Advice on my finances please!!

TimmyP_2

Hi all

This is my first post - so please don't bite!!

I'm after some views on where to go with my finances. I know my debt isn't the biggest you'll ever see, but its starting to get me down and I want to do something about it.

First of all, I'll start with what I currently owe (for info, I'm 23):

Natwest Graduate Overdraft: £2,000
Natwest Graduate Loan: £5,780
AA Visa Card: £1,450
AA Loan: £7,000
Egg Loan: £2,200
Virgin Mastercard: £3,500

Total unsecured debt of £21,930.

I've had a look about and spoken to a firm to look at consolidation. They were quick to point out, as I expected, that not many places would be give me a competitive loan for that amount. They suggested an IVA and put me through to a firm called Gregory Pennington. I went through a few things with them, and said I'd think about it. There management fee of about £50 a month seemed a bit expensive.

I looked around the net and came across Payplan which I've noticed a few people mention on here. I'm going to speak to them tonight to see what they recommend. Once all of my payments have been made every month, i'm very very short on cash to the point when sometimes I have to sell an item or two.

If anyone has any immediate advice/views, then it'd be most welcome.

Thanks

Tim

newmoneysaver_2

Hi Tim,

I think the first thing you need to do is post a SOA (statement of affairs) list all your imcomings/outgoings/apr's/min paymets/balances etc.. Have a look at southern scousers post for first time posters

http://forums.moneysavingexpert.com/showthread.html?t=107280

HTH

rog2

Speak to CCCS - link at top of page. They are a charity and, although some of their services may involve a charge it is likely to be cheaper than what you have been quoted.

TimmyP_2

As requested, my SOA:

Monthly Incomings:

My salary - £1,300.00
Total - £1,300.00

Monthly Outgoings:

Rent - £50 - Living back at home!!
Council Tax - £0
Gas - £0
Electric - £0
TV License - £0
Sky £10.00
Mobile Phone - £75.00 (2 lines)
Food - £75
Diesel - £120
Socialising: £100
Internet: £35
Payment of the ex's NTL: £45.00 - its still in my name, can I get out of this? The 12 month contract expires in Feb 07.

Total Expenditure exc Loans: £495.00

Debts (All unsecured):

Natwest Graduate Overdraft: £2,000 - currently interest free.
Natwest Graduate Loan: £5,780 - £141pcm @ 7.9%. Exp 07/2010
AA Visa Card: £1,450 - £35 min payment a month @ 12.9%
AA Loan: £7,000 - £142pcm @ 8.9%. Exp 09/2010
Egg Loan: £2,200 - £60pcm @ 8.9%. Exp 08/2011
Virgin Mastercard: £3,500 - £90 min payment @ 15.9%
Car Hire Purchase: £3,744 - £156pcm with two years remaining - I am planning on selling the car to clear this debt.

Total unsecured debt of £25,674. - £624pcm

Total Expenditure for month: £1,119
Total Income for month: £1,300
Difference: +£181

I can only just afford my payments, however, that £181 always seems to disappear. With my payday on the 24th, I've got £23 left - and I've sold an item for £150 this month to help.

Would an IVA be the way to go?

lynzpower

Monthly Incomings:
Hiya, Ok let me have a look here


My salary - £1,300.00
Total - £1,300.00
Monthly Outgoings:

Rent - £50 - Living back at home!!
Council Tax - £0
Gas - £0
Electric - £0
TV License - £0
Sky £10.00 ( do you need this? you must only have a digi package on this amount? buy a digi box theres some in tescos for £20 ish )
Mobile Phone - £75.00 (2 lines) ( why do you need 2 lines?)
Food - £75 I take it foods not included at your parents on that 50 per month)
Diesel - £120
Socialising: £100 ( this needs to be cutback a bit)
Internet: £35 ( woah this ones high, you can get primus broadband for 12.99 a month I read the other day, why not try that)
Payment of the ex's NTL: £45.00 - its still in my name, can I get out of this? The 12 month contract expires in Feb 07. ( what sort of contract is it? I would have thought so, jsut tell them you ar not living there any more etc)

Total Expenditure exc Loans: £495.00

So theres quite a bit to cut back there, but you mention no car costs except the deisel, mots, parts, parking costs? Also you have not given any thought to all the other incidentals, like gifts, parking, dentist, optician, or a raft of other costs have a look at martins budget planner at the top of the page., If you pay it annuallly eg Xmas prezzies, you need to work out how much you need to save per month so that you can put this away in prepareation for Xmas nad not have to use the CCs for it.

Start a spending diary and see where the added expenditure goes. Could you get a second job? What else have you got to sell?

TimmyP_2

I've got a company car now with my new job which means that I only have the diesel to pay for. Everything is else is paid for by the company.

I'm going to try and put together a spending diary/budget. I've already cut right down on the amount I spend on my debit card as I find it "harder" if you like to spend hard cash.

