advice please

mrskpickles

I have various different debts totalling about £21k. They ar emade up or two car loans two credit cards two storecards a career development loan and a personal loan. I really would like to arrange my finances to make the most financial sense with re to paying interest reducing monthly payments. i do not want to use a debt management agency. I am meeting all of my payments but finding I run out of money quite soon after pay day and resort to the credit card. my credit score isn;t really bad but I think it may stop me getting loans due to my current commitments and past mistakes etc. What should I do?

Jvic28

Have you checked your credit report? How long ago were your "past mistakes"?

I think you need to post you SOA for some clarity and I'm sure you'll get loads of suggestions.

TurnaroundSue

mrskpickles wrote: »

I have various different debts totalling about £21k. They ar emade up or two car loans two credit cards two storecards a career development loan and a personal loan. I really would like to arrange my finances to make the most financial sense with re to paying interest reducing monthly payments. i do not want to use a debt management agency. I am meeting all of my payments but finding I run out of money quite soon after pay day and resort to the credit card. my credit score isn;t really bad but I think it may stop me getting loans due to my current commitments and past mistakes etc. What should I do?

Hi :hello: and welcome to the boards. You really don't want to be getting any more loans/credit. What would help is if you post your SOA (found at www.makesenseofcards.com) and let us all have a look to see how we can help you to save money each month. You say you can service the debts, but then run out of money not long after payday, which means you resorting to using credit cards, so obviously there is a problem there.

Like I say, post your SOA up here and let the brilliant people on this site help you out!

mrskpickles

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 1386
Benefits................................ 124
Other income............................ 0
Total monthly income.................... 2910

Monthly Expense Details
Mortgage................................ 664
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 175
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 84
Electricity............................. 38
Gas..................................... 65
Oil..................................... 0
Water rates............................. 16
Telephone (land line)................... 35
Mobile phone............................ 50
TV Licence.............................. 12
Satellite/Cable TV...................... 19
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 0
Petrol/diesel........................... 120
Road tax................................ 26
Car Insurance........................... 50
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 220
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 5
Buildings insurance..................... 25
Contents insurance...................... 25
Life assurance ......................... 30
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 0
Entertainment........................... 25
Holiday................................. 0
Emergency fund.......................... 0
national trust.......................... 5
Total monthly expenses.................. 1914


Assets
Cash.................................... 0
House value (Gross)..................... 96500
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 102500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 96500....(664)......0
Hire Purchase (HP) debt ...... 6000.....(175)......0
Total secured & HP debts...... 102500....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
marks and spencer..............1100......40........0
ikea...........................1100......40........0
capital one....................1300......60........0
career development lo..........4000......181.......0
Total unsecured debts..........7500......321.......-


Monthly Budget Summary
Total monthly income.................... 2,910
Expenses (including HP & secured debts). 1,914
Available for debt repayments........... 996
Monthly UNsecured debt repayments....... 321
Amount left after debt repayments....... 675

Personal Balance Sheet Summary
Total assets (things you own)........... 102,500
Total HP & Secured debt................. -102,500
Total Unsecured debt.................... -7,500
Net Assets.............................. -1,500

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

mrskpickles

i am sure this is wrong, I am sure i don;t have this much left each month...have i missed something, must check!

Tixy

Hi

As you say something looks wrong from the above. My advice would be to keep a spending diary and write down everything you spend in it for a few months. It will show you where the extra cash is going and may give you an incentive not to make impulse purchases. You mention 2 credit cards but have only listed 1 under unsecured debts?

In the meantime look through your statements (bank, credit and store cards)for the last month to see if you can see where else you are spending.
Try leaving your credit cards and store cards at home when you go out.

Finally whilst looking at your statements find out the apr on all your debts so you know which order to tackle them in. Well done for posting your SOA.

TurnaroundSue

mrskpickles wrote: »

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 1386
Benefits................................ 124
Other income............................ 0
Total monthly income.................... 2910

Monthly Expense Details
Mortgage................................ 664
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 175
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 84
Electricity............................. 38
Gas..................................... 65 This is high
Oil..................................... 0
Water rates............................. 16
Telephone (land line)................... 35 High also
Mobile phone............................ 50 Ditto
TV Licence.............................. 12
Satellite/Cable TV...................... 19
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 0
Petrol/diesel........................... 120
Road tax................................ 26
Car Insurance........................... 50
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 220
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 5
Buildings insurance..................... 25 Ditto
Contents insurance...................... 25 Ditto
Life assurance ......................... 30
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 0
Entertainment........................... 25
Holiday................................. 0
Emergency fund.......................... 0
national trust.......................... 5
Total monthly expenses.................. 1914


Assets
Cash.................................... 0
House value (Gross)..................... 96500
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 102500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 96500....(664)......0
Hire Purchase (HP) debt ...... 6000.....(175)......0
Total secured & HP debts...... 102500....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
marks and spencer..............1100......40........0
ikea...........................1100......40........0
capital one....................1300......60........0
career development lo..........4000......181.......0
Total unsecured debts..........7500......321.......-


Monthly Budget Summary
Total monthly income.................... 2,910
Expenses (including HP & secured debts). 1,914
Available for debt repayments........... 996
Monthly UNsecured debt repayments....... 321
Amount left after debt repayments....... 675

Personal Balance Sheet Summary
Total assets (things you own)........... 102,500
Total HP & Secured debt................. -102,500
Total Unsecured debt.................... -7,500
Net Assets.............................. -1,500

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

Hi, there are a few things on here which could be reduced. Check your gas, buildings and contents insurance, remembering to go through a cashback site like www.quidco.co.uk.

I notice that your grocery spend is only £150. This is good for 3 of you, but maybe this is not a true reflection and maybe you are spending more than you think! You also have nothing for haircuts - does somebody do them for you free of charge?

I agree with Tixy - keep a spending diary. Also have you tried snowballing at www.whatsthecost.co.uk which will show whether you are paying off the debts in the correct order. It will also give you your debt free date which will help you focus on reducing the debt sooner rather than later.

Hopefully others will be along shortly to give advice on other ways you can shave your monthly spend.

ps have you thought of either going as PAYG or reducing your contracts as £50 pm on mobiles is really alot. I was paying £30 with Vodafone and threatened to leave, but as I had been a loyal customer for so long, they reduced my package to £12.50 pm and increased my minutes - worth checking this out!

RAS

mrskpickles wrote: »

i am sure this is wrong, I am sure i don;t have this much left each month...have i missed something, must check!

Start a spending diary - both of you - to spot the llatte habits that cost a few quid a week and a few hundred a year.

And get the old statement out and allocate all the spending for a few to each of the categories.

mrskpickles

hi there

thank you for your advice...

My sis is a hairdresser hence the 0 on cuts! I am very lucky!

Re gas and leccy, I have a debit balance, british gas mess up (long story) hence the big payments!

thank you again

xx

RAS

Hi

We need to know the Aprs for those debts as you need to pay the most expensive off first, unless you can pay a small debt and then get a balance transfer.

tealady

Hi Re Petrol. Have a look at https://www.petrolprices.com to make sure you are getting the cheapest local fuel. And if your journey is less than a mile then walk.
Also I would echo what turnaroundsue says about the snowballer, it will help you decide who to pay 1st.