Garfie's DF goal!

Garfie

Ok I've been lurking for a while and a friend has finally convinced me to post on here for help! I've managed to pay off 1 credit card and 2 hire purchase loans between last august and now, but money seems to have hit a standstill and debts aren't going anywhere!!

So this is my SOA:

Household Information
Number of adults in household........... 2
Number of children in household......... 1.5 (second baby due April)
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 1500
Benefits................................ 121
Total monthly income.................... 1621

Monthly Expense Details
Mortgage................................ 646.4
Secured/HP loan repayments.............. 32.7
Council tax............................. 125
Electricity............................. 40
Gas..................................... 30
Water rates............................. 18.90
Telephone (land line)................... 40 (includes broadband)
Mobile phone............................ 10
TV Licence.............................. 12.37
Groceries etc. ......................... 200 - 250
Petrol/diesel........................... 170
Road tax................................ 7.5
Car Insurance........................... 41
Buildings insurance..................... 8.89
Contents insurance...................... 8.9
Life assurance ......................... 13.37
NUT..................................... 17.86
Total monthly expenses.................. 1422.89 - 1472.89

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 112500...(646.4)....5.95
Hire Purchase (HP) debt ...... 490.88...(32.7).....0
Total secured & HP debts...... 112990.8.-.........

Unsecured Debts
Description....................Debt......Monthly...APR
CC1............................2794.64...65........11.4
CC2............................569.39....25........18.9
Overdraft......................400.......0.........0 This goes up to 19.9% end June
Total unsecured debts..........3764.03

Monthly Budget Summary
Total monthly income.................... 1,621
Expenses (including HP & secured debts). 1,422.89 - 1472.89
Available for debt repayments........... 198.11
Monthly UNsecured debt repayments....... 90
Amount left after debt repayments....... 108.11 or 58.11 depending on groceries

We can't reduce diesel costs any further as hubs commutes, there's no train line he can use etc.

I've just cancelled something we were paying £15 a month for, so from next month wont have that (so havent included it here), but have looked into car insurance and that £15 will end up being swallowed by the car insurance increase for this year!!

I've said 200-250 for groceries as we dont budget for clothes/birthdays etc so some months its slightly higher depending on who I have to buy for! Not the best way to do it and will start putting something away each month when I can. Also I have allergies so can't always buy the cheapest versions of things so hard to reduce this amount any further.

The other thing I have to worry about is our MOT is due 3 days before Feb pay day so dreading that and no idea how much it will cost if any work needs to be done.... I've been putting off writing on here until after the MOT but driving myself crazy thinking about it all!!

Just can't think of anything to reduce or stop paying!! Perhaps the NUT subscription (hubby is a teacher) but not sure what benefits we actually get from it?! We don't go out ever, not even cheap nights to cinema or whatever. Rather boring but just can't afford it, and with second baby on the way really want to get our debts down a bit. ANy thoughts?

Thanks!!!

Clarie_2

Hi Garfie,
l'm a newbie at all this, but just wanted to say well done for all that paying off since Aug, you are doing great!

Looking at your expenditure, I don't have much to suggest, it all sounds so familiar and like you are trying really hard already.

I think the NUT subscription is probably needed, just in case you ever need the legal advice or support etc.

On your debt repayment, have you looked at getting better credit cards? The site has some really good advice on shuffling credit cards/ balance transfers etc, which we followed and managed to get everything to 0% or 6.9% which really helped.

Are your payments fixed at 65 and 25 or is that roughly the minimum repayment? it doesn't sound like you are paying much over the interest each month? If it's the minimum, you could consider paying a fixed amount over that each month. And the higher you can make this amount the better - I'd suggest adding that £58 on to your highest interest payment to help you see the end quicker.

It's not much advice, but hope it's something to think about.

Good luck! let us know how it goes.

Clarie

Garfie wrote: »

So this is my SOA:

...

