Noob

Nightroamer_uk

Hi guys,
i'm new to the forum and need your help as ive just had a shock and finally sat down and worked out my debt

Currently i owe a total of 11K at 22 years old :-( mostly on cc and a loan.

i have no idea where to start and how to manage this!! please help.

:eek:

fermi

Hi.

You could start by putting an SOA (statement of affairs) together.

See this link: Help for First Time Posters

Posting the details of that on the forum will enable people to help you work out how attack the debts.

Nightroamer_uk

fermi wrote: »

Hi.

You could start by putting an SOA (statement of affairs) together.

See this link: Help for First Time Posters

Posting the details of that on the forum will enable people to help you work out how attack the debts.

Excellent ill get on that now thanks :-)

SouthernSoftie

Just wanted to say welcome and well done for facing up to your debt.
Take your time and list everything.... put the kettle on first and relax. Once you've done the SOA it'll seem much better, honest.
This lot are great and I already feel better and I've only been here since yesterday!:D

Nightroamer_uk

Finally got time to sit down and do this guys, i've been working away! Please Help :j

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1300


Total monthly income.................... 1300[/b]

Monthly Expense Details

Rent.................................... 200
Mobile phone............................ 35
Petrol/diesel........................... 100
company car............................. 200
Total monthly expenses.................. 535

Assets

Car(s).................................. 2000

Total Assets............................ 2000[/b]

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Overdraft......................500.......0.........0
Virgin Money cc................3980......25........0
Paypal cc......................1300......5.........17.52
Abbey Load.....................2000......144.......0
Argos..........................572.98....0.........27.9
Amazon Halifax cc..............2274......5.........15.94
Total unsecured debts..........10626.98..179.......-

Monthly Budget Summary
Total monthly income.................... 1,300
Expenses (including secured debts)....... 535
Available for debt repayments........... 765
Monthly UNsecured debt repayments....... 179
Surplus(deficit if negative)............ 586

Personal Balance Sheet Summary
Total assets (things you own)........... 2,000
Total Secured debt...................... -0
Total Unsecured debt.................... -10,626.98
Net Assets.............................. -8,626.98

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

======== Enter any other useful information below ========

e.g. the number of adults & children in the household, the number

of cars included in the SOA or anything else that may be useful.

GeorgeUK

That looks like a fairly healthy surplus, but you will need to ask yourself how you ran up the debts in the first place and take steps to make sure this is not repeated.

What i would suggest is to make the minimum payments to everything, then throw anything left at whichever debt has the highest interest rate. If it is a loan, you may not be able to overpay these so just go to the next debt on the list.

Try inputting the data to the snowball calculator to see how much interest you may be able to save and how long it may be before you are debt free.
http://www.whatsthecost.com/snowball.aspx

Nightroamer_uk

yea i have more left over now ive moved back home, i have paid 250 off an over draft this month and am thinking i will use the remaining balance the day before i next get paid to pay off debts.

maybe log on to my bank the day before payday, or on payday and transfer the excess to another account to use for debt payments (additional).

what do people think?

GeorgeUK

It all depends on the interest being charged - remember though once you've spent it you don't want to get into more debt. I would not use the whole overdraft even if it was interest free. Always leave a buffer so that anything unexpected that comes up won't derail you or result in you getting charges. Have you looked at reclaiming bank or credit card charges?

Nightroamer_uk

GeorgeUK wrote: »

It all depends on the interest being charged - remember though once you've spent it you don't want to get into more debt. I would not use the whole overdraft even if it was interest free. Always leave a buffer so that anything unexpected that comes up won't derail you or result in you getting charges. Have you looked at reclaiming bank or credit card charges?

Yea i aim to stop using the od in the next 3 months on my account by leaving some in there

Nightroamer_uk

Does anyone have a good method of recording debt and tracking it like the Excellent budget planner spread sheet?