17k debt

karbar

Hi

This is my situation…

Debt:

Approximately 10+K debt on mastercards
7k loan


Basic monthly outgoing :

480 loan repayment + 400 mastercards + 350 per month rent = 1230 per /month

Im currently on 35K salary (permanent job). But struggling to save for mortgage!


What can I do to get out of this situation? I wish I was paying 1230 a month toward mortgage L

Nargleblast

I reckon that if you were paying £1230 a month on a mortgage it would mean you were overstretched financially, Karbar! i know some people think paying rent is wasted money, but if you read Alvin Hall's book "Your money or your life" he says you should take the view that rent is a necessary living expense you have to pay while you are saving up for a deposit on a house of your own.

Anyway, your current situation clearly bothers you so now is the time to write down a full list of all your monthly income and outgoings to see exactly what the position is. If you look at the top of the threads list you will find a First Time Posters/ SOA calculator sticky. Fill your details in on that, post it on here and we will try and help with suggestions for tweaking your budget a bit and maybe paying off those debts in an organised manner. Well done for coming on here and asking for help, it means you have woken up to reality and are ready to sort things out rather than struggle on as you have been doing.

fatbelly

The calculator is here:

http://www.makesenseofcards.com/soacalc.html

How much do you have in savings?

On 35k salary you should be able to get debt-free relatively quickly. Then think about getting on the housing ladder (maybe)

karbar

theanks for the replies, i only got 5 quid in my saving account, i have been very very careless about spending for past couple of years... im writing everything down and thinking twice before spending now!
for past 4 years i was always scared to look at my bank statment... i never reviewed it bcuz i was alaways in debt and didnt want to see it...

Poosmate

karbar wrote: »

theanks for the replies, i only got 5 quid in my saving account, i have been very very careless about spending for past couple of years... im writing everything down and thinking twice before spending now!
for past 4 years i was always scared to look at my bank statment... i never reviewed it bcuz i was alaways in debt and didnt want to see it...

Thanks Karbar! I spat my coffee all over my keyboard when I read you had £5 in your savings account!

I'm so sorry for laughing but when you said you were struggling to save for a mortgage I thought you'd have a bit more than £5!

Worry not Karbar, you too will be laughing in the face of adversity very soon after you post your SOA (Statement of Affairs). All the fabulous people on here will go through it with a fine toothed comb and help and support you all the way to debtfreeness!

Welcome and congratulations on having your lightbulb moment in coming here to ask for help.

Good luck

Poo

P.S. Sorry again for laughing

Moneytroubles_2

Hiya Karbar,welcome to the site, if you fill you SOA's and post it, people will be able to help, the site has helped me no end since joining last year, and I never had savings in my life although I now have £150 and I have just up'd my standing order - doesnt sound much to some but to me its briliant! good luck to you xxx

karbar

thanks for all the tips! much appreciates!


Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget SummaryAmount(£)
Total monthly income £2,230
Monthly expenses (incl. HP & secured loans) £1,144
Available for debt repayments£1,086
UNsecured debt repayments £1,090
Amount short for making debt repayments £-4


Personal Balance Sheet SummaryAmount(£)
Total Assets (things you own) £4,005
Total Secured & HP Debt-0Total Unsecured Debt £-8,010
Net Assets£-4,005


Household Information

Number of adults in household 2
Number of children in household
Number of cars owned 1

Income, Expense, Debt & Asset Details

IncomeAmount(£)
Monthly income after tax £2230
Partners monthly income £0
Benefits £0
Other income0
Total monthly income£2230


ExpensesAmount(£)
Mortgage £0
Secured/HP loan payments £0
Rent £300
Management charge (leasehold property) £0
Council tax £0
Electricity £0
Gas £0
Oil £0
Water Rates £0
Telephone (land line) £12
Mobile phone £10
TV Licence £0
Satellite/Cable TV £0
Internet services £10
Groceries etc.200
Clothing £100
Petrol/diese £l80
Road tax £12
Car Insurance £60
Car maintenance (including MOT) £15
Car Parking £10
Other trave £l50
Childcare/nursery £0
Other child related expenses £0
Medical (prescriptions, dentists, opticians etc.) £0
Pet Insurance/Vet bills0Buildings Insurance £0
Contents Insurance £0
Life Assurance £0
Other Insurance £0
Presents (birthday, christmas etc.) £40
Haircuts £20
Entertainment £25
Holiday £50
Emergency Fund £0
drinks £150

