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  • FIRST POST
    • mick1234
    • By mick1234 5th Dec 17, 5:00 PM
    • 35Posts
    • 45Thanks
    mick1234
    Its time to sort out this mess!
    • #1
    • 5th Dec 17, 5:00 PM
    Its time to sort out this mess! 5th Dec 17 at 5:00 PM
    Hi,

    I have been around these forums for a long time and posted a few bits but I really need to be made accountable for my debts, I know I have lived in the red for a long time now and a few factors have stopped me moving on, I am lucky that I have a good job and have money spare as some of my friends do not. Being a newly single Dad with 50 / 50 co-parenting gives me more motivation to get myself sorted,

    I am terrible at spending on my debit card and credit cards as you can see, I got credit cards for emergencies and then shuffling the balances round trying to keep 0% has caused more issues of extra money that I have spent on nothing sometimes just living costs when I have no money left at the end of the month and I need shopping or petrol, I don't even go out as in getting drunk or spending on clothes or fast cars

    WORST SPENDING.

    Shopping dinners at work
    Shopping - nipping into the supermarket to buy some tea
    Fueling up at random times during the month



    I need a way to make sure every £1 has a job as everyone says but I can never do it I always have money left over and it just goes,

    I have already started with my bills.

    Virgin Media internet and tv - from £80 to £30
    Phone bill £70 - £12 with £60 cashback
    shopping all done at Aldi - trying to budget this per week.
    Called Barclay card and they took my Apr from 18.6 to 8

    any tips or pointers will help anything you have

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household......... 1
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 1997.23
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1997.23


    Monthly Expense Details

    Mortgage................................ 401
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 104
    Electricity............................. 61
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 40
    Telephone (land line)................... 0
    Mobile phone............................ 12
    TV Licence.............................. 12.37
    Satellite/Cable TV...................... 32
    Internet Services....................... 0
    Groceries etc. ......................... 200
    Clothing................................ 0
    Petrol/diesel........................... 100
    Road tax................................ 0
    Car Insurance........................... 43
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 300
    Other child related expenses............ 100
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 23.53
    Contents insurance...................... 0
    Life assurance ......................... 47.4
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 20
    Haircuts................................ 25
    Entertainment........................... 20
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 1541.3



    Assets

    Cash.................................... 0
    House value (Gross)..................... 130000
    Shares and bonds........................ 0
    Car(s).................................. 1200
    Other assets............................ 0
    Total Assets............................ 131200



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 106000...(401)......2.17
    Total secured & HP debts...... 106000....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    BC.............................9800......167...... .8
    Halifax........................1405.89...36.42.... .0
    RBS............................1400......50.81.... .0
    Tesco..........................3500......28....... .0
    NUBA...........................3439.61...33.18.... .0
    Total unsecured debts..........19545.5...315.41....-



    Monthly Budget Summary

    Total monthly income.................... 1,997.23
    Expenses (including HP & secured debts). 1,541.3
    Available for debt repayments........... 455.93
    Monthly UNsecured debt repayments....... 315.41
    Amount left after debt repayments....... 140.52


    Personal Balance Sheet Summary
    Total assets (things you own)........... 131,200
    Total HP & Secured debt................. -106,000
    Total Unsecured debt.................... -19,545.5
    Net Assets.............................. 5,654.5


    Created using the SOA calculator at www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
Page 2
    • mick1234
    • By mick1234 7th Dec 17, 9:57 AM
    • 35 Posts
    • 45 Thanks
    mick1234
    I know I am looking into it this morning, and I will also look at the breakdown cover - thank you


    £85 a month is ridiculous for car insurance. That is more than the value of the car.
    Originally posted by enthusiasticsaver
    • Chappers27
    • By Chappers27 7th Dec 17, 10:14 AM
    • 63 Posts
    • 67 Thanks
    Chappers27
    The unsecured debt is killing you. I know some people dont recommend it but if I were you, I'd consolidate it all to a 0% credit card or a cheap loan - AND FIXED PAYMENTS TO PAY IT OFF.

    Also, do you need to pay £32 for satellite/cable? Stop that immediately and get a cheap freeview box for the period you're in repayment. You could prob knock £15 off your gas and electric by switching.

    You don't get 50% of child benefit. I tried. It goes to the mum.

    Car insurance. When it comes to renewal get it four weeks in advance. Check the date.

    Whatever you save throw at the loan or 0% credit card.

