Posted for Lovestoshop! SOA

black-saturn

Looks like this person is paying for the full package on Sky or a movie package. If you ring them on their freefone number 0800 731 6965 and say you want to reduce your package you can get it down as low as £18 per month.

If it's the movies you like I have been using ebay as a DVD rental company. Buy the DVD cheap off ebay, watch it a couple of times and then sell it back again for as around the same price as you bought it for. Then if theres one you want to keep you can. Same goes for other things like books, cds and computer games.

CLAPTON

snowballing is paying the minimun amount on each debt except the one with your highest APR ....that one you target and pay as much as possible, once you clear that, you target the next highest APR...by now you have bit more money as you have stopped paying one of the debts...hence snowballing

it does assume you have some spare cash to start the snowballing process.

lynzpower

black-saturn wrote:

Looks like this person is paying for the full package on Sky or a movie package. If you ring them on their freefone number 0800 731 6965 and say you want to reduce your package you can get it down as low as £18 per month.

If it's the movies you like I have been using ebay as a DVD rental company. Buy the DVD cheap off ebay, watch it a couple of times and then sell it back again for as around the same price as you bought it for. Then if theres one you want to keep you can. Same goes for other things like books, cds and computer games.

Or even better go through quidco and get a months free rental with blockbuster and get a £25 cash payout for the privilidge :beer:

Lovestoshop!

Thanks for all your replies.

I have recently changed my electric and gas supplier, and it's actually cheaper now than what it was.

Our phone bill should be less now, as I have a mobile phone which has free mins, so the phone bill due in next should be low. Plus we need the phone line for the internet, and I need internet for my college work.

I thought you had to have life ins if you owned your house?

Will have a look round for house insurance and going to have a look at my shopping spends.

Sky I'm tied in with until August, but could look at reducing package.

I just feel I can't see an end to ever paying them off............

ms_london

Lovestoshop! wrote:

I just feel I can't see an end to ever paying them off............

I do appreciate how you are feeling, but you have been given some good advice - and if you follow it you will be doing something constructive about your debts rather than just sitting there worrying about it. They are not going to go away on their own unfortunately!!

Youve got to bite the bullet & want to sort it out - otherwise the situation will just get worse & worse - and once the debt has taken off, it will snowball into more debt just as quick.!

Best of luck.

Lovestoshop!

Ms_London,

How did you get out of your debt?

ms_london

Lovestoshop! wrote:

Ms_London,

How did you get out of your debt?

Moved to London to earn a better wage & then took on a 2nd job - and worked my butt off!! No quick miracle I am afraid.

It can be done. Although I made the decision that I wanted to get out of debt asap so that I could go travelling - so I did sacrifice a lot and basically put my life on hold whilst doing it. You do need to strike a balance & you have to have some kind of a life in the meantime.

xx

black-saturn

Lovestoshop! wrote:

Ms_London,

How did you get out of your debt?

I got out of debt by not going out in the evenings (unless someone else was paying ), starting to take up passtimes that didnt cost anything or much like walking, cycling etc. I got rid of my car and that made such a huge difference. It amazing how easy it is to get used to not having one. All it takes is some forward planning for journeys. No one should say it cant be done as I'm in a long distance relationship and I manage to see my boyfriend every weekend.

I started cooking everything from scratch and when I do my shopping I have a list and stick to it. I make the most of BOGOF's and reduced items. I sell anything and everything I don't need anymore on ebay and also buy on ebay if it works out cheaper than the shops and I only buy what I really need.

Lovestoshop!

I have since been to the bank and have offered me a £25000 loan over 7 years to pay off my debts, is this a good idea? APR 7.3%.

