Trying to get debt free...

Nemesis28

Hi there,

Reaching the grand age of 28 and im trying my hardest to become debt free. I had a few bad years where i let debt accumulate and i have a bad credit rating. I completed the data sheet but i dont know what the interest rates are.

My personal loan ends in Feb *hurray!!!* My two cards are both preference account cards which i know are horrendous... both are maxed out and im currently just paying the minimum each month.

I have been looking for a second job but right now, there arent many going about. Any advice would be great.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1600
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1600
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 170
Rent.................................... 500
Management charge (leasehold property).. 0
Council tax............................. 95
Electricity............................. 60
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 18
Groceries etc. ......................... 80
Clothing................................ 10
Petrol/diesel........................... 80
Road tax................................ 12
Car Insurance........................... 49
Car maintenance (including MOT)......... 20
Car parking............................. 8
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 3
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1189

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 8000
Other assets............................ 0
Total Assets............................ 8000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 8000.....(170)......NaN
Total secured & HP debts...... 8000......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Personal Loan..................400.......145.......0
Credit Card 1..................500.......20........0
Credit Card 2..................1000......48........0
Total unsecured debts..........1900......213.......-

Monthly Budget Summary
Total monthly income.................... 1,600
Expenses (including HP & secured debts). 1,189
Available for debt repayments........... 411
Monthly UNsecured debt repayments....... 213
Amount left after debt repayments....... 198
Personal Balance Sheet Summary
Total assets (things you own)........... 8,000
Total HP & Secured debt................. -8,000
Total Unsecured debt.................... -1,900
Net Assets.............................. -1,900

Happytogetdebtfree

Hi and welcome. The good thing is you are in positive balance. My advice would be to keep a spending diary if you have 198 spare a month it's not bad you could maybe pay an extra 98 on one of cc and then if you get to end of month with the 100 pit that on a cc that would mean in 56 monts you will have cleared the credit card and you can close down. Then possibly start over paying loan or save to pay off car finance. Now as for soa you don't advocate for gas? Do you only have electric. Council tax seems high is it over 12 months. If not request it is :-) all the best with things x

tealady

Hi
Although I am no longer in debt I was for a long time. Now I have a weekly housekeeping budget and if I come in under budget then I put it in my "treats" jar. You coud try this and pay any left over cash towards your debt. I would also keep a spending diary, it saved me from loads of small purchaces which ate into my budget.

determined_new_ms

Hi N - firstly I'd like to say your budgeting skills are excellent! Secondly do you know where the additional £198 is going each month? can you set yourself a limit of £50 spending money per month? and put the rest to debt repayment? I know its hard but it can be done! and put the rest to debt. Keep looking for a second job and one will come up over time - can you look in evening cleaning jobs? Are you able to sell a week's AL to go towards debt? Ebay things? Do you have a spare room you could rent out? Could you move in with your folks for a while? The lower the debt becomes the easier it becomes to kill it off.

Other than that don't loose heart because with committment you will get there. I earn a similar amount to you and have cleared £5000 since January - its been tough but the more I've thrown at it the quicker its gone down (there's a running joke in our family that I will sell anything that's not nailed down!) and the quicker it goes down the more motivated I become. Good luck x