Perhaps I should have introduced myself first!!

Lizloz

Hi...I'm Liz...I'm 29 years old and I'm in debt.

There....I've said it. Not quite sure how I feel right now. Doesn't really feel like a weight has been lifted or anything, and I've never had one of those 'lightbulb' moments. It's just something I've known for a long long time and it's a horrible vicious circle, that I'm desperate to break.

Ok, so here goes....my list:

WDCS C/Card: £4415.14 (APR 14.94%) - Credit limit £8350
Natwest C/Card: approx' £1600 (APR 5.9%) - Credit limit £4000
Alliance and Leicester loan (Mine): £1894 (Paying £118.72/month - Finishes November 2007)
Alliance and Leicester (My Fiance's loan): £6346 (Paying £167.02/month - Finishes July 09)
Overdraft (my old bank account with Natwest) - £1000
Black Horse Finance - £1099.90 (paying £64.70/month for sofa - Finishes December 07)
Black Horse Finance - £1200 (First payment of £198 then pay balance off over 11 months for car)
My Dad!! - £1000 (he wants/needs this back by September)
GE Capital - £230.84 (Paying £115.42/month - Finishes Sept 06)

Mortgage - £925/month
Gas - £55/month (this includes overpaying by DD because we had a HUUUUUGE bill a few months ago)
Electric £20/month
Water £30/month
C/Tax £95/month
TV £10.99/month
Car Insurance (this amount is for the two cars we own) - @ £60/month (and this has just come down!)
Pet insurance £11/month - I've just reduced this figure from £25/month
There are other little bits and pieces like phone, telewest, food etc.... but it's late and I'm tired!


Apparently (according to my little spreadsheet!), I earn £950/month take home, my OH earns £550/week take home, and we MEANT to have over £300 a week to play with...I wish it would come out of hiding then, because I have NO idea where it's going!

I wish I could say we go out and spend every day, but we don't.

Our problem at the moment, is that we have a £500 OD limit on our joint account, which we go in to every week and my OH's wages simply pay this off every week. When we get to the end of our limit and a payment doesn't go out...guess what...we get stumped with a £35 late payment fee for EVERY transaction that doesn't go through.

I already have my own business running a mobile disco company, of which, the money from this goes in to a seperate business account.

I've also signed on with a temp' agency and try to get some bar work on the weekends I don't have any gigs.

I think I'm gonna make myself ill, all this working!

I feel a bit better that I've written this, and believe me, I have started making changes, but I've come on here to get a few more tips as I hear you're a great bunch and can offer loads of advice!





btw: I've already tried to change my credit card, but have been refused.

I've also just closed my catalogue account which was £1500 credit limit and my Debenhams store card, which was £400 limi

Annie_Fanny

Can you change to an Alliance & Leicester account that will give you a free overdraft? If you use me a referrer then we will both benefit - I will give you part of the profits!


Also dump Telewest!!!

Lizloz

Annie_Fanny wrote:

Can you change to an Alliance & Leicester account that will give you a free overdraft? If you use me a referrer then we will both benefit - I will give you part of the profits!


Also dump Telewest!!!

The £500 OD limit is free. It's just that if we go over this, that's when they charge.

We're also looking in to getting rid of the cable box, which we only pay £5.50/month for as we very rarely watch TV, and buying a freeview box instead. The only channel I watch on Cable is LivingTV anyway, and I think that's the only channel you can't get on freeview...everything else is the same (oh heck....I can always buy Most Haunted on DVD anyway!)

jessicamb

Can you balance transfer any of the higher interest cards onto the Natwest at the lower rate? This would cut down the interest you are paying.

Check out this site

https://www.whatsthecost.co.uk/snowball.aspx

To find out which debts you should prioritise. It will also tell you your 'debt-free' date.

southernscouser

Hi Liz. I'm SS and I'm in debt aswell! :doh:

OK, to work out where the 'extra' £300 a month is going start a spending diary. Every day note down exactly how much you have spent and on what! Even if it's only 30p on a packet of chewing gum!

Also try and get your debts on to the cheapest APR as possible. Phone up Natwest and tell them you would like to do a large balance transfer from your other cards but only if they can offer you the 5.9% you are currently paying! This will bring your interest down which means more of what you pay each month goes to paying the debt!

Well done on closing the old accounts. This in 1-2 months could make you look a better lending prospect but hold off applying for any more credit in the meantime or it could affect you later on when you have a better chance of being accepted.

I would also reccomend you reduce your WDCS cards limit down to £5,000. Again it makes youm look better to prospective lenders as you have less 'potential debt'!

Iona_Penny

Slightly worried as you outgoings do not appear to include any food! or petrol!. Perhaps you need to rethink where this money is really going. Keep a spending diary for a month and see where EVERY PENNY goes.
Sorry, crossed with ss oh and Hi and well done for coming on here ( I forgot my manners)

Annie_Fanny

Lizloz wrote:

The £500 OD limit is free. It's just that if we go over this, that's when they charge.

We're also looking in to getting rid of the cable box, which we only pay £5.50/month for as we very rarely watch TV, and buying a freeview box instead. The only channel I watch on Cable is LivingTV anyway, and I think that's the only channel you can't get on freeview...everything else is the same (oh heck....I can always buy Most Haunted on DVD anyway!)

Sorry to be harsh but NO you don't get it - you CAN NOT buy MOST HAUNTED on dvd - why? - it costs money!!!!

Have you tried Bearshare?

jessicamb

Just another thought. Could you and your OH try something like the 'benefits challenge' where you basically live on next to nothing for a short period of time but you could use up all the things at the back of the cupboard, spend as little as possible etc. You could probably then clear off the overdraft and avoid all those charges.

If you are interested here is the thread for the latest one - although if it is a little extreme there are similar less harsh ones on the Old Style Board.

http://forums.moneysavingexpert.com/showthread.html?t=220768&highlight=benefit

lynsayjane

most haunted is crap now derek left...

hi hun, and congrats on taking the first step toward being debt free.

if you don't watch much tv is there any point in gettin the freeview or is it a lump sum payment that you don't really need to spend?

sammy115

I was quite impressed when you said you didn't watch much tv but then said you watched most haunted!! sorry I just don't get that programme.

Good luck with the debt reduction. It does get better and you will soon start to feel more in control. I cannot recommend getting the spending diary up and running - you will be shocked.

LJD1_2

Hiya
I was in your position back in May, not knowing where our extra money was going. SS and Lynz suggested a spending diary back then and it really really works. First of all see see that all the spare money goes on cr*p. Then you think twice before you buy anything as you know you have to write it down. I'd definitely try it if I was you. Good luck.