    Think SAVE every day.
    Last edited by Chappers27; 07-12-2017 at 10:18 AM.
    • DebtFreeDuo
    • By DebtFreeDuo 7th Dec 17, 10:37 AM
    • 622 Posts
    • 3,023 Thanks
    DebtFreeDuo
    I believe that if there is only one child then the child benefit can only go to one parent and then its up to the parents to discuss. If there are more then I believe they can split it although its been a while since I looked in to that.

    I recently opted for hiding my cards away, this has seriously backfired on me as I have been using one of them again, today I am cutting this card up, I don't need it, I am just using it 'for emergencies' that aren't true emergencies. Try and set aside a very small emergency pot for now so that instead of using a card at the end of the month you could use this instead. This might help encourage you to keep adding to it and then it can become your emergency fund.
    Loan:1780.49 2207.38 Car Loan:2039.22 2419.64 0% CC:984.98 1063.48 Overdraft: 860 Overpayment:1781 Total: 7445.69 DFD Dec 18
    SPC 586
    • Scott_Weiland
    • By Scott_Weiland 7th Dec 17, 10:39 AM
    • 659 Posts
    • 1,629 Thanks
    Scott_Weiland
    The unsecured debt is killing you. I know some people dont recommend it but if I were you, I'd consolidate it all to a 0% credit card or a cheap loan - AND FIXED PAYMENTS TO PAY IT OFF.

    Also, do you need to pay £32 for satellite/cable? Stop that immediately and get a cheap freeview box for the period you're in repayment. You could prob knock £15 off your gas and electric by switching.

    You don't get 50% of child benefit. I tried. It goes to the mum.

    Car insurance. When it comes to renewal get it four weeks in advance. Check the date.

    Whatever you save throw at the loan or 0% credit card.

    Think SAVE every day.
    Originally posted by Chappers27
    I agree re the cable you could get a now tv box for 20quid then pay just 7quid, say another 9 quid if you want the movies.
    Debts 15981.64 total paid 2078
    Cashback Earnings YTD £167.28 Survey Earnings YTD £552.88
    • mick1234
    • By mick1234 7th Dec 17, 11:16 AM
    • 35 Posts
    • 45 Thanks
    mick1234
    Hi,

    the £30 is for internet,TV and Phone, I cancelled it all apart from the internet and they gave it me all for the same price. I need the internet for work I did look at other providers but the price is good for what I am getting,

    I did look at loans etc to consolidate as for cards I am using most of my available credit so this is stopping me moving it.


    The unsecured debt is killing you. I know some people dont recommend it but if I were you, I'd consolidate it all to a 0% credit card or a cheap loan - AND FIXED PAYMENTS TO PAY IT OFF.

    Also, do you need to pay £32 for satellite/cable? Stop that immediately and get a cheap freeview box for the period you're in repayment. You could prob knock £15 off your gas and electric by switching.

    You don't get 50% of child benefit. I tried. It goes to the mum.

    Car insurance. When it comes to renewal get it four weeks in advance. Check the date.

    Whatever you save throw at the loan or 0% credit card.

    Think SAVE every day.
    Originally posted by Chappers27
    • mick1234
    • By mick1234 8th Dec 17, 9:03 PM
    • 35 Posts
    • 45 Thanks
    mick1234
    I have managed to get breakdown cover for £43 and cancelled my bank package which was costing me £204 a year that's a saving of £163 its not a huge saving but it will all add up when I have done this with everything thanks for the tip!




    I think you could probably get car breakdown a lot cheaper than £17 a month and you need to tackle the overdraft as most banks are starting to up their charges on this. Packaged bank accounts are usually a waste of money.
    Originally posted by enthusiasticsaver
    • EssexHebridean
    • By EssexHebridean 12th Dec 17, 1:16 PM
    • 8,234 Posts
    • 43,599 Thanks
    EssexHebridean
    Oh well done! That's great!!

    How have you been going this week so far?
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£702.45 (20/11/17)
    SOA Calculator for DFW newbies: Stoozing.com SOA Calculator
    • mick1234
    • By mick1234 12th Dec 17, 3:16 PM
    • 35 Posts
    • 45 Thanks
    mick1234
    This week has been a bit crazy I have been looking at everything, I now have my new road cover and the bank account fees have now been removed, I have just been on to my electricity / gas provider as they where trying to charge me £150 per month they are looking into it as I am in credit, I used the Cheap energy club to check my latest costs.

    Last night I made about 6 meals and froze and refrigerated the rest I will get better at this its just getting everything sorted out.

    All my shopping has been done with Aldi no more sainsburys trips, I used to do this most nights.

