new to site and would love to have your feedback

Louise06_2

Hi

I have been reading through the great advice on this site and cant believe how helpful it has been to me. I have used lots of your tips and would be greatful for any tips or advice anyone can offer me.

I have 3 debts the first one which is the biggest and i cant believe after paying off over £5000 i still owe a few hundred more than i borrowed

Anyway here goes....

debt 1 £25,600 8.9%
debt 2 £2,365 (was 15.9% but today my new credit card came through for 0% for 8 months and then to 26% after )
debt 3 £4,200 13.9%

I cant believe i have just typed this - it feels very scary seeing my debt on the screen but i really would appreciate any advice that anyone can give me about cutting my spending and clearing my debts. I had my lightbulb moment at the end of July and realised the only way to get through this was to add everything up and make a start at trying to pay it all back.

I have just started a new job and will be earning £1,535 per month. I am thinking that i should be paying the debt 2 off before 8 months 0% interest are up. Is this the best thing to do, i am a little confused with the snowballing page?

Smashing

Can you post a full SOA (see top of board) including all sources of income and expenses?
And if you're not already, start keeping a spending diary to see where that money 'disappears' to.

southernscouser

Welcome to the DFW board Louise! :beer:

Your in good hands with [STRIKE]me[/STRIKE] us! :cool:

As Smashing said post a SOA (see this thread) and then we will see what we can do for you.

beanielou

Welcome aboard Louise06
Look forward to seeing your SOA

lil'H

welcome Louise, get your SOA up and lets see how far everyone on here can stretch that £1535 monthly wage!

lil'H

Louise06_2

thank you all so much for responding xx

I share with one other person who has suggested that we both put £200 towards bills food and toilitries as we each take it in turns to collect them =see break down below:
Gas not sure exactly but they have estimated £30
electricity same thing they have estmatd about £25
council tax £89
tv/landline/broadband and cable channels £43
tv license £11.00
remainder on food and toiletries

---

£53 on a travel pass ( i used to waste alot of money on cabs
£360 on loan
£55 minimum repayment on credit card (debt 3)
£10 minimum repayment on credit card ( debt 2)
£10 pay as you go mobile
£330 on rent

I realised i used to spend alot of cash on snacks, lunches, cabs and going out, but have tried to stop this since starting my new job last month.

I would like any suggestions as to which order i should attempt to pay the debts and where to go from here - So far I have been reading through this site and watching spendaholics to get hints and over the last month have been really thinking about things before i buy them and using cash instead of cards.

look forward to seeing your replies

southernscouser

Firstly I wouldn't give this other person £200! :eek:

Can you explain what the situation is? Have you both just moved in somewhere together or are they an old tenant or something? :think:

Council tax - Is it just you paying the £89 a month? Surely your CT can't be £2,136? :eek:

Thos figures you have put, are they just what you pay or what you pay each? Sorry but it's late!

Louise06_2

i have just been reading other threads and i think this is a clearer SOA

£ 15 Gas (estimated)
£ 12.50 Electric (estimated)
£ 44.50 council tax
£ 22.50 tv/landline/broadband and cable channels
£ 5.50 tv license
£100.00 food and toletries
£ 53.00 travel pass
£360.00 loan
£ 55 minimum repayment on credit card (debt 3)
£ 10 minimum repayment on credit card ( debt 2)
£ 10 pay as you go mobile
£330 on rent

I will start my spending diary today - thanks

Annie_Fanny

Louise

If you want to Snowball (in order to pay the least back in interest) then you would target the debt repayments by highest APR first so you would target it like this:

debt 3 £4,200 13.9% (You would overpay on this as much as you can possibly afford.)
debt 1 £25,600 8.9% (Is this a consolidation loan? You would need to pay the specified amount, i.e. £360)
debt 2 £2,365 0% (You would just make the minimum payment on this card each month so that you do not incur any charges.)

If would help if you did and even clearer SOA. Have a look at this post for details (i.e. seperate out debts, income and outgoings):
http://forums.moneysavingexpert.com/showthread.html?t=107280

We need to see if we can squeeze any more out of your budget and get you some more money coming in.

Do you work weekends? Could you get a part-time job? I have just started working at an Estate Agents at the weekend as a receptionist to bring some extra pennies in.

I personally don't think putting in £200 with your housemate is a good idea. As £400 a month for two is astronomical! Have you had a look at the Old Style board for info on costcutting? You would probably want to be looking at say £100 a month for yourself saving a whooping £100 to throw at your debts!

Post back when you can.

Annie

Annie_Fanny

Or you could try applying for a low life of balance card...

This one is recommended by Martin Lewis....

http://www.barclaycard.co.uk/creditcards/c/?TC=AFSQA11617

southernscouser

Well after all those outgoings you should have £517 left a month wich is excellent. Obviously you still have to budget for things like birthdays, christmas, eye care, teeth care, that sort of thing but I reckon maybe saving £50 a month should sort that.

I would be a bit worried by the £100 a month for food and household products though. By combining it you are both forced to either eat the same things or help pay for something you don't want.

A few people on here get by on £50 a month for all their food and household products. Decent healthy food aswell. Might be something to consider. :think:

Have you seen the snowballing calculator? You can find it here.