over £50K at 22

funkymonkey

ok so its not just me but OH as well. time to really do somthing about it now. my problem so far has been using this site to find ways to cut back and save and then spend the rest of the money on other things than debts.

anyways here are our SOA's if anyone has any ideas. dont want to go bankrupt or go down the IVA routes as i have spent it so want to pay it back as i feel i can. NOT that i am dissing anyone who does go down that route as i understand sometimes there are no other ways.

Joint Income £2200 pcm after tax

rent 575
council tax 85
water & sewage 20
electric 30
bt 20
mobiles 45
sky 9 (rang to cancel and got it half price for 6months)
pet insurance 6.50
car insurance 30
tv licence 11
broadband 18

Car finance £140
loans £320
Barclaycards £160
halifax one £35
sky cards 180

Total Outgoings are £1685
leaving £515

total debts are(rounded):

overdrafts 3500 2k at 0% 1.5K @14.9%
loans 20500 both at 7.9%
credit cards 21000 highest apr at mo is 6.9% as most on 0% or LOB with barclaycard
car and other HP 6500 9.9%

£51,500

i have stopped smoking but OH hasnt. i have a second job (BAR job) bringing in another £100 per month. im a nurse - OH workins in admin.

dont know where to start really. could always go on the game......... LOL

CLAPTON

well done for posting

first vital step is to understand where all your money is being spent so you can prioritise it and hence reduce the spending.

suggest you try keeping a spending diary so you can track everything you spend each month.
at the moment e.g. you have nothing in for food, petrol, other travel, going out, haircuts, lunch food/coffees etc etc.

in addition you need to consider all your yearly or one off spending (divide this by 12 to give a monthly figure) so what about car tax, MOT , servicing, RAC/AA? , do you spend on xmas, presents, holidays etc. cloths




can you increase your income, you have a second job , can your OH get a second job?

calleyw

You have started the ball rolling by asking for help here.

Looks like you have had a lightbulb moment but what about your OH. As it is going to be a long and lonely road that you are both travelling it together.

As has been said you have nothing for food etc. Clapton is right you both need to keep a spending diary to see where money goes.

I wish you all the best. But unless you have assets you might like to re-think about going bankrupt. It is not a cowards away out. And as long as you have learnt your lesson and pull in your spending it will work for you.


Yours


Calley

sanfrancisco

Sell the car, and get a sub £500 one.

Mrs_Sparkle

Well done for posting.

Do you have any clothes, handbags, books, CDs etc etc lying around that you could sell on eBay or Amazon? You could make a bit of extra money there. You really need to get your other half to give up smoking too- I imagine this will free up a substantial amount of extra cash each month.

Something which helps me is responding to the threads on here called "What have you spent today?"- this for me is a way of ensuring that I only spend on essentials as I would feel too silly admitting on here that I'd blown £20 in Accessorise or £5 on a magazine and bottled water in the station. I can spend money like water and this daily thread keeps me focused on my priorites- i.e. getting rid of my debt.

Well done for wanting to pay this off without resorting to bankruptcy by the way. While I do think bankruptcy is a valid option sometimes it shouldn't be taken lightly and you're doing the right thing by trying other routes. Good luck!

lynzpower

OK funkeymonekey
If you are determined to do this w/o bankrupcy, then lets have a look where there are cutbacks to be made. You do owe a lot the pair of you, so Im feeling an all or nothing approach is going to be the only approach for you. I shall be ruthless here :

Joint Income £2200 pcm after tax ( can you earn any more- change jobs to get more money? Or get OH in a bar as well, making money is the name of the game here)

rent 575 ( can you live somewhere cheaper? If not why not?)
council tax 85
water & sewage 20
electric 30 ( thats quite high. https://www.saveenergy.co.uk, dont leave lights on etc)
bt 20 ( whats this for? line rentals about 11- is the rest calls?)
mobiles 45 ( far too high. go to payg, and you should save at least 35 a month each)
sky 9 (rang to cancel and got it half price for 6months) ( cancel it entirely, this is 9 quid you cant afford)
pet insurance 6.50 ( be brutal, can you really afford pets?)
car insurance 30 ( can you really aford to run a car?Could you sell it and buyt a pushbike)
tv licence 11
broadband 18 ( too high, not long ago we all had dial up, I believe talk talk has a dial up plan for 3.99 at night, saving 14 a month)

Total Outgoings are £1685
leaving £515 ( so you can budget 150 for food, if not 100 and then you just have to buy petrol, adn of course budget for Xmas etc) but you COULD have at least another 300 per month to service your debtsa, without OH getting a second job.

I dont think its THAT bad, youhave to want to do it though. Sell anythig thats not nailed down and live from the cupbaords. Its possible, I would have thought x

Good luck x

david_hellier

It would seem from the figures that you have £207 each to spend each month. You need to immediately stop borrowing any more money.

Although you are payed monthly, you need to budget weekly. That means writing down an amount of £51.75 each per week in a seperate note book and recording every penny you spend, deducting as you go. Get into this habit for a few weeks then take a look at your other spending on the big items to see if you can get rid of any luxuries. Your loans seem fairly competitive.

If you want a spare copy of a little note book, drop me a mail and I'll send you one.

afro_2

Do you have anything to show for all of your debt, or was it all spent on socialising and living costs while in nurse training?

You could start selling off any unwanted DVDs/CDs/TVs etc to make a good start on that debt. You must have spent the money on something you can now sell!

In_Search_Of_Me

Hi & welcome! Doing a spending diary is a great way to see where every penny goes...I also include stuff I sell on ebay/amazon which is really encouraging as this month income is more than outgoings! M&S pet insurance is good & cheaper than petplan (not sure who you're with?) with better cover...good luck and be encouraged that you're on teh right route but you do need to address WHERE the money went to avoid the situation becoming unmanageable...