Newbie needs some hand holding

Foolish_spendthrift

Hello to everyone on here. After many months of lurking I have taken the plunge to sort out the mess I've got myself into. It's shaming. I have a good, well-paid job and should be having the time of my life; instead payday comes and it's all gone a few days later and I just hold my breath until the next one comes round.

The situation was far, far worse than this, as I was servicing a large loan, which I paid off last year, and have used the freed-up cash from that to make inroads into the Egg and Mint balances. But, I still have a HUGE amount of personal debt and I could really do with your help to help me get there in a structured way.

I know there are things on my SOA I can trim, first off being the satellite tv package, and perhaps the electricity (no gas where I live as it's miles from civilisation), and my mobile phone use is so limited it's not worth listing - about £10 every 6 months! I don't include anything for entertainment, as that's books, music and tv at home and the odd evening with friends. The holiday is paid for and will cost me nearly zilch when I'm there, except for my food, which I'll be cooking myself anyway, so the budget for that may only go up a bit for a couple of treats in the week.

On the cards, I ALWAYS pay off more than the minimum on each of them, even if only by a few pounds, but I'm confused about whether to hit the biggest balance first or highest rate of interest.

I haven't shared this with anyone, ever, as they would never believe such a together person like me could be in this mess, but I've been cheered by the sound advice that's been given to others and hope someone out there can give me another perspective.

Also, I've never joined any sort of board before and haven't a clue how to add things to the bottom of my messages, so all help gratefully received!

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 2375
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 40
Total monthly income.................... 2415
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 430
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 40
Gas..................................... 0
Oil..................................... 35
Water rates............................. 16
Telephone (land line)................... 13
Mobile phone............................ 0
TV Licence.............................. 12
Satellite/Cable TV...................... 20
Internet Services....................... 0
Groceries etc. ......................... 80
Clothing................................ 0
Petrol/diesel........................... 60
Road tax................................ 4.2
Car Insurance........................... 35
Car maintenance (including MOT)......... 15
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...................... 5
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 24
Entertainment........................... 0
Holiday................................. 50
Emergency fund.......................... 0
Total monthly expenses.................. 929.2

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 5000
Total Assets............................ 7500

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
HSBC...........................9805.29...245.......24.9
EGG............................5183.07...130.......26.9
MINT...........................5201.36...203.......17.47
CAPITALONE.....................855.47....73.18.....34.9
STORECARD......................2192.78...110.......16.9

bank_of_slate

Hi and welcome, it's great that the loan is finished, I would pay off the high interest APRs first. To help you work it out look at the snowball calculator on www.whatsthecost.co.uk
...Linda xx

milliemonster

Hi and welcome!!! things don't look that bad according to your SOA! I agree with linda, overpay your highest APR first BUT try to overpay each of your CC's each month anyway, even if its only by a few pounds, but throw the biggest OP at your highest APR debt (Cap one) as if you just make the min payments on everything else, they will start putting up the interest on those cards aswell

Poosmate

Hello and welcome. Congratulations on posting you SOA.

You do seem to have quite a lot of disposable income after living costs and debt payments - wish I was in your situation.

Personally I would hit the Capital One card the hardest as it's the lowest balance and the highest interest rate. Normally the rule of thumb when debt busting is to throw as much as possible at the highest interest rate debt but sometimes to pay off a smaller debt (even if it's got a lower interest rate) can be of benefit because it gives you a boost in that it's one less to worry about and frees up more cash to bash the next debt with.

Good luck

Poo

Edit: I did notice that luckily for you your lowest balance is your highest interest rate so "rule of thumb" applies here anyway.

Foolish_spendthrift

milliemonster wrote: »

Hi and welcome!!! things don't look that bad according to your SOA! I agree with linda, overpay your highest APR first BUT try to overpay each of your CC's each month anyway, even if its only by a few pounds, but throw the biggest OP at your highest APR debt (Cap one) as if you just make the min payments on everything else, they will start putting up the interest on those cards aswell

Thanks millimonster, I'm just about to look at the snowball calculator Linda suggested. If I can get the Capital One card paid off in the next couple of months I think I might have a fire ceremony and chuck it onto the flames.

Poosmate

To add a signature just click "User CP" in the green bar at the top of the forum thread lists. On the left hand side under "Settings & Options" click "Edit Signature and away you go!

Poo

Don't worry, there's loads of people on here to hold your hand!

Foolish_spendthrift

Thanks Poo. I only put what the minimum repayments are on my SOA, not what I do pay, but it's helpful to know I should be paying off that Capital One balance. I think those months of lurking have got me part way there - I have drastically reduced my grocery bill and don't go clothes shopping at all any more - but it's still such a lot of money to repay. I've had such a tough time lately it's only now I feel I can be positive about dealing with the mess.

Foolish_spendthrift

Thank you Linda.
I've just put in the figures and now have a plan! I sometimes get an annual bonus, which isn't guaranteed, and I don't think there will be one this year, but I know just what to do with it if there is one, even if it's tiny. According to the snowball, I could be out of debt by April 2011, which is fantastic and something I can aim for, as I really had no idea how long it might take. All I need now is a strong dose of discipline and willpower.

Poosmate

Hearing you loud and clear. You know what they say "A problem shared is a problem halved". If my debts would physically halve if I 'fessed up I'd have posted my SOA years ago! lol Unfortunately they don't, but at least talking about it helps unburden the worry and checking out other peoples situations is kind of theraputic too. Moral support helps a lot and you are certainly in the right place for that in abundance!

Good luck.

Poo

BeautyandtheBeast_3

Hi there - welcome!
just wanted to say this site has been great - i have learnt so much and already making some 'small' dents in my debt.

*holding your hand as i need supporting too!* xxx

Foolish_spendthrift

Thank you for the support, Beauty. I have just been into my online banking amending the payments due to go out at the end of the week, and it feels good to know I'm focusing on the 'right' ones.

Seeing your strikeouts as your debts are cleared or reduced is brill. I've just tried setting something similar up as my signature, so I'll see how it does for me. Wishing I'd come here sooner, now.