Advice on loan and credit card debt

reoranzor

Hello all.

I have a 3 year loan which I got out for my car when I bought it 2 years ago as well as around about £1500 of credit card debt.

Until now I have been been paying around £225 on the loan and £500 on the credit card for the last 15 months or so.

When I first started using 0% credit cards for spending I was pretty good in terms of budgeting and keeping on top but now I just use it for everying and I feel deep down that it is the first signs of it potentially spinning out of control as I saw it happen to my Mum - hence my posting here.

So my question is: what is the best way (if any) to deal with this?

I had the impression that it would be some sort of balance transfer to pay off the loan from the bank in one go and remain paying around £500 each month, but stop spending on it entirely. However I got confused when looking through the articles on this website. I know my little debt trouble is nothing compared to some out there, but hopefully with someones help I can nip this in the bud before it goes to far.

Thanks in advance.

- Jim

hettiecarro

Hi Jim and welcome.

Very quiet on here tonight - so you'll have to make do with me until the experts all surface later.
Go to the link below and complete an SOA (Statement of affairs) and let us have a look at it.

Wish I'd been sensible and asked for advice when my own debts were mounting.
Well done.
I'll subscribe to your thread and come back to you when you have completed SOA.

http://www.makesenseofcards.com/soacalc.html

reoranzor

Thanks for getting back to me, here is the SOA. Hopefully I did it right!

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 1000
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1000
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 224.9
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............................ 45
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 0
Petrol/diesel........................... 120
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
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........................... 80
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 469.9

Assets
Cash.................................... 120
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 4120

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 8000.....(224.9)....15.9
Total secured & HP debts...... 8000......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
M and S Credit card............1700......100.......0
none...........................0.........0.........0
none...........................0.........0.........0
Total unsecured debts..........1700......100.......-

Monthly Budget Summary
Total monthly income.................... 1,000
Expenses (including HP & secured debts). 469.9
Available for debt repayments........... 530.1
Monthly UNsecured debt repayments....... 100
Amount left after debt repayments....... 430.1
Personal Balance Sheet Summary
Total assets (things you own)........... 4,120
Total HP & Secured debt................. -8,000
Total Unsecured debt.................... -1,700
Net Assets.............................. -5,580