Newbie on Debtfree - any suggestions anyone?

dbushes

Good afternoon all DFW,

Over the last 2 weeks I have started living up to the reality that I am in debt and need to do something about it.

Total debt £36592.26 and included in this is £21295.76 are for credit card debts racked up in my mission to have a bloody good time. Well bloody good time had but now time to pay the piper as it were.

So my fellow DFW I would appreciate your help, assistance, ideas, words of encouragement. Feel free to PM me if necessary.

Thanking you in advance for any and all support given.

dbushes

I have started debtfree regime by allocating any new money earn't to my highest rated creditcard. It was suggested I look at selling off anything in the house that I do not need i.e. mountains of books collected over the years, clothes that are in good condition but no longer worn and that fit me.

So I put some bits on Amazon and guess what a book sold. So here's to my first £6 (profit) to go to my Credit Card.

So this month I look to make extra payments of £106 (it's a start - right).

Hannah_10

Good afternoon dbushes, well done for taking the first steps. £37k sounds a lot but it might be that your annual salary is four times that, in which case it's miniscule, or that your salary is four times that but it's all spoken for bar £20 a week... So what we'd be needing to see, if you wanna share, is your SOA. Have a read of the following post and then click through to the very useful SOA generator. You can copy& paste us the results.

https://forums.moneysavingexpert.com/discussion/107280

dbushes

Good evening Hannah_10,

Well I took the plunge and done the SOA. Makes for interesting reading:

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................ 1973.26
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1973.26

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 385
Management charge (leasehold property).. 0
Council tax............................. 93
Electricity............................. 35
Gas..................................... 49
Oil..................................... 0
Water rates............................. 35.01
Telephone (land line)................... 15
Mobile phone............................ 90
TV Licence.............................. 12.12
Satellite/Cable TV...................... 60
Internet Services....................... 15
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 50
Road tax................................ 17.91
Car Insurance........................... 55
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 9.42
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 35
Emergency fund.......................... 0
Bank Loan............................... 313.13
Total monthly expenses.................. 1414.59


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4500
Other assets............................ 0
Total Assets............................ 4500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
RBS............................5434.29...123.......24.9
Barclaycard cashback...........3826.12...76.52.....25.08
MBNA...........................4103.27...126.9.....30.35
Barclaycard....................3420.36...78.44.....24
Citicard.......................4511.72...159.7.....30.94
Total unsecured debts..........21295.76..564.56....-


Monthly Budget Summary
Total monthly income.................... 1,973.26
Expenses (including HP & secured debts). 1,414.59
Available for debt repayments........... 558.67
Monthly UNsecured debt repayments....... 564.56
Amount short for making debt repayments. -5.89

Personal Balance Sheet Summary
Total assets (things you own)........... 4,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -21,295.76
Net Assets.............................. -16,795.76

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

Looks like I might need to make some further adjustments to my out goings.

Thanks for the advice.

andrea1968_2

Look at the snowball calculator for your credit cards so that you throw every single penny at the one with the highest interest rate and just pay the minimum on the others. It will save you pounds and pounds in the long run.

I know that I wish I'd discovered this site when I had my lightbulb moment, I would be debt free by now, but thankfully only another 8 months to go.

If you don't use it, wear it, need it - sell it.

bottleofred

Hi Dbushes,

I've made some suggestions for you to save some money, but don't worry as people with more knowledge than me will be along soon. Good luck

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................ 1973.26
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1973.26

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 385
Management charge (leasehold property).. 0
Council tax............................. 93
Electricity............................. 35
Gas..................................... 49
Oil..................................... 0
Water rates............................. 35.01
Telephone (land line)................... 15
Mobile phone............................ 90 Incredibly high as a payg would cost somewhere around £10-£15 per month
TV Licence.............................. 12.12
Satellite/Cable TV...................... 60 This is going to have to be reduced to a cheaper package
Internet Services....................... 15
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 50
Road tax................................ 17.91
Car Insurance........................... 55 Very expensive, try some comparison websites
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 9.42
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 35 This is going to have be decreased
Emergency fund.......................... 0 You may want to consider putting something in here in case of emergencies
Bank Loan............................... 313.13
Total monthly expenses.................. 1414.59


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4500
Other assets............................ 0
Total Assets............................ 4500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly.. .APR
RBS............................5434.29...123...... .24.9 Can you get any of these cards switched to a 0% balance transfer which would save a lot of interest?
Barclaycard cashback...........3826.12...76.52.....25.08
MBNA...........................4103.27...126.9.... .30.35
Barclaycard....................3420.36...78.44.... .24
Citicard.......................4511.72...159.7.... .30.94
Total unsecured debts..........21295.76..564.56....-


Monthly Budget Summary
Total monthly income.................... 1,973.26
Expenses (including HP & secured debts). 1,414.59
Available for debt repayments........... 558.67
Monthly UNsecured debt repayments....... 564.56
Amount short for making debt repayments. -5.89

Personal Balance Sheet Summary
Total assets (things you own)........... 4,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -21,295.76
Net Assets.............................. -16,795.76

dbushes

Hi Andrea1968,

Thanks for the message the support really does help to inspire.

