Joining the debt free wanabees

clarkylou

Hello everyone,

I have been looking around this forum for the last couple of days and found it very encouraging to know that I'm not the only one who is in a fair amount of debt. I have been struggling with it since I was at University, and wasn't the wisest when I graduated and got a job. First it was the condition of the job was to have a car, only way I could do that was on HP at stupid rates, then the bank pulled my student overdraft I trying to pay off and offered my a loan as the solution. Before I knew it I was £8000 in debt, and it's spiralled from there.

I also left my job to set up my own company in October, which I was kind of pushed into so soon because I was so miserable and depressed at the company, I had to take charge and turn it around before I lost my good reputation, my relationship and friends. Hence the debt increase even more now I'm up at the 16000s. I did see it happen and have cut back enornmously.

Anyway I thought if I posted here I could watch my total go down, and hopefully get some tips and advice from fellow debtors. My aim for this July 30th is to wipe out the £600 to ex-employer, pay minumum balance on rest and £100 to Inland Revenue. That is a total of £1325 to debts. Wish me luck;)

lady_fuschia

Good luck! Its daunting taking the first steps but it gets better once you start watching the figures go down.
Have you tried using the snowball calculator tool (trying to find the link, anyone help me here guys?)? I found that a really helpful starting point. Plus there's some real experts on here who I'm sure will be able to give you loads and loads of helpful advice and tips, not to mention moral support when you need it. I've been using the board about 2 months now and I'm already addicted!
All the best x

gallygirl

http://www.whatsthecost.com/snowball.aspx

clarkylou, here's a link to the snowball site whicj will calculate what order to pay off debts etc. Here's a link to a post on this site:

http://forums.moneysavingexpert.com/showthread.html?t=107280

this gives info on how to do a SOA which will help us give you advice. you have some v high APR's so we will tackle those first, but get on with the SOA to see where the money will come from to do it!

welcome by the way:T

clarkylou

My problem is that my income is very variable because I'm essential freelance and the company very new. But the average income over the next 8 months is £1662 per month, and that's a realistic estimate (about 70% of the work is confirmed)

But my living expenses are per month:
Rent £250.00
Entertainment £80.00
Mobile £47.00
Travel £120.00
NI £8.40
Wanadoo £17.99
Namesco £9.39
E&L Insurance £7.24
Direct Line Insurance £26.32
Student Loan £24.26
Help in Office £150
Stationary £50
Total. £790.60

Minimum payments to debt.
BoS loan. £295
MBNA. £45
BoS CC £59
Next £29
Littlewoods £36
HFC CC £40
Total £504

The overpayment from ex-employer is due for final payment on June 30th (but can't manage it until probably 12th July) and I need to get the tax bill down asap.

Thank you for your help, I will look at the snowball.

Mirtos

clarkylou wrote:

But my living expenses are per month:
Rent £250.00
Entertainment £80.00 Can you reduce this? Rent DVDs instead of going to the cinema, use library for DVDs, cds etc..., free days out, use vouchers and offers where you can.
Mobile £47.00 I suspect you need this for work. If not, can you reduce your tariff, or change to PAYG at £10 a month? If it is for work, are you a registered company? Even if you are technically self employed, this is a business expense and can be claimed against your tax bill at the end of the year - ask your accountant. You might also want to think about becoming VAT registered if you are officially a company - this will cut down most of your business outgoings significantly!
Travel £120.00 Again, can you reduce this in anyway? Is it public transport? It seems high, even for where I live in London. Business travel can also be claimed against Tax
NI £8.40
Wanadoo £17.99 What precisely is this for? If just internet, you can certainly get it cheaper elsewhere!

Namesco £9.39

Mirtos

Insurance £7.24 for what?</p>Direct Line Insurance £26.32 ; for what?
Student Loan £24.26
Help in Office £150 Again, you should claim this as a business expense against tax.
Stationary £50 for business? Tax deductable AND if you are VAT registered 17.5% cheaper!1
Total. £790.60

Minimum payments to debt.
BoS loan. £295
MBNA. £45
BoS CC £59
Next £29
Littlewoods £36
HFC CC £40
Total £504

Once you've paid back your employer, use the snowball calculator to see which debts to pay of first - this could save you HUNDREDS in interest!
The overpayment from ex-employer is due for final payment on June 30th (but can't manage it until probably 12th July) and I need to get the tax bill down asap.

Thank you for your help, I will look at the snowball.[/quote]
I also note that you haven't included anything for for food, toiletries, presents and big one offs, saving for holiday etc... MAybe making a spending diary would help you get a picture of hat you spend where and how you could cut back.

Mirtos

what's going on with the posting today? Took me ten trys to post that and the html is still screwy!

clarkylou

The £80 entertainment, is me cutting back alot on going out to concerts, socialising etc.. This is an important part of my career, because it's where I normally meet people who give me work....I work in the arts. I'm a sole trader

Namesco - is the company that hosts my website (essential)
Wanadoo - is for internet & telephone (again essential)
Mobile - Essential for business.
the £7.24 is instrument insurance, direct line car insurance - again both essential for company and the lowest I could get.

The £150 is a business expense, as is travel (both public & petrol). As a freelancer with a car I'm in demand, and brings in extra work. I know I can claim them back as business expense, just trying to be realistic about what is actually going out of my account in the immediate future.

I will look into the VAT registering though.

Thank you!

clarkylou

Good morning, good start to the day when I found out I had received some extra cash for some work I have been doing this month. So I went straight to the pay bills page on my banking and the extra £20 towards the littlewoods, next & HFC CC. Feels good!!:j

Johnhowell

clarkylou,

Just looked at your signature and the -£20's should read -£30 for the remaining figures to be correct.

All the best,
John

In_Search_Of_Me

Just wanted to say hi & welcome!