I have a LOT of debt...Any Idea's?

Brindle_2

Hi..

Firt of all I would like to say THANKYOU ML, this site has helped me alot into really realising what a P%$T with money I have been.

I am 26 and since I was 18, I have been spending, spending and then some.

I discovered this site last year and it has helped me to realise how bad I have been and how much debt I am in. At the moment I can't see a date as to when I will be debt free.

All my income and expediture is below.

Income:

Wages: £800pm
Lodger: £280pm
Girlfriend: £120pm (lives with me)

Expediture:

Personal Loan: £110pm (£4600 remaining 4years 10m) (8.9%?)
Personal Loan: £140pm (£19000 remaining 19years) (6.9%?)
Mortgage: £270pm (£39000 remaining 20years) (Propety worth £125,000)
Home Bills: £105pm


Credit Cards:
Card 1: £50 remaining (17.9%) (£500 limit) (emergency card)
Card 2: £2300 remaining (4.9%) (£2600 limit) (4.9 for life of balance)
Card 3: £2900 remaining (17.9) (£4600 limit)


Before I got 4.9% credit card I could not get any other cards so was in a bind but after getting that it helps me reduce the amount of interst I was paying on the £4600 limit card.

The two loans came about to pay off previous Credit card debts but as an idiot I spent on the cards again.

I remortagaged 3 months ago to a 2 year fixed and reduced my mortage by 2 years.

My think my credit rating is not that good, but am not sure.


If anybody has any ideas on how I may be able to sort myself out, I would be very much appreciated.

Kevicho

If you list all your other expenses, ie food, tax, petrol, beer and so on we can find out how much money you have spare to pay debts and any ways to cut the bills (i guess bills are shared 3 ways at £105)

Also what are the minimum payments on the cards each month?

Post all this and ill try work something out in a spreadsheet for ya

ms_london

Income: £1,200pm

Expediture:

Mortgage: £270pm
Home Bills: £105pm

Personal Loan: £110pm £4600 8.9%
Personal Loan: £140pm £19000 6.9%?
Card 1: £50 remaining (17.9%) (£500 limit) (emergency card)
Card 2: £2300 remaining (4.9%) (£2600 limit) (4.9 for life of balance)
Card 3: £2900 17.9 £4600 limit

* Your girlfriend pays £120 a month. What does this go towards? Could she not pay half of your mortgage & bills?

* Your £105pm for home bills. Does this include everything? TV/Water/Gas/Electric/Sky/Broadband (if necessary).

*I suggest that you clear the £50 on your "emergency card" and cancel the card - at 17.9% it definately needs to be an emergency to put anything on it and not pay the full balance each month. Although if you can be sure you'll do this, perhaps hang onto it.

*Could you increase your balance on CC2 and transfer your balance from CC3 onto it? Its worth asking, they might suprise you and say yes!!

*If not, then you need to concentrate on clearing CC3 since this has the highest APR.

*After having paid your mortgage, house bills, Loan 1 & Loan 2 you should be left with £575 a month. Firstly, I see no budget for food/travel (do you drive? If so, petrol/car tax/car insurance/MOT needs to be on your budget. If not, how much do you spend travelling to/from work). How about a mobile phone? Gym membership? Anything else that comes out of your account each month needs to be included, so that you can see what you have left.

*What are the minimum repayments on CC2 & CC3? Assuming after food etc, you are left with say £375 a month to repay your debts, I would clear the £50 from CC1, and repay the majority of this £375 towards CC3 and just pay CC2 the minimum repayment. If you pay £275 a month to CC3 then you will be able to clear the balance in 10 months, then you can pay this money as well as the £100 a month you are already paying, to repay CC2. Repaying £375 a month will take 6 months to clear, but probably less than that because you have been paying £100 a month in the meantime..

*So in 16 months you will have cleared all 3 CC's, then it will be time to tackle the loans.

Sorry if this sounds a bit confusing - I know what I mean :0)

Basically, you just need to make sure that EVERYTHING is budgeted for and nothing left out, and make sure you stick to the budget. It is hard, but it can be done!!

Let us know how you get on.

Brindle_2

Thanks for the advice...

Home bills are:

Water: £31pm
Gas: £12.50pm
Car Insurance: £45pm
Sky: £25pm

Telephone bill is not included which is usually £40pm (£25 broad band & £10.50 line rental, rest calls).

I use £10pw of petrol...
Ciggarrettes: £30pm (grlfr chinese and gets them imported (shss).
Going out: £10pw (do not drink) but play pool twice a week (only expenditure I do as a treat).

Girlfriend pays all the food bills....

Thats it....

Thanks again

Brindle_2

Sorry Forgot....

Electricity is paid by lodger...

Conor_3

You can save £10 a month on broadband.

Stopping smoking is another £30. You can get free patches from your doctor.

Phone Sky up and tell them you're going to cancel because you're skint. They should offer 3 months half price. If not, cancel anyway. It's only repeats. Go freeview and use a DVD rental service.

pollyorange

Conor wrote:

You can save £10 a month on broadband.

Stopping smoking is another £30. You can get free patches from your doctor.

Phone Sky up and tell them you're going to cancel because you're skint. They should offer 3 months half price. If not, cancel anyway. It's only repeats. Go freeview and use a DVD rental service.

We cancelled sky last month amd dont miss it one bit.They kept me on the phone for 20 minutes trying to offer me half price for 3 months, and rang up again. Persistant buggers!

I would suggest cancelling sky if you are serious about your debts. You can always have it again when you have more money to spend. Also, what most people dont realise is that your sky box becomes in effect a "freesat/freeview" box and you can still get a couple of music channels, all the bbc and itv channels etc plus some others, all for FREE!

Also, if you must smoke, roll your own its cheaper. But giving up a million times better for you!!

I cut my Broadband down to 14.99pm using Virgin. NO 12 month contract either. I was on the 25.99pm package and apart from dl limits, the speed diff is negligable imo.

Good luck!