Need to get out of debt urgently - HELP PLEASE

bank_of_slate

Ebonydeluxe wrote: »

Hi Guys:hello:

Too scared to cut them up as I have been using them to help me make some of my min payments. Sad I know - using debt to pay off debt. I am playing a juggling game at the mo with my debts.


My SOA

Monthly Income Details
Monthly income after tax................ 1770
Benefits................................ 285
Total monthly income.................... 2055

Monthly Expense Details

Rent.................................... 450
Council tax............................. 81
Electricity............................. 42.5
Gas..................................... 42.5
Water rates............................. 15
Telephone (land line)................... 40
Mobile phone............................ 40
Satellite/Cable TV...................... 26
Internet Services....................... 10
Groceries etc. ......................... 200
Clothing................................ 150
Petrol/diesel........................... 70
Car Insurance........................... 95
Childcare/nursery....................... 216

Total monthly expenses.................. 1478

Description....................Debt......Monthly...APR
Barclaycard....................2795.84...62.9......24.9
Lloyds.........................3465.28...69.31.....14
M&S............................1777.66...44.44.....18.9
Loan...........................3200......144.4.....6.4
Loan...........................3687.71...147.6.....7.9
Loan...........................2672.53...165.4.....6.4
Loan...........................5139.88...153.1.....6.4
Monsoon........................303.65....12.15.....18.9
NEXT...........................863.24....75.3......26.49
HOF............................618.77....24.75.....24.9
HOF............................981.14....39.25.....29.3
HOF............................213.44....8.54......22.44

Monthly Budget SummaryAmount(£)Total monthly income2,055Monthly expenses (incl. HP & secured loans)1,478Available for debt repayments577UNsecured debt repayments947.14Amount short for making debt repayments-370.14

Appreciate the help, thanks.

PLEASE at least start by cutting up the high interest store cards!!!!!

I can see that by the 4 loans that you have already tried consolidating and that didn't work.
What's HOF by the way?
...Linda xx

bank_of_slate

Ebonydeluxe wrote: »

Sorry you must all think I am a complete dumbo. I did use the form, but I changed the font and took out the expenses which didn't apply.

Should I post the print version?

I have 3 children aged 1, 6 and 7, and me. The clothes figure relates to all of us, including shoes. But you're right, it is alot.


I think I will put a ban on clothes and shoe buying for a while.:o

Rather than banning it, why don't you reserve a small amount for it? If you try banning it completely you might have a bad day, rush out and splurge which will make you feel terrible.

Are there any nice clothes/shoes/bags that you could sell on Ebay or would your friends be interested in a clothes swapping party?
...Linda xx

bank_of_slate

The list was fine ebony.

Have you printed a copy off for yourself? Do you have a partner?

Try keeping a spending diary to see where your money is frittering away to each month, little spends often get missed and soon mount up (coffee, magazines, sandwiches etc...)
...Linda xx

Ebonydeluxe

Thanks guys for your help so far.

HOF stands for House of Fraser - sorry.

Yes I have tried to consolidate, then started spending all over again as the balances went to £0. But one loan was for a home move, I couldn't believe how much it cost to move home.

I am single, no partner.

I will cut up the HOF cards and monsoon. I have some vouchers on the monsoon one. So will delay until I have spent them - no I'm not going to add to the balance.

I will start a diary. And you are right it is the little spends that add up. I very rarely carry cash, so I use my card instead. I stopped shopping for the week and changed to a daily shop to just buy what I needed for the day. Big mistake - I think I spend more this way, but I don't waste as much food as I was before.

Should I go back to a weekly shop? Or should I try the £1 per day challenge (£1 for each child as well)?

leebec

Hey Ebony

Firstly, well done for taking the first step and realising that you can't carry on like you have been doing. Everyone on these boards will help you with advice - but it's upto you to take the steps you need.

It will be painful - but in the long run you will be so glad you did.

Firstly, you HAVE to cut up your cards. Paying one card with another is just making the whole thing worse, as you're being charged more and more interest and just putting off the inevitable. Plus, having the cards there is simply too much temptation.

A few things I noticed on your SOA :

Elec/Gas - £85 a month - who are your suppliers? How long since you did a price comparison?

Your telephone is £40 a month - and this doesn't include your mobile or your internet by the looks of it. Line Rental is about £12 a month - so what is the rest of it? Have you investigated if there's a cheaper tariff you can move to?

Mobile - £40 a month - how long is left on your contract? Sometimes you can switch to a cheaper tariff before your contract ends. Can you do this? Are you also using all your free inclusive mins on the tariff - better to use these than use your landline.

Sat/Cable TV - £26 a month - again, is there a cheaper tariff or - even better - can you make do with Freeview instead. The boxes are dirt cheap now and this would save you £26 a month straight away.

Groceries - have you tried Martin's downshift challenge?

Clothing - as other posters have said - £150 is far too much. Don't reduce to zero, leave yourself enough for one treat a month - but limit it to just one.

