Debt management...need a bit of guidance please!

petez

[FONT=&quot]Hello, long time reader, first time poster (I've always wanted to say that!). So, I'm struggling with debt at the moment which is threatening to sully my usually sunny disposition. I'm getting 10 days - 2 weeks in to each month before knowing that after that I will have no money and some bank charges to look forward to before payday.

I'll quite happily admit I've been a bit of a berk - particularly with regards to a distance learning course I undertook last year, which despite being a pile of old &*$£, I'm having difficulty getting out of. My bank have charged me over £800 in the past 12 months, which hasn't helped. I worked out that this amount could single-handedly fund their free bar at my branch Christmas Party.

I used the calculator-ma-tron to calculate my SOA, and while it's not 100% accurate in terms of APR% (there are overdraft repayments where I'm unsure of the APR) this is 95% accurate.

I have a partner who I live with (so bills are split and reflected below), and while she is aware of, understanding, and supportive of my debt problem, it's not her burden to bear. She helps out with food costs towards the end of the month but I hate it and as she earns about £12k a year more than me, it can be frustrating when I can't afford to do 'stuff', cinema, go for dinner etc.

I thought about an IVA, and got as far as using their calculator and have someone contact me before thinking better of it and checking MSE's advice on IVAs before proceeding. Doesn't sound like the best solution for me.

I haven't included my current overdraft in the figure below which is £1750 and usually at its limit come mid-month.

Basically, following MSE's advice in their rundown on IVAs, I wanted to check in with people who've been in the same boat. My debt isn't massive, but my current situation sees me struggle on a monthly basis. I'm currently ebaying things every month to help tide me over, but I only own so much stuff!

I'd massively appreciate any help or advice people here have to offer and hope to one day return the favour

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned....................

Monthly Income Details
Monthly income after tax................ 1498
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1498

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 359
Rent.................................... 475
Management charge (leasehold property).. 0
Council tax............................. 77
Electricity............................. 15
Gas..................................... 20
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 0
Mobile phone............................ 35
TV Licence.............................. 9
Satellite/Cable TV...................... 0
Internet Services....................... 27
Groceries etc. ......................... 150
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 200
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 100
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1482


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0<
Course repayment...............4595.....(135)......10<
Overdraft repayment2...........150......(50).......18<
Overdraft repayment............1000.....(50).......18<
Bank Loan......................4150.....(124)......8.9
Total secured & HP debts...... 9895......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................320.......20........16.9
Total unsecured debts..........320.......20........-


Monthly Budget Summary
Total monthly income.................... 1,498
Expenses (including HP & secured debts). 1,482
Available for debt repayments........... 16
Monthly UNsecured debt repayments....... 20
Amount short for making debt repayments. -4

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -9,895
Total Unsecured debt.................... -320
Net Assets.............................. -10,215

[/FONT]

gonzo127

petez wrote: »

[FONT=&quot]Hello, long time reader, first time poster (I've always wanted to say that!). So, I'm struggling with debt at the moment which is threatening to sully my usually sunny disposition. I'm getting 10 days - 2 weeks in to each month before knowing that after that I will have no money and some bank charges to look forward to before payday.[/FONT]

[FONT=&quot]I'll quite happily admit I've been a bit of a berk - particularly with regards to a distance learning course I undertook last year, which despite being a pile of old &*$£, I'm having difficulty getting out of. My bank have charged me over £800 in the past 12 months, which hasn't helped. I worked out that this amount could single-handedly fund their free bar at my branch Christmas Party. [/FONT]

[FONT=&quot]I used the calculator-ma-tron to calculate my SOA, and while it's not 100% accurate in terms of APR% (there are overdraft repayments where I'm unsure of the APR) this is 95% accurate.[/FONT]

[FONT=&quot]I have a partner who I live with (so bills are split and reflected below), and while she is aware of, understanding, and supportive of my debt problem, it's not her burden to bear. She helps out with food costs towards the end of the month but I hate it and as she earns about £12k a year more than me, it can be frustrating when I can't afford to do 'stuff', cinema, go for dinner etc. [/FONT]

[FONT=&quot]I thought about an IVA, and got as far as using their calculator and have someone contact me before thinking better of it and checking MSE's advice on IVAs before proceeding. Doesn't sound like the best solution for me. [/FONT]

