Advice Please

Stupidly_Skint

Hi,
I have been reading threads and thought it might be a good idea to join and see if anyone could offer me any advice.

I have completed my SOA, and am pretty ashamed after finally admitted all my debts, as this is the second time I have found myself in this situation.

I first found myself in debt after buying a car privately which turned out to be dangerous (bent chassis), which I then had to sell at a loss. I subsequently bought another car which, after a few years, needed mechanical repair work, thus being the start of my credit card debts.

My dad got a loan to consolidate these debts for me (he could get a cheaper rate) and I am now paying him £500 a month to pay this off as quickly as possible. I have 2 years left to pay. I realy dont want to have to ask him to help me out again.

I am training to be an accountant and hope to be qualified and earning a good wage in 3-4 years - I am just stuck as to what to do in the meantime. I have applied for a second job on evenings and weekends and am waiting to hear if I have been successful.

My current credit rating fluctuates between fair and good as some months I struggle to meet the minimum repayments on my credit cards, due to this, I have been unable to get an unsecured debt consolidation loan. I also have been refused for a balance transfer credit card.

I was referred to a Debt Management Company but asked for a few days to think about what to do - as I am not entirely sure what this service entails and how it will affect my future credit rating (I don't want to live with my parents for the rest of my life!)

After writing all of this down, it seems very trivial and I realise how stupid I have been when I was younger (too eager to use credit to buy clothes, go out with friends, go on holiday etc), but unfortuantely I cannot turn back the clock. Any advise anyone could offer would be greatly appreciated.

Thank you
Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget SummaryAmount(£)Total monthly income1,093Monthly expenses (incl. HP & secured loans)293Available for debt repayments800UNsecured debt repayments1,000Amount short for making debt repayments-200

Personal Balance Sheet SummaryAmount(£)Total Assets (things you own)4,600Total Secured & HP Debt-0Total Unsecured Debt-30,000Net Assets-25,400
Household Information

Number of adults in household3Number of children in household0Number of cars owned3
Income, Expense, Debt & Asset Details

IncomeAmount(£)Monthly income after tax1093Partners monthly income0Benefits0Other income0Total monthly income1093

ExpensesAmount(£)Mortgage0Secured/HP loan payments0Rent0Management charge (leasehold property)0Council tax0Electricity0Gas0Oil0Water Rates0Telephone (land line)0Mobile phone50TV Licence0Satellite/Cable TV0Internet services0Groceries etc.20Clothing20Petrol/diesel30Road tax11Car Insurance25Car maintenance (including MOT)10Car Parking14Other travel0Childcare/nursery80Other child related expenses0Medical (prescriptions, dentists, opticians etc.)13Pet Insurance/Vet bills0Buildings Insurance0Contents Insurance0Life Assurance0Other Insurance0Presents (birthday, christmas etc.)20Haircuts0Entertainment0Holiday0Emergency Fund0Total monthly expenses293

Secured & HP Debt DescriptionDebt(£)Monthly(£)APR(%)Mortgage0(0) 0Secured & HP Debt totals0- -

Unsecured Debt DescriptionDebt(£)Monthly(£)APR(%)Loan from Dad135005000Capital One C.C550016016.9Abbey C.C550016018.9Abbey Overdraft120009.9Next1001026.49GE Capital Store Card2001029.9Tesco C.C.20008016.9Citi C.C20008016.9Unsecured Debt totals300001000-

Asset DescriptionValue (£)Cash0House Value (Gross)0Shares and bonds100Car(s)4500Other assets (e.g. endowments, jewellery etc) 0Total Assets4600

Stupidly_Skint

Sorry, my SOA didn't post very clear, here it is again

Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget SummaryAmount(£)
Total monthly income.............................................1,093
Monthly expenses (incl. HP & secured loans).............293
Available for debt repayments....................................800
UNsecured debt repayments...................................1,000
Amount short for making debt repayments.................-200

Personal Balance Sheet SummaryAmount(£)
Total Assets (things you own).................................4,600
Total Secured & HP Debt-............................................0
Total Unsecured Debt..........................................-30,000
Net Assets........................................................-25,400

Household Information
Number of adults in household...................................3
Number of children in household................................0
Number of cars owned..............................................3

Income, Expense, Debt & Asset Details
IncomeAmount(£)
Monthly income after tax....................................1093
Partners monthly income.........................................0
Benefits.................................................................0
Other income.........................................................0
Total monthly income........................................1093

