First post and some major debt help needed!!Please

dancingfairy

It sounds like the plan then is to reclaim gas/electric credit - 240 pounds? , pay council tax money for the next few months on to the debts (that's another 98 a month) and then it's a case of anything extra you can earn/save to go towards those debts - maybe from a few hours overtime, a car boot sale, a bit of ebaying etc.
Good Luck
df

gtyrel

Katie-Kat-Kins wrote: »

Well in that case you don't need to worry about your extra £37 for "long months" £200 is covering it with a surplus.

You do need to identify where your surplus is going because your first post sounded like you are really struggling and panicking but it looks as though you have £200 spare at the end of the month to chuck at your debts - that means you should be able to clear them even if you keep the car!

I am really panicking because i have just never been in the situation before and have never had this sort of problem! all through uni i never had any debt like this. so it just feels weird and i just worry about it non stop. Even tho i am paying my bills each month, i just feel sick having that credit card there when i just want the whole thing paid off and gone!

Katie-Kat-Kins

I think the key is for now (unless you have a 0% deal or similar at on your credit card) to cut your outgoings as much as possible. Then you use any money you don't need for your usual day to day expenses and bills to pay more than the minimum payment off your credit card. Keep making the standard payments to the loan and then when the credit card is paid off see about overpaying the loan.

In the meantime don't take out any further debt, or use the credit card.

On that basis you will get out of debt with no adverse effect on your credit rating.

Don't panic.

Work out a way to organise your finances that works for you. I'd be inclined to use your SoA as a budget, when your pay goes into your bank account take work out how much you need for everything (maybe use a separate account for your DD bills and things and transfer the money accross) pay the surplus over to your credit card so that you don't get tempted to spend it. The day before payday, check your bank and see whether you have any money left over (you might be able to beat your budget by being careful) and transfer your left over to pay off the credit card too.

Do this every month until the credit card is paid off.

You might want to leave yourself a small buffer of cash in your bank account to avoid going OD.

It would be worth checking the apr of your credit card and seeing whether you can get a 0% balance transfer or similar to cut the interest you are paying. As you haven't defaulted and therefore presumably have a decent credit score this might be possible.

But really don't panic, although it isn't ideal your debts are manageable.

gtyrel

Domino9 wrote: »

Is your ex officially off the mortgage? - or is he able to come back once you have paid it and demand equity from the house?

Expenditure
C.Tax: If you are up to date on your council tax until April then pay the extra £98 towards the debt with the highest APR.

If you are in credit with the gas and electric company(ies) claim this money back, you are not recieving any interest by keeping extra cash with them, and you are being charged interest on the debts you are paying.
Also, regardless of whether you are in credit with them or not ensure that you are on the cheapest tariff for your area (check comparison sites, and often if you go through Quidco you will get cashback)

Water: Are you not paying any water rates? If you are and you don't have one already, as you are living alone, consider a meter as it will work out less.

Mobile phone: call the company even if you are tied into a contect, often you can drop a tariff even if you cannot cancel

Entertainment: you have mentioed in a later post that you do go out and meet with friends etc, put this in your budget

Waxing: £60 a month is not something you need to be spending on this at the moment, it's a luxury - see if you can either do it yourself, or if you have a local college then see if they offer this (it will be much cheaper)

Assets
Cash (100) - pay this towards the debt that is charging the highest APR
Car and engagement ring could pretty much clear all your debts - but these are decisions that I imagine are not easy

Debts
You need to find out the APR of your credit card, to see how much it is actually costing you every month, pay your excess (£98 from council tax until April, and surplus at the end of every month (£279?), and your cash asset - £100) off the debt with the highest APR (most likely the credit card, unless you are on a 0% deal or special introductory rate)

See if there is an early repayment charge on the loan, or if you are allowed to make overpayments without being penalised too heavily

You seem to be doing okay, but if you don't have the surplus (£279) at the end of the month then you need to keep a spending dairy to see where your money goes - note down everything that you buy including the small things, and you will see where you are rerally spending your money (coffees, magazines, newspapers, lunch out, top-up shopping etc) and once you know where it's going, you'll be able to see where you will be able to cut back

Hope this helps, Domino9

Hi thnak you for all your help, i dont no what Water Rates are? Thats not something i have ever paid for?

I totally agree if i could get my car sold it would make things alot better, i have now been trying to sell it since October, it is still up for sale. my ring is another matter i am just not ready to part with that yet. But the car i am trying to get it sold its jsut not shifting.

My end of month surplus is probably closer to the £140 mark, and i dont like using all of that incase something happens. because i am normally down to £140 about 5 days after payday!

Verbatim

Domino9 wrote: »

Is your ex officially off the mortgage? - or is he able to come back once you have paid it and demand equity from the house?

This is really important but it's not just off the mortgage but the Title of the property held at the Land Registry (what used to be the Deeds to a property).

gtyrel

Verbatim wrote: »

Domino9 wrote: »

Is your ex officially off the mortgage? - or is he able to come back once you have paid it and demand equity from the house?

This is really important but it's not just off the mortgage but the Title of the property held at the Land Registry (what used to be the Deeds to a property).

We have been through our solicitors and the property is now in my name solely, we also went through a legal seperation because of scottish common law marriage laws to ensure that he cant come back in a year. he has signed the property over to me.

so i assume all that has been done, my best friend is a divorce lawyer so i have been lucky there.

MilneBay

Ah, if you are in Scotland no need to worry about water rates - they are included in your council tax bill so already paid.

It looks like you're doing really well and must have been through a horrible time but you seem to have your head screwed on when it comes to finances and that counts for a lot.

Although you can technically just about afford the car, it sounds like life would be much happier if you were to sell it. If you're prepared to take a reasonable offer for it then I'm sure it would sell. Perhaps knock a few hundred off the going rate but keep it above the rip-off rate you would get from the likes of webuyanycar? Have you tried a listing on gumtree or even a Facebook post? Amazing how many people it could get to through friends of friends etc.

Good luck and I'm sure things will look up for you very soon

gtyrel

MilneBay wrote: »

Ah, if you are in Scotland no need to worry about water rates - they are included in your council tax bill so already paid.

It looks like you're doing really well and must have been through a horrible time but you seem to have your head screwed on when it comes to finances and that counts for a lot.

Although you can technically just about afford the car, it sounds like life would be much happier if you were to sell it. If you're prepared to take a reasonable offer for it then I'm sure it would sell. Perhaps knock a few hundred off the going rate but keep it above the rip-off rate you would get from the likes of webuyanycar? Have you tried a listing on gumtree or even a Facebook post? Amazing how many people it could get to through friends of friends etc.

Good luck and I'm sure things will look up for you very soon

Hi,

thanks for your advice i have reduced the price of the car and put it on facebook, but i might try gum tree now! thanks for all your help everyone.

I think i need to just be super strict and maybe just take a much lower price for the car.

Thanks everyone

Ive_A_Horse_Outside

Your ex may ask for his ring back (presuming he paid for it) so I wouldnt count this as an asset....

beachie

Hi,

You earn roughly about the same as me and I have a £4k loan which I am paying back more per month than you.

Looking through your expenses I would say what you are on and the expenses you have can be done.

You need to take each month by itself and aim to remain in the positive.

As long as you are paying off some of the loan each month you are getting towards a better place.

I pay around £193 car loan, £200 credit card and £450 mortgage as well as all the other bills all out of my £1300 so it really is possible.