I checked the snowball calculator and it is similar to something a friend told me a little while ago (should have paid more attention).

Am going to be throwing everything I can at the credit card with the highest interest and when that is paid, I will pay everything (including that money) against the next one highest credit card.

I am currently working on getting some additional work and all new money will be paid against that one too.

This is me on my debt free journey.

Thanks again.

dbushes

Hi Bottleofred,

Thanks for the suggestions.

Will look at these tomorrow during my lunch break and reduce these outgoings.

The support give already is brillant.

Watch this space, I will be debt free - I WILL BE DEBT FREE.

pebblespop

dbushes wrote: »

Good evening Hannah_10,

Well I took the plunge and done the SOA. Makes for interesting reading:

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................ 1973.26
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1973.26

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 385 this is good
Management charge (leasehold property).. 0
Council tax............................. 93 can you pay over 12 months?
Electricity............................. 35 these are a bit high - switch everything off
Gas..................................... 49 as above
Oil..................................... 0
Water rates............................. 35.01 can you go on a meter?
Telephone (land line)................... 15
Mobile phone............................ 90 this is REALLY high
TV Licence.............................. 12.12
Satellite/Cable TV...................... 60 cut this right back - go on freeview if possible
Internet Services....................... 15 can you reduce this through virgin/sky? i pay £37 for sky,internet and phone
Groceries etc. ......................... 100 this is good
Clothing................................ 0
Petrol/diesel........................... 50
Road tax................................ 17.91
Car Insurance........................... 55 have you shopped around for this
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 9.42
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 35
Emergency fund.......................... 0
Bank Loan............................... 313.13
Total monthly expenses.................. 1414.59


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4500
Other assets............................ 0
Total Assets............................ 4500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
RBS............................5434.29...123.......24.9
Barclaycard cashback...........3826.12...76.52.....25.08
MBNA...........................4103.27...126.9.....30.35
Barclaycard....................3420.36...78.44.....24
Citicard.......................4511.72...159.7.....30.94
Total unsecured debts..........21295.76..564.56....-


Monthly Budget Summary
Total monthly income.................... 1,973.26
Expenses (including HP & secured debts). 1,414.59
Available for debt repayments........... 558.67
Monthly UNsecured debt repayments....... 564.56
Amount short for making debt repayments. -5.89

Personal Balance Sheet Summary
Total assets (things you own)........... 4,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -21,295.76
Net Assets.............................. -16,795.76

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

Looks like I might need to make some further adjustments to my out goings.

Thanks for the advice.

a few ideas for you here

t4mof

dbushes wrote: »

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................ 1973.26
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1973.26

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 385
Management charge (leasehold property).. 0
Council tax............................. 93
Electricity............................. 35
Gas..................................... 49
Oil..................................... 0
Water rates............................. 35.01
Telephone (land line)................... 15
Mobile phone............................ 90 - Ouch! Assuming this is contract, try PAYG. £10 each month to Virgin Media gets you 300 free texts for the following month or £5 a month to O2 will give you unlimited free texts. Even reducing this by half would free up some cash to pay towards your debt.
TV Licence.............................. 12.12
Satellite/Cable TV...................... 60 - can you get this and internet as a bundle??
Internet Services....................... 15
Groceries etc. ......................... 100 - this is good
Clothing................................ 0 - nothing, ever?
Petrol/diesel........................... 50
Road tax................................ 17.91
Car Insurance........................... 55 - shop around and use Quidco for cashback
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 9.42
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 35 - is this booked? If not, use it to pay debt
Emergency fund.......................... 0
Bank Loan............................... 313.13
Total monthly expenses.................. 1414.59


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4500
Other assets............................ 0
Total Assets............................ 4500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
RBS............................5434.29...123.......24.9
Barclaycard cashback...........3826.12...76.52.....25.08
MBNA...........................4103.27...126.9.....30.35
Barclaycard....................3420.36...78.44.....24
Citicard.......................4511.72...159.7.....30.94
Total unsecured debts..........21295.76..564.56....-

These interest rates are painful! But I think you can pull £100-£150 a month back from your expenses (mobile phone, TV, internet as priorities) Take each card one at a time and use your extra cash to increase your payments. It'll take some time and you haven't got any smaller debts to clear first and give you that boost but I think it can be done. Have you tried applying for any 0% cards which will help in clearing the debt quicker??

Monthly Budget Summary
Total monthly income.................... 1,973.26
Expenses (including HP & secured debts). 1,414.59
Available for debt repayments........... 558.67
Monthly UNsecured debt repayments....... 564.56
Amount short for making debt repayments. -5.89

Personal Balance Sheet Summary
Total assets (things you own)........... 4,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -21,295.76
Net Assets.............................. -16,795.76

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

Looks like I might need to make some further adjustments to my out goings.

Thanks for the advice.

Good Luck!

dbushes

Hi Pebblespop,

Thanks for responding to me. It's amazing so many people are offering me such good advice and support.

Thanks for the suggestions. I am currently on my lunch break and looking at my mobile phone bill and my car insurance which is due for renewal in October.

Everyone who has responded have all highlighted most of the same areas.

I will be looking into these in more detail on my next day off.

Right off to find cheaper car insurance (sounds like an advert lol).