Struggling to get out of debt!

natlai

Hi All,

Hope I'm in the right place. I've been burying my head in the sand and think that it is time that I get my debt paid off seeing as it is mounting up and spiralling out of control.

Income
Net earnings £1200 pcm

Debt
Barclaycard cc £820 regular payment £75pcm
Halifax cc £550 regular payment £50pcm
Vanquish £550 regular payment £50pcm
Capital One £100 regular payment £50pcm
Next £1250 regular payment £130pcm
Very £4000 most buy now pay later regular payment £40.00pcm
HP car £11000 regular payment £187pcm

Direct Debits
Sky £87.00pcm (includes internet and calls)
BT £15.00pcm (landline)
Contact Lenses £18.00 pcm
Mobile £80.00 pcm
Car Insurance £40.00 pcm
Road Tax £12.00pcm

Petrol £220 pcm.

I am trying my best not to use any of the accounts that I have especially credit cards but not always possible once it gets to the week before pay day.

Any advice would be appreciated.

Thanks
Natlai

natlai

I also have a loan of £4000 from capital credit union that was meant to be deducted from my salary in Sept 2010 which they didn't do. I asked them about it and it was mean to start in December 2010 but nothing yet.

[Deleted User]

Hi Natalie,

Welcome to the forum - you are in the right place to get help and advice. First thing to do is to follow this link and fill out a full SOA (http://www.makesenseofcards.com/soacalc.html), as there it seems that you are missing some information in the list below.

Income
Net earnings £1200 pcm

Debt (Need to know the APR on these debts, also is this the minimum payments you can make to these debts (need to put the minimum allowed, not actual payments - if different)
Barclaycard cc £820 regular payment £75pcm
Halifax cc £550 regular payment £50pcm
Vanquish £550 regular payment £50pcm
Capital One £100 regular payment £50pcm
Next £1250 regular payment £130pcm
Very £4000 most buy now pay later regular payment £40.00pcm
HP car £11000 regular payment £187pcm

Direct Debits
Sky £87.00pcm (includes internet and calls)
BT £15.00pcm (landline)
Contact Lenses £18.00 pcm
Mobile £80.00 pcm (This is very very high)
Car Insurance £40.00 pcm
Road Tax £12.00pcm

Petrol £220 pcm.

you also need to put in how much you spend on things like groceries, utilities and the smaller things too (TV licence, entertainment, MOT/Maintenance, haircuts, clothes, any other expenses you may have)

HTH

natlai

Hi Domino9

Thanks for your response.


Debt (Need to know the APR on these debts, also is this the minimum payments you can make to these debts (need to put the minimum allowed, not actual payments)
Barclaycard cc £820 APR 29.9% Min Payment £ 21.00
Halifax cc £550 APR 29.9% Min payment £ 18.17
Vanquish £550 APR 41.2% Min Payment £ 19.00
Capital One £100 APR 30.34% Min Payment £19.00
Next £1250 APR 26.49% Min Payment £114.40
Very APR 40.9% minimum payment £ 35.98
HP car £11000 APR 6% min payment £187.00

Direct Debits
Sky £87.00pcm (includes internet and calls)
BT £15.00pcm (landline)
Contact Lenses £18.00 pcm
Mobile £80.00 pcm (high as I use it for work)
Car Insurance £40.00 pcm
Road Tax £12.00pcm

Petrol £220 pcm.

I still live at home with parents so don't buy groceries or pay the tv licence.

I treat myself to one haircut a year with birthday money and have stopped buying clothes as my wardrobe is bursting at the seams.

Nicky321

natlai wrote: »

Hi Domino9

Thanks for your response.


Debt (Need to know the APR on these debts, also is this the minimum payments you can make to these debts (need to put the minimum allowed, not actual payments)
Barclaycard cc £820 APR 29.9% Min Payment £ 21.00
Halifax cc £550 APR 29.9% Min payment £ 18.17
Vanquish £550 APR 41.2% Min Payment £ 19.00
Capital One £100 APR 30.34% Min Payment £19.00
Next £1250 APR 26.49% Min Payment £114.40
Very APR 40.9% minimum payment £ 35.98
HP car £11000 APR 6% min payment £187.00

Direct Debits
Sky £87.00pcm (includes internet and calls)
BT £15.00pcm (landline)
Contact Lenses £18.00 pcm
Mobile £80.00 pcm (high as I use it for work)
Car Insurance £40.00 pcm
Road Tax £12.00pcm

Petrol £220 pcm.