Monthly Incomings:

My salary - £1,392
Partners salary - £1,050


Total - £2,442

Monthly Outgoings:

Mortgage/Rent - £655
Council Tax - £107
Gas - £29
Electric - £25.00
TV License - £10.99
Sky £35.99
Phone - £30
Mobile - £22
Food - £200
Car Insurance - £27.06
Petrol - £80
Gas Care - £15.49
Water – £20.00
Life Ins – £11.27
House Ins – £20.23
Total payments on debt - £737

Total: £2,681.03

OH MY GOD! How do I live each month!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Natwest CC – Balance £4,357 (limit £4,400) APR 16.9%

Natwest Loan – Balance £9,000 (roughly) APR 7.4% Length of term 60 months, 48 months to go

Overdraft - £950 (limit £950) APR 17.69%

Capital One CC – Balance £4,758 (Limit £4,800) APR 15.9%

Halifax CC – Balance £1,930 (Limit £1,950) APR 15.9%

Virgin CC – Balance £4,900 (Limit £4,900) APR 15.9%

Next Catalogue – Balance £384.25 APR 26%

Additions Catalgue – Balance £550.77 APR 29.8%

I also have an interest free loan which is paid off in September, £92 per month.

ms_london

ms_london wrote:

Monthly Incomings:
My salary - £1,392
Partners salary - £1,050
Total - £2,442

Monthly Outgoings:
Mortgage/Rent - £655
Council Tax - £107
Gas - £29
Electric - £25.00
TV License - £10.99
Car Insurance - £27.06
Petrol - £80
Gas Care - £15.49
Water – £20.00
Life Ins – £11.27
House Ins – £20.23
Phone - £30
Mobile - 22
Total - £1,053.04

Surplus - £1,388.96

Obviously with this "surplus" you will need to budget for your debt repayments, food and then work out if you want to or can afford to keep the Sky @ £35.99 each month - as to be honest, this is NOT an essential.

If you do budget for the current £200 per month for food (which is pretty high for just the 2 of you!), and after your (what I assume are minimum payments)£747 for debt repayments, this leaves you with £451.96 each month.

Before you looking at throwing part of this at your debt, you need to make sure that everything else is budgeted for. You have a car, so you need to put some money away each month to go towards the TAX/MOT/SERVICE, so work out the amount this costs annually & divide by 12 - this is what you need to be paying into a savings account each month. What about Christmas/Birthdays? And an emergency fund? Even if its £20 per month to start with - its something.

Once you have decided what else you need to budget for, then you can decide how much you have left over to throw at your debts.

I suggest that for the time being and the next few months you pay whatever you have spare to clear off your Next & Additions cards and then CLOSE them ((you can do it!!)) :0) At least that will be motivating as you will have then knocked 2 creditors off your list - whoo!!

I then suggest that you try and clear your overdraft. In order to do this you will need to call your bank and ask them to reduce your overdraft by £X each month (whichever amount you can afford).. Gradually it will get lower and lower, and soon you will be overdraft free. Another creditor off your list.

Next I would clear your Halifax CC and then either your Cap One CC, Natwest CC, or Virgin CC (it doesnt matter too much in which order as they have similiar balances and APR's)

Come Sep you will be £92 better off since you will have repaid your loan, so this will leave you with a further £92 a month to throw at your debts.

7. Natwest CC – Balance £4,357 (limit £4,400) APR 16.9%

3. Overdraft - £950 (limit £950) APR 17.69%

5. Capital One CC – Balance £4,758 (Limit £4,800) APR 15.9%

4. Halifax CC – Balance £1,930 (Limit £1,950) APR 15.9%

6. Virgin CC – Balance £4,900 (Limit £4,900) APR 15.9%

1. Next Catalogue – Balance £384.25 APR 26%

2. Additions Catalgue – Balance £550.77 APR 29.8%

Interest Free Loan - £92 per month - last payment Sep.

8. Natwest Loan – Balance £9,000 (roughly) APR 7.4% Length of term 60 months, 48 months to go

This is what is known as "snowballing" - and it soon builds momentum as one by one the creditors are knocked off the list. And if you get a bonus/payrise, this will be more money to throw at your debts!!

To be honest, it could take a few months to learn to live within your wages rather than on credit - but at least you are not spending money that isnt yours - thats the main thing & you have got to remember that!!

The best of luck, let us know how you get on.

xx

No - I dont think you do need a consolidation loan. Go to:

www.whatsthecost.com

to work out how much interest you'll be paying over that time.

Have you done anything since you last posted? Time is money at the end of the day!

xx