Advice and help

hur575

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1790
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1790

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 15
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 50
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 60
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................................ 0
Entertainment........................... 18
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 143


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
halifax credit.................1700......40........19.95
barclaycard....................3000......70........23.9
vanquis credit card............200.......10........47.89
welcome loan...................2000......169.......58.51
personal loan halifax..........4600......127.......14.14
personal loan1.................5600......350.......0
graduate loan..................289.......180.......0
Professional loan..............12800.....245.......2.5
aqua credit card...............750.......22........35.9
citi credit card...............3500......103.......24.9
natwest credit card............300.......6.........21.6
Total unsecured debts..........34739.....1322......-


Monthly Budget Summary
Total monthly income.................... 1,790
Expenses (including HP & secured debts). 143
Available for debt repayments........... 1,647
Monthly UNsecured debt repayments....... 1,322
Amount left after debt repayments....... 325

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -34,739
Net Assets.............................. -34,739

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

Hi all, this is my mess, I have borrowed a lot of money to fund my PhD as it was self funded, now that my earning is modest I can’t even afford to rent. If you see my career development loan will finish next month, and i should have about £500 extra a month, I know I should pay the expensive debts first but I am thinking to pay off the debts with bigger payments every month. I do not pay for food or rent as I live with my sister who understands my situation, and allowed me to stay with her as long as I want to, obviously I would love to have my privacy, and give her some as well as they are family but I am determined to cut down those debts first.
Personal loan1 is fixed amount of £350/ month for another 16months. Welcome loan I took £2000 and paying every month, and the outstanding balance does not seem to go down, the loan is for 3 yrs and will finish next year August. My plan is to pay off welcome first then that exta payment to use for credit cards payment. I would love to get a 0% deal but i do not have clean credit file, nothing major but few missed payments in the past.

Any advice and suggestions I really will appreciate it

hur575

16 viewers and no advice! I knew I was beyond help

Kanichen

Well the bonus is you have a huge amount of money to throw at your debts every month, so with a bit of shuffling you should be able to get it down to a far more reasonable amount.

The 4 I've highlighted are small amounts, so as much as it may not be the most MSE way to get rid of your debts, I'd be tempted to clear them first - to boost your moral if nothing else. You say you have a £300 surplus every month. I'd use £200 this month from your clear your vanquis card with its evil APR. If you can cope with a tight month next month I'd clear your Natwest card too. With your graduate loan ending next month thats 3 debts you could clear completely by the end of next month! I'd then focus on the Aqua credit card - you could clear that in 2 months by paying £375 a month too it. Once thats done you've cleared off 4 of your debts and hopefully boosted your moral a bit. The next one to tackle is the welcome loan with its horrendous APR - with a £500 surplus you could clear that in 4 months.

By this point your credit rating may have improved and you may be able to convince some to give you a 0% card you could balance transfer onto?

Good luck!!

Unsecured Debts
Description....................Debt......Monthly.. .APR
halifax credit.................1700......40........19.95
barclaycard....................3000......70....... .23.9
vanquis credit card............200.......10........47.89
welcome loan...................2000......169.......58.51
personal loan halifax..........4600......127.......14.14
personal loan1.................5600......350.......0
graduate loan..................289.......180.......0
Professional loan..............12800.....245.......2.5
aqua credit card...............750.......22........35.9
citi credit card...............3500......103.......24.9
natwest credit card............300.......6.........21.6
Total unsecured debts..........34739.....1322......-

redpete

hur575 wrote: »

I know I should pay the expensive debts first but I am thinking to pay off the debts with bigger payments every month.

Why?

Welcome loan I took £2000 and paying every month, and the outstanding balance does not seem to go down, the loan is for 3 yrs and will finish next year August.

Is it one of those loans where the total amount of interest is added to the balance at the beginning?

The snowball calculator here http://www.whatsthecost.com/snowball.aspx will tell you how best to schedule payments. You will have to tell it which of the loans are flexible to allow you to overpay the minimum.

Tixy

Hi Hur

Well the good thing is I don't think I've ever seen anyone's SOA with such low outgoings! So as you say great to be able to start clearing the debts whilst you are in this position - its great you have family support.

Do you currently have the £325 spare each month? Have you been paying this against the debts (above the minimum payments?)

As you say usually the advice is to pay the highest interest rate first. You also need to consider whether the Welcome loan (or any loan has any early repayment penalty). Welcome is showing as the highest interest rate anyway so if no repayments might make sense to go for that. Alterantively you could clear the vanquis card in just one month and then that is one less creditor to worry about.

I would recommend you look at the snowball calculator on the same site you did your SOA - you can transfer the same info over I believe to save you having to enter it all again. Then play about with how it recommends you do it (how much total interest and when you debt free date would be) and how you plan to do it by getting rid of the largest payments first.

The key thing is to not run up anymore credit, which now you are earning presumably you won't need to. Do make sure you leave yourself enough to live on to pay for occasional costs (presents, clothes) so you don't need to borrow more.

You are probabky unlikely to get a 0% deal with that amount of income/debt (althoug I'm no expert) but if you haven't applied for any credit in the last 3-6months you could perhaps try just one application - either for 0% or perhaps a low life of balance transfer. If you get turned down don't keep applying as it makes your credit record look worse.

Hope this helps and good luck.

hur575

Thank you Kanichen for your advice, it makes perfect sense, I think you are right the more I finish the better for me.

hur575

Thank you all for your advice, I will try the calculator and let you know.
Tixy to answer your question, I was not paying those £300 as I was paying it towards rent, I was determined I can survive but, I admitted I needed help, I am lucky that I have supportive family but the last couple of months I have been very good, I do not spend on anything extra, for example it takes me 1hr by train to work but I have started taking the bus instead for 2hrs journey and £76 saving. No eating out etc
I am desperately looking for job but no luck, as that will be great help for me. I did not realise how bad the economy is effected until I started looking for part time jobs in supermarket or even fast food, I hide the fact I have a phd in my cv but still no luck.

fatpiggy

I don't think your problem is quite as bad as you think. Despite what you say about earning a modest amount, that is more than I earn every month and I've worked non-stop for 23 years and am well educated. My debt was relatively small and spread over 3 debtors, the largest being my overdraft. I did an upside down snowball by paying off my smallest debt (about £800 on a credit card) first. Psychologically I felt better and it gave me £70 per month to help with the next debt. Frees up about £50 per month as it is a bill that is still ongoing but is now not incurring interest and I can pay it off easily. Now I just have my overdraft left and that will be gone in about 3 months. In your case I would get rid of the Vanquis and Natwest cards. Voila, you have less debtors and feel more confident. Then select another to anhialate. I would also try for a 0% credit card and do a quick shift. Also, I've just moved to A&L which has earned me £150 for transferring and doing it via Quidco, plus an interest free overdraft for 12 months. The standard overdraft limit is £750 but I've asked them to consider £1500. That would pay off your Aqua card bill with its vast APR. Ping, another one gone. Success really does breed success and as soon as your head is up you can see beyond the clouds.

RAS

Can you pay extra on the welcome loan as that is a nightmare rate. It not, you need to hit vanquis then aqua.

hur575

Thank you all for your advice, I was very reluctant to put this thread, in a way I just thought no one could help me but myself, I know what I have to do and just do it. I don’t know what is it, maybe self pride!! As you can see I have been a member of this site for a long time, and thought I know it all.

I must say I am glad I did post this thread, as I can see a better picture now, and I have a PROBLEM now I am addicted to snowball, I did hear that site mentioned before but I never used it until yesterday, and I have been trying it all day yesterday!!