My SOA - Oh dear!

rachaelfleur

It's definately the payday loan that's killing me, need to get rid of that asap. I'm paying 525 to them every month cause I have to borrow 400 just to make ends meet (well almost). It's just one HP loan but they're divided into 2 as one was a top up but they should total £200.

rachaelfleur

So yesterday it was pay day so I paid £50 towards my rent arrears taking my outstanding balance down to £190 and I also contacted the council tax about making small payments of £20 a month (or more if I can spare some money) and they agreed so I'm feeling a bit better today.

RAS

Could you get a loan from your local credit union to cover the payday loan?

rachaelfleur

That's my next step. I sent an application to my local credit union on Monday so will hopefully hear something pretty soon. I have no option but to take the payday loan, so I applied again today because it was pay day yesterday and they took payment for my last one of £525 for a loan of £400. However in my bid to get rid of it I've only took £380 this time, which is a repayment of £475. I'll continue to reduce it until I can get a loan from my credit union. I have been told that I will probably have to save with them for a few months first before being accepted, although it does say on their website that I can apply for a loan immediately after receiving a membership. I've also found out today that my gas and electric supplier is not the cheapest so I will be changing supplier. Will call them when I get home after work today.

I feel like I'm really doing something to beat this mess I'm in and I'm so grateful for all your support and useful comments.

rachaelfleur

Good news, got an email from the credit union saying my application had been accepted and I should receive my welcome pack in the post this week, yipee!

RAS

OK so start to edit up your SOA.

I would suggest you go over to the Money Saving Old Style forum and see if you can do a store cupbaord challenge. That will dramatically reduce your food costs this month.

MrsPorridge

Hi Rachael - just wanted to say well done for the progress you have made so far and good luck on your journey. Keep reading this site for motivation, inspiration and tips.

TurnaroundSue

Hi - not sure if it has been mentioned already but don't forget to go throug
www.quidco.co.uk for any cashback if you are changing electricity/gas suppliers and also for your insurance when it is due up in March. We have had over £400 since last summer on purchasing our insurances/mobile phones etc through quidco.

theoretica

The most critical points seem to be:

Rent and council tax- make a plan and stick to it.
That payday loan which is wasting £125 a month, £1500 a year- can you really not get small loan over a longer period (or until your bonus comes if that is very likely) from anyone else- perhaps a graduate loan from one of the banks or from family?
The sofa -I believe if you do not pay these off totally and on time you will be hit with interest for the whole sum over the whole period- not good- however if you can survive two months until this is gone things should look up a bit! (The 180 or 250 from the sofa + the 125 interest on the payday loan would go a fair way to getting you breaking even monthly).

Unfortunately I don't think your HP debts are entered twice- the second time they are in brackets and the system hasn't added them in.

Do you own anything else you could sell on ebay?

roomontheend

you have done so well up until now. I have found that the best way to cut back is to look at each aspect of my spending then that money can be thrown at my debt. Make sure that you keep posting and this will keep your motivation up.