nasty shock

moneycrisis

Hi all,
Would just like to say congrats to all that post here and make this forum such a supportive and welcoming place. Have got my self into some debt and would just like some advice

My debts are as follows

Nothern Rock Loan 7,000 7.9%
Current Account (1,600) agreed overdraft
Egg Loan 1,450 10.9%
Morgan Stanley CC 1,310 15.9%
Nationwide CC 1,350 14.9%

My Net income is £750

I live at home and here are my monthly outgoings
Rent £150.00
Mobile Phone £45.00
Northern Rock Loan £134.36
Nationwide card £40.00
Egg Loan £50.00
Monthly Spends £100.00
Golf and Leisure £65.00
Morgan Stanley £25.00

I was just wondering what order to pay things back and my agreed overdraft isn't massively expensive about 0.8 per month. but my credit rating must be terrible as i have tried to apply for other lower apr cards but have had no joy.
Seems stupid I could get credit when i was ignorant and now i want to get sorted i cant get any.
Any advice would be much appreciated

Old_iron_balls

Hi

hammer the debts with the highest interest first. do a search under 'snowballing'

also,
£45 mobile.
Can you end your contract and manage on pay as you go ? £10 per month ?

golf and leisure £65.
would you consider making a sacrifice in order to have more cash each month to throw at your debts ?

just a few suggestions, more will be along to offer advice.
good luck and welcome

moneycrisis

Thing is for my job i use my mobile a lot and have just increased to this tariff and do not appear to be going over the minute allowance. I kno golf and lesuire is quite a lot at £65 but its my only real hobby and i dont have to pay any extras. I play twice most weekend and use the gym a couple of times in the week so i think im making the most of the money

CLAPTON

first things first, your spending

you really need to understand everything you spend...keep a spending diary where you write down everything you spend each month

for example do you really spend nothing on food, going out, haircuts, travelling, not a single present or xmas spending, nothing for work lunchs /snacks etc.no holidays etc etc.?


secondly ...why is your income so low..this is below the minimum wage..do you not work fulltime?

Bloke_with_a_simple_life

HEllo Crisis... few questions..

If you need a mobile for work - why don't work provide it? WHat is the impact of not having it for work but just use it for social purposes? Who do you call on the phone??

What is your definition of "net income" - is this after tax/NI? Or are you taking more off your gross wage?

Agree with Clapton - where do you spend money that has got you into this challenging position?

From your £750 per month, there is still I think £140 not accounted from in this expenditure... where does it go?

Your outgoings are not including your overdraft repayments... how long is your overdraft for?

Good luck!

moneycrisis

My net income is £750 after i NI and TAX and after my company/scheme car has been deducted.
I have started a spend diary but think £100 can easily cover my monthly outgoings but is just an estimate at current.
The £150 is my spare money to attack my debt. I also want to improve my credit rating is this done better by clearing the debts or would i be better getting my account balance back in the black.
Cheers for the advice.
Regarding the phone the company claim that at my grade i do not require a mobile where in reality this is different Plus i am currently tied to this contract for another 12 months so even if i wanted to not sure i could

CLAPTON

your car is provided by the company? so do they pay for tax, insurance, prtrol, etc etc for the car?

if you have spare money pay back as much as possible to the debt at the highest APR

why do you want to improve your credit rating?

but what about food, going out, lunches /snacks, presents , haircuts etc etc.

moneycrisis

haircuts and b'day presents are included in that £100 or thats how much i budget to spend. Yeah the company pays for the car and all involved i have to pay for personal petrol.
I'm only 20 and still live at home I want to clear my debt and improve my credit rating so that my girlfriend and I can move in together get a mortgage etc. Im doing an apprentaship so all though wages low now over the next couple of years they will increase.
Just thought by posting on here i could get advice and would keep me on track clearing my debt

CLAPTON

I wouldn't be too concerned about improving your credit rating as such...if you always pay the minimums and start reducing your overall level of debt your rating will automatically improve.

can you increase your income...is over time possible or maybe a part time job?

its much better to understand your 100 and analyse what is actually included hence the need for a spending diary.

when paying the debts back do use the snowball method...pay the minimum on each debt except the one with the highest APR ..this one you pay as much as possible until its clear and then go onto the debt with the next highest APR. its always best, however to make sure you are comfortably within your overdraft limit to ensure you dont accidentally go over your agreed limit. You dont say what the overdraft APR is (worth finding out) but your highest APR otherwise seems to be the Morgan Stanley. your credit rating is probably poor simply because you have too much debt in relation to your income but you can get your credit records from the Credit Record Agencys for £2 each.

moneycrisis

well as part of my job i am at college gaining a qualification. So most of my spare time is spent playing golf or studying. I have exams in a month and if i pass them then in september i will get a £2.5k pay rise which will obviously help. See what you mean about reduce debt and rating will follow.
Is there a thread about the credit rating thing if so could you point me in the right direction. I don't want people to duplicate info just that there is a lot of threads on here.
Thanks for your time helping

moneycrisis

im not coping very well and have been sinking more and more into debt. As i have a job and drive a nice car people seem to expect me to have money and I have been falling deeper and deeper. In january my debts were around 7k and i told my parents who took out a loan for me to consolidate them. This money wasnt used for its intended purpose and i feel quite guilty I also leant money from my gf. I think tonight i am going to go home and tell my gf and parents about my situation. I feel like i need to get it out in the open.