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  • FIRST POST
    • Matt1892
    • By Matt1892 14th Feb 18, 1:55 PM
    • 4Posts
    • 1Thanks
    Matt1892
    Debt HELP / Don't have a clue
    • #1
    • 14th Feb 18, 1:55 PM
    Debt HELP / Don't have a clue 14th Feb 18 at 1:55 PM
    Hi,


    I have racked up some debt over the last 3-4 years, I'm currently 23 so I've got time to sort this out but I have a lot of holidays I've committed to this year before I realised I was in a difficult situation.


    I've done a small break down of my expenditure:


    £1300


    Car Scheme (36 month contract) £300
    Gym (12 month contract) £25.00
    Phone (24 month contract) 42.98
    Keep/Rent £60.00
    Contact Lenses £25.00


    £453.00


    Debts


    Argos Card £280 / £16.72 MP
    Lloyds Loan £2648 / £89.58 MP (42 months reaming 23% apr)
    HSBC Credit Card £6360 / £160.00 MP
    Santander Credit Card £1465.00 / £20 MP
    Halifax Overdraft Arranged Payment £1050 / £150 MP ( 7 MONTHS REMANING)


    £11180


    £436.00




    This leaves me with 410 PM, I'm currently having to put away 200 per month for holiday till end of August 2018


    I'd be grateful if anybody could help, I don't need to fill a full expenditure form out as I am only left with 200 per month for everything and this varies each month what I spend it on.. I'd hopefully like to have this debt halfed by mid 2019


    Many Thanks
    Last edited by Matt1892; 14-02-2018 at 1:58 PM.
Page 1
    • fatrab
    • By fatrab 14th Feb 18, 2:20 PM
    • 383 Posts
    • 685 Thanks
    fatrab
    • #2
    • 14th Feb 18, 2:20 PM
    • #2
    • 14th Feb 18, 2:20 PM
    Hi, and welcome!


    You've typed the answer to your problem in your opening sentence.


    Cancel your holidays. Pay that £200 to your debts in order of highest interest first.


    It really is that simple I'm afraid.


    Best of luck
    Last edited by fatrab; 14-02-2018 at 2:24 PM.
    Make a plan. Stick to the plan. If it's not in the plan - DONT DO IT!
    February's Goals - 14/18 NSD - 15/19 Lunches - 22/28 AFD - 18/28 TAFD (take away free days)
    LBM Dec 2017 - Wannabe debt free by Dec 2022 - Wannalose 3st in the process - 1st 8lb lost so far
    14 x £2 coins (#32)
    • Ian 875
    • By Ian 875 14th Feb 18, 2:28 PM
    • 28 Posts
    • 10 Thanks
    Ian 875
    • #3
    • 14th Feb 18, 2:28 PM
    • #3
    • 14th Feb 18, 2:28 PM
    Matt, if this were me I'd be looking at not going on holiday until my debts were cleared. £200 a month until August is an awful lot to be spending.

    Take it with a grain of salt though, I'm very careful with my money
    • venison
    • By venison 14th Feb 18, 3:57 PM
    • 1,627 Posts
    • 1,745 Thanks
    venison
    • #4
    • 14th Feb 18, 3:57 PM
    • #4
    • 14th Feb 18, 3:57 PM
    Have to agree with the above your priority Matt must be to start clearing your debt and not having"holidays"
    And welcome to MSE
    I am a BG on loans,credit cards and benefits I volunteer to help get your forum questions answered and keep the forum running smoothly". 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.
    • Matt1892
    • By Matt1892 14th Feb 18, 4:05 PM
    • 4 Posts
    • 1 Thanks
    Matt1892
    • #5
    • 14th Feb 18, 4:05 PM
    • #5
    • 14th Feb 18, 4:05 PM
    Thanks for all the advice
    • Karonher
    • By Karonher 14th Feb 18, 5:28 PM
    • 472 Posts
    • 2,065 Thanks
    Karonher
    • #6
    • 14th Feb 18, 5:28 PM
    • #6
    • 14th Feb 18, 5:28 PM
    I am going to go against what the others have said. You are at an age when you should be having fun. You have realised at a young age you need to be more careful. I was sort of in your position in 1991 although I was a bit older and the debts were not quite as high. Only you know if you will have the willpower to buckle down when you get back home. I did and made sure the same thing did not happen again.

    By September the overdraft should be gone and the next month Argos can go as well.

    After the holiday you will have a total of £576 left and a lot of that can go on debt.

    After that I would pay as much of the card with the highest interest as possible.

    Do you really want to miss out on the holiday to clear the debt a few months earlier? If you do then the advice from the others will be best.
    Getting ready for Christmas 2018

    Aiming to make £5,000 online in 2018.
    • theoretica
    • By theoretica 14th Feb 18, 7:00 PM
    • 5,040 Posts
    • 6,293 Thanks
    theoretica
    • #7
    • 14th Feb 18, 7:00 PM
    • #7
    • 14th Feb 18, 7:00 PM
    Your big problem is not keeping a close eye on your spending. Know where it all goes and what is coming up so you avoid nasty realisations. Did any of your debt come from things you are done with and could sell?