[FONT=&quot]I haven't included my current overdraft in the figure below which is £1750 and usually at its limit come mid-month.[/FONT]

[FONT=&quot]Basically, following MSE's advice in their rundown on IVAs, I wanted to check in with people who've been in the same boat. My debt isn't massive, but my current situation sees me struggle on a monthly basis. I'm currently ebaying things every month to help tide me over, but I only own so much stuff![/FONT]

[FONT=&quot]I'd massively appreciate any help or advice people here have to offer and hope to one day return the favour [/FONT]

[FONT=&quot]Statement of Affairs and Personal Balance Sheet

[FONT=&quot]Household Information[/FONT]
[FONT=&quot]Number of adults in household........... 2[/FONT]
[FONT=&quot]Number of children in household......... [/FONT]
[FONT=&quot]Number of cars owned.................... [/FONT]

[FONT=&quot]Monthly Income Details[/FONT]
[FONT=&quot]Monthly income after tax................ 1498[/FONT]
[FONT=&quot]Partners monthly income after tax....... 0[/FONT]
[FONT=&quot]Benefits................................ 0[/FONT]
[FONT=&quot]Other income............................ 0[/FONT]
[FONT=&quot]Total monthly income.................... 1498[/FONT]

[FONT=&quot]Monthly Expense Details[/FONT]
[FONT=&quot]Mortgage................................ 0[/FONT]
[FONT=&quot]Secured/HP loan repayments.............. 359[/FONT]
[FONT=&quot]Rent.................................... 475 - is this half of what you pay for rent? if so this is a lot of money for a house/flat for only 2 people, if not why does your partner not pay half the rent?[/FONT]
[FONT=&quot]Management charge (leasehold property).. 0[/FONT]
[FONT=&quot]Council tax............................. 77 - same question as rent[/FONT]
[FONT=&quot]Electricity............................. 15[/FONT]
[FONT=&quot]Gas..................................... 20[/FONT]
[FONT=&quot]Oil..................................... 0[/FONT]
[FONT=&quot]Water rates............................. 15[/FONT]
[FONT=&quot]Telephone (land line)................... 0[/FONT]
[FONT=&quot]Mobile phone............................ 35 - this is a lot, check if you use all you rmins and texts if not phone the company and ask to change to a lower tarriff, the worst they can say is no[/FONT]
[FONT=&quot]TV Licence.............................. 9[/FONT]
[FONT=&quot]Satellite/Cable TV...................... 0[/FONT]
[FONT=&quot]Internet Services....................... 27 - this is very expensive for internet[/FONT]
[FONT=&quot]Groceries etc. ......................... 150 - massive if only for you for the month, if this is for the 2 of you why is your partners contribution?[/FONT]
[FONT=&quot]Clothing................................ 0 - you do need a little bit here even if its only for new underware![/FONT]
[FONT=&quot]Petrol/diesel........................... 0[/FONT]
[FONT=&quot]Road tax................................ 0[/FONT]
[FONT=&quot]Car Insurance........................... 0[/FONT]
[FONT=&quot]Car maintenance (including MOT)......... 0[/FONT]
[FONT=&quot]Car parking............................. 0[/FONT]
[FONT=&quot]Other travel............................ 200 this is a lot have you looked at weekly/monthly passes on the buses/trains[/FONT]
[FONT=&quot]Childcare/nursery....................... 0[/FONT]
[FONT=&quot]Other child related expenses............ 0[/FONT]
[FONT=&quot]Medical (prescriptions, dentist etc).... 0[/FONT]
[FONT=&quot]Pet insurance/vet bills................. 0[/FONT]
[FONT=&quot]Buildings insurance..................... 0[/FONT]
[FONT=&quot]Contents insurance...................... 0[/FONT]
[FONT=&quot]Life assurance ......................... 0[/FONT]
[FONT=&quot]Other insurance......................... 0[/FONT]
[FONT=&quot]Presents (birthday, christmas etc)...... 0[/FONT]
[FONT=&quot]Haircuts................................ 0[/FONT]
[FONT=&quot]Entertainment........................... 100 - this is quite a bit as well could probably do with halving this[/FONT]
[FONT=&quot]Holiday................................. 0[/FONT]
[FONT=&quot]Emergency fund.......................... 0[/FONT]
[FONT=&quot]Total monthly expenses.................. 1482[/FONT]


