Major debts - all advice needed!

jobelle

Hi all

ive sat down to sort my worrying finances out: here goes:

get paid on 15th of every month - varies as im in a bonused job but average after tax is £1600 (in nov its going to be £1300 so im v concerned)my outstanding non secured debts (not inc mortgage)


Debts:
overdraft on RBS current account - limit is £750 - today im up to £751.53 (
credit card - limit £6500 - up to £6510.43 (swapping this over to m&s low %)
RBS loan of £20k - is sitting at £19550 (a 15 year loan)
Student Loans - £7149.50

Building charge( due to come in jan 2006) £1000

TOTAL oustanding : £34961.46

Im 28 and have been sprending most of this stupidly since i was 22. £4k for a car and £6k to help furnish my first flat i bought in february of this year, student loan to help through college the rest - god knows) I admit that now I have a serious problem.

Fixed monthly outgoings

mortage -504.64
council tax - 108
telewest broadband and phone package - £65 (normally £45)
student loan compnay - £137.33
RBS loan - £190
RBS current a/c charge £6.00
MBNA credit card - £95
denplan - £16.67
tv license - £11.37
scottish provident policy insurance -£16.42
buildings & contents insurance - £14.53
Travel card - £36
Mobile £35 (average month)
Total - £1235.96


I am building a budget at the moment to draw in all my odds and sods spendings and sort out where all the rest goes. And make sure i stick to a budget for shopping, petrol, clothes, etc etc etc .


I do not have a spare room in my flat to rent. My morgage is fixed for another 18 months. I work away from home so staying overnight in various cities means it would be hard to get a part time job unless i took one at the weekend but im always knackered come weekend.

What i am looking for is advice on how to deal with the debts. The amount of interest that is accruing on my big rbs loan is virtually wiping out the £190 i pay every month. It is according to aperwork 3.5% above base rate so about 8%. I took this loan over such a long term to get a mortgage as it was based on affordability. i.e spare income after loans etc gone out. I know ive taken a risk buying as its an interest only im paying but i aim to revert after the 2 year period has ended. i so desperately wanted on the property ladder and i have bought a good property in good location.

all advise is greatly appreciated. I just want to get rid of these debts im so embarrassed by them. so to the point i split up with my partner when he talked about marriage because im ashamed to admit to him how bad it is. He thinks i have a car loan and a small overdraft. he is so smart and sensible with his money he wouldnt understand.

please help.

Mizz_Pink

Hi

I cant help with good advice with regards to your debt and some of your outgoings look ok, like phone and buidlings ins.

I am quite sad about you having to split up with your partner though because of it. What happens if your lucky enough to be proposed to again ?!! Honesty is always the best policy in my book, what a shame.

These days i dont know how people can be on the property ladder and live on their own.

I hope you get some proper advice on here, well done for starting it off by posting.

All the best.

CLAPTON

you really have to complete the SoA before much can be said. without that its not possible to see how much is left to over pay the debts. when you do this make sure you include all the quarterly (divide by 3) and yearly and one off spends (divide by 12 ) so yopu can see the full picture.

you need to find out the APRs for all your debts including O/D.
basically pay the minimun on each debt except the one with the highest APR, on that one you pay as much as you can afford..this will clear the debts in the shortest time....

lynzpower

is your council tax with a single persons discount?

jobelle

hi all thanks so muc fo the already speedy replies...what is an soa exactly is it something i complete on here??

*zippy*

Hi Jobelle welcome aboard :hello:

If you have a look at the link below it will show you how to do a SOA

http://forums.moneysavingexpert.com/showthread.html?t=107280

CLAPTON

a SoA (statement of affairs ) is simply a full list of income and spending and debts...you have already made a start but the spending part must include everything you spend each month and will spend over the next 12 months ...so you need to add obviously food/groceries, travel, etc but also utility bills (if quarterly divide by 3), annual bills e.g. car tax, car insurance etc (divide by 12 ) allowance for clothes...well basically everything.

oops_a_daisy

HI Jobelle and welcome to DFW - a SOA is a Statement Of Affairs - if you look at the sticky post on the list of threads called 'first time posters' you will find a template there.
All the best and good luck - OOPS

Mizz_Pink

Start a spending diary: write down everything you buy even if its a newspaper or sandwhich. The problem with me is taking £30 out the cashpoint and it lasting me 3 days ! Its a bit tedious but you may suprised at where your cash is going.

oops_a_daisy

if you cant find it I have put a link to it HERE

jobelle

thanks all for this help, i have made a start on SOA already. I have
been keeping a spending diary on every penny since 2nd oct - i didnt realise how much i spend in Boots the chemist, that was an eye opener. As soon as I complete the SOA for EVERYTHING i will post it. prettu much have worked out what my spend has been for last 3 months on everything anyway just want to check all my interest rates