Newbie needs advice to get debt free!!!

rosay

Hi everyone

I've been browsing this site for a while and have found the forums so useful - but I'm not very financially clued up and get confused very easily when it comes to anything to do with money, so I'm hoping you lovely people can help me come up with a plan to become debt free.

My debts are not terribly out of control compared to some people but I feel like I've come to a stalemate - every month I try to spend less and pay off more but it never seems to happen and my overdraft gets larger and larger.

So here are my current debts:

Overdraft = currently at -£1050. This is what depresses and frightens me the most. Each time I get paid it barely goes in to a plus these days.

Credit card - currently owe £476. Pay off pretty much the minimum fee each month as that's all I can afford. Never use it for spending anymore as I just want to get rid of it. I can't even remember what the interest rate is that I am being charged and don't know how to find out. [IMG]file:///C:/Users/Rosie/AppData/Local/Temp/msohtml1/01/clip_image001.gif[/IMG]

2 loans both from my building society – owe £1,415.44 with 26 payments to go and £1,041.20 with 20 payments to go.

Paying off my car – thankfully borrowed the money interest free from the bank of mum and dad and pay £80 a month – I’ve still got 23 months to go – still owe £2080.

So my total debt is £6062.64 and I’m struggling to get it down and I certainly don’t want it to increase. Any advice is welcome. So far I’m thinking of switching my credit card to a 0% balance transfer card so at least I’m not paying interest on that for a while. I would also really appreciate advice on super cheap grocery shopping as I don’t want to live off tinned soup but feel like that is my only option at the moment. If a suitable second job comes along I’m going to take it, but nothing has come my way so far. Oh and I’ve got a couple of things on ebay at the moment which I’m hoping to earn about £40 from. But obviously that’s not going to make much difference!


Oh and I earn £1200 a month after tax.


Thanks all.

[Deleted User]

Hi,

Welcome to the forum. The best place to start is by posting an SOA, here's the link: http://www.makesenseofcards.com/soacalc.html

So here are my current debts:

Overdraft = currently at -£1050. This is what depresses and frightens me the most. Each time I get paid it barely goes in to a plus these days. What's the charge/interest being charged on this, is this an agreed overdraft, and if so what's the agreed overdraft limis?

Credit card - currently owe £476. Pay off pretty much the minimum fee each month as that's all I can afford. Never use it for spending anymore as I just want to get rid of it. I can't even remember what the interest rate is that I am being charged and don't know how to find out. You NEED to find out the APR, it should be in the paperwork if you can find it, if not give the card company a call.

2 loans both from my building society – owe £1,415.44 with 26 payments to go and £1,041.20 with 20 payments to go. Again need to know APR's

Paying off my car – thankfully borrowed the money interest free from the bank of mum and dad and pay £80 a month – I’ve still got 23 months to go – still owe £2080.

So my total debt is £6062.64 and I’m struggling to get it down and I certainly don’t want it to increase. Have you stopped spending on the card?
Any advice is welcome. So far I’m thinking of switching my credit card to a 0% balance transfer card so at least I’m not paying interest on that for a while. This would be a good idea if you can. Do you have a good credit report, if so do this as a priority, the less interest you pay the less you will pay back. I would also really appreciate advice on super cheap grocery shopping as I don’t want to live off tinned soup but feel like that is my only option at the moment. Take a look around the old style board, there are lots of hints, tips and advice there. If a suitable second job comes along I’m going to take it, but nothing has come my way so far. Any chance of overtime at your current place of work?nOh and I’ve got a couple of things on ebay at the moment which I’m hoping to earn about £40 from. But obviously that’s not going to make much difference! Every little bit helps, have a clear out and see what else you have for e-bay Amazon etxc

Oh and I earn £1200 a month after tax. Additionally need a breakdown of your expenses to get a clear picture - all in the SOA if you follow the link given above.

HTH

D9

rosay

What's the charge/interest being charged on this, is this an agreed overdraft, and if so what's the agreed overdraft limis?

The agreed limit is £1200, I'm afraid I don't know what the interest being charged is. I could ring the bank tomorrow and ask them.

You NEED to find out the APR, it should be in the paperwork if you can find it, if not give the card company a call.

Will do

2 loans both from my building society – owe £1,415.44 with 26 payments to go and £1,041.20 with 20 payments to go. Again need to know APR's

- I can phone them and ask - the bank man on the phone said that those final figures are including the interest.


So my total debt is £6062.64 and I’m struggling to get it down and I certainly don’t want it to increase. Have you stopped spending on the card?

Yes I haven't used it for months!

Any advice is welcome. So far I’m thinking of switching my credit card to a 0% balance transfer card so at least I’m not paying interest on that for a while. This would be a good idea if you can. Do you have a good credit report, if so do this as a priority, the less interest you pay the less you will pay back.

Good, I'm going to try and get this done tomorrow.

I would also really appreciate advice on super cheap grocery shopping as I don’t want to live off tinned soup but feel like that is my only option at the moment. Take a look around the old style board, there are lots of hints, tips and advice there.

Will do, thanks.

If a suitable second job comes along I’m going to take it, but nothing has come my way so far. Any chance of overtime at your current place of work?

Unfortunately not, I work for a charity so they are scrimping and saving as much as I am!

Additionally need a breakdown of your expenses to get a clear picture - all in the SOA if you follow the link given above.

Will do this now. Thanks very much for your advice and taking the time to reply to me!