Bumpy ride expected

niges6

[FONT=&quot]Posting my 1st post means it’s gone pear shaped at least that's how it feels anyway. I've read southernscouse's intro which has been very helpful. [/FONT]

[FONT=&quot]Basically I've got to the point where I couldn't pay my share of the bills which is of course unacceptable and blatantly wrong. My partner thinks that it is time for me to tell my creditors that I can no longer pay them and give them a token payment each month. This scares the hell out of me; I don't understand the consequence of this action. Reading the excellent info on MSE it seems, the best way would be to snowball but it looks tight. [/FONT]

[FONT=&quot]My main concern with the token payments is firstly how long it would take to clear these debts in this way (not that they are being cleared now! far from it) and secondly the long term affect. [/FONT]



[FONT=&quot]Having been burnt before my fianc!e does not want the burden of taking any of this debt on, and I, knowing what she went through can't put her through that, ITS MY DEBT ANYWAY![/FONT]

[FONT=&quot] In a long winded way my question is about the consequence of token payments.is it a good road to take or should i use the snowball method.[/FONT]



[FONT=&quot] I know it’s going to be a bumpy ride but it’s a ride I must take. Hold tight here I go. [/FONT]



[FONT=&quot]SOA[/FONT]



[FONT=&quot]Income [/FONT]–[FONT=&quot] £1711 per month[/FONT]

[FONT=&quot]Extra income £100 Per month[/FONT]

[FONT=&quot]Outgoings[/FONT]

[FONT=&quot]These are a 3rd of all bills [/FONT]



[FONT=&quot]Rent £254.67[/FONT]

[FONT=&quot]Water £5.33[/FONT]

[FONT=&quot]Gas £13.67[/FONT]

[FONT=&quot]Elec £17.33[/FONT]

[FONT=&quot]Council Tax £57.00[/FONT]

[FONT=&quot]Landline £8.33[/FONT]

[FONT=&quot]BT Vision £4.33[/FONT]

[FONT=&quot]House Ins £11.00[/FONT]

[FONT=&quot]Food £133.00[/FONT]

[FONT=&quot]Total £504.66[/FONT]





[FONT=&quot]Other Outgoings[/FONT]



[FONT=&quot]Maintenance £155[/FONT]

[FONT=&quot]Mobile £45.00[/FONT]

[FONT=&quot]Petrol £280[/FONT]

[FONT=&quot]Bike Ins £32[/FONT]

[FONT=&quot]Spending £200[/FONT]

[FONT=&quot]Bike Tax £5.5[/FONT]

[FONT=&quot]Total £717.50[/FONT]



[FONT=&quot]This has a combined total of £1222.16[/FONT]



[FONT=&quot]This leaves me £588.84 to pay off my debt[/FONT]







[FONT=&quot]Debt[/FONT]





[FONT=&quot]Debt Outstanding APR Min payment or % Limit[/FONT]

[FONT=&quot]Personal loan £7232 11.04 % £214.11 (fixed) [/FONT]

[FONT=&quot]RBS £4038.14 13.1% 2.25% £4400[/FONT]

[FONT=&quot]Egg £1274.43 0% 2.25% £1250[/FONT]
[FONT=&quot] (0% to end soon I have asked them to advise me on when this is and what the new APR will be. Not sure if this was a good idea but I wanted to know)[/FONT]

[FONT=&quot]Barclaycard £1985.61 22.9% 2.25% £2000[/FONT]

[FONT=&quot]Cap 1 £2938.36 20.12% 3% £3000[/FONT]





[FONT=&quot]Total Debt £17468.54[/FONT]



[FONT=&quot]According to snowball calc if I allow £500 per month I could be debt free by March 2013. [/FONT]

[FONT=&quot] Allowing me an extra £88 emergency money [/FONT]

[FONT=&quot]Am on the right tracks??????? I sure hope so.[/FONT]

[FONT=&quot]Shall I put an extra hole or 2 into my belt???? [/FONT]


Does the snowball calc allow for the fact that I’m up to my limits on my cards? Didn’t look like it did to me but all this info is making my head spin a little.

sorry the layout of credit cards info isn't very good. i treid to change if but it hasn't worked.
hope you can understand it all otherwise any tips to make it easier to post would be welcome

whatatwit

Hi Nige & welcome.

How much are your minimum payments on your cards?

Also, your spending money of £200 is quite generous.

Try keeping a spending diary to see where that money goes, as well as the £88 that is spare.
Your creditors are unlikely to accept token payments without a full SOA and yours looks as though you can afford to pay the debts.

Start by throwing the extra at the highest APR%.

Edited.....snowball all the way

Keep us updated and I'm sure there will be loads more help to follow.

slig

niges6 wrote: »

[FONT=&quot]Shall I put an extra hole or 2 into my belt???? [/FONT]

Always . The more savings you can make, the quicker you'll be debt free. Eg, if you can find a way to not use that £200 'spending money' each month it will make a huge dent in your debt. You might find that you need some of of it for haircuts, clothes, presents, etc, but the more you can use for repayments the better.