[FONT=&quot]Assets[/FONT]
[FONT=&quot]Cash.................................... 0[/FONT]
[FONT=&quot]House value (Gross)..................... 0[/FONT]
[FONT=&quot]Shares and bonds........................ 0[/FONT]
[FONT=&quot]Car(s).................................. 0[/FONT]
[FONT=&quot]Other assets............................ 0[/FONT]
[FONT=&quot]Total Assets............................ 0[/FONT]


[FONT=&quot]Secured & HP Debts[/FONT]
[FONT=&quot]Description....................Debt......Monthly...APR[/FONT]
[FONT=&quot]Mortgage...................... 0........(0)........0<[/FONT]
[FONT=&quot]Course repayment...............4595.....(135)......10<[/FONT]
[FONT=&quot]Overdraft repayment2...........150......(50).......18<[/FONT]
[FONT=&quot]Overdraft repayment............1000.....(50).......18<[/FONT]
[FONT=&quot]Bank Loan......................4150.....(124)......8.9[/FONT]
[FONT=&quot]Total secured & HP debts...... 9895......-.........- [/FONT]

[FONT=&quot]Unsecured Debts[/FONT]
[FONT=&quot]Description....................Debt......Monthly...APR[/FONT]
[FONT=&quot]Credit Card....................320.......20........16.9[/FONT]
[FONT=&quot]Total unsecured debts..........320.......20........- [/FONT]


[FONT=&quot]Monthly Budget Summary[/FONT]
[FONT=&quot]Total monthly income.................... 1,498[/FONT]
[FONT=&quot]Expenses (including HP & secured debts). 1,482[/FONT]
[FONT=&quot]Available for debt repayments........... 16[/FONT]
[FONT=&quot]Monthly UNsecured debt repayments....... 20[/FONT]
[FONT=&quot]Amount short for making debt repayments. -4 - this is not bad and easily findable[/FONT]

[FONT=&quot]Personal Balance Sheet Summary[/FONT]
[FONT=&quot]Total assets (things you own)........... 0[/FONT]
[FONT=&quot]Total HP & Secured debt................. -9,895[/FONT]
[FONT=&quot]Total Unsecured debt.................... -320[/FONT]
[FONT=&quot]Net Assets.............................. -10,215[/FONT]

[/FONT]

hi well i have made a couple of comments above,

i have guessed that this is only the expenditure for yourself and that everything in it is doubled if you was to do a joint one with your partner,

if not then they need to be putting more into the budget if they are living with you for example, rent is it really £950 a month to rent where you two live? if so could you look at moving somewhere cheaper, if it is only £475 why is your partner not putting towards the rent if they live there?

same with food is it £150 for just you or £150 for both - i usually suggest aiming for about £60 per person per month for debt free journeys so £150 between you is not bad however £150 for just you is a lot and could find a lot of saving there, try meal planning batch cooking and the drop a brand challenge

the thing that worrys me with your SOA is that you state you have run out of money mid month yet your SOA states you are only overspending each month by £4, these two things do not match up so i am expecting you have some other large spending habbits you dont know about, try looking at last months bank statement and try to account for every item that went out of your account and then think if it was something you really needed (such as a pre packeted sandwich where you could have made your own and taken it with you) or if you just have with money going out that you have no idea what it was for

then look at doing a spending diary for this coming month writing down everything you buy from a 20 pence newspaper to a £50 drinking binge, this should hopefully let you see where you are having these extra spending trips you dont even realise you are doing

Tixy

Hi Peter and welcome. And well done for posting. Can you clarify that your costs below are just half costs and that your OH is paying the same amount (eg is rent £950, council tax actually - £154? etc)

petez wrote: »

[FONT=&quot]Statement of Affairs and Personal Balance Sheet

[FONT=&quot]Household Information[/FONT]
[FONT=&quot]Number of adults in household........... 2[/FONT]
[FONT=&quot]Number of children in household......... [/FONT]
[FONT=&quot]Number of cars owned.................... [/FONT]

[FONT=&quot]Monthly Income Details[/FONT]
[FONT=&quot]Monthly income after tax................ 1498[/FONT]
[FONT=&quot]Partners monthly income after tax....... 0[/FONT]
[FONT=&quot]Benefits................................ 0[/FONT]
[FONT=&quot]Other income............................ 0[/FONT]
[FONT=&quot]Total monthly income.................... 1498[/FONT]

