Struggling to be debt free - few issues.....

freckles30

Hi,

I'm new here and this may be a long thread, but I'm desperately looking for advice and support in clearing my debts.

My credit file is pants, due to going wayward when I was younger - they throw credit at you and it's WRONG in my opinion, but I was too inexperienced to know any better. Anyway, I'm now 30 and have recently returned back to work after being off with my kids for years, so I'm hoping building up my work history and a regular decent ish salary going into my bank should help.

I'm going to list my debts below and am happy for any tips or tricks that can help me along my way. I'm really trying hard.

I have:

a Capital One card 200 limit, of which I'm paying off slightly more than minimum each month.

an Aqua card 250 limit, clearing every month bar 20/30 quid sometimes.

A Vanquis card 500 limit - which has been the absolute DEATH of me. I had the card, maxed it up on flights for a holiday and was paying off just over min each month until I started my new job and then I was going to clear in two months. Then out of the blue, I get sent a Platinum card, I ring them and ask what it's all about and they say it's for me to use. It had a 500 limit on it, so I used it for 250 worth of purchases. A month later, I get a call to say that I've gone over my limit. Utterly confused, I ask what the hell they mean and they say that the Platinum card was actually sent to replace the original card, so my balance was transferred....so 500 balance transferred onto a 500 limit card and then having 250 put on it, means 250 over limit! I was furious. It seems there was a two week lag in them actually transferring my balance, so the Platinum card showed a 0 balance, allowing me to use it. I even rang TWICE to double check I could use the card and they said YES both times! I tried to appeal but they are useless, so I'm now paying off 50 a month to try and clear the arrears down and then I'll go back to my normal payments.

Littlewoods balance 1000, this was originally 2000 and I'm literally paying 2-300 each month to try and clear it off quickly cos I don't want it hanging over me for any longer.

Kays balance 550, I literally only use this for interest free purchases over 20/52 weeks and am paying off 150 per month at the moment.

Additions balance 200, this charges interest and I'm only paying the minimum, I realise this is daft.

Very balance 200, as above.

One really tricky thing is that my partner is very crap with money, we both used to be, but I've had a massive wake up call and no longer want to be living like this, but he's not showing the same interest and is not interested in saving or making lunches to avoid spending etc etc. I actually think this is a big enough reason for me to leave him, as he's so immature in his thinking (I work, I can spend) and as we have two kids, I'm trying to look to the future, where I can be in a reasonable state credit wise to help them out if they need it etc.

Anyway, I've rambled on - look forward to any replies.

Danni-R

Hello.

The best thing to do is fill out at SOA and then people can see where you might be able to cut back. It also helps as it makes you list the interest on the cards etc so you can work out which ones to focus on.

But its a great place to start and people will be along in a bit to help some more.

GeorgieFTB

freckles

An SOA is a good idea, even if you don't post it it might help your OH to get on board.

You've had your LBM (light bulb moment) your other half hasn't, so don't be too harsh, yet!!!

You need to sit down with your OH take him through your budget for the family, your family's debt free date, you can work this out using a snowball calculator. Hopefully that will shock him into listening to you, you also might want to tell him how much interest you are paying on your debts, then let him know when you have paid everything off that will be spare money.

If you end up taking over the family finances you will have to give him some money to fritter away or I think he would go mad!!

Good luck
Gx

jonjamie1970

Good luck Freckles with this, Im sure you'll get the debts down, you do need to post the SOA and the APR's so you know where to concentrate your efforts first.

I'm a bit confused with your Vanquis card though, you didnt apply for a new card but thought they had sent you a new one so went out and spent half of what you thought was the available balance ?

freckles30

What is an SOA? Am happy to do this if someone can let me know what it is.

Re the Vanquis card - it was a huge mishap on my part I think, I'd been sent a Platinum card with a slightly lower APR, so I just assumed they'd given it to me to get more money out of me, but less APR to encourage me to spend. I literally had no idea they were replacing the existing card with the Platinum card - why would I think they'd do that and leave a two week gap before transferring the balance AND having their customer service team tell me it's OK for me to spend. A mistake that I'm paying heavily for, not much else I can do.

katsu

freckles,

Do the SOA - template at the top of the sticky forum threads - and work out the interest rates on your debts. Sounds like you are paying more than minimum payment on a debt which is not your most expensive in interest rates. The fastest way to get DF is to pay the most money off the highest interest rate card first (and keep doing that for whatever is your dearest debt).

Hope this helps.

Hannah_10

https://forums.moneysavingexpert.com/discussion/107280

[Deleted User]

The SOA is the best bet - also in addition to the balance of each of the debts above, it's also important to state what the minimum monthly payment is as well as the APR being charged.

D9

freckles30

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 4
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 930
Partners monthly income after tax....... 2000
Benefits................................ 120
Other income............................ 0
Total monthly income.................... 3050
Monthly Expense Details
Mortgage................................ 950
Secured/HP loan repayments.............. 613
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 120
Electricity............................. 50
Gas..................................... 50
Oil..................................... 0
Water rates............................. 50
Telephone (land line)................... 20
Mobile phone............................ 35
TV Licence.............................. 10
Satellite/Cable TV...................... 30
Internet Services....................... 20
Groceries etc. ......................... 350
Clothing................................ 25
Petrol/diesel........................... 280
Road tax................................ 20
Car Insurance........................... 70
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 100
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 20
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 85
Haircuts................................ 70
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 3068

Assets
Cash.................................... 0
House value (Gross)..................... 200000
Shares and bonds........................ 0
Car(s).................................. 8000
Other assets............................ 0
Total Assets............................ 208000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 163000...(950)......0
Hire Purchase (HP) debt ...... 15000....(413)......0<
loan...........................20000....(200)......0
Total secured & HP debts...... 198000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
vanquis........................750.......50........34.4
capital one....................200.......15........30.3
vanquis........................500.......40........39.9
kays...........................400.......45........0
littlewoods....................1110......100.......0
additions......................203.......10........39.7
very...........................288.......15........49.9
aqua...........................250.......10........30.4
Total unsecured debts..........3701......285.......-

Monthly Budget Summary
Total monthly income.................... 3,050
Expenses (including HP & secured debts). 3,068
Available for debt repayments........... -18
Monthly UNsecured debt repayments....... 285
Amount short for making debt repayments. -303
Personal Balance Sheet Summary
Total assets (things you own)........... 208,000
Total HP & Secured debt................. -198,000
Total Unsecured debt.................... -3,701
Net Assets.............................. 6,299

Eeek - hope this is all ok, bit scary doing all of that - feel quite sick now tbh!

One thing to note - my partners salary is his basic, he often receives 2-300 in overtime, but I thought I'd put the basic, as that shows how we are on a non overtime month - up S street basically! On the highest APR Vanquis (my partners) he clears the balance every month and uses it for petrol...it's not normally maxed up, but it is this month as we've had a few extra outgoings. I also clear the Aqua full balance each month, so there's no APR added.

After analysing this, if anyone has any suggestions, then please let me know. I realise we are in a hole, but I want to get out of it, so I suppose that's good

freckles30

Oh sorry, should add that I don't know the APR for the mortgage (but we can't change this for another 2 years anyway), the HP and the loan (this was taken out against the house).

CH27

The £85 for presents is very high.

Do the other 2 adults in the house not contribute?

You could reduce your grocery bill by dropping a brand, batch cooking & freezing.

Your Buildings & contents insurances are also high.

Can you combine your Internet & landline?