    I don't need to fill a full expenditure form out as I am only left with 200 per month for everything and this varies each month what I spend it on..
    Originally posted by Matt1892
    I think you need to look carefully at this, what do you spend it on over the year? How much of it can go on debt? With the holidays and gym you have a lot going on entertainment already.

    What does it cover? Petrol? Car insurance? Do you buy your own groceries?
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
    • Dobbibill
    • By Dobbibill 14th Feb 18, 9:53 PM
    • 2,726 Posts
    • 3,794 Thanks
    Dobbibill
    • #8
    • 14th Feb 18, 9:53 PM
    • #8
    • 14th Feb 18, 9:53 PM
    Hi,


    I have racked up some debt over the last 3-4 years, I'm currently 23 so I've got time to sort this out but I have a lot of holidays I've committed to this year before I realised I was in a difficult situation.


    I've done a small break down of my expenditure:


    £1300


    Car Scheme (36 month contract) £300
    Gym (12 month contract) £25.00
    Phone (24 month contract) 42.98
    Keep/Rent £60.00
    Contact Lenses £25.00


    £453.00


    Debts


    Argos Card £280 / £16.72 MP
    Lloyds Loan £2648 / £89.58 MP (42 months reaming 23% apr)
    HSBC Credit Card £6360 / £160.00 MP
    Santander Credit Card £1465.00 / £20 MP
    Halifax Overdraft Arranged Payment £1050 / £150 MP ( 7 MONTHS REMANING)


    £11180


    £436.00




    This leaves me with 410 PM, I'm currently having to put away 200 per month for holiday till end of August 2018


    I'd be grateful if anybody could help, I don't need to fill a full expenditure form out as I am only left with 200 per month for everything and this varies each month what I spend it on.. I'd hopefully like to have this debt halfed by mid 2019


    Many Thanks
    Originally posted by Matt1892
    Welcome to the forum.

    This isn't accurate which would be your first hurdle.

    You've failed to include
    -fuel/tax/MOT (any other items not included in the car scheme)
    -haircuts
    -b/day or Xmas presents
    -new clothes
    - coffees/drinks with friends
    to name a few things.

    You really should do a full SOA - if you pay keep to your parents that's fine and you would leave household bills blank but without including other things, you are going to be miscalculating and then left wondering why you haven't got the money you should have (according to your list).

    Your second challenge will be to address why you have the debts. Without knowing why you got them, you won't know whether it's a) avoidable in the future or b) quite likely to happen again.

    Do a full SOA so you can budget properly - this isn't something that should be left until you have a house to run, do it now and it will teach you to budget long term. When you then have your own place with household bills you will find it to be the norm to budget correctly.
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales 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.


    A person who never made a mistake, never tried anything new.
    • datlex
    • By datlex 15th Feb 18, 7:07 PM
    • 1,550 Posts
    • 1,385 Thanks
    datlex
    • #9
    • 15th Feb 18, 7:07 PM
    • #9
    • 15th Feb 18, 7:07 PM
    Where do you get your contacts from? I have extended wear from Boots which are £19 a month. I know not a huge saving but it's £84 a year or approx. 2 months phone payments. Also you get 10% off their own brand products. (e.g 10% off No 7 for Mother's Day....)
    • enthusiasticsaver
    • By enthusiasticsaver 15th Feb 18, 11:20 PM
    • 5,703 Posts
    • 11,276 Thanks
    enthusiasticsaver
    What interest rate are you paying on your credit cards?

    You must be overspending by a lot if you have accrued £11k of debt in spite of not having to pay for rent, bills or food.

    If you are able to cancel the holidays I would do that or opt for a cheaper one. If you are having to save £200 a month until August that is £1400 which would almost pay your Santander card off or half the loan which is really expensive. Was the lloyds loan a consolidation loan? 23% is an incredibly high rate so I am guessing you have a bad credit history?
    Debt free and mortgage free and early retiree. Living the dream

    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
    • Dobbibill
    • By Dobbibill 16th Feb 18, 6:28 AM
    • 2,726 Posts
    • 3,794 Thanks
    Dobbibill
    Since asking for help just over a year ago, your debt has gone up.
    http://forums.moneysavingexpert.com/showthread.php?p=71664650#post71664650

    I think a SOA is really required to stop this continuing to spiral.
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales 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.