Car Insurance - £95 a month seems incredibly high! When is it due for renewal? Did you do a full price comparison last time it was renewed or did you just take your current insurers renewal offer?

Just a few thoughts anyway.....

Ebonydeluxe

bank_of_slate wrote: »

The list was fine ebony.

Have you printed a copy off for yourself? Do you have a partner?

Try keeping a spending diary to see where your money is frittering away to each month, little spends often get missed and soon mount up (coffee, magazines, sandwiches etc...)
...Linda xx

Got some stuff on ebay, will keep adding.

bank_of_slate

Ebonydeluxe wrote: »

Thanks guys for your help so far.

HOF stands for House of Fraser - sorry.

Yes I have tried to consolidate, then started spending all over again as the balances went to £0.
Sounds familiar, many of us have done exactly the same thing!
But one loan was for a home move, I couldn't believe how much it cost to move home.

I am single, no partner.

I will cut up the HOF cards and monsoon. I have some vouchers on the monsoon one. So will delay until I have spent them - no I'm not going to add to the balance.
:T :T :T That's a great start already, one step at a time.

I will start a diary. And you are right it is the little spends that add up. I very rarely carry cash, so I use my card instead. I stopped shopping for the week and changed to a daily shop to just buy what I needed for the day. Big mistake - I think I spend more this way, but I don't waste as much food as I was before.

Should I go back to a weekly shop? Or should I try the £1 per day challenge (£1 for each child as well)?

Don't try to do too much all at once, However often you do the shopping, write a shopping list, plan meals and stick to it!

Look around at the other threads on this board for lots of recipe ideas, special offers and grab it now type things.

How old is your little one? Register on www.seefilmfirst.com and look on the freebies no spend required forum for codes to go to the cinema for free! :T

Most of all keep posting on here, you'll get LOADS of ideas on how to succeed and tons of support, like many of us you may make a good few friends on here too. :beer:
...Linda xx

Ebonydeluxe

leebec wrote: »

Hey Ebony

Firstly, well done for taking the first step and realising that you can't carry on like you have been doing. Everyone on these boards will help you with advice - but it's upto you to take the steps you need.

It will be painful - but in the long run you will be so glad you did.

Firstly, you HAVE to cut up your cards. Paying one card with another is just making the whole thing worse, as you're being charged more and more interest and just putting off the inevitable. Plus, having the cards there is simply too much temptation.

A few things I noticed on your SOA :

Elec/Gas - £85 a month - who are your suppliers? How long since you did a price comparison?

Your telephone is £40 a month - and this doesn't include your mobile or your internet by the looks of it. Line Rental is about £12 a month - so what is the rest of it? Have you investigated if there's a cheaper tariff you can move to?

Mobile - £40 a month - how long is left on your contract? Sometimes you can switch to a cheaper tariff before your contract ends. Can you do this? Are you also using all your free inclusive mins on the tariff - better to use these than use your landline.

Sat/Cable TV - £26 a month - again, is there a cheaper tariff or - even better - can you make do with Freeview instead. The boxes are dirt cheap now and this would save you £26 a month straight away.

Groceries - have you tried Martin's downshift challenge?

Clothing - as other posters have said - £150 is far too much. Don't reduce to zero, leave yourself enough for one treat a month - but limit it to just one.

Car Insurance - £95 a month seems incredibly high! When is it due for renewal? Did you do a full price comparison last time it was renewed or did you just take your current insurers renewal offer?

Just a few thoughts anyway.....

Hi,

Have defo downshifted, most of the stuff I purchase is the basic range.
Car insurance high because some idiot hit me on the roundabout and then denied fault. Lost my no claims. Still trying to sort this out.
I will stop using my mobile outside of the free minutes, only emergencies.

£85 a month is very high for gas and electricity and this includes the £100 credit they give for paying by direct debit (Npower are the suppliers). I used to pay £30 a month for both and was still in credit then they told me this was my actual usage from their readings. I will do a price comparison on this next. I should have checked this a while a go. Thanks

Ebonydeluxe

bank_of_slate wrote: »

PLEASE at least start by cutting up the high interest store cards!!!!!

I can see that by the 4 loans that you have already tried consolidating and that didn't work.
What's HOF by the way?
...Linda xx

I have Just cut up the store cards, even the ones I have no balance on. My kids asked me what I was doing. I said I am stopping myself spending on useless things. The eldest said what am I going to do when we need new clothes, which means I have brought her up believing spending on cards is the way things are done. I will have to get her out of that way of thinking. I don't want her to grow up on debt.

bank_of_slate

Ebonydeluxe wrote: »

I have Just cut up the store cards, even the ones I have no balance on. My kids asked me what I was doing. I said I am stopping myself spending on useless things. The eldest said what am I going to do when we need new clothes, which means I have brought her up believing spending on cards is the way things are done. I will have to get her out of that way of thinking. I don't want her to grow up on debt.

:T :beer: :T :beer: :T :beer: :T

Excellent!
That's a great way to teach your children about it too!
...Linda xx