I need some help please

inspiron

Hi
Thanks for listening
I have run into some debt, and would be grateful for all the help.
I have 2 credit cards and owe more than £5000 in total. I would appreciate all advice given.
Thanks

Tixy

Hi insprion

First I guess is can you afford to make the minimum payments currently? are you up to date with payments?
Have you worked out a budget to see how much you can afford to put towards them each month? - if not then this is a good one to use - http://www.makesenseofcards.com/soacalc.html Paying even just a little bit more than the minimum each month will make a big difference to how long it takes to clear the debts.
What are the APRs on the 2 cards? do you have any other debts?

Are you working currently?
What is your credit history like? if you have a good history (no missed payments or defaults etc) and not too much credit compared to your income have you considered whether you might be able to get a new 0% card and transfer at least one of the balances across to that?

savingwannabe

Hello Inspiron. Welcome. It would be really useful if you can fill this statement of affairs in. Then helpful people on this site can look for ways to help you once they have a full picture of your financial circumstances. hope the weather is nice by you it is overcast here!
http://www.makesenseofcards.com/soacalc.html

savingwannabe

Well done Tixy gosh you are a fast typist and beat me to it!

inspiron

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2800
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2800

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 800
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 120
Gas..................................... 40
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 12
Mobile phone............................ 100
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 7.5
Groceries etc. ......................... 400
Clothing................................ 20
Petrol/diesel........................... 200
Road tax................................ 12
Car Insurance........................... 50
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 200
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2151.5[


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................3187......71........15.9
HSBC Credit card...............2277......57.5......15.9
overdraft......................500.......0.........0
Total unsecured debts..........5964......128.5.....-


Monthly Budget Summary
Total monthly income.................... 2,800
Expenses (including HP & secured debts). 2,151.5
Available for debt repayments........... 648.5
Monthly UNsecured debt repayments....... 128.5
Amount left after debt repayments....... 520

Personal Balance Sheet Summary
Total assets (things you own)........... 1,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -5,964
Net Assets.............................. -4,464

inspiron

thanks very much for listening
iam working, can make minimum payments.
iam also moving house in 3 wks, as the rent is lower (£700) there. But that will also mean I will have to cough up 700+800 (deposit) =1500 !!

inspiron

also so that you are aware, I did do a balance transfer from HSBC to Barclaycard, but I was totally unaware of the minimum payment catch, so Iam having to pay standard APR instead of 0%.

JohnD76

inspiron wrote: »

thanks very much for listening
iam working, can make minimum payments.
iam also moving house in 3 wks, as the rent is lower (£700) there. But that will also mean I will have to cough up 700+800 (deposit) =1500 !!

But you should get your deposit back from your current place in the next few months surely too?

JohnD76

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2800
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2800

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 800
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 120 - This is very very high
Gas..................................... 40
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 12
Mobile phone............................ 100 - -Two iphones perchance?
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 7.5
Groceries etc. ......................... 400 - this can be reduced
Clothing................................ 20
Petrol/diesel........................... 200 This is high
Road tax................................ 12
Car Insurance........................... 50
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 200 - what does this include?
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2151.5[


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................3187......71........15.9
HSBC Credit card...............2277......57.5......15.9
overdraft......................500.......0.........0
Total unsecured debts..........5964......128.5.....-


Monthly Budget Summary
Total monthly income.................... 2,800
Expenses (including HP & secured debts). 2,151.5
Available for debt repayments........... 648.5
Monthly UNsecured debt repayments....... 128.5
Amount left after debt repayments....... 520 - this is good news.

Personal Balance Sheet Summary
Total assets (things you own)........... 1,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -5,964
Net Assets.............................. -4,464

dreamywings1

inspiron wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2800
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2800

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 800
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 120 seems high, can you reduce this? try comparison sites
Gas..................................... 40
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 12
Mobile phone............................ 100 WOW can you not get a cheaper tarriff
TV Licence.............................. 0 ? You need 1 of these
Satellite/Cable TV...................... 0
Internet Services....................... 7.5
Groceries etc. ......................... 400 check OS for tips to reduce this
Clothing................................ 20
Petrol/diesel........................... 200
Road tax................................ 12
Car Insurance........................... 50
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 200
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2151.5[


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................3187......71........15.9
HSBC Credit card...............2277......57.5......15.9
overdraft......................500.......0.........0
Total unsecured debts..........5964......128.5.....-


Monthly Budget Summary
Total monthly income.................... 2,800
Expenses (including HP & secured debts). 2,151.5
Available for debt repayments........... 648.5
Monthly UNsecured debt repayments....... 128.5
Amount left after debt repayments....... 520

Personal Balance Sheet Summary
Total assets (things you own)........... 1,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -5,964
Net Assets.............................. -4,464

The good thing is that on paper you have more than £500 to throw at your debts, but I guess in reality this isnt the case. Keep a spending diary and record every chocolate bar, newspaper etc just so you know where your money is going.

Try snowballing as this will reduce the amount of interest you pay in the long run.

Good luck

Dreamyx

savingwannabe

Hello i have to go to work in a bit but i reckon you could save a lot of money on your shopping if you dropped a brand and bought supermarket own brands which are far cheaper and usually as good quality as the premium brands.

Gosh those mobiles are v expensive. Can you reduce your contracts down?

Also keep a spending diary of where your money goes. It is v useful.

You may also wish to look at changing electricity supplier too.

Just a quick glance off to work, good luck and well done in posting.