Light bulb moment - time for action

ManagingDebt

I looked into increasing the overdrafts a while ago and i got declined. My credit owing is too high i suspect. Another good idea for the future though. :T:T

ManagingDebt

Right - i'm making a start. The £660 i had in my online savings account from last month (which was to be saved) has just been removed and once arrived in my account be going to pay off part of the £2500 Virgin Card.

If i do get a bonus this month, that is going off as is £340 from my pay on friday to make up £1000 taken off. As the month progresses i'll try paying more off the card.

Lets get this sorted out....i've had enough of being in debt. :j:j

CH27

ManagingDebt wrote: »

Right - i'm making a start. The £660 i had in my online savings account from last month (which was to be saved) has just been removed and once arrived in my account be going to pay off part of the £2500 Virgin Card.

If i do get a bonus this month, that is going off as is £340 from my pay on friday to make up £1000 taken off. As the month progresses i'll try paying more off the card.

Lets get this sorted out....i've had enough of being in debt. :j:j

That will drive you to get everything paid of ASAP.
Just think how much disposable income you will have when you are debt free & plan what you can do ie dream holiday.

Good luck:)

theoretica

Take care to avoid paying off your low interest loan and then taking out a higher interest loan to pay off your parents- you would be better off paying the £3k towards your parents and leaving that loan running. Similarly be careful moving to a card would be paid off before the interest free period ended. Could you move just part of your higher interest rate 5k loan over?

ManagingDebt

CH27 wrote: »

That will drive you to get everything paid of ASAP.
Just think how much disposable income you will have when you are debt free & plan what you can do ie dream holiday.

Good luck:)

Thanks CH27 :T I'm feeling a lot better about the situation now having came to terms with where i am and put a plan together to sort it out.

theoretica wrote: »

Take care to avoid paying off your low interest loan and then taking out a higher interest loan to pay off your parents- you would be better off paying the £3k towards your parents and leaving that loan running. Similarly be careful moving to a card would be paid off before the interest free period ended. Could you move just part of your higher interest rate 5k loan over?

Thanks Theoretica :T - i will take care with paying off the low interest loan. I'll have to ask the question about moving part of my higher rate 5k loan. I have a few questions for the loans companies that i'm with that people on this thread have given me - including yours. This would be an ideal situation if possible.

josephine82

Unsecured Debts
Description....................Debt......Monthly.. .APR
Loan 1.........................5342......230.8.....14.6
Mam and Dad....................5100......100.......0
Loan 2.........................2920.84...129.1.....5.6
HSBC...........................4000......0........ .0
Overdraft 3....................1000......9.........0
Overdraft 2....................1500......5.........0
Overdraft 1....................1050......18........0
Virgin CC......................2500......56........22
Total unsecured debts..........23412.84..547.9.....-

Hey there
Sounds like you have had some really good suggestions about your budget and where to cut back and where you might need to spend money. A good budget is the crux of paying off debt properly so it might take a few months to get it completely finalised.

I would re-iterate the suggestion to open a new bank account, transfer your salary and payments and then decide amounts from your disposable income to pay the overdrafts back per month, and set up standing orders for this?

Then I would focus on overpaying the Virgin credit card as much as possible, until this is gone.

Then at this point I would re-evaluate the situation, see how much you have paid off the overdrafts and how much you owe on the loans and then sit down and speak to your parents about the money you owe them.

At this point you might be able to up the payments to them, while focusing on making overpayments to Loan 1. Then, when this is gone, re-evaluate again and so on.

It can seem really difficult but if you take the time to work out the payment amounts and the time it will take to pay them off, it does eventually get a lot simpler.

Good luck- let us know how you get on.
I will say that if you put these things in place now they will stay with you for life- I put a budget together when I first came on here and to this day I still allocate myself specific amounts for food, clothes, entertainement etc- It works!

ManagingDebt

Hi Jospehine82,

Thanks for the email. I have already taken your advice about the new bank account. I have just applied for an account with First Direct which gives me £100 for opening after 3 months. I need to pay £1500 in the account so i'll get my salary paid in there. Thanks for this idea - i wouldn't have thought of it :T:T

I agree with your plan for the debts - virgin 1st, L1 second. I have to see about overpayments to L1. If i can, i'll bombard them with as much as i can afford.

My problem in the past has been a lack of budgeting and i think i've learnt a lot to put into practise having only had my LBM about a week ago.

I suppose i'm quite lucky that i can be quite focussed when i want something and debts reduction is my #1 priority at the minute.

I'll keep you informed of how i get on. Thanks again for the help. :A

CH27

ManagingDebt wrote: »

Hi Jospehine82,

Thanks for the email. I have already taken your advice about the new bank account. I have just applied for an account with First Direct which gives me £100 for opening after 3 months. I need to pay £1500 in the account so i'll get my salary paid in there. Thanks for this idea - i wouldn't have thought of it :T:T

I agree with your plan for the debts - virgin 1st, L1 second. I have to see about overpayments to L1. If i can, i'll bombard them with as much as i can afford.

My problem in the past has been a lack of budgeting and i think i've learnt a lot to put into practise having only had my LBM about a week ago.

I suppose i'm quite lucky that i can be quite focussed when i want something and debts reduction is my #1 priority at the minute.

I'll keep you informed of how i get on. Thanks again for the help. :A

First Direct are excellent:) You've made a good choice there.

ManagingDebt

Thanks CH27. I heard that too. A workmate raves about them.

I forgot to mention that there is a 0% Overdraft of £250 available after 3 months. I'll be taking that and using that to pay off some debts.

CH27

ManagingDebt wrote: »

Thanks CH27. I heard that too. A workmate raves about them.

I forgot to mention that there is a 0% Overdraft of £250 available after 3 months. I'll be taking that and using that to pay off some debts.

I've been with them for about 16yrs & they have been very helpful.
When I had debt problems a few years ago one of their staff talked to me on the phone for hours & was so supportive. She gave me the courage & advice to get myself sorted.