[FONT=&quot]Monthly Expense Details[/FONT]
[FONT=&quot]Mortgage................................ 0[/FONT]
[FONT=&quot]Secured/HP loan repayments.............. 359 (these are really unsecured)[/FONT]
[FONT=&quot]Rent.................................... 475[/FONT]
[FONT=&quot]Management charge (leasehold property).. 0[/FONT]
[FONT=&quot]Council tax............................. 77 If £154 this seems steep - are you in the correct band? do you live in an expensive area?[/FONT]
[FONT=&quot]Electricity............................. 15[/FONT]
[FONT=&quot]Gas..................................... 20[/FONT]
[FONT=&quot]Oil..................................... 0[/FONT]
[FONT=&quot]Water rates............................. 15[/FONT]
[FONT=&quot]Telephone (land line)................... 0[/FONT]
[FONT=&quot]Mobile phone............................ 35[/FONT]
[FONT=&quot]TV Licence.............................. 9[/FONT]
[FONT=&quot]Satellite/Cable TV...................... 0[/FONT]
[FONT=&quot]Internet Services....................... 27 have you tried shopping around (you can usually get for around £18 all in with a landline)[/FONT]
[FONT=&quot]Groceries etc. ......................... 150 high if just for your half -good if for 2 of you, assuming you spend £300 in total you should be able to make some savings here - do you cook much from scratch? try meal planning for the week before you shop, try to do 1 large shop a week (or fortnight) rather than nipping in to the shops all the time.[/FONT]
[FONT=&quot]Clothing................................ 0[/FONT]
[FONT=&quot]Petrol/diesel........................... 0[/FONT]
[FONT=&quot]Road tax................................ 0[/FONT]
[FONT=&quot]Car Insurance........................... 0[/FONT]
[FONT=&quot]Car maintenance (including MOT)......... 0[/FONT]
[FONT=&quot]Car parking............................. 0[/FONT]
[FONT=&quot]Other travel............................ 200 whats this? do you/can you get season tickets to get it cheaper?[/FONT]
[FONT=&quot]Childcare/nursery....................... 0[/FONT]
[FONT=&quot]Other child related expenses............ 0[/FONT]
[FONT=&quot]Medical (prescriptions, dentist etc).... 0[/FONT]
[FONT=&quot]Pet insurance/vet bills................. 0[/FONT]
[FONT=&quot]Buildings insurance..................... 0[/FONT]
[FONT=&quot]Contents insurance...................... 0 do you not have any?[/FONT]
[FONT=&quot]Life assurance ......................... 0[/FONT]
[FONT=&quot]Other insurance......................... 0[/FONT]
[FONT=&quot]Presents (birthday, christmas etc)...... 0 never anything? try to budget for 1/12 of the annual cost[/FONT]
[FONT=&quot]Haircuts................................ 0 is this right?[/FONT]
[FONT=&quot]Entertainment........................... 100 look out for offers such as cheap cinema and 2for1 on meals etc (or try cutting down by cooking at home, having mates over with a bring a bottle do etc)[/FONT]
[FONT=&quot]Holiday................................. 0[/FONT]
[FONT=&quot]Emergency fund.......................... 0[/FONT]
[FONT=&quot]Total monthly expenses.................. 1482[/FONT]


[FONT=&quot]Assets[/FONT]
[FONT=&quot]Cash.................................... 0[/FONT]
[FONT=&quot]House value (Gross)..................... 0[/FONT]
[FONT=&quot]Shares and bonds........................ 0[/FONT]
[FONT=&quot]Car(s).................................. 0[/FONT]
[FONT=&quot]Other assets............................ 0[/FONT]
[FONT=&quot]Total Assets............................ 0[/FONT]


[FONT=&quot]Secured & HP Debts[/FONT]
[FONT=&quot]Description....................Debt......Monthly...APR[/FONT]
[FONT=&quot]Mortgage...................... 0........(0)........0<[/FONT]
[FONT=&quot]Course repayment...............4595.....(135)......10< this is obviously the stinker! Are you still on the course? [/FONT]
[FONT=&quot]Overdraft repayment2...........150......(50).......18<[/FONT]
[FONT=&quot]Overdraft repayment............1000.....(50).......18<[/FONT]
[FONT=&quot]Bank Loan......................4150.....(124)......8.9[/FONT]
[FONT=&quot]Total secured & HP debts...... 9895......-.........- [/FONT]

