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  • FIRST POST
    • jamielewis0
    • By jamielewis0 14th Mar 17, 9:22 PM
    • 7Posts
    • 2Thanks
    jamielewis0
    Stuck and not sure the next steps
    • #1
    • 14th Mar 17, 9:22 PM
    Stuck and not sure the next steps 14th Mar 17 at 9:22 PM
    Hi all.
    Firstly, it's taken me too long to attempt to ask for help off anybody, i'm nothing but embarrassed and ashamed at my situation. However it's time I just asked general help.
    Im 23 years old, I have a mortgage, a partner and a dog.
    To cut stories short, I took my first card out aged 18, 5000 limit, and you can guess how the story continues.
    Throw in my dog, who was diagnosed with a rare illness, treatment and medication cost 3500. I'm only 20 at this point, and i'm already 8500 deep in debt, with a job that payed 17k.
    Fast Forward to today. These are my current cards, and amount on each.
    Barclaycard 450
    Barclaycard 950
    Halifax 500
    Lloyds 450
    Tesco 1400
    Tesco 2700
    MBNA 5500
    I also have a personal loan that was used for house repairs - 4000 (127pm)
    Here is the current problem. The 0% have all dried up. My credit is rated poor by experian. MSE calculator says I can't pick anything up for a 0% balance transfer.
    I make minimum payments at the moment on all the cards.
    My long term plan is the following;
    Me+Partner currently earn around 25kPY after tax.
    Partner goes into 23k teaching job in september
    Me+Partner earn 42k PY (as of september '17)
    We have survived 4 years on just 23k. So endure another painful 4 years, however pay all cards off in total.
    However, I'd like to do this while paying as little interest as possible.
    The cards are all near enough to their limits, so I can't swap the debts about, I can't take a loan out, i've now got to the point where I am struggling. I'm maxed my overdraft out at 500 every month. Life will get easier as of september, but I'm not sure I can make it to there, without accumulating more debt, which is the last thing I want.
    As I said at the start, i am embarrassed, and everything except 4k of the debt is totally my fault, its been years of chasing my own tail.
    Any advise would be great, i'm also happy to answer any Q's that will help/explain situation a bit more.

    Thanks
Page 1
    • joedenise
    • By joedenise 14th Mar 17, 9:32 PM
    • 4,876 Posts
    • 32,646 Thanks
    joedenise
    • #2
    • 14th Mar 17, 9:32 PM
    • #2
    • 14th Mar 17, 9:32 PM
    It would help if you posted an SOA. See sticky at start of thread.

    Much easier to make suggestions with a fuller picture.

    Denise
    • sourcrates
    • By sourcrates 14th Mar 17, 9:49 PM
    • 10,547 Posts
    • 10,340 Thanks
    sourcrates
    • #3
    • 14th Mar 17, 9:49 PM
    • #3
    • 14th Mar 17, 9:49 PM
    Link here for you :

    http://www.stoozing.com/calculator/soa.php

    Don't forget to format for MSE.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • itsallabitmuch
    • By itsallabitmuch 14th Mar 17, 10:03 PM
    • 51 Posts
    • 80 Thanks
    itsallabitmuch
    • #4
    • 14th Mar 17, 10:03 PM
    • #4
    • 14th Mar 17, 10:03 PM
    For a start, you need to post an SoA as above.

    Secondly...you're not alone on here. Do not feel embarrassed ashamed...you have already faced up to the problem you have by posting here.

    Post the SoA as you've been advised to do, and let this lovely lot here give you some advice/tips.

