Where to start!!

Mike84_2

Hi,

I'm new to the moneysavingexpert forum so hello to everyone!!!

Bit about me. I'm 24, live with my mum so no mortgage or rent and got into a spending frenzy for the past two years and racked up a load of debt!! I'm paying quite a bit out each month but I just want to know which would be the best way to clear my debt off the quickest as I want to move out sometime next year but will have no chance if I've still got all this debt!

Debt is as follows:

Name Balance Monthly Payment
Natwest Loan 3518.57 319.87
AA loan 5527.83 167.51
CCard 1 905.77 21.00
CCard 2 746.75 16.00
CCard 3 790.00 18.00
Catalogue 1 610.30 31.00
Cat 2 200.00 20.00
Cat 3 169.00 10.00
O/Draft 1900.00
TOTAL DEBT 14368.22 603.38

One of my friends had a letter yesterday from her bank requesting her to repay her £1000 overdraft and I'm worried my bank may do the same now!!!

I'm paying the minimum repayments on the cards and cats because I can't afford to pay any more as I've got other things to pay out aswell.

Any advice off anyone would be great!

Thanks,

Mike

~Beanie~

Hi Mike

You need to start by posting a fill SOA (statement of affairs) then we can see exactly what you are paying out and what you have coming in. You can find the calculator here: http://www.makesenseofcards.com/soacalc.html

beanielou

Just wanted to say hi & welcome.
Pop up your SOA when u get a wee mo.

ioksane

well my situation was nowhere near as bad as that but i was in just over a thousand pounds worth of debt. To be honest mate you've just got to cut back and save. You need to cut out stupid spending and just save.

Why not hibernate for the winter and work from home lol!

RAS

Welcome

We need the APRS and limits on those cards and to know when the loans end as well as the SOA.

Mike84_2

Hi everyone,

Ok, below is my SOA.

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1668
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1668

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 60
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 18
Groceries etc. ......................... 50
Clothing................................ 50
Petrol/diesel........................... 100
Road tax................................ 0
Car Insurance........................... 98
Car maintenance (including MOT)......... 0
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)...... 0
Haircuts................................ 13
Entertainment........................... 100
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 789

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 3000

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Halifax Card...................780.......18........19.9
Mint...........................907.......21........20
Barclaycard....................746.......16........7.8
Oli............................169.19....10........26.4
Freemans.......................200.......5.........26.4
Littlewoods....................610.......30........39.7
AA loan........................5527.83...168.......11
Natwest Loan...................3518.57...320.......11
Total unsecured debts..........12458.59..588.......-

Monthly Budget Summary
Total monthly income.................... 1,668
Expenses (including secured debts)....... 789
Available for debt repayments........... 879
Monthly UNsecured debt repayments....... 588
Surplus(deficit if negative)............ 291

Personal Balance Sheet Summary
Total assets (things you own)........... 3,000
Total Secured debt...................... -0
Total Unsecured debt.................... -12,458.59
Net Assets.............................. -9,458.59

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

The credit limits are as follows:

Halifax - 800
Mint - 950
Barclaycard - 750

Oli - 350
Freemans - 1000
Littlewoods - 650

So I'm right at the end of most of my limits, not that I want to spend any more (the cards are already cut up!) so that's a start!!

Miss_Piggy_2

According to that, you have nearly £300 spare each month? You could be paying this off your cards etc. Or are you spending more on entertainment etc than you say? If so, you need to be cutting back on those areas.
If you want a place of your own you will need to cut these debts dramatically before you consider moving. Rent, council tax, water rates, electric etc all cost. NOW is the time to be ploughing every penny into those repayments. Go for the highest APR's first. Littlewoods 39% ! ARGH! In two months with some careful budgeting you could clear that one!
Anyway, am sure some other peeps will be along soon to offer help. Good luck and well done on tackling this now.

Miss P
xx

Mike84_2

Thanks Miss P,

I know, I really need to do something about those catalogues!

I probably do spend a bit more on entertainment really because all I have put down there is my gym membership and season ticket dd so if I go pub with my mates or something then there is a cost there!

Suppose it's stopping in for 6 months for me!!!

urg123

Hi Mike

Welcome to the Boards. It takes a lot to admit you are in this state so well done. Now you need to work your way out of this!

Firstly, I think there are some mixed messages - in your first message you said there was no rent or mortgage but you have listed £300 rent in your SOA. Is this correct? Do your parents know about your debt. Is there anyway that you can reduce your contribution for a little while to help you out? Same question about the groceries

Your mobile bill is really high - try to look for a better tarriff or go payg!