Unsecured Debts
Description....................Debt......Monthly...APR
CC1............................2794.64...65........11.4
CC2............................569.39....25........18.9
Overdraft......................400.......0.........0 This goes up to 19.9% end June
Total unsecured debts..........3764.03

Monthly Budget Summary
Total monthly income.................... 1,621
Expenses (including HP & secured debts). 1,422.89 - 1472.89
Available for debt repayments........... 198.11
Monthly UNsecured debt repayments....... 90
Amount left after debt repayments....... 108.11 or 58.11 depending on groceries

Garfie

The £65 is fixed (interest roughly £28) the £25 is a guess (interest roughly £12?) as the interest has just gone up 4%!!!! Wasn't pleased. But can't cancel the card as its the only one in hubbies name. We want to get another card and have been looking into 0% deals but I know some of them then demand higher minimum payments each month and I'm worried that we might not be able to afford that what with paying minimums on the others as well. Unless we could transfer all of the balance.... but at the same time the overdraft is also in hubbie's account and I know that can affect the credit rating at times. With the overdraft currently 0% its ok but its going up to almost 20% at end of June so have been trying to get that down a bit - it was £500 so have cleared £100 off it, but with the Mot due.... who knows?! Feel like the mot is a big weight hanging around my neck and just want it out of the way so I can take a serious look at things and see if we can alter anything.

Normally we just start making a dent in something and something else comes along to knock us back; hubby uses the motorway a lot and keeps getting cracked windows, at £75 a pop it doesn't help!! Would love to put some money aside for that but want to clear some debts first; daft putting that into savings (even if we could afford it) when we're paying interest elsewhere.

When second baby comes along our benefits will go up to around £330, we're saying £120 of that is what we use now, £50 will pay towards formula (if needed) and nappies for new baby and remaining £60 will go towards paying off debts. Will only be for a few months though as from Sept our son will start at nursery and until the Jan we have to pay for him, roughly £200 a month. :S not looking forward to it, hence why so desperate to get some debts down now!!

Thanks for the reply though

MFWannabe

Who are your current credit cards with? If you haven't already got an MBNA card then i would consider applying for a new 0% card from them to move all your current cards to and also your overdraft; as they allow super balance transfers; although you will have to take into account the fees for doing this.

Clarie_2

Hi Garfie,
you sound like you're actually really on top of everything going in and out and you have all the right motivation and you're working at it.
Take a deep breath, feet up, cup of tea and congratulate yourself for how far you've come and how in control you are!

I know it's daft to save when there's debt, but could you count putting aside money for (inevitable) repairs as part of your budget? same as you do for car tax, mot etc. Or does your local garage/ breakdown cover do warranty deals which could help?

Clarie

dancingfairy

It does all look fairly tight to be honest. You say car insurance has gone up this year? have you shopped around for it or is this the automatic renewal?
You could try going over to the moneysaving oldstyle board for help to see if you can shave a little on your groceries but it doesn't look bad to me.
Council tax - do you have 2 free months coming up?
Benefits have you checked entiteldto to see if you are entitled to anything extra especially when the new little one arrives? Oh and congratulations on gettingthe debt down so far and the new little one-to-be.
Good Luck
df

Garfie

Sorry I havent got back in ages - my son hasn't been very well plus its been my mums 50th birthday so very hectic!!

The car insurance is where I've shopped around - I never go with the renewal. Ref council tax yes have 2 months free, this month and next, this month was used to pay off a debt before I realised that the mot was due, and next month might end up going on the mot depending on what it costs - obviously if it passes ok then I can use the remainder of the £125 to take a hit off another cc or put away for car insurance or something.

Freez I already have an MBNA card as it had a 0% deal at the time, and have finally managed to pay that one off - but they've just sent me a message saying they have another deal on so will take another look. Just worried about spreading it all out too much and having 3 ccs to have to make minimum (or more) payments to.