    And don't be scared to post again if you need support - we're all here
    • enthusiasticsaver
    • By enthusiasticsaver 15th Mar 17, 5:54 AM
    • 3,399 Posts
    • 5,692 Thanks
    enthusiasticsaver
    • #5
    • 15th Mar 17, 5:54 AM
    • #5
    • 15th Mar 17, 5:54 AM
    Can you or your partner take on a second job just until September and your partner starts her new job? Is she doing a PGCE? Sometimes Universities have open days they want students helping at and the hourly rate is about 9 per hour. Bar work, shop work, gardening/odd jobs etc?
    Debt and mortgage free and saving for early retirement
    • enthusiasticsaver
    • By enthusiasticsaver 15th Mar 17, 6:01 AM
    • 3,399 Posts
    • 5,692 Thanks
    enthusiasticsaver
    • #6
    • 15th Mar 17, 6:01 AM
    • #6
    • 15th Mar 17, 6:01 AM
    Also taking more debt out would be the worst thing you can do so it is a good thing you can't get any more cards or loans. The difficulty there of course now is you are paying interest so make sure the minimum payments at least cover the monthly interest so things don't get worse in next 6 months.

    Posting an soa will help us give advise on prioritising. Learn to live frugally for the next 6 months. High end mobile phones, tv packages and entertainment can all be cut for just 6 months. Meal plan, cook from scratch and shop at Lidls or Aldis.
    Debt and mortgage free and saving for early retirement
    • StopIt
    • By StopIt 15th Mar 17, 8:48 AM
    • 332 Posts
    • 272 Thanks
    StopIt
    • #7
    • 15th Mar 17, 8:48 AM
    • #7
    • 15th Mar 17, 8:48 AM
    First, if you're chasing your tail, are you sure you're not the dog?


    Also, you've had your LBM at a very young age, so congratulations for that. Seriously just look at this board for people far older who still are living in denial that they have a debt problem.


    Get posting that SOA and keep your chin up. Look at the positives, you obviously have a great relationship going, your own house, and a doggy! Focus on the positives, and keep a positive mindset when it comes to tackling your debt.


    It's only money, and you know you're capable of sorting it, don't let it get you down.


    If you're worried, speak to a charity like Stepchange, or the National Debtline. You don't even need to take any action with them, but they can provide real experience and advice and I'm sure that'll be a gret help too.
    • Money Rollercoaster
    • By Money Rollercoaster 15th Mar 17, 9:32 AM
    • 244 Posts
    • 581 Thanks
    Money Rollercoaster
    • #8
    • 15th Mar 17, 9:32 AM
    • #8
    • 15th Mar 17, 9:32 AM
    Hey! Better you post now than when things have really gone Pete Tong.

    It can be difficult managing multiple debts and an overdraft. I used to get stressed when I had 3 CCs and a loan to keep an eye on (I'm not gloating BTW ... I've still got 3 CCs and a loan, but things are under control now). By my reckoning you're paying 400>500 a month on the CCs and loan, which must be wearing you out!

    When you post your SOA, it would be worth dropping in some additional info regarding credit limits on the CCs and any offers on the cards. Sometimes Barclays (for example) will offer something like 6.9% for life on a BT, which although not 0%, it might be possible to reduce some of your interest cost monthly, which in turn helps get that snowball rolling ...

    Also, think seriously about things you have that might be sold (not the dog!!!) which might a. help you balance your current account so you're not perpetually pushing your overdraft limit and (possibly) b. help you speed up your debt repayments.

    Do you have any family who might be able to help in the short-term, just between now and Sept? It seems you're tantalisingly close to being in a better position to sort things, so it would be a real shame if you had to pursue a Debt Management Plan (DMP) at this stage.

    Anyway, pleased you've been brave enough to face it all. I'm sure you'll receive plenty of advice and encouragement here.
    Last edited by Money Rollercoaster; 15-03-2017 at 9:37 AM.
    Living Life @ 174 BPM >> CC Balance (0%) -3,565.99 - Target DFD Dec 2017 >> Loan (Car) (3.1%) -19,803.74 - Target DFD Nov 2020
    • FatVonD
    • By FatVonD 15th Mar 17, 2:24 PM
    • 4,366 Posts
    • 15,938 Thanks
    FatVonD
    • #9
    • 15th Mar 17, 2:24 PM
    • #9
    • 15th Mar 17, 2:24 PM
    I'm no expert but, even if you would be turned down for new 0% deals I'd be tempted to pay down your smallest credit card and hope that once you have a zero balance you will be offered a balance transfer deal as an existing customer with no defaults (those credit card companies hate a zero balance!)

