Hey I'm New.. And Yeah I Have Debt

matt4504

Hey Everyone,

I'm Matt and I have debts... i feel like i'm in a AA meeting lol.

Anyhoo heres how it stands...

Income

£350 Per Fortnight

Debt

£900 - Student Overdraft
£1000 - I owe the NHS *from Uni*
£400 - Credit Card
£20 - Store Card

Total - £2320

Outgoings From Account (per month)

£120 - NHS Debt
£100 - Credit Card Repayment
£80 - I seem to spend on rubbish :rolleyes:
£50 - Phone Bill (but i get a redemption in 6 months of about £180)
£20 - Pension

Total - £370

This is how it stands as today is my first day of trying to get rid of my debt. I figure i should be able to get out of my over draft in just over three months if all things go to plan. The overdraft is the main thing i want to get rid of. The NHS is taking care of itself every month and doesn't have intrest on it and i pay enough on the credit card. I just need to ya know.. stop using it...

Anyhoo... Hey

oops_a_daisy

Hi Matt and welcome to the DFW threads. Well done for posting on here and good luck in sorting out your finances. I noticed you have £80 pounds that you are not sure what it goes on - why not keep a spending diary and jot down everything that you spend to show exactly where the money goes.
Im sure you will learn loads on here on how to cut back and still manage to live so have a look around and dont hesitate to ask questions or even have a rant - we all need to sometimes

amosworks

Howdy Matt,

I bet your store card rate is pretty high, it's a stupid £20 so why not just get rid of that right away and then you're a debt down and it will feel like you've made progress. Unless you really need it, cut the damn thing up lol.

What's the interest on your other debts?

Cheers and welcome :cool:

Kevicho

matt4504 wrote:

Hey Everyone,

I'm Matt and I have debts... i feel like i'm in a AA meeting lol.

Anyhoo heres how it stands...

Income

£350 Per Fortnight

Well change this to 700 a month

Debt

£900 - Student Overdraft
£1000 - I owe the NHS *from Uni*
£400 - Credit Card
£20 - Store Card

As said before what are the interest rates on these?
What is the nhs net debt about?, is there a repayment plan you need to stick to?

Total - £2320

Outgoings From Account (per month)

£120 - NHS Debt
£100 - Credit Card Repayment
£80 - I seem to spend on rubbish :rolleyes:
£50 - Phone Bill (but i get a redemption in 6 months of about £180)
£20 - Pension

Total - £370

We have 330 then for debt repayment (450 including the credit card)

Is this is, no rent/board, also should there be a beer money section to this
Also do you have to be in this pension, saving is a good idea, but at the moment your main concern is paying off the debts, can this be suspended for a few months then catch up later?
As for the phone, i pay 20 a month as well but im not in any silly redemption scheme, can you switch to a cheaper contract?



This is how it stands as today is my first day of trying to get rid of my debt. I figure i should be able to get out of my over draft in just over three months if all things go to plan. The overdraft is the main thing i want to get rid of. The NHS is taking care of itself every month and doesn't have intrest on it and i pay enough on the credit card. I just need to ya know.. stop using it...

You are better off paying the highest interest rate card off first (which is prob the 20 quid store card) and allocating in order after that (prob the CC then the overdraft)

It may also be a good idea to look at a 0% interest credit card as the CC and overdraft add up to 1300 and you could pay off up to 300 a month, this would cut the interest you pay

Or

Whats the limit on the overdraft, any fees or interest, if not pay off the credit card with it then put 400 a month into that, then make overpayments to the nhs debt or put in a high interest savings account

Hope this helps

Just a quick note, 2000 is manageable, if you plan right you could pay this all off in around 6 months (roughly the same time i hgave been doing this), it goes quickly

amosworks

Kevicho wrote:

£350 Per Fortnight

Well change this to 700 a month

350*(52/2)/12=758.34

Kevicho

amosworks wrote:

350*(52/2)/12=758.34

I dont think that will work as he gets paid fortnightly, prob take a few months for the odd days to catch up (4 or 5 months)

amosworks

No matey seriously that's the correct way to calculate it, the only month that has exactly 2 fortnights in (days wise) is February, and even then it's only 3 out of every 4 years :rolleyes:



Those missing Pounds could make quite a difference over the course of a year. Sorry I don't mean to preach but it's just that rounding errors, especially when it comes to dates, can make you wonder where hundreds of Pounds can go over the course of a year and if you're paranoid like me then it can take some time to figure out that you never really had them in the first place etc. :rolleyes:

oops_a_daisy

yes but in practice he will be paid twice per month for most months and the on the odd occasion he will be paid 3 times. If you now what I mean

Kevicho

amosworks wrote:

Those missing Pounds could make quite a difference over the course of a year. Sorry I don't mean to preach but it's just that rounding errors, especially when it comes to dates, can make you wonder where hundreds of Pounds can go over the course of a year and if you're paranoid like me then it can take some time to figure out that you never really had them in the first place etc. :rolleyes:

I dont work in accounts (probably a good thing) and the maths is right, however my understanding would be it every two weeks he gets paid so it would be 14th, 28th one month, then say the 11th or 12th & 25/26th the next month and so on depending on how many days in the previous month.

Either way prob best to budget the lowest possible amount and then use the extra for debt repayment as psychologically if you dont think you have it then you wont miss it

tyllwyd

I'm guessing that you are living with family and not paying any rent or food bills, and that you don't have a car (although should you include travel costs?)

£80 on yourself isn't that much if it includes entertainment, clothes, any food you buy when you are out etc.

If what you have written down is realistic, then clearing the debt doesn't look too difficult - good luck!

amosworks

Kevicho wrote:

I dont work in accounts (probably a good thing) and the maths is right, however my understanding would be it every two weeks he gets paid so it would be 14th, 28th one month, then say the 11th or 12th & 25/26th the next month and so on depending on how many days in the previous month.

Yeah that's a good point, as it's no secret people live to their means so if you forget about some money then it's a bonus when you get it.

P.S., actually the math is wrong :mad: It ends /wk when it should be per fortnight :rolleyes: Ho hum