[FONT=&quot]Unsecured Debts[/FONT]
[FONT=&quot]Description....................Debt......Monthly...APR[/FONT]
[FONT=&quot]Credit Card....................320.......20........16.9[/FONT]
[FONT=&quot]Total unsecured debts..........320.......20........- [/FONT]


[FONT=&quot]Monthly Budget Summary[/FONT]
[FONT=&quot]Total monthly income.................... 1,498[/FONT]
[FONT=&quot]Expenses (including HP & secured debts). 1,482[/FONT]
[FONT=&quot]Available for debt repayments........... 16[/FONT]
[FONT=&quot]Monthly UNsecured debt repayments....... 20[/FONT]
[FONT=&quot]Amount short for making debt repayments. -4 well it looks like you are just about breaking even, but I guess this isn't including your OD charges etc[/FONT]

[FONT=&quot]Personal Balance Sheet Summary[/FONT]
[FONT=&quot]Total assets (things you own)........... 0[/FONT]
[FONT=&quot]Total HP & Secured debt................. -9,895[/FONT]
[FONT=&quot]Total Unsecured debt.................... -320[/FONT]
[FONT=&quot]Net Assets.............................. -10,215[/FONT]

[/FONT]

So I think a spending diary might be a good idea for you. You rent looks high (assuming its £950) is this competative the area and size of your property? Any chance you could move somewhere cheaper or if there are lots of empty places nearby any chance you could negotiate a lower amount or even 6months at a reduced price?

Am I right in thinking you have 3 overdrafts (the 2 above and your current account). I think its really hard to get out the spiral of ods - perhaps you could set up a new bank account that has no overdraft facility, with a bank you don't owe any money to. Then write to your existing bank and try to arrange a repayment plan with them to start paying back the £1700.

If the course is carp is there anyway you can complain/get the course prive reduced? pay over a longer period? anything else?

Hopefully others will have more suggestions. Good luck

petez

hello, thanks for the comments! Yes, my partner pays half of everything and puts more money into the monthly budget than I can afford. The inequality worries me and can cause arguments.

Too often we nip to the shops. I've suggested to her since reading here that we budget food shopping and try to do a weekly shop. The spending diary is also a good idea, thanks. It's easy to forget where you are spending money every month.

The overdrafts are leftover from university. Both were handed to debt collection departments. One is nearly paid off, only three months left. The other, just last week forced me to increase my monthly payment by £30 a month, to £50. So the only active overdraft I have is with my current account. I will ask them about a repayment plan. Thanks!

I've made a small error in my council tax. It's £144 per month, which is £72 each. South West London, it is quite expensive. I moved in December from a place in a higher band where I was paying £550 for rent as my share per month. So I am saving nearly £100 in my current flat compared to my old one.

The course is just horrible. It's not for me. Some people probably get a lot out of it, but I really don't. I suggested this to them already with no real joy and now I'm reluctant to pay and being harassed by a debt collection company every day for two instalments. It's quite stressful. There is a 21 day cancellation period, but realistically, who can say whether a course is good for you or not after only 21 days? I'm talking to them at the moment to try and get out of it, but in the meantime my credit rating is taking a pounding.

with travel, I buy a weekly all zones travel card, this is £47.60 a week. I could buy a monthly, I think that would save maybe £10 a month, but every little helps I guess so worth investigating.

RAS

Re the course; have you treid speaking to Trading Standards about this? There seem to be a lot out there that are money making spinners for the provider and do little for the clients.

niccatw

Hey Pete

Not much to add - agree with all of the above!
Thought I'd dive you a link to a spending diary to help track your spending. I have to say I find mine a chore - but it's a complete eye-opener and has really helped me keep on track on making little debt repayments here and there where I can. http://www.spendingdiary.com/

Good luck with sorting out the course. Having been through some-thing similar (thought I'd need to pull out on health grounds but would have had to apy anyway), I know how hard the negotiations can be. I hope you can stick to your guns and get them to listen to you. Good luck with it .