Total monthly expenses£1144


Secured & HP Debt DescriptionDebt(£)Monthly(£)APR(%)Mortgage0 (0) 0

Secured & HP Debt totals0 - -

Unsecured Debt DescriptionDebt(£)Monthly(£)APR(%)
loan £7000 £490 15
master cards £10 £400 20
utilities(old aprtmnt) £1000 £200 0
Unsecured Debt totals£8010 £1090

Asset DescriptionValue (£)
Cash £5
House Value (Gross) £0
Shares and bonds £0
Car(s) £4000
Other assets (e.g. endowments, jewellery etc) £0
Total Assets£4005

Comments on the results



I have some outstanding payments for council tax, gas,electricity etc from my old apartment where I used to live, I have included as debt.

im going to see if i can get a new Master card (with free money transfer rate) but it has to have 7k+ limit so I can transfer majority of it to there. 20% APR is average for my master cards some are 40+% APR.

karbar

Poosmate wrote: »

Thanks Karbar! I spat my coffee all over my keyboard when I read you had £5 in your savings account!

I'm so sorry for laughing but when you said you were struggling to save for a mortgage I thought you'd have a bit more than £5!

P.S. Sorry again for laughing

no worries! I Can See the Light at the End of the Tunnel!! pain era is over! I was laughin as much as u did!

this forum has made my day! it has increased my financial awareness and knowledge
:A

dancingfairy

Mortgage £0
Secured/HP loan payments £0
Rent £300
Management charge (leasehold property) £0
Council tax £0 is this paid by your OH?
Electricity £0 ditto?
Gas £0
Oil £0
Water Rates £0 ditto?
Telephone (land line) £12
Mobile phone £10
TV Licence £0
Satellite/Cable TV £0
Internet services £10
Groceries etc.200 maybe could be reduced a bit with planning?
Clothing £100 maybe you could reduce this for a while and only buy essentials?
Petrol/diese £l80
Road tax £12
Car Insurance £60
Car maintenance (including MOT) £15
Car Parking £10
Other trave £l50
Childcare/nursery £0
Other child related expenses £0
Medical (prescriptions, dentists, opticians etc.) £0
Pet Insurance/Vet bills0Buildings Insurance £0
Contents Insurance £0 Eeek! I hope your OH pays for this?
Life Assurance £0
Other Insurance £0
Presents (birthday, christmas etc.) £40
Haircuts £20
Entertainment £25
Holiday £50
Emergency Fund £0
drinks £150 Could this be reduced at all?

A few things from me to think about there. I presume/hope your OH pays the other bills. I hope they are paying their share - obviously it's up to you both though.
Good Luck
df

theoretica

karbar wrote: »

Groceries etc.200 If this is just for you this could be cut down a lot- think about what you are buying and plan ahead. I suggest you aim for 100-150 depending on how badly you want a house!

Petrol/diese £l80
Road tax £12
Car Insurance £60
Car maintenance (including MOT) £15
Car Parking £10
Other travel £l50
You are spending a lot on transport- do you need both a car and other travel? Is any of it luxury? Your insurance seems rather high too unless you are a new driver.


Clothing £100
Presents (birthday, christmas etc.) £40
Haircuts £20
Entertainment £25
Holiday £50
drinks £150
This lot is all luxury and the obvious target for cutting down. How far you reduce it is up to you, but I would suggest that £100 divided between these six categories would still let you live a comfortable life.

You could be free of all your debt by next summer and have a respectable deposit by the year after. You need to stop living up to your income and start aiming for what you really want.

karbar

dancingfairy wrote: »

Mortgage £0
Secured/HP loan payments £0
Rent £300
Management charge (leasehold property) £0
Council tax £0 is this paid by your OH?
Electricity £0 ditto?

rent covers utilities such as elec, gas etc...
thanks