    I have also been looking at loan options for my cards there are fees but It will get it paid off, as I think if I have to pay it I will its a lot harder with minimum payments etc my issue is I have so little left if it is a DD then I have no choice. I wouldbe getting the exact loan for the cards thats is the payment is lower than what I am paying now and I think they will allow over payments, I have only looked at this option.
    • DebtFreeDuo
    • By DebtFreeDuo 12th Dec 17, 9:11 PM
    • 622 Posts
    • 3,023 Thanks
    DebtFreeDuo
    If you are looking at consolidation then I would seriously recommend you completely cancel your cards once they are cleared and don't keep one for emergency. The problem with consolidation is that because we see it as more manageable we generally take out more credit on cards etc. If you don't look at the cause of your initial debts and work on those completely then the likelihood is that consolidation won't work. I talk from experience and from advice I have seen given around here. Debt is a symptom not the cause as they say.
    Loan:1780.49 2207.38 Car Loan:2039.22 2419.64 0% CC:984.98 1063.48 Overdraft: 860 Overpayment:1781 Total: 7445.69 DFD Dec 18
    SPC 586
    • enthusiasticsaver
    • By enthusiasticsaver 12th Dec 17, 10:19 PM
    • 4,851 Posts
    • 9,164 Thanks
    enthusiasticsaver
    The problem with consolidation is that usually it works out a lot more expensive as you will be paying it back over a longer time period. It also does not address the problem of why you overspent in the first place so invariably people end up with the loan and credit cards as they spend on them after getting the loan. If you do that I strongly recommend you get rid of the cards.

    Are most of the cards 0%?
    1 week to go until early retirement. Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • mick1234
    • By mick1234 13th Dec 17, 8:38 AM
    • 35 Posts
    • 45 Thanks
    mick1234
    All my cards apart from one ( Barclay card ) are interest only

    18.6 % interest next month is £60.69 payment is £186.28 this is the largest the others are between £20 and £35.

    I know a loan would take a lot longer but it would give me 1 payment that would be lower than what I am paying now im not sure if it would help I just know that I need to start chipping away at these cards or they will be with me forever!

    All cards accounts would be cancelled and the loan would only be for the amount needed to clear the accounts, its so annoying that this has only taken like 3 years to get in this mess I never had credit ever! now 1 card turned in 5 and a mountain of debt!




    The problem with consolidation is that usually it works out a lot more expensive as you will be paying it back over a longer time period. It also does not address the problem of why you overspent in the first place so invariably people end up with the loan and credit cards as they spend on them after getting the loan. If you do that I strongly recommend you get rid of the cards.

    Are most of the cards 0%?
    Originally posted by enthusiasticsaver
    Last edited by mick1234; 13-12-2017 at 8:57 AM.
    • enthusiasticsaver
    • By enthusiasticsaver 13th Dec 17, 9:11 AM
    • 4,851 Posts
    • 9,164 Thanks
    enthusiasticsaver
    A loan for almost £20k paying around the same as you are paying now must be for a very long term so I doubt it would be paid off any quicker especially as only one card is charging interest. The loan will definitely not be interest free so while it seems like repaying by consolidating will be quicker it won't be. The only advantage is it will be one payment instead of five and the disadvantages are it will be more expensive and take longer to repay. Have you got any loan quotes for that amount as I would imagine you would also find it difficult to get a low rate approved with that amount of debt already on your salary.

    As you have seen it takes very little time to accrue large amounts of debt when you don't live within your budget. Similarly though once you have made a plan to deal with it and keep to your budget you soon see results. Minimums come dow, you find it easier to get 0% deals and gradually the cards are repaid one by one. Can you not get any of that Barclaycard on to 0%?
    1 week to go until early retirement. Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • enthusiasticsaver
    • By enthusiasticsaver 13th Dec 17, 9:22 AM
    • 4,851 Posts
    • 9,164 Thanks
    enthusiasticsaver
    If you put the figures into a loan calculator you will see it is not cheaper. I have just put £19545 into one at 4.7% which is a really low rate and one I doubt you will get. If you pay roughly the same monthly as you do now it will take 6 years to clear and cost you more than £2800 in interest.

