Hi all - new poster, and i've decided to battle debt!

DJ82

Hi all,

I'm a long time occasional lurker who reads bits and peices on the forums once in a while. I've recently noticed that my debt has risen beyond my comfort zone and i've decided to do something about it now.

I'm currently looking at around £7000 debt which is a mix of one CC and one overdraft. I've been looking into a loan and have applied for a £5000 loan with Abbey and should hopefully hear from them soon. I wanted to move the £4k from my Egg as the 0% runs out next month but i've been turned down by Virgin so it looks like a loan is the only way to go.

I've looked into joining some of the challanges on here but the all appear TOO hard for me. I can see people paying of up to £20K per year but i don't think i could get anywhere near that.....my disposable monthly income is around £150 and my bills have now been cut to the bare minimum.

What I would like to know is how you guys make that extra cash to pay off these debts....i'm a debt free wannabe who doesn't want to be paying this off for more than 2 years - but i honestly can't see how i could speed up the process. I'm a bit lost and depressed to be honest - it's hit me all at once that i'm SO far in debt.

I've listed a few bits and peices on amazon, but thats pretty much all i have to sell. I can't cut my bills anymore so i'm looking for some ways of raising some money.

Help!

Thanks all

Horace

Hi and welcome

One piece of advice is don't consolidate your debts by taking out loans. Post your SOA (Statement of Affairs) so that the good folks can see your incomings and outgoings to see what can be trimmed back. https://www.makesenseofcards.com/soacalc.html (there is a button on there for MSE which allows you to copy and paste it here).

Most folks keep a spending diary noting down every thing that is spent e.g. flowers, coffees, magazines, newspapers, lunches out (they all add up). We also try and have No Spend Days and these are days when we don't spend any money thus saving us money. If you look on the Make £10 a Day Challenge and look at the first thread in particular this gives you tips on how to make the 'free' money.

I am sure that other folks will be here soon to give you advice. £7000 is not an insurmountable amount of debt, I was in that situation before Christmas and managed to clear everything because I had received an inheritance which I put towards my debts leaving me clear so that any money I have can be saved or spent on sensible things.

TurnaroundSue

Hi and welcome. You are definitely in the right place where you will receive lots of help, advice and support. Firstly though you need to post your SOA which can be found on www.makesenseofcards.com and use the calculator there. List all your outgoings and incomings and post on here (remembering to format it to MSE) and then we will be able to see where you can start saving money.

Consolidating the debt is not the answer. What you need to do is change your way of spending and how you look at money. Consolidating only adds to your problems and you will find that unless you actually change your spending habits, before too long, more debt will appear.

Start a spending diary and write everything down and I mean everything. From that bar of chocolate, to the cup of coffee to the new top. That way you can see where your money goes and really helps you to focus on what your needs are, rather than your wants.

Good luck and well done for posting - you have taken the first step in recognising your debt and how you need to change things for a brighter future.

ps = sorry posted that same time as Horace!!

Fire_Fox

Just wanted to welcome you to this wonderful place, and echo others advice to post up a Statement of Affairs. Be sure to add in EVERYTHING, if it's yearly cost just divide the total by 12.

gratefulforhelp_2

Huge good luck

DJ82

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1100
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1100

Monthly Expense Details
Mortgage................................ 400
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 30
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 60
Electricity............................. 15
Gas..................................... 15
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 4
Mobile phone............................ 30
TV Licence.............................. 10
Satellite/Cable TV...................... 26
Internet Services....................... 0
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 100
Road tax................................ 12
Car Insurance........................... 65
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..................... 25
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 902


Assets
Cash.................................... 0
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 3500
Other assets............................ 0
Total Assets............................ 123500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 98000....(400)......5.7
Hire Purchase (HP) debt ...... 60.......(30).......0
Total secured & HP debts...... 98060.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................3920......100.......0
Overdraft......................3000......0.........0
Total unsecured debts..........6920......100.......-


Monthly Budget Summary
Total monthly income.................... 1,100
Expenses (including HP & secured debts). 902
Available for debt repayments........... 198
Monthly UNsecured debt repayments....... 100
Amount left after debt repayments....... 98

Personal Balance Sheet Summary
Total assets (things you own)........... 123,500
Total HP & Secured debt................. -98,060
Total Unsecured debt.................... -6,920
Net Assets.............................. 18,580

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

TurnaroundSue

DJ82 wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1100
Partners monthly income after tax....... 0 Does OH not work
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1100

Monthly Expense Details
Mortgage................................ 400
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 30
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 60
Electricity............................. 15
Gas..................................... 15
Oil..................................... 0
Water rates............................. 0 Do you not pay for water?
Telephone (land line)................... 4
Mobile phone............................ 30 Could get this reduced or move to PAYG
TV Licence.............................. 10 Nearer £12, but all adds up!
Satellite/Cable TV...................... 26
Internet Services....................... 0
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 100
Road tax................................ 12
Car Insurance........................... 65
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..................... 25
Contents insurance...................... 0 You really need CI
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 Need to include
Haircuts................................ 0 Ditto
Entertainment........................... 0 Ditto
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 902


Assets
Cash.................................... 0
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 3500
Other assets............................ 0
Total Assets............................ 123500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 98000....(400)......5.7
Hire Purchase (HP) debt ...... 60.......(30).......0 2 months left?
Total secured & HP debts...... 98060.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................3920......100.......0 Is it 0%?
Overdraft......................3000......0.........0 Ditto
Total unsecured debts..........6920......100.......-


Monthly Budget Summary
Total monthly income.................... 1,100
Expenses (including HP & secured debts). 902
Available for debt repayments........... 198
Monthly UNsecured debt repayments....... 100
Amount left after debt repayments....... 98

Personal Balance Sheet Summary
Total assets (things you own)........... 123,500
Total HP & Secured debt................. -98,060
Total Unsecured debt.................... -6,920
Net Assets.............................. 18,580

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

Just a few observations above, but on the whole your expenditure looks pretty good. If you only have 2 months left on hp agreeement then that will help to go towards either cc or o/d - depends on whether they are both at 0% or not, if they are then try and pay off the one that could inflict interest charges first. Try snowballing - not sure of site (think its called www.whatsthecost.com) but if not someone more knowledgeable than myself will be along shortly to point you in the right direction!!

Do you really need a car or could you sell this one and realise the equity and buy a little banger for the time being as that would nearly clear one of your debts?

Not much more I can add as you have pretty much cut back as it is - but good luck and well done for posting.

DJ82

0% at moment on EGG untill end of March

Not sure what i pay on overdraft, will try to find out....

yes 2 months hire purchase left