Just want an easy way out - even though I know there isn't one. Long road ahead - which is partly why a structured IVA looks appealing at the moment.

bargainbetty

TimmyP wrote:

As requested, my SOA:

Monthly Incomings:

My salary - £1,300.00
Total - £1,300.00

Monthly Outgoings:

Rent - £50 - Living back at home!!
Council Tax - £0
Gas - £0
Electric - £0
TV License - £0
Sky £10.00
Mobile Phone - £75.00 (2 lines) Why two lines? Switch to PAYG and cut back, or ask for a better tariff.
Food - £75
Diesel - £120 Can you drive less and walk more? Plus, if you have a car, you haven't allowed for insurance, tax, MOT etc.
Socialising: £100 Coudl you have mates over rather than go drinking?
Internet: £35 Way expensive - you can get a good service for half this price
Payment of the ex's NTL: £45.00 - its still in my name, can I get out of this? The 12 month contract expires in Feb 07. If it is at another address, then send a letter explaining you have moved out and transfer it to her/new resident. If they won't let you do that, drop all the services to the minimum you can get away with, and have them cut the phone off, so no bills can be run up. Alternatively, transfer it to your parents place and cut a deal with them, or ask for a settlement figure to shut it down.

Total Expenditure exc Loans: £495.00

Debts (All unsecured):

Natwest Graduate Overdraft: £2,000 - currently interest free.
Natwest Graduate Loan: £5,780 - £141pcm @ 7.9%. Exp 07/2010
AA Visa Card: £1,450 - £35 min payment a month @ 12.9% Switch to a 0% card, or ask them to bring down the interest rate
AA Loan: £7,000 - £142pcm @ 8.9%. Exp 09/2010
Egg Loan: £2,200 - £60pcm @ 8.9%. Exp 08/2011
Virgin Mastercard: £3,500 - £90 min payment @ 15.9% Same as the AA card
Car Hire Purchase: £3,744 - £156pcm with two years remaining - I am planning on selling the car to clear this debt.

Total unsecured debt of £25,674. - £624pcm

Total Expenditure for month: £1,119
Total Income for month: £1,300
Difference: +£181

I can only just afford my payments, however, that £181 always seems to disappear. With my payday on the 24th, I've got £23 left - and I've sold an item for £150 this month to help. Sell as much as you can and throw everything at the highest interest rate debt! If you don't need stuff, liquidate the assets. You could try a spending diary - write down everything you buy, even for pennies... you'd be amazed where your money goes. I always am

Would an IVA be the way to go?Not yet... give everyone here a chance to help you first! YOur income still outweighs your outgoings, we just need to shave a bit here and there.

Just a start, and just my thoughts, but well done on facing up to it all now, rather than getting in any further. Oh, and welcome to the boards!

Good luck xx

bargainbetty

Wow, cross-posted with Lynz.... we seem to have all the same ideas! Now how would that ever happen!!

normal

Hiya timmyp!

Just a thought but aren't Graduate loans like student loans from my day? ie if you're not earning over x amount, then you're not obliged to pay them immediatly? If so, the interest rate on that is a lot lower and you should defer paying that and pay off the higher rate cards and loans first. Again, try and shift as much of your debt onto a interest free credit card. I'm sure someone can advise who's offering the biggest credit limits.
The rest has been said. I feel the mobile bill, but the internet costs need to disapear. The NTL cost you should be able to get away with. Say you were house shareing. NTL only take one name and so they took yours. Could have been you ex's but you called them and they took your name. She's not willing to pay all of the costs and you don't live there.

One other thing to look at. I don't know what your parents are like, or what they're situation is like with money, but you could have a chat with them and see if they'll let you off the rent etc. If they can see you've seriously altered your ways and you're already cutting maybe £200 of your costs, they may be willing to help that extra £100. Not many parents want to collect money off their kids in a situation like this as long as they can afford not too. Then again, it takes a lot to own up to your parents that you've put yourself in this situation.

TimmyP_2

Hi Normal :beer:

Cheers for the advice there mate. Already spoken to my mum and dad about changing to Sky BB as we can get that for a tenner a month once its up and running. Thats £25 saved, and I've cancelled a mobile contract which is £15 a month, so thats potentially £40 there. Plus, I'll give NTL a call about the ex's connection and see what they say. I've been struggling to pay that one, so they might not be that helpful.

Expecting a call from Payplan tonight and will see what they say. Gregory Pennington have offered an IVA at £366 inc management fee and a special "bank acocunt" as well.....asked for paperwork to check over the T&C's.....

Quincifer

The only other advice i'd give is about the socialising/food budget -
First and foremost, try to buy and cook in bulk, its alot cheaper and will go alot further. Also plan your meals a few days ahead if its possible, it'll stop you buying on a whim. Drinking at home is so unbelievably cheaper than drinking out. Perhaps you could organise regular evenings at yours and your friends houses where everyone brings round a few drinks and you could play a bit of poker or something(for fun of course, no wagers!). Or how about getting together with a few friends and taking it in turn to cook? If you could spare it you could turn it into a competition, everyone puts in £5 (or whatever) and the person who cooks the best meal gets the winnings! Makes it more fun and a good incentive to win too (we did it in our 8-person house and the winner ended up with £40!).
Just a few ideas for you. Well done for coming on here to ask for advice, i'm sure everyone will be able to help you sort things out.
xxx