I know compared to some debts its not huge what we owe (ignoring the mortgage) but it feels like a lead weight around my neck! Just wish I could get it down a little bit... sigh. Not having a good week this week!! x

maganan

Ah Garfie,

I think you're doing great, I bet most off us are kicking ourselves for not being as on the ball as you and had dealt with our debts before they spiralled! For the MoT have a look at the DoT testing stations that arn't attatched to a garage and therefore not vested interest in failing the car, then if something needs doing at least you know its really necessary. Try and breast feed theres loads of support out there (not meant to sound patronising sorry) if you dont will you be entitled to additional help with milk etc. Check out some of the free sample links for nappies etc (not much but "every little helps!". As others have said check out the OS boards for meals etc. and try the reduced bargains in the supermarkets etc. Not much I know but your doing so well anyway.

Take care and good luck for April! x

Garfie

WAHOOO!!!!!! Just had to share - hubby has just been accepted for a new CC with 0% interest for 16 months (Virgin). It has that for balance transfers and money transfers, so we can look at transferring his overdraft as well as that will soon hit 19.9% interest!! He's been given a £2700 limit.

Also looked at my MBNA card and thats 0% on balance transfers for 9 months, so will look to transfer some onto that as well. I have a £1000 limit on that one, so enough to cover all our cc and overdraft debts between them; whilst we cant afford to pay them off in the 0% months we can seriously get them down as much as possible whilst not paying interest on them. Yes there will be fees but nothing like the interest we're being charged. Once the 0%s run out we can look again at what card is best rate wise (for interest currently my barclaycard at 11.4% but they charge 2.25% for minimum payments) and see if we should transfer back or not the outstanding; hopefully get it all on one card so only one lot of interest each month and only one payment to worry about.

Such a relief!! I was shaking when I hit the submit button!!! Just have to decide how to do the transfers to make it work for the best for us. Have worked out that my MBNA card is 15.95% so much lower than hubby's original credit card and overdraft so even once the 0% runs out will be better for us in the long term.

Maganan, will def be trying to breastfeed - did for my first born until he took ill and had to switch to bottle, but have made sure I have budgetted for formula (as well as nappies) just in case it doesnt work for any reason. Obviously if it does work then that extra money saved will be used to pay off credit cards!!

Really happy, can you tell?!?!?!?!?! xxx

Clarie_2

Hi Garfie that's great news well done! I'm glad your husband got accepted for the virgin card that's brilliant.

Whilst you've got the time and you're looking at transferring things, barclaycard often accept a 6.9% for life on balance transfers. It means more in fees, but if you shuffled your barclaycard on to the Virgin, then the overdraft and the second card on to the MBNA, all your debt would be at 0% for now and you'll have a 6.9% to revert back to if things don't get paid before your deals run out.

just a thought and obviously it depends on fees and how much you'll pay in interest etc.

Anyway, it sounds like things are looking up and that's great :-)

Clarie

Garfie

I would assume though that as we're already Barclaycard customers (we both have one) that they wouldn't let us take out that kind of deal would they? Do you know if anyone else offers that kind of thing? A low APR like that would be fab as we could use that once the 0% offers run out - though my Barclaycard is 11.4% so I'm lucky it's not huge compared to other cards. I've seen MBNA offer one before but I have the mbna card and virgin is through mbna so thats out the window as well!! Might just have to look around every now and again and see what people are offering. Don't want to take out too many cards though.

Mind you, if I transfer the mbna money over to my BC at the end of the 0% you never know they might give me another 0% deal I can take advantage of for around the time the virgin card runs out - I doubt its good to keep switching like that but I've no idea, and if it means we can get it all paid off a bit quicker then I don't care!!

One big question I have is this; hubs has said we should just leave the virgin&mbna balances on the two cards instead of dumping them back on my barclaycard (despite the lower rate), but the 0% on the virgin runs out the same month that our fixed mortgage term runs out. I thought if the debt was on my card instead of his, it would look better when remortgaging as it would be his wages etc that they looked at as I'm not earning - or will they look at everything even though I'm not contributing (joint names on mortgage so guess they will look at me as well in which case it wont matter!) Any ideas anyone?

Thanks!! xx