My debt

LewisC_2

Hi folks,

Have been lurking here for a while now and want to get my debts sorted once and for all. They are manageable, but I'd like them gone

I currently owe £1,000 to my parents from when I was unemployed and they covered my debts. I owe just under £1,600 to Barclaycard, £250 to CapitalOne, and £200 to Vanquis. Yes, I know - credit cards are bad, but what's done is done.

I take home £1,000 a month and my other monthly bills total £310 a month. I pay £100 board and lodging (still live with parents), £113.75 car finance, £10 upkeep of website, £45 mobile phone bill, and £45 car insurance. I also pay off the minimum repayments on my credit cards.

My Barclaycard is 27.9% APR, Vanquis is 29.9% and CapitalOne is 19.8%.

Are there any debt gurus out there who can help me formulate a proper structured plan to get my debts paid off?

I'll be 21 in June and want to be debt-free by then. Please help.

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My SOA

Monthly Incomings:

My salary - £938.52

Total - £938.52


Monthly Outgoings:

Rent - £100
Phone - £45
Car Insurance - £45
Petrol - £10
Haircuts - £10
Nights out - £100 max


Total: £1,359.83


Debts

Parents - £1,000
Barclaycard - £1,578.91 @ 27.9% APR
Vanquis - £200 @ 29.9% APR
CapitalOne - £250 @ 19.8% APR

Floss

Follow the SOA sticky at the top, get that posted & all the nerds will soon be along to help!

Welcome to the DFW gang :hello:

poorbutrich

Hello - if you put up an SOA, I'm sure someone will help. I'm not much good at these things(!), but would say try an override provider for your phone bills -say 18185?

Good luck! And well done for catching your debt early!

LewisC_2

Thanks Floss,

I have included my SOA now

wanna-be-mortgage-free_2

Hi LewisC

Welcome to the board. So what you are saying is:

Income: £1000

Outgoings:
Lodgings £100
Car finance: £113.75
Website: £10
Mobile: £45

Total outgoings before debts: £268.75

Total available for debts: £731.25

What about costings for petrol, car tax, car insurance, birthdays, nights out, haircuts etc. You need to include these before you can determine what is the EXACT figure you have to throw at your debts.

wanna-be-mortgage-free_2

Sorry, also how much are you paying off on the credit cards each month?

LewisC_2

wanna-be-mortgage-free, thansk very much for your reply.

I've added the other little things you mentioned into my SOA now I can't think of anything else to add to it.

I'm paying off around £45 from the Barclaycard, £12 from Vanquis, and £12 from Capital One. These are their minimum payments.

wanna-be-mortgage-free_2

Others are more experienced and will come along and help soon but firstly I see that when you deduct what you say are your outgoings including the minimum payments to your credit cards you still have £628.52 left at the end of each month. If this is the case then you should pay off the Vanquis card now as it has the highest APR. Then you work on the next highest or you could shift to a 0% balance transfer. This may sound harsh but I would ask your parents to hold off on their loan until you have the others paid off first.

LewisC_2

Thanks very much, wanna-be-mortgage-free. My parents have held off for two years and I can't see them holding off much longer. I agreed to pay an extra amount per month to them to get it cleared. It would work out as an extra £100 a month if I want to be clear by June.

wanna-be-mortgage-free_2

My salary - £938.52




Monthly Outgoings

Rent - £100
Phone - £45
Car Insurance - £45
Petrol - £10
Haircuts - £10
Nights out - £100 max
Parents - £100
Barclaycard - £45
Vanquis - £12
CapitalOne - £12

Total available after paying out above: £459.52

That still leaves you £459.52 to pay off your credit cards. As mentioned above I would def pay of Vanquis now as it has highest apr, move the others to a 0% balance transfer and increase your monthly payments.

You could also make extra money by selling stuff on ebay to throw at the cards

LewisC_2

The cash advance rate on my Barclaycard is the same as for purchases, so technically, would it not be a good idea to put all my spare cash onto paying off the Barclaycard each month, then using cash off that if/when I need it?