Can you reduce your clothing budget and you ents budget. These aren't the priority for the moment. Getting out of debt is.

The priority for paying off the debt is to throw money at the highest debts first. Get rid of the Littlewoods debt and then work on the others. Can you get a 0% card to transfer some of the debt - be careful with this though. You need to address the spending or you'll end up in a worse state!

My main bit of advice is look at making money -
What can you sell on Amazon or Ebay
Can you get a second job over the Christmas period?
Join a few challenges - No spend days; Grocery challenges; Ebay challenges; etc.

There's loads of information on this site - have a good hunt around for some ideas.

Good luck with the debt free journey.

URG

Numpty_Monkey

Mike84 wrote: »

Hi everyone,

Ok, below is my SOA.

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1668
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1668

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 60 Cut this down renegotiate contract for a beter tarrif or go payg
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 18
Groceries etc. ......................... 50
Clothing................................ 50cut this down for a while or better cut it out
Petrol/diesel........................... 100
Road tax................................ 0
Car Insurance........................... 98 not sure about car insurance but read martins article abouit insurence i'm sure you can get this down
Car maintenance (including MOT)......... 0
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)...... 0 no pressies?
Haircuts................................ 13
Entertainment........................... 100 Have a few more cheap nights in go to freinds you'll be surprised how good they can be
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 789

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 3000

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Halifax Card...................780.......18........19.9
Mint...........................907.......21........20
Barclaycard....................746.......16........7.8
Oli............................169.19....10........26.4
Freemans.......................200.......5.........26.4
Littlewoods....................610.......30........39.7
AA loan........................5527.83...168.......11
Natwest Loan...................3518.57...320.......11
Total unsecured debts..........12458.59..588.......-

Monthly Budget Summary
Total monthly income.................... 1,668
Expenses (including secured debts)....... 789
Available for debt repayments........... 879
Monthly UNsecured debt repayments....... 588
Surplus(deficit if negative)............ 291

Personal Balance Sheet Summary
Total assets (things you own)........... 3,000
Total Secured debt...................... -0
Total Unsecured debt.................... -12,458.59
Net Assets.............................. -9,458.59

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

The credit limits are as follows:

Halifax - 800
Mint - 950
Barclaycard - 750

Oli - 350
Freemans - 1000
Littlewoods - 650

So I'm right at the end of most of my limits, not that I want to spend any more (the cards are already cut up!) so that's a start!!

Well done:T

I've left a few notes in green

You already have a surplus of £291, bet you don't have that at tthe end of the month, keep a spending diary, list everything you buy, papers,magazines, snacks, that'll be where it goes

Have a look at the snowball calc
http://www.whatsthecost.com/snowball.aspx?country=uk
any extra money pay off the highest APR, when thats paid that money you were paying goes onto your next highest apr an so on

HTH

keep posting:T

Naomim

Mike84 wrote: »

Hi everyone,

Ok, below is my SOA.

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1668
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1668

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 60This could be cut back
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 18
Groceries etc. ......................... 50
Clothing................................ 50Don't buy anything for a few months except absolute essentials
Petrol/diesel........................... 100
Road tax................................ 0Should there be something here?
Car Insurance........................... 98
Car maintenance (including MOT)......... 0
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)...... 0You don't buy any presents? Put something by so you don't spend on cats/cards again
Haircuts................................ 13Spend the £13 and buy a pair of clippers.. do your own hair. One of the best mse things I have done for DH
Entertainment........................... 100Half this at least! As someone else said, hibernate for winter!
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 789

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 3000

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Halifax Card...................780.......18........19.9
Mint...........................907.......21........20
Barclaycard....................746.......16........7.8
Oli............................169.19....10........26.4
Freemans.......................200.......5.........26.4
Littlewoods....................610.......30........39.7
AA loan........................5527.83...168.......11
Natwest Loan...................3518.57...320.......11
Total unsecured debts..........12458.59..588.......-

Monthly Budget Summary
Total monthly income.................... 1,668
Expenses (including secured debts)....... 789
Available for debt repayments........... 879
Monthly UNsecured debt repayments....... 588
Surplus(deficit if negative)............ 291

Personal Balance Sheet Summary
Total assets (things you own)........... 3,000
Total Secured debt...................... -0
Total Unsecured debt.................... -12,458.59
Net Assets.............................. -9,458.59

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

The credit limits are as follows:

Halifax - 800
Mint - 950
Barclaycard - 750

Oli - 350
Freemans - 1000
Littlewoods - 650

So I'm right at the end of most of my limits, not that I want to spend any more (the cards are already cut up!) so that's a start!!Well done!

Hi, I hope this helps, just some ideas.

Naomi x