths bought at the moment again not every month but as needed Primark.
    Petrol/diesel........................... 70 - fluxgates depended on where I have to travel to 50 fills the tank does me about 350 - 400 Miles
    Road tax................................ 12
    Car Insurance........................... 33 - Renew next week shooping around at the moment
    Car maintenance (including MOT)......... 100 - This is around what I have been paying on repairs and main. I count my savings towards these sorts of cost, not a separate cost.
    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)...... 30 - don't by gifts family does secret santa at a maximum of 30
    Haircuts................................ 0
    Entertainment........................... 60
    Holiday................................. 0
    Emergency fund.......................... 100 - Counted this as my saving which is 1400

    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
    Current Account OD.............1450......40........0 - this is a Barclays OD and they charge a percentage per day the account is in OD. I don't know the percentage for it.
    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

    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.
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