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    • teasolvesit
    • By teasolvesit 13th Mar 17, 11:03 PM
    • 11Posts
    • 1Thanks
    teasolvesit
    Help I don't know where to start
    • #1
    • 13th Mar 17, 11:03 PM
    Help I don't know where to start 13th Mar 17 at 11:03 PM
    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
    Last edited by teasolvesit; 14-03-2017 at 12:06 AM.
Page 1
    • DCFC79
    • By DCFC79 13th Mar 17, 11:14 PM
    • 29,351 Posts
    • 18,557 Thanks
    DCFC79
    • #2
    • 13th Mar 17, 11:14 PM
    • #2
    • 13th Mar 17, 11:14 PM
    Do you need the car ?

    You have 2 cars listed at the top of your SOA ? Can you not use the other car ?
    Je Suis Charlie
    • venison
    • By venison 13th Mar 17, 11:20 PM
    • 937 Posts
    • 987 Thanks
    venison
    • #3
    • 13th Mar 17, 11:20 PM
    • #3
    • 13th Mar 17, 11:20 PM
    No mortgage/rent/council tax/gas/electric/water rates ?
    #WeStandTogether
    • teasolvesit
    • By teasolvesit 13th Mar 17, 11:21 PM
    • 11 Posts
    • 1 Thanks
    teasolvesit
    • #4
    • 13th Mar 17, 11:21 PM
    • #4
    • 13th Mar 17, 11:21 PM
    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
    • By teasolvesit 13th Mar 17, 11:23 PM
    • 11 Posts
    • 1 Thanks
    teasolvesit
    • #5
    • 13th Mar 17, 11:23 PM
    • #5
    • 13th Mar 17, 11:23 PM
    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
    • Bedsit Bob
    • By Bedsit Bob 13th Mar 17, 11:34 PM
    • 9,556 Posts
    • 50,176 Thanks
    Bedsit Bob
    • #6
    • 13th Mar 17, 11:34 PM
    • #6
    • 13th Mar 17, 11:34 PM
    £600 pa on clothing?

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

    £1,020 pa on internet and pay TV?

    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.
    My job is Top Secret. Even I don't know what I'm doing.

    Amount I have so far denied the BBC - £1161
    • teasolvesit
    • By teasolvesit 13th Mar 17, 11:38 PM
    • 11 Posts
    • 1 Thanks
    teasolvesit
    • #7
    • 13th Mar 17, 11:38 PM
    • #7
    • 13th Mar 17, 11:38 PM
    £600 pa on clothing?

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

    £1,020 pa on internet and pay TV?

    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.
    Originally posted by Bedsit Bob
    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?
    • Bedsit Bob
    • By Bedsit Bob 13th Mar 17, 11:45 PM
    • 9,556 Posts
    • 50,176 Thanks
    Bedsit Bob
    • #8
    • 13th Mar 17, 11:45 PM
    • #8
    • 13th Mar 17, 11:45 PM
    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?
    Originally posted by teasolvesit
    You won't know unless you ask.

    Even if you can't cancel, you may be able to downgrade.
    My job is Top Secret. Even I don't know what I'm doing.

    Amount I have so far denied the BBC - £1161
    • enthusiasticsaver
    • By enthusiasticsaver 13th Mar 17, 11:55 PM
    • 3,552 Posts
    • 6,195 Thanks
    enthusiasticsaver
    • #9
    • 13th Mar 17, 11:55 PM
    • #9
    • 13th Mar 17, 11:55 PM
    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?
    Debt and mortgage free and saving for early retirement
    • teasolvesit
    • By teasolvesit 14th Mar 17, 12:05 AM
    • 11 Posts
    • 1 Thanks
    teasolvesit
    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?
    Originally posted by enthusiasticsaver
    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?
    • Bedsit Bob
    • By Bedsit Bob 14th Mar 17, 12:06 AM
    • 9,556 Posts
    • 50,176 Thanks
    Bedsit Bob
    How recently have you signed up to these Internet and Pay TV contracts.

    Are you still within the "cooling off" periods?
    My job is Top Secret. Even I don't know what I'm doing.

    Amount I have so far denied the BBC - £1161
    • teasolvesit
    • By teasolvesit 14th Mar 17, 12:10 AM
    • 11 Posts
    • 1 Thanks
    teasolvesit
    How recently have you signed up to these Internet and Pay TV contracts.

    Are you still within the "cooling off" periods?
    Originally posted by Bedsit Bob
    I signed up for them in October last year. so i'm 5months in
    • enthusiasticsaver
    • By enthusiasticsaver 14th Mar 17, 4:42 AM
    • 3,552 Posts
    • 6,195 Thanks
    enthusiasticsaver
    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?
    Originally posted by teasolvesit
    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.
    Debt and mortgage free and saving for early retirement
    • barbarawright
    • By barbarawright 14th Mar 17, 7:32 AM
    • 1,646 Posts
    • 3,145 Thanks
    barbarawright
    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.
    Originally posted by teasolvesit
    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
    Last edited by barbarawright; 14-03-2017 at 7:34 AM.
    • enthusiasticsaver
    • By enthusiasticsaver 14th Mar 17, 7:50 AM
    • 3,552 Posts
    • 6,195 Thanks
    enthusiasticsaver
    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.
    Originally posted by teasolvesit
    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?
    Debt and mortgage free and saving for early retirement
    • anna_1977
    • By anna_1977 14th Mar 17, 8:51 AM
    • 554 Posts
    • 751 Thanks
    anna_1977
    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
    • By DCFC79 14th Mar 17, 9:11 AM
    • 29,351 Posts
    • 18,557 Thanks
    DCFC79
    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.
    Originally posted by anna_1977
    My thoughts exactly, its just making the OPs situation worse.
    Je Suis Charlie
    • enthusiasticsaver
    • By enthusiasticsaver 14th Mar 17, 10:58 AM
    • 3,552 Posts
    • 6,195 Thanks
    enthusiasticsaver
    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?
    Debt and mortgage free and saving for early retirement
    • Bedsit Bob
    • By Bedsit Bob 14th Mar 17, 12:56 PM
    • 9,556 Posts
    • 50,176 Thanks
    Bedsit Bob
    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.
    My job is Top Secret. Even I don't know what I'm doing.

    Amount I have so far denied the BBC - £1161
    • kindofagilr
    • By kindofagilr 14th Mar 17, 1:09 PM
    • 6,018 Posts
    • 20,184 Thanks
    kindofagilr
    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
    At LBM DFD was Dec 2024
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    ~6.53% Paid

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