Where do I begin?

ntc79

I have been reading your advice to everyone and hope that you can help me too. I think it is about time I faced up to my debts - which I have been ignoring and am now struggling with. Have a debt company on my back as I can't pay my credit card - limit £3900 - actual balance £4500 including charges. Living in London is hugely expensive and although I am paid reasonably well, I struggle every month and have no savings whatsoever. My boyfriend and I are looking for a flat to rent from August so that will reduce my rent and council tax slightly. However, I am concerned that a letting agent will run a credit check on me and this could cause problems - my boyfriend earns far more than me and has no idea about my debts. And no, before you ask, I don't want to borrow from him - too proud to even ask. Starting to panic so all advice gratefully received.

Here is my SOA:
Salary - £1730 (no extras/additional income)

Outgoings:
Rent - £580
Council Tax - £40
Travel - £250
Food/personal items - £200
Gym - £20
Bills - £50
Phone - approx £60 (need it for work and can re-claims some calls)
Egg Loan - £130
Student Loan - £150
Egg Credit Card - £50
Overdraft interest - £40
Going out - £100

Total: £1670
Should also be paying approx £120 per month on Mastercard as mentioned above but can't afford it.

The creditors:
Virgin Mastercard - Balance £4500, Limit £3900, APR 15.9%
Egg Loan - Balance £4800, was £6000, APR 6.9%, 60 months to repay - 50 months to go
Egg Card - Balance £1250, Limit £1300, APR 14.9%
Student loans Company - Balance £9000, comes straight from my salary but I owe them £390 as they did not set up my direct debit in time - even though I thought they had and somehow soent the money so now I have 2 months to pay and have incurred £90 charges.

Thanks,
N

ms_london

tashcoupe wrote:

Here is my SOA:
Salary - £1730

Outgoings:
Rent - £580
Council Tax - £40
Travel - £250 What kind of travel? This is high?!?!
Food/personal items - £200
Gym - £20
Bills - £50 What bills are these?
Phone - approx £60 (need it for work and can re-claims some calls)
Going out - £100 Could this not come out of your food/personal items budget?

Egg Loan - £130
Student Loan - £150
Egg Credit Card - £50
Overdraft interest - £40


Total: £1670
Should also be paying approx £120 per month on Mastercard as mentioned above but can't afford it.

The creditors:
Virgin Mastercard - Balance £4500, Limit £3900, APR 15.9%
Egg Loan - Balance £4800, was £6000, APR 6.9%, 60 months to repay - 50 months to go
Egg Card - Balance £1250, Limit £1300, APR 14.9%
Student loans Company - Balance £9000, comes straight from my salary but I owe them £390 as they did not set up my direct debit in time - even though I thought they had and somehow soent the money so now I have 2 months to pay and have incurred £90 charges.

Thanks,
N

Hi. Welcome to MSE!!!! :T :T

Well done on posting your SOA - the first step is always the hardest.

You are on a very good wage (more than me), and I know London can be expensive, but there are also lots of cheap/free things to do - I suppose most of it is pressure from others to do X,Y,Z..

Do you think you could apply for a 0% credit card?

I would get on to the phone to the students loan company and ask them if they can add the arrears to the term of the loan, or overpay them £X a month (something you can afford)..

I have made some comments in pink above....

Since your loans arent as flexible as credit cards, you need to pay what you can afford until these are clear & then throw the remainding money at your loans (hopefully not incurring an early payment penalty in the process?).

I am concerned that you spend £250 a month on travel? Is this travel with work or trips away.

I think you need to decide whether you just want to service these debts or get them paid off asap, as unless you change your spending habits nothing will change.

xx

ntc79

The travel is from living in London but working in Bucks - unfortunately nothing I can do about it unless I change jobs. I always knew it would be the way but it is hitting me pretty hard. Bills are gas, water and electricity - the usual and £50 is an approximate amount per month. I do try to do the free and cheaper stuff in London - but as you will know, money just seems to disappear here.
I will contact the student loans company and I do manage to pay my egg loan every month but it is the credit card that worries me. I don't think I could get a 0% interest card - this one was to begin with but now the time has passed and I am stuck with a high interest rate and a balance I can't reduce or transfer. Thanks for the advice though.

Jessiepig

Why do you live in expensive London when you work in Bucks.
You also say £200 for food. Is this just for two and does your oh not help towards food. I only spend £300 for four adults on food so I think you can make saving here

ntc79

My friends and boyfriend are all in London - as was my old job - and I don't want to move out of town now I'm afraid. I spend alot on food/drink etc as it means I won't go out so much. It's an attempt to save money which doesn't really work. Realistically I spend too much all the time which is why I am in this situation now. I don't live with my OH but when we do move together - hopefully in August - things will get a bit better with bills, rent and council tax. I have started making lists of exactly what I spend so that I can budget a bit better.

lynzpower

Hello and a massive welcome from me too :wave:

Im seeing a few things here that are also high.
Considering the amount of debt you are in I think the gym also has to go.

Me & my OH eat like kings and queens on 100pcm, were in london too, its not difficult with a bit of effort. Pop over to the Oldstyle board on cutting costs on food & household, theres millions of ideas there for easy ways to save money

There are many very good resturaunts for eating out that are cheap, you have to be willing to find them. And use only as an occasional treat.

Is this right then in Aug you will be in london so your travel will come down to about 100 or less? So there you have 150 in august ready to pay off your debts.

You could also ask your mobile provider to reduce your tarriff. If work reimburse you for the calls you make you just need the cheapest package there is and then take the bills in. 60 sounds like you are subsidising your employer a bit to me

Money doesnt disappear here if you dont let it I have been where you re too, in fact its only been really recently since finding here that Ive got my act together. there is a wealth of stuff to do for free in london, I think its the best place to live ( yes I would say that) as there are always those options.

I reckon just by making those cutbacks you could be saving 300 a month to pay your creditors with ( 100 food, 20 gym, 150 travel, 30 mobile)

all_hours

Some letting agencies do run a credit check but some just want bank + employer + previous landlords reference. When you're looking in Loot you could avoid the agency ads and stick with the private ads. Also quite a few agencies are asking for 6 weeks deposit + 1 months rent. Some of the private landlords are still only asking for 1 month + 1 month in advance.

Don't forget you'll need to have the deposit ready for the new place before you get the deposit back from your current flat.

I'd seriously think about getting a job in London to cut down on the travel bill.

Jessiepig

If you do not want to slip further and start clearing the debts then you have to make sacrifices unfortunately. You need to start budgeting for everything you buy.
If you can reduce your food bill then thats more to pay of the debt.If you see them go down this will give you more incentive to cut down on spending.

ntc79

Ok thanks. Unfortunately I will still be working here and living in London august but have noted the other suggestions. WIll try to cut down on eating out and spending on food, and also the gym is a pretty unused extravagance. Any suggestions on what I should do about the credit card that I can't physically pay - the debt company are calling me every day but I don't know what to say? I need to give them approx £400.

ntc79

Also, yes thankyou - looking on loot and gumtree too to try and keep down moving costs.

nic82

With regards to your student loan...

If it is the new style loan, then you don't have to pay any money that they have "forgotten" to take out of your salary. It just stays on your balance (no penalties).

I should have started paying back from April this year but they still haven't taken any money from my salary. I have phoned up to query this three times and each time I have been told that my payments will just start and I don't owe them April's and May's money. (I phoned three times just to make sure I was being told the right thing!).

They did say I could pay April's and May's money direct to them over the phone if I wanted, but I don't have to.