£29K in loans, credit cards & property bills. Where to start? Please Help!!

HappySad

I have generated over £29,000 of debt and I don't know were to start and what to do about this.

Income
£15,000 => £950 / month


Outgoings
Rent £360 (includes gas, electricty, counciltax, water, everything to live)
Food + lunch £160
Mobile £30 (3 mobile 500 mins talk)
Transport £10
Clothes £10
Social Life £10
Others £10
Total ==> £590


Debt
HSBC (arranged overdraft ? APR) £300
Barclays (un arrangesd overdraft - ? % APR) £700
Sainsburys - Credit Card (?%APR - ? limit) £2900
Egg - credit card (?% APR - ? Limit) £4100
Virgin - credit card (?0% - ? Limit) £3900
First Direct Loan (? APR) £8100
Frist Driect Current Account (unarranged over draft 10.4%APR) £900
Council Tax £3000
Electricity Bill £3000
Friend £2000
Total Debt ===>£28,900


Can you give me advice about what to do? I would think that getting a large loan on a very low interest to pay it all off then just pay off the loan would be the solution... that would allow you to pay off lump sums if possible. But really don't know what to do.


Need the most simplist method to deal with all this as I am not effective in anyway at dealing with things which is why I got in this distuation in the first place. I have two weeks off work from Monday and I am to start to tackle this problem during my time off. I have left this problem without doing anything for nearly a year and I now must have to do something about this .. PLEase Please HELP!!!!!!!

NB: Will get back to you about the interest rates for the credit cards/loans and also credit limits.

((NB: This thread is on behalf of a friend. "I" refers to this friend))

moozie_2

Hello happysad

Good on you for wanting to help your friend. We need more information before we can even attempt to offer any advice. Please post a full statement of affairs (SOA) - see here for guidance http://forums.moneysavingexpert.com/showthread.html?t=107280

I am sure the good advice will be plenty after that

HappySad

Thanks Moozie. I have updated the first entry with more information. Friend will get back about the interest rates and update this soon.

*stargazer*

I am new on here, but I wish your friend luck, I am sure she will get a lot of help and support on here xx

HairyHandofDartmoor

Are you gas/electricity/water/council tax/land line bills included in your rent, as I don't see any mention of these in your soa (other than the arrears)?

HappySad

Updated details to show what the rent includes

James240

Do you prepare your own lunches?? cos if ur eating out i.e. pub that normally consumes alot of money that can be used to pay off extra on the debts

lynzpower

First off your freind needs to start a spending diary, literally knowing where EVERY penny goes, down to a newspaper, packet of crisps ( my fave!) or can of coke. Literally everything.

Your mates transport looks REALLY low do they usually walk to work etc?

it would also be good to know whether your mate has been paying the min payments, and irf so what they are.

another thing that is absolutely imperitive, is that they tackle this council tax arrears head on. and once a SOA is completed, to look at what spare money there is, even if its a token payment to CT. CT can get very nasty, and Id urge them to sort this out asap

good luck

Mrs_Sparkle

Are you sure your friend has covered everything in the SOA? The social life costs are very low and it is unrealistic not to have any expenditure for presents, birthday cards, haircuts etc.

Your friend is taking the right step by posting on here- there are plenty of us here to support him or her.

loubie_lou

How come your friend owes so much on council tax and electricity?

Jaymz

Hi and welcome to the forum.

If I was in your situation I would start by cutting up the cards, pay them all off with a large loan and then close the accounts!
You would need to be very disiplined not to start using cards again though. Lowering your outgoings is the best thing to start doing - make your own lunches, it will save you a fortune.