Time to take my head out of the sand!

Shinji_2

Hi everyone!

First post, so please go easy on me

I've been in debt for quite a while now (started with my first credit card around 10 years ago)...

Throughout this time, I have only ever paid the minimum amount on my card(s) and now here I am, 10 years later with a pretty large weight around my neck.

I've (somehow) managed to keep my head above the water, however I think if I continue to use credit and don't sort myself out, something's going to give.

I NEVER looked at my bank or credit card statements and I never checked my balance at the ATM before withdrawing cash... It's an absolute miricle that I've not had red letters all over the place.

Sometime during the Summer, I got a letter from one of my C/C companies that didn't look like it was a statement, so I opened it... It said I'd gone over my credit limit of 10k :eek: . How the heck that happened, I don't know, (well, I suppose I just used it a lot!). So, I paid £400 out of my savings (which I don't have a great deal of at all) to get it back within my limit, however that shook me up enough to stop using any form of credit.

Anyway, earlier this week I decided to open one of the statements that landed on the doorstep and I was amazed to see that that one had 7.5k on it (from a balance transfer years ago) and that I was paying £110 a month and £95 of that was interest (or similar figures). This got me thinking... How am I meant to pay these things off if I'm paying mostly interest.

I got a bit worried and decided to spill the beans to my Mum.

I then found this site!! :T

So, tomorrow is D-Day. I plan to get all of my credit cards from the back of my little safe (maybe 6 cards?) and I'm going to call each of them.

I'm going to ask what my balance is, what APR I'm paying, what my credit limit is, how much I'm paying as a minimum payment per month and how much of this is interest.

I'm then going to complete the Excel spreadsheet Budget calculator thingy that I downloaded on here, to try and work out where all my money is going.

I also have a car loan (which is at a low rate and I'm cool with) and an oldish consolodation loan with my bank, which I'm going to see how long I have left on and how much it is each month.

I seriously dread to think how much I owe, but I suspect that excluding my car loan, I must owe something like 50 to 60k.

I earn 25k a year and I live at home with my Mum, so my only real outgoings are my car and all it's associated costs (which I can't do without), my phone, the home contents insurance, some housekeeping for Mum (which I need to start paying her again!), my Mobile (on a very good talkplan already), and then everyday living expenses.

Basically, I have been totally (and I mean TOTALLY) reckless with my spending in the past, mainly on consumer electricals, computers and the like, and in the olden days, designer clothes. It's all just starting to catch up with me now.

So, I've not gone over the edge yet, but I'm hanging on by the skin of my teeth.

I was going to start slinging my debt around different cards tomorrow, however I have been thinking very seriously about calling the two charities about doing me a "Get yourself sorted" plan. I thought that if I'd just transferred a load of debt from one card to another, then had someone call them to say I can't pay it all any more, that they might be a bit miffed that their now stuck with loads more debt that wasn't "theirs" to start with. You get my drift?

Anyway, tomorrow, I work out where I owe all my money to (because at the moment, I really don't know what is where) and then I can give one of these charridies a call to see if they can help me out.

I got myself into this mess, and I wish I alone could get myself out of it, but I think I've got to admit to myself that I need some professional help on this one.

So, that's my little intro. Sorry to spill my heart out to you guys and girls, but it's a great feeling to finally take my head out of the sand and admit to someone that I've got a pretty big problem (that until now no one knew about).

Hope you're all enjoying your Friday night? I'm just about to eat some lovelly home-made Tai Green Curry

southernscouser

F*$#! Just deleted my whole reply without posting! :mad: Apologies for the bad language!

Shinji, firstly wlecome to MSE. :hello:

Secondly :T for facing up to your problems. You have just had your "lightbulb" moment as it is affectionatley known on here!

When you have received all the facts and figures from your lenders have at look at the thread below then post back here with you SOA (state of affairs) and us MSE's can see how we can help you.

http://forums.moneysavingexpert.com/showthread.html?t=107280

Also take at look at this snowballing calculator. You tap in all your debts, APR's etc and how much you can afford to pay each month then it tells you in what order to pay off your debts, how much to pay each one each month and your debt free date.

http://www.whatsthecost.co.uk/snowball.aspx

Also when you phone up the credit card companies also ask them what your minimum payment details are. It will typically be between 2-3%.

If they try and offer you any balance transfer deals my advice would be to take a note of them then come back here and ask our opinions. We'll let you know what we think the best course is.

gizmoleeds

I'm afraid I have nothing constructive to say (better at techie queries).

But, anyway, welcome to MSE :wave: :wave: :wave: :wave:

(I always try to say hi to new members)

Shinji_2

Thanks!

I'll report back when I know what the damage is!

Stupid credit cards (lol).

I suppose I do have some nice stuff to show for it, but with the money I earn, I could have bought all this stuff with my switch card over time, instead of buying them with credit because I pay tonnes out each month to keep my credit cards paid!!

I now have less disposable income than when I was 18, and I get paid about 5 times more per month!!

Being in debt sucks.

I can't wait to be on the road to recovery!

southernscouser

Shinji wrote:

I suppose I do have some nice stuff to show for it, but with the money I earn, I could have bought all this stuff with my switch card over time, instead of buying them with credit because I pay tonnes out each month to keep my credit cards paid!!

