Advice wanted on how to tackle debt

hummy

Just recently i have noticed that i hardly have any money left towards the end of the month and i figured i really need to try and sort out my escalating debt levels and really work out my finances.
I earn about £2100 per month after tax.
The two things that are really killing me are the credit cards. One is with MArbles who have recently taken teh intereste rate upto 33% and the other with Barclays who i managed to get them to reduce the interest to 12%. However the problem is these cards are maxed out. I rather regret getting them now but hindsight is a great thing. In actual i didn't use the cards myself. Both are maxed out with payments to Bailiffs for my dad and brother. This was a few years ago before i found this site. They were both heat of the moment transactions as the bailiffs were in the house and about to take stuff which i purchased, but officially this is my mum and dads residence. So helping both my family members out and yet not a single payment has come to me. For the last few years i have been paying £180 and £150 a month respectively on both cards. I really do need to try and sort these debts out.
The problem is i don't have the funds to be able to pay both these off. I think together the balances would be £12K.
But i really do want to pay them off somehow as they are crippling me. I have much better uses of £300 per month.
I have spoken to both comapnies and although barclays reduced the rate marbles were unable to do anything since i wa meeting my minimum payments. So i am thinking of just stoipping payments to both lenders for them to be able to offer me some sort of payment plan. The other option i was thinking was a full and final settlement perhaps and close the account. I have access to about £4K which i could use to pay them both off if they agree.

Can anyone recommend me the best course of action to take please as i really need to try and get my finances back on track.
Thanks
Hummy

dreamywings1

Hi Hummy,
If you post your SOA then im sure the lovely people on MSE can give you some helpfull tips.
You can find the calculator HERE
Will pop back later to see how your getting on
Dreamyx

hummy

Here is my SOA.
I actually live with my parents but since neither of my parents work i pay the mortgage and buildings insurance and also have to give them some money occasionally towards their expense. Although both of them are great and never force me to give them money i feel a sense of responsibility towards them and so pay them an amount to help them out.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 4
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2100
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 100
Total monthly income.................... 2200

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 180
Rent.................................... 380
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 50
Gas..................................... 50
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 10
Mobile phone............................ 40
TV Licence.............................. 10
Satellite/Cable TV...................... 21
Internet Services....................... 15
Groceries etc. ......................... 0
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 20
Car Insurance........................... 100
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 200
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 25
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1511


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 6000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 5000.....(180)......12
Total secured & HP debts...... 5000......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclays Credit Card...........6000......150.......12
Marbles Credit Card............7000......180.......33
Bank of Scotland Loan..........5000......75........6
Total unsecured debts..........18000.....405.......-


Monthly Budget Summary
Total monthly income.................... 2,200
Expenses (including HP & secured debts). 1,511
Available for debt repayments........... 689
Monthly UNsecured debt repayments....... 405
Amount left after debt repayments....... 284

Personal Balance Sheet Summary
Total assets (things you own)........... 6,000
Total HP & Secured debt................. -5,000
Total Unsecured debt.................... -18,000
Net Assets.............................. -17,000

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

dreamywings1

hummy wrote: »

Here is my SOA.
I actually live with my parents but since neither of my parents work i pay the mortgage and buildings insurance and also have to give them some money occasionally towards their expense. Although both of them are great and never force me to give them money i feel a sense of responsibility towards them and so pay them an amount to help them out.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 4
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2100
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 100
Total monthly income.................... 2200

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 180
Rent.................................... 380
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 50
Gas..................................... 50
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 10
Mobile phone............................ 40
TV Licence.............................. 10
Satellite/Cable TV...................... 21
Internet Services....................... 15
Groceries etc. ......................... 0
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 20
Car Insurance........................... 100 wow this is high, try a comparison site to get a better deal
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 200 Whats this for?
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 25
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0 ?
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1511


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 6000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 5000.....(180)......12
Total secured & HP debts...... 5000......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclays Credit Card...........6000......150.......12
Marbles Credit Card............7000......180.......33
Bank of Scotland Loan..........5000......75........6
Total unsecured debts..........18000.....405.......-


Monthly Budget Summary
Total monthly income.................... 2,200
Expenses (including HP & secured debts). 1,511
Available for debt repayments........... 689
Monthly UNsecured debt repayments....... 405
Amount left after debt repayments....... 284

Personal Balance Sheet Summary
Total assets (things you own)........... 6,000
Total HP & Secured debt................. -5,000
Total Unsecured debt.................... -18,000
Net Assets.............................. -17,000

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

Ive put afew suggestions in but the good thing is that you have surplus cash each month. Try messing around with snowballing see what you can come up with.

Someone will be along later to give you more advice.

Good luck
Dreamyx

hummy

Ok my car insurance is about £800 on the car i have. My monthly wage does incldue a car allowance as i need it for work. When i was searching for insurance that was the cheapest i could get. I'm paying in installments over 9 months i think it is.

The opther travel is also work related. Mainly Trains to get to customers in London. I pay out of my pocket first and then get reimbursed a couple of weeks later. But it does mean cashflow is tight a few weeks.

hummy

I really want to make some headway on the credit cards. But not sure how to approach that.

dreamywings1

Could you not try transferring some of the balance for the highest interest card to a 0% card then overpay on the others

hummy

I thought of that but the first lender i went for a 0% card refused me...and i don't want to try any others due to the credit report footprint.