Please help me manage my debt!

sarahg85

Hi everyone,
I'm a new poster however have been using the Money Saving Expert site for a while but only recently discovered how great the forums are!
I am wondering if anyone would be able to offer me some advice. I am currently in debt and feel like I have no control over it. I have never talked to anyone about my debts and hope that someone on here with some knoweldge would be able to offer me advice on how to manage my debt better.
Here goes with what I owe....I have a loan with my bank (Lloyds TSB), who I have been with for about 22 years, there is £8,650 outstanding on that and I currently pay £196.26 a month. I also have an overdraft with them for £1,500 which I eat into every month, I am always overdrawn and get charged about £12 a month for interest.
I have a Mint credit card and the oustanding balance on that is approx £950. I have just started getting charged for interest, which makes me wonder if I would be better changing my card? I am not using it anymore and am just trying my best to pay as much as I can each month. The minimum payment they ask for each month is about £22.
I also have other direct debits each month like phone bill, insurance etc altogether they amount to £230.
My current wage is £1061.97 a month so I can afford the minimum payments to keep me out of trouble. But I just feel like I could manage my money better and as I am always overdrawn it feels like I am never getting out of being in debt!
Can anyone suggest a better way for me to manage my debts? Should I combine all my debts into one? Or do I keep things the way they are? Eventually I want to increase my loan payments to get rid of it quicker but I don't know if I can do that and if I can I don't want to start until my balance is in credit.
I really hope someone can help me!
Thank you!

talana

I'm sure people on here will be able to offer suggestions to you, but a bit more information will be needed from you first.
- what are the APRs on all those debts?
- where exactly does that wage of £1061.97 pm go? Can you post a full SOA (a full breakdown of your monthly expenditure)?

Horace

hi and welcome

Please post your SOA (statement of affairs) https://www.makesenseofcards.com/soacalc.html (use the MSE button on there to configure it to MSE).

When we can see that the good folks on here will be able to advise on where to cut back etc.

sarahg85

Thank you for your replies. I used the SOA calculator, it's hard to think of how much I spend on extras each month as it varies, but I've tried my best! I also have a £1,500 overdraft but wasn't sure how to fit this in below. But an example as to how my finances are that I got paid today, my wages went into bank my balance was £423.26 DR this is before any direct debits have been taken off. So I suspect I am being a little inaccurate when it comes to my SOA.

I appreciate your help and look forward to any responses.

Thanks!
Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1061.97
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1061.97

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 196.26
Rent.................................... 150
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 36.16
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 40
Clothing................................ 80
Petrol/diesel........................... 60
Road tax................................ 10
Car Insurance........................... 38.32
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
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......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 0
Entertainment........................... 55
Holiday................................. 30
Emergency fund.......................... 0
Total monthly expenses.................. 730.74

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 2500

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 8651.04..(196.26)...0
Total secured debts........... 8651.04...-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Mint...........................950.......22........14.9
Total unsecured debts..........950.......22........-

Monthly Budget Summary
Total monthly income.................... 1,061.97
Expenses (including secured debts)....... 730.74
Available for debt repayments........... 331.23
Monthly UNsecured debt repayments....... 22
Surplus(deficit if negative)............ 309.23

Personal Balance Sheet Summary
Total assets (things you own)........... 2,500
Total Secured debt...................... -8,651.04
Total Unsecured debt.................... -950
Net Assets.............................. -7,101.04

talana

The thing that I notice to begin with is that your monthly expenses are generally pretty good and that you have £331 available each month for debt repayments over and above the £196.26 monthly payment on the loan. That's not a bad starting position by any means.

If it was me, I think I'd use that £331 pm to pay off the Mint card asap.
£950 on the card, so 3 months from now and it could be gone.
That'll be a small victory and encourage you to tackle the large loan and the overdraft.

poorandindenial

Hi Sarah

Just a couple of things

I am worried that you may have under budgeted for groceries (does this include EVERYTHING - loo roll, cleaning stuff, food, tampax, etc etc)

Cut the clothes budget for a bit, this will see that mint card come tumbling down.

Are you on a contract mobile? if so you may well be able to get a better deal on PAYG, what do you get for that amount?

As Talana says - the good news is that you have a surplus, but when you get ot he end of the month do you really have this left?? If not you need to keep a spending diary to see exactly what you spend and where, it is amazing how random things add up.

All the best with getting this sorted

fatbelly

Are you sure the LTSB loan is a secured loan? You do not appear to own property. What is it secured on?

You have liability for rent but no liability for Council Tax, Electricity, Gas , Water, TV licence?

You spend £40 per month on food but £80 per month on clothing?

I'm trying to understand your situation but struggling. Can you explain? Sorry if I'm being a bit thick.

sarahg85

Thank you for your help.

poorandindenial - Your advice is great the only thing is I do have a contract mobile but tied into an 18 months contract which still has about 14 months left! I'm definatley going to cut down on clothes spending, it's impulse buying, never stuff that I actually need. I'm definitley keeping a spending diary...I think i'll be in for a shock when I realise how much money I spend on rubbish!

fatbelly - My situation at the moment is that I am staying with my parents so I pay £150 a month to them and not paying electricity, gas baill etc. The £40 food is just for eating out, takeaways etc. The Lloyds TSB loan is not a secured loan, i seem to have entered that in the wrong section. Sorry!

I really appreciate your help with this, sharing this has really helped me.