Have you thought about selling some of the stuff on ebay? With Christmas coming up it's as good a time as any!

System

Hi Shinji - Welcome to MSE!

A bit gobsmacked to hear you never check your statements - but that will all change now!

Get all your information first and post it up here - if you've got credit cards running away at full rate APR's, you may be able to slash your interest repayments just by phoning them up and moaning you're paying too much interest and saying you've had a better offer elsewhere.

Make sure you mention exactly who the cards and loan are with - and who your savings and current a/c's are with - because the advice people give you may change depending on who you bank and owe money to.

And don't beat yourself up about the past, instead apply your energy to changing the future.

Look forward to your post

Dave

Shinji_2

southernscouser wrote:

Have you thought about selling some of the stuff on ebay? With Christmas coming up it's as good a time as any!

Hi!

There are a few things that I could let go of, but a lot of things I couldn't sell (unless it all went horribly wrong)...

I just don't think I'd get anywhere near what I paid for a lot of the bigger purchases, so I'd rather keep hold of them so that I don't have to buy them again in the future (stuff like TV, HiFi etc).

I think my PSP will have to go around Christmas time as I don't use it much any more (now that WAS an impulse buy if ever I've seen one!). I'm waiting until all the shops run out of stock LOL!

black-saturn

Hello and welcome. Youve come to the right place. Everyone here can give you all the advice you need to pay off your debts as quickly as possible. Also if you give us a list of all your incoming and outgoings when you have sorted them out we can give you some pointers there too. Good luck.

tattooed_lady

Hello and welcom to MSE shinji,

You've definately come to the right place for help, support and advice for your debt. Before you know it you'll be checking your online banking daily and you'll know what you've spent to the nearest penny. Good luck and keep posting.

Shinji_2

Ok then, here goes!!

I bank with First Direct.

I have £1500 Salary deposited in the account every month.

Here are my Debts in all their glory:

Card Type: Egg (Green)
Balance: £5,286.80
Credit Limit: £13,000.00
Minimum Payment: £107.89
APR: 15.9%
Offers Available: Aniversary Balance Transfer - Now until 1st April 2006 - 0% (No handling fee)

Card Type: MINT (Used to be RBS Advanta Classic)
Balance: £9,460.26
Credit Limit: £10,000.00
Minimum Payment: £212.00
APR: 17.9%
Offers Available: None (I want to get rid of the balance and cut this card up!!)

Card Type: Cahoot Standard
Balance: £0.00
Credit Limit: £7,000.00
Minimum Payment: £0.00
APR: 9.8%
Offers Available: None that I can see (No transfer fee)

Card Type: MBNA Europe - Platinum
Balance: £7,354.55
Credit Limit: £15,500.00
Minimum Payment: £100.22
APR: 16.9%
Offers Available: 5 Months 2.9% (2% or £50 Max Charge)

Card Type: Morgan Stanley Gold
Balance: £1,829.24
Credit Limit: £7,100.00
Minimum Payment: £37.00
APR: 15.9%
Offers Available: 5 Months 5.9% (2% max £35)

Card Type: First Direct Gold
Balance: £160.82
Credit Limit: £5,100.00
Minimum Payment: £5?? (not had it for a month yet - used for work travel, paid off in full as soon as expenses claim is fulfilled)
APR: 14.9%
Offers Available: I think it was 6 Months 4.9%?

Card Type: Barclaycard Standard
Balance: £882.98
Credit Limit: £2,450.00
Minimum Payment: £22.00
APR: 0% (I use the card to pay £1 each month which keeps the balance at 0% for its life, I just pay the hefty Barclaycard APR on the £12 per year)
Offers Available: None

Card Type: Lloyds TSB "Create"
Balance: £3,219.77
Credit Limit: £8,200.00
Minimum Payment: £64.00
APR: 12.2%
Offers Available: 6 Months 7.9% (No fee if I make a transfer this month)

Total Credit Card Debt: £28,194.42

Car Loan: Black Horse Finance
Monthly Payment: £248.06
IIRC it's 7.9%, £12k or £13k taken over 5 years. I've paid 16 Months off so far. I'd rather keep this seperate to everything else as I've got a bit of a system with regards to purchasing cars, that seems to work quite well... Buy on total finance, over 5 years, sell the car after 3 years, pay off finance, repeat!

Bank Loan: First Direct
Monthly Repayment (including the nasty payment protection): £350.96
Paid: 36 Payments
Total Length of Loan: 7 Years
Total Amount of Loan: £22760
Current Balance: £16846.08
Current Settlement Figure: £13415.88
APR: 7.9%

Total Debt excluding Car Loan: £41,610.30 :eek:

Total Monthly Debt-related outgoings including Car Loan: £1,147.13 :eek:

Someone tell me what I need to do!!!!! Please!

Shinji_2

I'm going to do a budget next, excluding all these debts, just to work out what I spend the rest of my money on.

I think if I limit myself to something like 20 quid a week spending money, then I might at least have something left in my bank at the end of each month!

Let's see!