    If you can somehow move that £9800 on the Barclaycard on to 0% and keep transferring cards at the end of the deals on to other 0% deals it will take you 62 months so just over 5 years to clear at your present repayment amount £315 monthly and no interest. I cannot stress enough consolidation loans do not help you clear debt. Divide that surplus £140 realistically between your car and entertainment, clothes, presents and emergency fund.
    1 week to go until early retirement. Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • mick1234
    • By mick1234 13th Dec 17, 11:01 AM
    • 35 Posts
    • 45 Thanks
    mick1234
    Capital One - 6 months 0%, 3% fee

    and an Aqua card which only I know only allows 1200 for 6 months eligibility is 100%

    after that it drops to 40% chance its because I am using to much of my available credit
    • EssexHebridean
    • By EssexHebridean 13th Dec 17, 11:55 AM
    • 8,234 Posts
    • 43,599 Thanks
    EssexHebridean
    Shift what you can to 0% Mick, then set the payments on the cards other than the highest interest to a little above the current minimum and turn ALL your attention to that Barclaycard. This means you're still making a decent impact on the 0% and lower rate balances, but you're doing the right thing in attacking the one with the highest interest. All being well in a few months your position may look rather better and there might be better options for 0%. You could also try contacting Barclaycard to ask about transferring to a "low life of balance" rate - they used to do one around 6.9% and as you've found before, if you don't ask, you don't get, so always worth a try.

    I honestly think right now that consolidation is not right for you. I get what you're saying about the lower payments, but overall you'll be spending more and it will mean that the focus to deal with it might not stay quite as "present" if you know what I mean.

    I'm also not going to suggest you take out either of those 0% cards you've mentioned - others may disagree but with only 6 months on them you may not be in a position to shift again afterwards and I'd put money on the interest rate afterwards is higher than Barclaycard is currently, no?
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£702.45 (20/11/17)
    SOA Calculator for DFW newbies: Stoozing.com SOA Calculator
    • mick1234
    • By mick1234 13th Dec 17, 2:20 PM
    • 35 Posts
    • 45 Thanks
    mick1234
    just called them - I am on 6.9 that is the lowest they offer for current customers, the more I think about it I know that consolidation is not the right way to go I just need to see them going down instead of up.

    I am creating a spreadsheet with the exact bill amounts that leave me account once I know this exactly I can then move all the other money out this way I know whatever is in that account cannot be touched - I have upped my BC to 250 a month and will adjust more once I know what I have left.
    Last edited by mick1234; 13-12-2017 at 4:21 PM.
    • phizzimum
    • By phizzimum 13th Dec 17, 4:31 PM
    • 1,644 Posts
    • 8,930 Thanks
    phizzimum
    Hi Mick

    Just wanted to give you a little cheer from the sidelines

    Youíve done so well and made lots of changes. Just the fact that you are more aware of where your money is going is a huge step forward.

    Dont get disheartened and Iím sure youíll soon start to see a difference.

    I find that using cash works well for me. At the start of the month I take out cash for groceries and fuel, and divide into separate envelopes for each week. That way every time I open my purse I can clearly see how much is left for the week and that helps me resist temptation! Doesnt suit everyone but worth a try
    weaving through the chaos...
    • mick1234
    • By mick1234 13th Dec 17, 4:48 PM
    • 35 Posts
    • 45 Thanks
    mick1234
    Thank you so much great tip aswell I will try it!


    Hi Mick

    Just wanted to give you a little cheer from the sidelines

    Youíve done so well and made lots of changes. Just the fact that you are more aware of where your money is going is a huge step forward.

    Dont get disheartened and Iím sure youíll soon start to see a difference.

    I find that using cash works well for me. At the start of the month I take out cash for groceries and fuel, and divide into separate envelopes for each week. That way every time I open my purse I can clearly see how much is left for the week and that helps me resist temptation! Doesnt suit everyone but worth a try
    Originally posted by phizzimum
    • mick1234
    • By mick1234 13th Dec 17, 4:53 PM
    • 35 Posts
    • 45 Thanks
    mick1234
    Today was a big saving I have life cover I got this out a few months ago at a cost of £47, I have had a look and I have enough cover through work currently ideally I would have illness cover but I think with my current situation I will not bother for a while and then revisit when I am in a better place financially. No cancellation costs and no further payments.
    • EssexHebridean
    • By EssexHebridean 13th Dec 17, 5:01 PM
    • 8,234 Posts
    • 43,599 Thanks
    EssexHebridean
    Brilliant - well done! Another lump every month to go to the debt then!

    The cash idea works for a lot of folk - the one thing I will say is check what cover you have for cash at home in your contents insurance policy and never have more than that sitting about at home. Withdraw weekly instead of monthly if you need to.

    For some reason I thought your existing Barclaycard rate was higher than that - sorry for giving you false hope!
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£702.45 (20/11/17)
    SOA Calculator for DFW newbies: Stoozing.com SOA Calculator
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