Aiming to be Debt-Free

Vickisaver

I have struggled with my debt for a while now, and the last two months have finally got on top of the monthly payments. I am trying to remortgage my property, so want to clear as much as I can in the next few months so I can access better rates even with my poor credit rating.

I've completed an SoA, and would appreciate any input. I have a 2nd job which brings in a minimum of £900 a month after tax, adn get an allowance from my parents at the moment for £270, but ideally I want to stop that as they will be on pensions soon and not as well off. I haven't got my interest rates with me, but can probably get them added in the not too distant future if that would help.

My idea is to clear the overdraft and vanquis cards first as they give me the most charges, then the BOS mastercard. I also have to clear the £90 to Avon as they have put a default on it (I had disputed this with them and thought the account was cleared).

Thanks in advance

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1233

Other income............................ 1220 (part time job & allowance)
Total monthly income.................... 2453
Monthly Expense Details
Mortgage................................ 544
Secured/HP loan repayments.............. 139

Council tax............................. 86
Electricity............................. 33
Gas..................................... 33

Telephone (land line)................... 22
Mobile phone............................ 10
TV Licence.............................. 12

Groceries etc. ......................... 130
Clothing................................ 20
Petrol/diesel........................... 130
Road tax................................ 15
Car Insurance........................... 5
Car maintenance (including MOT)......... 15
Other travel............................ 90 (train fares)

Medical (prescriptions, dentist etc).... 4
Pet insurance/vet bills................. 20 (1 dog)
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 10
Other insurance......................... 30 (car)
Presents (birthday, christmas etc)...... 5
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 10
Emergency fund.......................... 30
Total monthly expenses.................. 1453

Assets
Cash.................................... 0
House value (Gross)..................... 85000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 89000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 81075....(544)......6.39
Hire Purchase (HP) debt ...... 3848.....(139)......0
Total secured & HP debts...... 84923.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
BOS mastercard.................1100......50........0
Vanquis credit card............210.......10........0
Avon...........................90........90........0
BOS overdraft..................1650......100.......0
Open University................200.......42........0
Hitachi Capital................800.......46........0
BOS loan.......................7274......162.......0
Total unsecured debts..........11324.....500.......-

Monthly Budget Summary
Total monthly income.................... 2,453
Expenses (including HP & secured debts). 1,453
Available for debt repayments........... 1,000
Monthly UNsecured debt repayments....... 500
Amount left after debt repayments....... 500
Personal Balance Sheet Summary
Total assets (things you own)........... 89,000
Total HP & Secured debt................. -84,923
Total Unsecured debt.................... -11,324
Net Assets.............................. -7,247
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

JohnD76

If your SOA is accurate, you have £500 left at the end the of the month, so you could clear the Vanquis, OU and Avon at the end of the month.

Description....................Debt......Monthly.. .APR
BOS mastercard.................1100......50........0
Vanquis credit card............210.......10........0
Avon...........................90........90....... .0
BOS overdraft..................1650......100.......0
Open University................200.......42........0
Hitachi Capital................800.......46........0
BOS loan.......................7274......162.......0

Leaving you with another £552 left of for the next month to pay off your next debt.

Are you sure your SOA is accurate?

Vickisaver

Yes, it is accurate. I have just increased my hours in the 2nd job, which has increased my income and decreased my expenditure (now have no time or energy for anything else!)

Numpty_Monkey

Vickisaver wrote: »

Thanks in advance

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1233

Other income............................ 1220 (part time job & allowance)
Total monthly income.................... 2453
Monthly Expense Details
Mortgage................................ 544
Secured/HP loan repayments.............. 139

Council tax............................. 86
Electricity............................. 33 seems high for 1
Gas..................................... 33 checkout comparrison sites and cashback sites

Telephone (land line)................... 22
Mobile phone............................ 10
TV Licence.............................. 12

Groceries etc. ......................... 130
Clothing................................ 20
Petrol/diesel........................... 130
Road tax................................ 15
Car Insurance........................... 5
Car maintenance (including MOT)......... 15
Other travel............................ 90 (train fares)
checkout martins guide on ticket splitting http://www.moneysavingexpert.com/travel/

Medical (prescriptions, dentist etc).... 4
Pet insurance/vet bills................. 20 (1 dog)any insurance check out comparrison and cashback sites
Buildings insurance..................... 15as above
Contents insurance...................... 15as above
Life assurance ......................... 10as above
Other insurance......................... 30 (car)you have £5 further up?
Presents (birthday, christmas etc)...... 5
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 10
Emergency fund.......................... 30
Total monthly expenses.................. 1453

Assets
Cash.................................... 0
House value (Gross)..................... 85000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 89000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 81075....(544)......6.39
Hire Purchase (HP) debt ...... 3848.....(139)......0
Total secured & HP debts...... 84923.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
BOS mastercard.................1100......50........0
Vanquis credit card............210.......10........0
Avon...........................90........90........0
BOS overdraft..................1650......100.......0
Open University................200.......42........0
Hitachi Capital................800.......46........0
BOS loan.......................7274......162.......0
Total unsecured debts..........11324.....500.......-

Monthly Budget Summary
Total monthly income.................... 2,453
Expenses (including HP & secured debts). 1,453
Available for debt repayments........... 1,000
Monthly UNsecured debt repayments....... 500
Amount left after debt repayments....... 500
Personal Balance Sheet Summary
Total assets (things you own)........... 89,000
Total HP & Secured debt................. -84,923
Total Unsecured debt.................... -11,324
Net Assets.............................. -7,247
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

I've left a fewcomments:A
Re in what to pay off, the APR's are needed, when you getthem have a look at snowballing
http://www.makesenseofcards.com/snowcalc.html

Tixy

Vickisaver wrote: »

I have struggled with my debt for a while now, and the last two months have finally got on top of the monthly payments. I am trying to remortgage my property, so want to clear as much as I can in the next few months so I can access better rates even with my poor credit rating. are you remortgaging to consolidate some of your debts or do you just mean to get a better deal for the amount you owe now?

