Debt Mounting

I have slowly got more and more into debt. I have cut my Credit Cards up and worked out how much I owe, £18k. I had a studio flat, which I am in the process of moving out of to flatshare, which will cut my living overheads in half. I haven't missed any payments upto now, but fear I will this month and next, as I need a little time to get my head above water. Once I have moved, should have a further £300 to service the debt. Does anyone have any advice?

Thanks

Replies

  • MFWannabeMFWannabe Forumite
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    Hi
    You really need to post an soa using the one on www.makesenseofcards.com this will give us a much better idea of all incomings and outgoings. You will get some great advice from some wonderful people on here
  • Thanks for your advice, I have done the SOA, I am in the process of moving to help lower the cost and this is reflecting in the sheet. Any help appreciated.

    Household Information[/b]
    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 1450
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1450


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 475
    Management charge (leasehold property).. 0
    Council tax............................. 60
    Electricity............................. 30
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 10
    Telephone (land line)................... 0
    Mobile phone............................ 45
    TV Licence.............................. 10
    Satellite/Cable TV...................... 30
    Internet Services....................... 15
    Groceries etc. ......................... 120
    Clothing................................ 0
    Petrol/diesel........................... 250
    Road tax................................ 15
    Car Insurance........................... 60
    Car maintenance (including MOT)......... 20
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 10
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 15
    Haircuts................................ 10
    Entertainment........................... 75
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 1250



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 1000
    Other assets............................ 0
    Total Assets............................ 1000



    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 0........(0)........0
    Secured Debt.................. 8734.....(0)........205
    Total secured & HP debts...... 8734......-.........-


    Unsecured Debts
    Description....................Debt......Monthly...APR
    Barclays.......................1250......30........0
    Capital One....................300.......10........0
    Mint...........................2300......56........0
    Total unsecured debts..........3850......96........-



    Monthly Budget Summary

    Total monthly income.................... 1,450
    Expenses (including HP & secured debts). 1,250
    Available for debt repayments........... 200
    Monthly UNsecured debt repayments....... 96
    Amount left after debt repayments....... 104


    Personal Balance Sheet Summary
    Total assets (things you own)........... 1,000
    Total HP & Secured debt................. -8,734
    Total Unsecured debt.................... -3,850
    Net Assets.............................. -11,584
  • MFWannabeMFWannabe Forumite
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    Thanks for your advice, I have done the SOA, I am in the process of moving to help lower the cost and this is reflecting in the sheet. Any help appreciated.

    Household Information[/b]
    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 1

    Monthly Income Details
    Monthly income after tax................ 1450
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1450

    Monthly Expense Details
    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 475
    Management charge (leasehold property).. 0
    Council tax............................. 60
    Electricity............................. 30
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 10
    Telephone (land line)................... 0
    Mobile phone............................ 45 - Change to lower tarriff or go payg
    TV Licence.............................. 10
    Satellite/Cable TV...................... 30 - change to lower package or freeview
    Internet Services....................... 15
    Groceries etc. ......................... 120 - you could cut at least £20 off this
    Clothing................................ 0 - Is this really zero?
    Petrol/diesel........................... 250 - do you have any other options of getting to work? Could you car share?
    Road tax................................ 15
    Car Insurance........................... 60 - check comparison sites to see if you can get cheaper
    Car maintenance (including MOT)......... 20
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 10
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 15
    Haircuts................................ 10
    Entertainment........................... 75 - could you cut this slightly to £50?
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 1250


    Assets
    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 1000
    Other assets............................ 0
    Total Assets............................ 1000


    Secured & HP Debts
    Description....................Debt......Monthly...APR
    Mortgage...................... 0........(0)........0
    Secured Debt.................. 8734.....(0)........205 - this figure needs to show below as it's not currently showing up in your outgoings
    Total secured & HP debts...... 8734......-.........-

    Unsecured Debts
    Description....................Debt......Monthly...APR
    Barclays.......................1250......30........0
    Capital One....................300.......10........0
    Mint...........................2300......56........0
    Total unsecured debts..........3850......96........-


    Monthly Budget Summary
    Total monthly income.................... 1,450
    Expenses (including HP & secured debts). 1,250
    Available for debt repayments........... 200
    Monthly UNsecured debt repayments....... 96
    Amount left after debt repayments....... 104

    Personal Balance Sheet Summary
    Total assets (things you own)........... 1,000
    Total HP & Secured debt................. -8,734
    Total Unsecured debt.................... -3,850
    Net Assets.............................. -11,584

