Out of my Depth

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RAS wrote: »

Hi

And you and OH have to have a very honest discussion about your inability to live on a very high salary.

RAS has stated the crux of the problem. Take a hatchet to everything you take for granted, everything you spend and take it right back to the minimum.

That way you can hopefully sort this.

Sloley777

Realise that items like road tax I have put in yearly amount an not monthly...I'll look and input tomorrow and post again.

Little_Miss_Uni-Debt

Hi,

Well done on posting your SOA, I know it can be tough to write it all down when you want to avoid thinking about it, however you will get lots of relief when you see that total reducing down.

First thing I notice is that your outgoing of £810 pcm for your payday loans etc is the shortfall on your monthly debt repayment. If CCCS will let you add the extra 10k debt onto your plan based on the repayment scheme you are working to with them already it would add about £50 to your monthly CCCS repayment maybe? (Guesstimate) This would then leave you able to put away for next year and save for great holiday and luxuries.

I have worked out some example SOA's for you. One for now including saving for next year and one for next year when you are ahead on annual payments. They clearly show you can still live a very luxurious life, meet repayments and have surplus left over! I will await some changes to a few of the figures. Let me know if you would like me to post them for you.

At the end of the day because you have such an excellent income companies keep lending to you! Most people only take stock of their debts when their credit runs out, in your case this is a very high amount. I'm sure it will be much easier to manage once you have your new debts added onto your DMP (if possible)

I'd like to echo what others have said really and a few extra points. The main one is PAY-DAY loans are the most important issue. Cut back and get rid of them! They are very bad news! Other things include...

1)Exact balances on your store cards/ Payday loans and the exact APR you are paying. (If this is at differing rates for cash vs purchases on credit cards include those rates too, for example 1 Credit card - £500 cash @ 25% Apr and £1000 purchases @ 15% apr) You will need to know these details inside out. So start with VERY accurate figures. Also make a note of how much interest in £'s is being added to each debt - that will be your motivation!!

2)Start to review annual expenses, divide by 12 and incorporate these in your budget (so you are putting away for next year for TV, Car insurance Tax etc like you are doing with your car repairs)

3)It seems the car is a huge expense! Is the welcome car finance really only £50 a month? How long is left to run on that agreement? I thought it would be more like £200? Also what is the apr, if the sticker price on the car was £10k we need to know how much you are actually paying back. Currently your SOA shows that it is costing £700 per month to run your car? Is that right?

4) Look into combining your satellite, internet and home phone package. You could immediately save around £70 per month by still having sky but cutting down the packages to just 1 or 2 special channels. I had a look on their website and you can it installed, phoneline, all of the packages, HD packages, multi-room, free calls and unlimited broadband for £75 pcm and all of that isn't necessary so you can make a great saving!

I think if you start allocating money physically shortly after payday into savings accounts then you will be prepared you don't even notice it go out. Then every payment that crops up doesn't leave your account in trouble. One thing this site has taught me is that mixing essential recurring monthly bills with personal spending doesn't work. Separate and it will be made simple for you.