    If it happens then rinse and repeat.
    Spend on clothes in 2017 58.50
    Make 5 a day in May 92.28/155 (April 236.24, March 106.74, Feb 40.99, Jan 98.54)
    • jamielewis0
    • By jamielewis0 15th Mar 17, 6:26 PM
    • 7 Posts
    • 2 Thanks
    jamielewis0
    [font=courier new]Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 0
    Number of cars owned.................... 0

    Monthly Income Details

    Monthly income after tax................ 1400
    Partners monthly income after tax....... 650
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 2050


    Monthly Expense Details

    Mortgage................................ 287
    Secured/HP loan repayments.............. 127
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 110
    Electricity............................. 40
    Gas..................................... 40
    Oil..................................... 0
    Water rates............................. 15
    Telephone (land line)................... 0
    Mobile phone............................ 55
    TV Licence.............................. 15
    Satellite/Cable TV...................... 40
    Internet Services....................... 35
    Groceries etc. ......................... 120
    Clothing................................ 30
    Petrol/diesel........................... 0
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 360
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 10
    Pet insurance/vet bills................. 15
    Buildings insurance..................... 10
    Contents insurance...................... 10
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 10
    Haircuts................................ 35
    Entertainment........................... 50
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 1414



    Assets

    Cash.................................... 0
    House value (Gross)..................... 75000
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................ 75000



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 56500....(287)......4.2
    Secured Debt.................. 4500.....(127)......0
    Total secured & HP debts...... 61000.....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Barclaycard....................450.......11....... .17.1
    Barclaycard....................955.......27....... .22.1
    MBNA...........................5897......158...... .23.9
    Jacamo.........................700.......40....... .17.9
    Llloyds........................465.......12....... .0
    Halifax........................536.......12....... .0
    Tesco..........................2788......27....... .0
    Tesco..........................1418......25....... .0
    Total unsecured debts..........13209.....312.......-



    Monthly Budget Summary

    Total monthly income.................... 2,050
    Expenses (including HP & secured debts). 1,414
    Available for debt repayments........... 636
    Monthly UNsecured debt repayments....... 312
    Amount left after debt repayments....... 324


    Personal Balance Sheet Summary
    Total assets (things you own)........... 75,000
    Total HP & Secured debt................. -61,000
    Total Unsecured debt.................... -13,209
    Net Assets.............................. 791


    This is my SOA that people have requested.
    • jamielewis0
    • By jamielewis0 15th Mar 17, 6:28 PM
    • 7 Posts
    • 2 Thanks
    jamielewis0
    Can you or your partner take on a second job just until September and your partner starts her new job? Is she doing a PGCE? Sometimes Universities have open days they want students helping at and the hourly rate is about 9 per hour. Bar work, shop work, gardening/odd jobs etc?
    Originally posted by enthusiasticsaver
    Hi!
    Yes she is just completing her PGCE, she currently works at a supermarket at 22hrs, but also have a placement at a college 2 days a week unpaid. this leaves little time for her to have another job. She just tries to pick as much overtime up as possible!
    • FatVonD
    • By FatVonD 15th Mar 17, 11:37 PM
    • 4,366 Posts
    • 15,938 Thanks
    FatVonD
    Most folk here would say to pay down the MBNA card first as it has the highest interest rate, personally I would take a chance on paying off the smallest Barclaycard one (even though the interest rate is lower) in the hope they'd then offer me a balance transfer deal to move one of the others over. If you really have a 300 surplus each month you could clear that in two months!

