Newbie....!!!!!! have I done?????

spendaholicanonymous

My First post - please be kind, ok have been browsing for the last few days, had my lightbulb ,moment last week (been coming for a while)

How on earth did I manage to get into this situation??? I have NOTHING to show for it my car is worth about 2 grand but thats it aside from that its been wanton squandering!!!

My other half doesn't know about this and I don't want to tell him until its under control at least a bit (he knows about student loan and thinks I have about 2 grand on cc)

I dont quite earn enough to pay student loan (just under threshold) so not worrying too much about that at the moment

I am JUST covering these bills with my wages so really need to work hard to throw everything at it!! I need to renew 2 car insurances and home insurance this month so looking at £280 from quidco too!!!

about to get lots of stuff on ebay - any other tips greatly appreciated (just heard about quidco on this site today)

Thanks again

Spender!

southernscouser

Hi spenda and welcome aboard! :beer:

Well done on facing up to your debts. You've done one of, if not, the hardest part! :T

Take a look at this thread and post a SOA back here. Then we can see how we can help you cut back.

Regarding your debts the key is to reduce the amount of interest you are paying but preferably without consolidating. Have you recently, say in the last 3 months, applied for any sort of credit.

Also start a spending diary. Every day jot down how much you have spent and on what. At the end of the month it's scary to see how much money you actually spend and on useless crap! :eek:

Also think about telling your OH but wait until you have an action plan first to soften the blow.

As soon as you have posted a SOA everyone will be able to help you loads.

spendaholicanonymous

Gross income 1450

800 to joint account to cover household bills

Loan 1 4263.46 (7.9%) pay 160 pm 27 payments left
Loan 2 14419.48 (7.9%) pay 270 per month 53 payments left!!! (this loan was only for 14000 but I took out payment protection and have already paid back over a years repayments!!!
cc1 5492.18 (7.9) 110 minimum
CC2 4900 (15.9%) 100
CC3 4000 (15.9%) 80
overdraft £849 0
Student loan (awaiting information think its around £6000!!) £25 in arrears

with househould we pay
income 1800
outgoings
life insurance1 10.22
TV LICENCE 11.37
life insurance 2 35.36
lifeinsurance 3 36.43
CouncilTAX 191.00
Mortgage (interest only) 481.02

buildings/ content INSURANCE 52.35
endowment 1 261.73
Interest free furniture payment 24.99

Endowment policy 2 89.72
Childcare 100.00
NEXT 50.00
other catalogues 50.00
BT 18.00
ELECTRICITY 60.00
GAS 85.00
ANOTHER INSURANCE POLICY 19.00 (Dunno what this one is for!!)
total 1577(approx)
left 233

thanks

spender

burbs_2

I can only have a quick look right now but a couple of things strike me. PPI on Loan 2 - do you need this? If you didnt need it then you may be able to claim that it was mis-sold and get refunded for the amount you have already paid it.

Secondly the other insurance policy is costing you £228 a year and you dont know what it is for. Find out and see if you actually need it or not, that money may be better spent elsewhere.

Credit cards - perhaps look into a 0% balance transfer card, not sure of the best at the moment but im sure someone will. Transfer them over to the card and get some of the balances whittled down as much as possible whilst they are on the 0%. Not sure whether you will be able to get through the credit check but its an option.

Im sure others will have many further ideas and help, i would not panic, admitted there is a problem is the hardest part. As long as you realise their is a problem and kerb the luxury spending then things will get better and bills will get cleared up.

roswell

First thought is why so much insurance ?

Are the endowments performing well ?? or could they be sold ???

as for ANOTHER INSURANCE POLICY 19.00 (Dunno what this one is for!!)

Find out what it is ASAP , If you can cancel it if this has been there a long time i bet its something like mobile phone insurance.

look through ALL Direct Debits you have and make sure your not giving money away.

magyar

Just a quick note

ELECTRICITY 60.00
GAS 85.00

These seem quite high to me: what sort of house do you live in? Have you checked you're on the best tariff in your area? Look at the bottom of

http://www.moneysavingexpert.com/utilities

for all the best deals. Also, make sure you're doing all the "quick and easy" energy (money!) saving ideas, e.g.
1 - turn your thermostat down by 1%. You'll live.
2 - always turn lights out when you leave a room.
3 - don't leave appliances on standby
4 - only boil the water you need in a kettle

Sorry if these are patronising.... (but 95% of the people in the country DON'T do these things...)

roswell

Building and contents insurance looks very high its over £600 a year what sort of cover have you got ? i feel there is a very big chance you are over insured.

Have you checked that your not paying PPI on your CC`s?

magyar

NEXT 50.00
other catalogues 50.00

Are these contractual repayments or just "what you spend"? If the latter, then neither Next nor most catalogues are very cheap...

joflo_2

Hi, I had heard that Next charged interest from their website.

Next Directory Flexible Account allows you to spread the cost (subject to status & approval) APR 26.49% (variable).

So if this is your account it may be that this should be top of the list for repayments.

I count three life insurances, you maybe ought to check if the endowments also have life insurance as you might not need all of them or it might be that increasing one is better than having three as all will probably charge admin fees.

Best Wishes

BlueSkyDay

Welcome to the board spendaholic

You're getting great advice already, just wanted to say Hi and welcome. Keep your chin up

Blue

evie451

Hi spendaholic
As a recovering spendaholic I just wanted to welcome you to the Boards. This is a fantastic place to keep you on the wagon.
Can I just say the spending diary is a great thing for you to try. If your anything like me you will be shocked at where your cash goes. Just give it a go you will be appalled....... I was!!