    Hi
    I've made some comments above. You need to edit your soa as it's not currently deducting your secured debt payment of £205 per month so it's currently saying you have money left over every month when in fact it's the opposite
    You also need to find out the APR's on your credit cards; assuming they are not 0% cards
    First things you need to look at changing are your mobile phone and satellite tv bills
  • slummymummyof3slummymummyof3 Forumite
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    If you are a flat share, can't you split tv licence, internet and satellite services with your flatmate?
  • curlytop12curlytop12 Forumite
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    hi there,welcome.when do you actually move?
    can you do the SOA based on sa if you had moved then you can set a clearer budget?
    eg,tv license is £12 a month usually,this will be split wont't it?
    and you are paying way too much on mobile/internet/satellite.
    you will get help here,don't worry.
    good luck with the move
    G
  • I have rejigged slightly, my new rent includes all bills. Hence no electricity etc. I have tried to change my Internet/TV, I am with BT Vision and about 5 months into a contract and they want £489 to cancel and won't let me rejig my package, which is frustrating as my flatmate has BT Vision also, O2 says I can move the tariff down for another 4 months. My income was a lot higher before Christmas and after moving jobs I am not earning commision yet and I am now in a right mess and struggling to pay all my bills this month!!!!



    Monthly Income Details[/b]
    Monthly income after tax................ 1450
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1450

    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 60
    Rent.................................... 475
    Management charge (leasehold property).. 0
    Council tax............................. 0
    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 45
    TV Licence.............................. 0
    Satellite/Cable TV...................... 45
    Internet Services....................... 0
    Groceries etc. ......................... 100
    Clothing................................ 15
    Petrol/diesel........................... 150
    Road tax................................ 12
    Car Insurance........................... 60
    Car maintenance (including MOT)......... 20
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 5
    Pet insurance/vet bills................. 10
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 10
    Entertainment........................... 50
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 1057


    Assets

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


    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 0........(0)........0
    Hire Purchase (HP) debt ...... 2400.....(60).......34.9
    Total secured & HP debts...... 2400......-.........-

    Unsecured Debts
    Description....................Debt......Monthly...APR
    Mint...........................2550......60........19.9
    Capital One....................290.......6.........19.9
    Barclays.......................1250......30........19.9
    Tesco Loan.....................8350......205.......8
    Total unsecured debts..........12440.....301.......-


    Monthly Budget Summary

    Total monthly income.................... 1,450
    Expenses (including HP & secured debts). 1,057
    Available for debt repayments........... 393
    Monthly UNsecured debt repayments....... 301
    Amount left after debt repayments....... 92

    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -2,400
    Total Unsecured debt.................... -12,440
    Net Assets.............................. -14,840

    Created using the SOA calculator at www.makesenseofcards.com.
    Reproduced on Moneysavingexpert with permission, using IE browser.
    [/font]
  • TixyTixy Forumite
    31.5K Posts
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    Hi

    Have you got all your debts in there? Only you mentioned £18k originally, have you got any overdrafts etc that you need to include?

    Is the secured debt your car? I see you've reduced your petrol cost down -is the £150 now right?

    It looks like you are going to be able to meet your repayments and have a little extra to overpay with currently. How likely is it you will earn commission? hopefully if you do start to get some in then this can also go towards debt repayments and should bring down how long it will take to clear your debts. have you done a snowball calculation (same site as SoA) to see how long they will take to clear at the current rate?

    Is your main problem managing until you move out of the current place? If so have you got anything you can sell to help raise a bit of extra money? anything you perhaps won't need once you are sharing? can you cut right back on entertainment and groceries this month (not fun I know but if its just for a month - and maybe you can eat up things in the cupboards so it will be less to have to move house with!).
    Do you have a bond on your current place that you will get back to help things with a bit?
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • Yeah, there are extras, I owe £3200 to my parents, but they have given me a little time on this, I had an agreement with Natwest in which I have to pay pay £80 per month on my Student Account to get it to £800 and then a minimum og £10 per month. Feb is the last payment date. I need to raise £400 deposit for my new place, but will get £600 back from the old one, I have cut my driving to the minimum as possible and have put a few things on eBay. I will earn commission, but its unlikely to be until the Summer. Hopefully when I am up and running in the new place, things should be slightly easier. As my rent with bills will be £475 and not £850.

    Thanks for the advice
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