    Are your phones or cable TV still in contract? If they're not then free view and PAYG are the way forward

    Your travel costs look high, is there any way of cutting that down?
    Spend on clothes in 2017 58.50
    Make 5 a day in May 92.28/155 (April 236.24, March 106.74, Feb 40.99, Jan 98.54)
    • jamielewis0
    • By jamielewis0 16th Mar 17, 9:57 AM
    • 7 Posts
    • 2 Thanks
    jamielewis0
    Most folk here would say to pay down the MBNA card first as it has the highest interest rate, personally I would take a chance on paying off the smallest Barclaycard one (even though the interest rate is lower) in the hope they'd then offer me a balance transfer deal to move one of the others over. If you really have a 300 surplus each month you could clear that in two months!

    Are your phones or cable TV still in contract? If they're not then free view and PAYG are the way forward

    Your travel costs look high, is there any way of cutting that down?
    Originally posted by FatVonD
    Morning,
    Travel costs are due to my job being in Leeds, I commute from Manchester. I am looking for something closer to home to try and cut them costs.
    Phone and TV are in contract. I've brought the TV down significantly from 71 to 40, it did mean another 12 month contract but it was money off. Phone doesn't run out until next January, but it will be on PAYG straight away!
    I'm hoping your idea of paying Barclaycard off will help.
    It's the overdraft that hinders me the most, as I feel like its not my money (it isn't) but i'm in it immediately every month! Hence why I only make minimum payments, so I can build that up and clear it.
    Thanks
    • zippygeorgeandben
    • By zippygeorgeandben 16th Mar 17, 12:21 PM
    • 502 Posts
    • 570 Thanks
    zippygeorgeandben
    I just want to wish you look Jamie. Congratulate your partner on nearly passing her PGCE. Has she already got a job lined up and is that in Manchester? A first year teaching post (as an NQT) is just as hard as a PGCE, but in many different ways. Those who don't know how hard a PGCE is, believe me it's SO full on, and she works as well! Bravo to her, I just couldn't find the time! When she joins a union, probably the NUT, you are entitled to various discounts with your membership fee (which I think is 1 for the first year as a teacher) so make sure you tap into those come September.
    Also, if she does have a job, the borough that she works in, do they pay her as a teacher from July? That would really help. The borough I work in (Redbridge) pay you from the 23rd July (last day of term) until the 31st August as an actual paid teacher to get money during the holidays. However, not all boroughs do do this.
    Best of luck on your journey!
    End Sep 2016 End April 2017
    8236.57 6670.91
    (Tesco 4.8%) 222.61pcm
    6185.75 1779.78 (Zopa 4.0%) 85.00pcm

    5344.50
    3394 (Sainsburys 0% until 06/19) 76.00pcm
    2000.00 (Sister 0%) 133.33pcm

    Total debt
    19.766.82 13,844.69 Original DFD May 2019.
    • jamielewis0
    • By jamielewis0 18th Mar 17, 6:19 PM
    • 7 Posts
    • 2 Thanks
    jamielewis0
    just thought i'd drop a update on here.
    Me & Partner sat down today, put our expenses through a budget spreadsheet, and our plan is as follows.
    Share 1 bank account, which we've never done before. Pay all bills together, and with the surplus money at the end of that, save 150 every month in savings, to finally build up a 'just incase fund' (the reason we got into a lot of the credit card debt is due to not having this fund) and then to push an extra 200 at credit cards.
    It's the beginning of a long road, but i'm finally so pleased we've come up with a plan together!

    thanks to anyone who replied, just knowing people had read it helped my mind so much. I already feel better about the situation, and i'm actually looking forward to paying the money off!
    • enthusiasticsaver
    • By enthusiasticsaver 18th Mar 17, 9:19 PM
    • 3,399 Posts
    • 5,692 Thanks
    enthusiasticsaver
    Sounds like you have a plan and I agree building up an emergency fund is a good idea. You seem to have sufficient to at least cover minimum payments so that is good. I agree with fatvonD that targeting the barclaycard first to repay may mean a 0% bt will be offered. If not at least it is one debt gone in a relatively short time if you are able to pay an extra 200 per month off the cards.
    Debt and mortgage free and saving for early retirement
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