Try putting your SOA into this calculator and paste it on here. It makes it nice and easy to use, and will make sure you don't forget everything
http://www.makesenseofcards.com/soacalc.html.

I definitely don't think you need to make token payments at this stage, but post your SOA using the above link and it'll give you a clearer view.

niges6

thanks people, its reassuring to know people are out there.i'm feeling much better about it already:j
i started my spending diary yesterday and i will add my SOA via link


i've never felt so determined to sort my finances out. and its all because of the support that i could see in these forums well done MSE and thanks again

Tixy

Hi

If you have a surplus after minimum payments to your debts then you don't need to go down the token payment route. Pay the minimum on all debts and the surplus to the debt with the highest interest rate.

Token payments are for if you show a defiect after minimum repayments and can (depending on the creditors involved) have an effect on your credit rating, they can place defaults on the account and sell the debts to DCAs for example)- this can make it hard to get credit in the future or get good rates for balance transfers etc.

niges6

having trouble loading SOA from makesenseofmoney forum says i can't post links but i have taken the link out and it still won't let me any ideas??

slig

Click calculate, then 'format results for MSE', then highlight and paste the text. I think - I haven't done it myself for a while.

Fire_Fox

Gas and electric are a bit high if this is a third of the total - have you tried switching supplier/ tariff? Also cutting down on usage - we pay £34 a month divided between two all in. Also water is a bit high - are you metered? We pay £20 a quarter between two. If it's a house with a soakaway for surface water drainage you can get a discount.

Mobile is huge - either cancel the contract or reduce your tariff substantially. I pay £12 a month with Orange through hard bargaining. House insurance is massive if that's multiplied by three - have you used a comparison site? I'd expect £10 or £15 a month split three ways. For both of these look at using a cashback site if you need to switch provider.

Food you should be able to get below £100 including lunches for work - read the Old Style board. Spending money of £200 - what is this for? If you can't afford to pay your share of the bills you can't afford this level of social activity.

Lastly ... cut your cards up now! You must not be tempted to use them once you are no longer at the limits.

niges6

Thanks fire fox, points taken.
The problem has been that I’ve never known where the money goes. Only 2 days into my diary and it’s already been a great help to see what I’m spending. It’s making me think before I put my hand into my pocket.

Unfortunately it’s never really been social or clothing or such. It things like school trips and days out with the children, or pots of paint etc. I now need to know when I can or rather cannot afford these.
I’ve come into a new household and have let my partner deal with the bills in the way she always has. Wrong I know. I need to take much more of a joint responsibility in these matters get the comparisons you mention and make some changes.
Food gets stretched at weekends when the kids are here but maybe some frugal shopping needs to take place I will read the thread you suggest.
Card cutting ceremony is on Sunday over a bottle of cava some friends brought round a couple of weeks ago.:beer:

Thanks for your comments this has been a difficult step to take, although I realise it may not look desperate from the outside, here inside there has just been a spiral that I couldn't understand. Things are looking up. I don't think any of it is going to be easy but I sure feel a lot more positive.
:T

donny-gal

Any way you can cut your petrol usage?
DG

Fire_Fox

niges6 wrote: »

Thanks fire fox, points taken.
The problem has been that I’ve never known where the money goes. Only 2 days into my diary and it’s already been a great help to see what I’m spending. It’s making me think before I put my hand into my pocket.

Unfortunately it’s never really been social or clothing or such. It things like school trips and days out with the children, or pots of paint etc. I now need to know when I can or rather cannot afford these.
I’ve come into a new household and have let my partner deal with the bills in the way she always has. Wrong I know. I need to take much more of a joint responsibility in these matters get the comparisons you mention and make some changes.
Food gets stretched at weekends when the kids are here but maybe some frugal shopping needs to take place I will read the thread you suggest.
Card cutting ceremony is on Sunday over a bottle of cava some friends brought round a couple of weeks ago.:beer:

Thanks for your comments this has been a difficult step to take, although I realise it may not look desperate from the outside, here inside there has just been a spiral that I couldn't understand. Things are looking up. I don't think any of it is going to be easy but I sure feel a lot more positive.
:T

Glad to hear you sounding just a little bit more positive: it's amazing what taking control can do for your state of mind. :beer:

Loads of ideas for cheap or free things to do with kids on these board - try the 'Relationships and Families' and 'Days Out and Entertainment' boards.Idea 1: cooking and baking with them. Should be able to pick up some kids cookery books in a charity bookshop for next to nothing, ingredients you can buy with your normal supermarket budget. You might even persuade them to try different fruits and veggies if they help prepare them.

Idea 2: if you think you will stay in your rented house for a while, turn a bit of garden over to the kids. Seeds are cheap (can be picked up for nothing, check the Freebies board) and you will surely know someone who can lend you a couple of trowels etc. Strawberries are ideal if you know someone who will start you off with a couple of runners. If the kids enjoy it and you are staying in the area, you might consider renting an allotment - cheap food, better health AND education! :T