Newbie in debt stress

sara_501

Hi Everyone

Having read some of your posts I must say I really love this site, I used to read it for tips and advice on savings, but unfortunately due to some unforeseen events I am now a debt-free wannabe.

I was made redundant at the beginning of this year and during my time unemployed (was waiting for a benefits claim whilst trying to get a new job, unfortunately I wasn't elligible for anything) I was left with rent and council tax arrears. Then when I started work again I spent my savings on a car which I only insured TPFT which was written off during a car accident so I wasn't able to claim anything.

So now I am in arrears with both council tax and rent, have a £600 credit card balance which I've transferred until January, borrowed £600 from my dad to get a replacement car and due to cash flow issues during the month seem to always have £400 due on my "current" credit card.

I just don't seem to be able to make any headway no matter how frugel I am, each month I save money only to have some bill or another turn up and clean me out again, I really want to have the balance transfer card paid off by January.

I know I only have a small amount of debt, but it's really getting me down.

Sorry all....

Zabl

Hi Sara - 1st of all ((big hugs)) you've made the 1st step with this post

Sorry to hear about your unemployment/car probs etc, but at least you are now trying to get back on your feet.

I would suggest you post a full SOA so the good people on here can help make those little nips & tucks to shave your outgoings and help you get Debt Free.....

southernscouser

With regards to the insurance thats the whole idea of it!

You are currently short of cash yet you are going to need to find another £1,200! How can you be sure that your increase in premium will be more than £1,200 over the next however many years?

southernscouser

Have you already bought the new car as downgrading engine size will be cheaper on insurance, petrol and tax! :think:

Arch-Angel

sara_501 wrote:

Hi SS

thanks for your reply

know what you mean about the insurance thing, but I would've lost my no-claims and without receiving a penny for my own vehicle, this would've meant my premium doubling (i checked it out) and you have to declare this for 5 yrs which limits the number of insurers that will consider you, meaning less scope for lower premiums.

I'm a young driver with a 1.6i engine not a good combination with 0 no claims.

True, but if you're already got zero no claims discount, then the only increase will come as a result of the accident itself - i.e. you don't stand to lose say 4 years no-claims discount. I wouldn't have thought your increase would have come to £1200 - even over 2 years! Also, you should think about changing the car for a smaller engine to reduce the insurance (and the petrol costs!) - I'd suspect you're getting stung for insurance with a 1.6i....

As for the SoA template - I think there's an example in one of the sticky threads at the top of this forum. Failing that, find a thread where someone else has completed a SoA and use that. If you miss anything out the fine people on here will no doubt spot it!

nearlyrich

If you don't tell your insurance company about the accident it can come back to bite you later even if you don't claim.

My DD had a slight bump just after she passed her test, total damage to other car £80 which she paid by cheque but she sent a letter to her insurers to inform them of the accident and it ddn't affect her premium for the next year. If your other driver decides to claim for injury in the next 3 years you might be worse off than a slight increase in the premium for the next 5 years.

southernscouser

sara_501 wrote:

to answer both questions and give a bit more background info...

I currently have 2 yrs no-claims, and my first years insurance cost me £1,000 that was with a "virgin" driving history, to add on this accident would without a doubt bring it back up to that level and even higher, carrying it with me for the next 5 yrs would be a lot more money too...

with regard to the accident coming back to get me in the future, it shouldn't do as it was driver vs lamp post no others involved (thankfully)

Sara

Why is it the lamp posts always win? :rolleyes:

kwisstan

in answer to your question about the SOA, there is a template in Southern Scousers sticky thread.

EllieB_2

Or you could look at nationaldebtline.co.uk for a downloadable personal budget sheet.

Bluelad_2

You have to be careful about the insurance. The policy will probably say declare 'Any accidents whether a claim was made or not' (Iassume it's because it makes you a higher risk driver, claiming or not. Not declaring could make your current insurance invalid. Something that Insurance companies will pounce on if they found out and could prove difficult obtaining insurance in the future. Don't want to worry you, but certainly wouldn't want to encourage something that could have a far greater impact in the future.