    A person who never made a mistake, never tried anything new.
    • Matt1892
    • By Matt1892 19th Feb 18, 10:46 AM
    • 4 Posts
    • 1 Thanks
    Matt1892
    [font=courier new]Statement of Affairs and Personal Balance Sheet
    Monthly Income Details

    Monthly income after tax................ 1000
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1000

    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 60
    Management charge (leasehold property).. 0
    Council tax............................. 0
    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 42.98
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 0
    Clothing................................ 0
    Petrol/diesel........................... 50
    Road tax................................ 2.62
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 25
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 10
    Entertainment........................... 0
    Holiday................................. 200
    Emergency fund.......................... 0
    Gym..................................... 25
    Total monthly expenses.................. 415.6


    Assets

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


    No Secured nor Hire Purchase Debts

    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    HSBC Credit Card...............6360......160.......18.9%
    Santander Credit Card..........2000......30........0% (1450 was incorrect)
    Halifax Overdraft .............1500......150.......0
    Lloyds Loan ...................2648......89.58.....23.00%
    Argos Card ....................290.......16.72.....23.00%[b]


    I've put my SOA above which leaves me with around £135 additional per month, this until September 2018 which I then will have around £500 a month, I'm thinking cut all my cards up until then make all minimum payments, in September I will then clear the Argos card, and begin to make 150 monthly payments I was previously making to my overdraft reduction..


    Any more suggestions would be great...
    • sourcrates
    • By sourcrates 19th Feb 18, 10:52 AM
    • 13,210 Posts
    • 12,635 Thanks
    sourcrates
    Council tax............................. 0
    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 42.98
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 0
    Clothing................................ 0

    You pay no council tax, have no electric, gas or oil ?

    No water rates, TV license internet service ?

    You don't eat or wear clothes either ?

    I think this is far from accurate Matt, you either need to explain the deficiencies or do it again.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    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 Free Legal advice see : http://legalbeagles.info/
    • marliepanda
    • By marliepanda 19th Feb 18, 11:15 AM
    • 5,219 Posts
    • 10,696 Thanks
    marliepanda
    Council tax............................. 0
    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 42.98
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 0
    Clothing................................ 0

    You pay no council tax, have no electric, gas or oil ?

    No water rates, TV license internet service ?

    You don't eat or wear clothes either ?

    I think this is far from accurate Matt, you either need to explain the deficiencies or do it again.
    Originally posted by sourcrates
    Unless his rental landlord calls the rent 'keep' then I am guessing he lives at home with his parents and doesnt have any of the costs he left blank.

    Food outside the house - possibly
    Clothing - possible.
    • sourcrates
    • By sourcrates 19th Feb 18, 11:24 AM
    • 13,210 Posts
    • 12,635 Thanks
    sourcrates
    Unless his rental landlord calls the rent 'keep' then I am guessing he lives at home with his parents and doesnt have any of the costs he left blank.

    Food outside the house - possibly
    Clothing - possible.
    Originally posted by marliepanda
    Yes, rent @ £60........should of guessed that one
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    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 Free Legal advice see : http://legalbeagles.info/
    • WannabeFree
    • By WannabeFree 19th Feb 18, 12:04 PM
    • 1,102 Posts
    • 9,046 Thanks
    WannabeFree
    I agree there is still things missing from you SOA.

    Food - you never spend on food? Even if most is included with your keep I'm sure you do spend something

    Car maintenance .. Never? Can't be right. Again Parking? Never?

    Clothing/presents/entertainment? Nothing here. You must spend on these.

    I think the first thing you need to do is sort a realistic budget that includes everything. Not one you think will work or want to work. Something realistic.

    Look where and why you have so much debt and make sure you've covered these areas in your budget, even if at a lower amount.
    “Once you hit rock bottom, that's where you perfectly stand; That's your chance of restarting, but restarting the right way.”
    • theoretica
    • By theoretica 19th Feb 18, 7:31 PM
    • 5,040 Posts
    • 6,293 Thanks
    theoretica
    Car insurance?
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
    • theoretica
    • By theoretica 19th Feb 18, 7:47 PM
    • 5,040 Posts
    • 6,293 Thanks
    theoretica
    Also, how did you get into debt? Because whatever you spent that money on is the sort of thing you may need to include in your budget, or consciously cut out.
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
    • dawyldthing
    • By dawyldthing 19th Feb 18, 10:57 PM
    • 2,808 Posts
    • 2,731 Thanks
    dawyldthing
    Could you sell the car and go on public transport for a bit. It's going to cut back on a heck of a lot of your outgoings (and it's not monkey see, monkey do as I've never owned a car as for me they are far far too expensive)
    My targets to end 2018:
    1) To get down to 11 stone then treat to a safari. At start 17 stone 7 lbs *60lbs lost* *31lbs to go*
    Started SW16st13lbs tues11/7/17 - 32 weeks in -52lbs
    -> target 11 st 13lbs by mid June -> 15 weeks & 18lbs to go
    2) to find new challenges
    • Windofchange
    • By Windofchange 20th Feb 18, 7:13 AM
    • 690 Posts
    • 782 Thanks
    Windofchange
    I'm assuming that car scheme and 36 months hints at a PCP deal. Therefore it might be one of those insurance and servicing costs are included sort of things? I'm also assuming that selling the car isn't an option without a hefty penalty.

    Any chance you can get a second job to supplement your income? Doesn't need to be anything too flashy, but even pulling pints in a pub a few nights a month would bring in maybe a couple of hundred pounds more?
    Debt Free by Xmas 2018 0% of £1,626.91
    Save £6k by 31/12/2018 £700 / £6000
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