I still live at home with parents so don't buy groceries or pay the tv licence.

I treat myself to one haircut a year with birthday money and have stopped buying clothes as my wardrobe is bursting at the seams.

If you fill in the SOA as advised it will give a clearer picture. What about entertainment? do you never go out? life ins? Theres things on there which are easily missed out. Fill in the SOA and post it on here, people will be able to give better advice based on the info. Also it will help to make sure what money is available to pay off debts and make sure you prioritize the debts paying off the highest APR first.

barbarawright

You are paying £182 a month for phone, internet and tv :eek: Why BT and Sky for phones? And if you use your mobile for work, surely this should be reimbursed?

natlai

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1200
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1200

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 187
Rent.................................... 100
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 15
Mobile phone............................ 80
TV Licence.............................. 0
Satellite/Cable TV...................... 77
Internet Services....................... 10
Groceries etc. ......................... 0
Clothing................................ 0
Petrol/diesel........................... 220
Road tax................................ 12
Car Insurance........................... 40
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...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 761


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 ...... 11000....(187)......6
Total secured & HP debts...... 11000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard CC.................820.......21........29.9
Halifax CC.....................550.......18.17.....29.9
Vanquish CC....................550.......19........41.2
Capital Credit Union...........3874......226.......12.9
Very store card................4000......35.98.....40.9
Next store card................1250......114.4.....26.49
Capital One CC.................100.......19........30.34

No life insurance and I go to my local rugby club but don't spend anything.

natlai

BarbaraWright thanks for your reply. I do pay this amount a month, the line rental is with BT and calls, internet etc with sky along with the TV. I pay this for the household and don't pay for gas electricity etc. I get reimbursed for some travel expenses not phone bill

[Deleted User]

Total income: £1200

Total expenditure (based on minimum payments): £666.55

Debt repayment: £414.55
Expenses: £252

Amount left for overpayments: £533.45

I have listed these in the order that you should be paying them (pay minimum off everything, and then all surplus towards debt 1 until this debt's gone. When gone, continue to pay minimum off everything, and put what you were previously paying as minimum payment towards debt one (£19) + surplus towards debt 2 (£533.45) etc until they are all gone. This is "snowballing" the debts making sure that you pay the least amoutn of interest towards the debts making more of a dent in the actual outstanding debt)

Cut up all cards so that you cannot spend on them any longer (Once debt free, keep one for emergencies that has the lowest interest)

Debt 1 Vanquish £550 APR 41.2% Min Payment £ 19.00 (will be gone in a little over a month)*
Debt 2 Very £4000 APR 40.9% minimum payment £ 35.98 (This one will take longer, but should still be given priority due to the high interest rate after Debt 1 is gone - maybe just over 7 months after Debt one is gone)*
Debt 3 Capital One £100 APR 30.34% Min Payment £19.00
Debt 4 Barclaycard cc £820 APR 29.9% Min Payment £ 21.00
Debt 5 Halifax cc £550 APR 29.9% Min payment £ 18.17
Debt 6 Next £1250 APR 26.49% Min Payment £114.40
Debt 7 HP car £11000 APR 6% min payment £187.00

Direct Debits
Sky £87.00pcm (includes internet and calls) (I would drop down to the basic TV package here, and when out of contract shop around check what competitors are offering, e.g. TalkTalk, Virgin)
BT £15.00pcm (landline)
Contact Lenses £18.00 pcm (Check if you can get cheaper online)
Mobile £80.00 pcm (high as I use it for work- If this is used for work, should work not at the very least be contributing, if not giving you a work phone? - shop around at renewal and see if you can get a better deal package wise for your usage, still seems high to me)
Car Insurance £40.00 pcm (Check comparison sites at renewal)
Road Tax £12.00pcm

Petrol £220 pcm. (Any way to reduce - are all journey's essential?)

*These calculations are estmates and based on you actually putting all of the £533.45 towards debt repayment every month.

Might also be worth putting something in for entertainment - do you never go out? Cinema? Pub? Coffees with friends Etc)

HTH

natlai

Thanks Domino9.

I've changed all payments from the regular amount I paid the DD minimum payments. I am awaiting a payment for a car crash that will be about £4000 so that will pay off a big chunk of my debt once I get it.

slummymummyof3

You mentioned that your wardrobe is bursting at the seams - anything you can ebay? You could then use this money towards your debt or perhaps a treat on the entertainment front?