ExpensesAmount(£)
Mortgage.............................................................0
Secured/HP loan payments...................................0
Rent0
Management charge (leasehold property)...............0
Council tax..........................................................0
Electricity............................................................0
Gas....................................................................0
Oil......................................................................0
Water Rates........................................................0
Telephone (land line)............................................0
Mobile phone.....................................................50
TV Licence.........................................................0
Satellite/Cable TV...............................................0
Internet services..................................................0
Groceries etc....................................................20
Clothing............................................................20
Petrol/diesel......................................................30
Road tax...........................................................11
Car Insurance....................................................25
Car maintenance (including MOT).......................10
Car Parking......................................................14
Other travel.......................................................80
Childcare/nursery...............................................0
Other child related expenses...............................0
Medical (prescriptions, dentists, opticians etc.)...13
Pet Insurance/Vet bills........................................0
Buildings Insurance............................................0
Contents Insurance............................................0
Life Assurance...................................................0
Other Insurance.................................................0
Presents (birthday, christmas etc.)....................20
Haircuts............................................................0
Entertainment....................................................0.
Holiday..............................................................0
Emergency Fund................................................0
Total monthly expenses...................................293

Secured & HP Debt DescriptionDebt(£)Monthly(£)APR(%)
Mortgage0(0) ....................................................0
Secured & HP Debt totals..................................0

Unsecured Debt DescriptionDebt(£)...........Monthly(£)..............APR(%)
Loan from Dad......................13500.....................500.........................0
Capital One C.C.....................5500.....................160.....................16.9
Abbey C.C............................5500......................160.....................18.9
Abbey Overdraft....................1200..........................0........................9.9
Next......................................100........................10......................26.49
GE Capital Store Card.............200.......................10........................29.9
Tesco C.C...........................2000........................80........................16.9
Citi C.C..............................2000.........................80.........................16.9
Unsecured Debt totals........30000.......................1000-

Asset DescriptionValue (£)
Cash....................................................................0
House Value (Gross).............................................0
Shares and bonds..............................................100
Car(s)..............................................................4500
Other assets (e.g. endowments, jewellery etc) ........0
Total Assets....................................................4600

talana

Lets make it readable first, the formatting seems to have gone haywire.
Have I got it right below?

Edit - you beat me to it anyway.
I'll take a look

Stupidly_Skint

Yes that's all correct. I didn't realise how bad it was until it was all written down.

talana

I know you want to pay off your Dad asap, but can you not reduce your repayments to him to something like £400 a month instead?
You'd do well to put £100 a month into quickly wiping the Next and Store Card.

Stupidly_Skint

I am not actually paying him back, but paying the loan he took out, he is more like the middle man, as the loan is just in his name.

I know this is my biggest out-going but I would really like to try and tackle my other debt problems first if possible.

Does anyone have any information about the Debt Management Plans? Are they a good idea and how do they work?

robsmum_2

Hi, I assume from your SOA that you are living with your parents and not paying them anything for your keep?

What is the £80 other travel expenses? As you're paying for car costs etc could you not drive and save some of this.

Can't offer much help but wanted to at least say you have taken a step in the right direction, more advice will be along soon I'm sure. Good Luck.

talana

Stupidly_Skint wrote: »

I am not actually paying him back, but paying the loan he took out, he is more like the middle man, as the loan is just in his name.

Why do you have the loan as 0% apr then? That's what's confusing me.

I know this is my biggest out-going but I would really like to try and tackle my other debt problems first if possible.

I'd agree with that, hence my suggestion before.

Stupidly_Skint

I put 0% apr as I do not know what the percentage is.

I am living at home with my parents, they offered for me not to pay anything for my keep as they preferred that I got out of debt first. They have been really understanding.

My other travel costs of £80, is for a monthly train pass to work, I could drive the distance but after paying for petrol and parking I would end up spending roughly the same with double the travel time. I also need to use my car as I live over 3 miles away from the train station and need to use it on weekends also.

I am going to contact my mobile phone company and reduce my live rental.

I am just stuck for other money saving ideas.

I just really hope I am sucessful in getting the second job so that I may have a chance at making ends meet.

talana

Stupidly_Skint wrote: »

I put 0% apr as I do not know what the percentage is.

The first thing you need to do then is find out that apr. You need that information to form a plan to tackle the debt.
And is £500 genuinely the monthly minimum? Surely not. You're presumably paying over and above at the moment. As I said earlier, some of that would better be diverted to wiping the other debt.

Stupidly_Skint

The agreement with my dad was to borrow £18000 over a 3 year period, which is £500 a month. As I have just under 2 years left to pay this, and it does not appear on my credit rating. I would really like to try and tackle the credit cards first.
I feel I am stuck in a vicious circle as I am currently paying £460 a month on credit cards, which then leaves me with no money to live off and I need to re-sue the credit card.
My preferred option would be to improve my credit rating (if thats possible) over the next few months so that I can get a consolidation loan to reduce my monthly outgoing.