I've completed an SoA, and would appreciate any input. I have a 2nd job which brings in a minimum of £900 a month after tax, adn get an allowance from my parents at the moment for £270, but ideally I want to stop that as they will be on pensions soon and not as well off. I haven't got my interest rates with me, but can probably get them added in the not too distant future if that would help. do hunt these out as these will impact which debts to clear.

My idea is to clear the overdraft and vanquis cards first as they give me the most charges, then the BOS mastercard. I also have to clear the £90 to Avon as they have put a default on it (I had disputed this with them and thought the account was cleared).

Thanks in advance

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1233

Other income............................ 1220 (part time job & allowance)
Total monthly income.................... 2453
Monthly Expense Details
Mortgage................................ 544
Secured/HP loan repayments.............. 139

Council tax............................. 86
Electricity............................. 33 looks quite high, check you are with the best supplier/cheapest tariff. Try reducing usage if you can
Gas..................................... 33

Telephone (land line)................... 22
Mobile phone............................ 10
TV Licence.............................. 12

Groceries etc. ......................... 130 could reduce a little (maybe aim for £100 to start)
Clothing................................ 20
Petrol/diesel........................... 130 are all miles essential on top of the train fares? do your drive efficently to get the most miles for the money?
Road tax................................ 15
Car Insurance........................... 5
Car maintenance (including MOT)......... 15
Other travel............................ 90 (train fares)

Medical (prescriptions, dentist etc).... 4
Pet insurance/vet bills................. 20 (1 dog)
Buildings insurance..................... 15
Contents insurance...................... 15 B&C is high compared to house value, shop around, should be able to reduce.
Life assurance ......................... 10
Other insurance......................... 30 (car)on top of the amount above? or do you mean re the car finance?
Presents (birthday, christmas etc)...... 5
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 10
Emergency fund.......................... 30 have you been saving this? how much is saved?
Total monthly expenses.................. 1453

Assets
Cash.................................... 0
House value (Gross)..................... 85000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 89000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 81075....(544)......6.39
Hire Purchase (HP) debt ...... 3848.....(139)......0
Total secured & HP debts...... 84923.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
BOS mastercard.................1100......50........0
Vanquis credit card............210.......10........0
Avon...........................90........90........0
BOS overdraft..................1650......100.......0
Open University................200.......42........0
Hitachi Capital................800.......46........0
BOS loan.......................7274......162.......0
Total unsecured debts..........11324.....500.......-

Monthly Budget Summary
Total monthly income.................... 2,453
Expenses (including HP & secured debts). 1,453
Available for debt repayments........... 1,000
Monthly UNsecured debt repayments....... 500
Amount left after debt repayments....... 500
Personal Balance Sheet Summary
Total assets (things you own)........... 89,000
Total HP & Secured debt................. -84,923
Total Unsecured debt.................... -11,324
Net Assets.............................. -7,247
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

I'd agree to clear the vanquis and avon first, but would find out the APRs on the others before you start increasing payments, the mastercard may be a higher APR than the overdraft. When you mention the overdraft charges how much are the charges? are you also getting charges for bounced items/overlimit fees etc?

JohnD76

Vickisaver wrote: »

Yes, it is accurate. I have just increased my hours in the 2nd job, which has increased my income and decreased my expenditure (now have no time or energy for anything else!)

It looks like you should be able to clear you debt relatively swiftly through doing this, just don't over do it on the number of hours you are working each week. Over a prolonged period this can make you ill.

In my opinion you are doing really well. :T

Vickisaver

Thanks for all your input. With regards the queries raised. My electricity & gas are reasonable as I am in a 4 bedroom flat, and I just managed to get it down from £115 a month for both.

The emergency fund went on replacing my washing machine, so back down to £0 at the moment.

B&C was the cheapest I could find at the time, due for renewal in november.

The pet costs include her vet bills, the insurance is fantastic value for the cover I get. I will be getting a lower rate for life cover when I remortgage as I am currently also paying for my ex-partner (joint property being transferred into my sole name).

I live in the middle of nowhere, so do rack up a lot of miles, I'm hoping once I clear the HP to buy a more efficient car (outright this time).

I've made a mistake with the car insurance, it is £30 a month, ignore the other £5!

Once I find out my interest rates I will try the snowball thing, and fingers crossed I can be debt-free quite soon. I do make sure I have at least 1 day off completely to recharge, so I think I can keep this up for a while.

Vickisaver

Just realised I hadn't addressed the question about the overdraft. I was incurring charges on charges, about £155 a month, but have spoken to them and have agreed to pay a minimum of £100 a month, with a daily charge of £1 for being in a now agreed overdraft, and interest on top of that, so roughly about £35 a month i think.