Don't know where to start!

deegis

Basically I have quite a bit of debt which I have tried to ignore for some time but it got to the point where it can't be ignored any more. I checked my experian profile and was horrified to see i have a few defaults on. I would like to do something about it now but don't know where to start. I get paid weekly and would like to set some kind of weekly payment for my debt. Seen as it is default on my credit report, will it make a difference if i will now start paying it off? I am only asking because I need to repair my credit and would like to start being responsible with my finances.
Also, I have 2 bank accounts at the moment, a Natwest current account which i never use and a Halifax EasyCash account where I get my wages paid into and which I use regularly. I noticed on experian that only the natwest account shows up, is it some kind of mistake on halifax's part? I prefer using the halifax account as it's got no overdraft facility and keeps me in check with my spending.
Thank you and sorry for the very long post.

CherryDrop

Hiya! Well done for recognising you need to do something about your debt, i'm not a pro at everything yet as i've just started out too but I highly recommend speaking to somebody at the CCCS, google them and you can speak to an online advisor and really think it would be a good idea to complete the Debt Remedy part of the site.

It might also help if you post up a statement of affairs from http://www.makesenseofcards.com/soacalc.html then we could all possibly point out where you could possibly make some savings?

Hope this helps!!
Xx

deegis

Thank you for your reply.
I did the statement of affairs and here it is :
Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 400
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 400

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 15
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 75
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.................. 190


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................502.......0.........0
Capital One CC.................743.......0.........0
Loan...........................2360......0.........0
Lowell Portfolio...............266.......0.........0
Lloyds TSB CC..................1359......0.........0
Total unsecured debts..........5230......0.........-


Monthly Budget Summary
Total monthly income.................... 400
Expenses (including HP & secured debts). 190
Available for debt repayments........... 210
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 210

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -5,230
Net Assets.............................. -5,230

.[/i]

I don't think it's very accurate, i don't pay rent and other bills because my house is owned by my parents (they don't live here but pay all the bills). All I pay are my mobile phone and health insurance as well as groceries. I've outlined the debt as it appears on experian, but do not know what APR the cc are, some of them are defaulted on. As you can see I am in a mess of a debt which nobody knows about. I spend my money on useless things and would really like to start paying this debt off, I know it will take years but can I pay it even if it is defaulted on and if so, will it make a difference to my credit report?

Thank you

NeverAgain_2

Prescriptions at £75 looks a lot, particularly as you only have £400 coming in.

Have you not got a prescription season ticket?

Unlimited pills for about £100 a year.

https://www.ppa.org.uk/ppa/ppcdd/patient.do

deegis

It's not for prescriptions, it's for private medical insurance, i've got some health problems which require me to get certain tests done every 6 months which the nhs doesn't cover. I put roughly 400 pounds as i only work part time so it depends really, sometimes it's more, sometimes less.

CherryDrop

I'm not 100% sure about credit reports etc, but you look like you're in a pretty good position not having to pay rent etc. You definately need to complete the debt remedy on the CCCS website and it will tell you how to split your debt evenly between your creditors. You need to write to each creditor and explain your situation and how much you will pay towards the debt monthly. There are a few good template letters around the boards bbut sometimes it's better to write it in your own words.

It might be a good idea to start a spending diary as well, just a cheapy little notebook from pounland or whatever and just write down every single penny you are spending, it will help you to see where you need to cut back spending. I started one ages ago and it's crazy how much I used to spend on bottles of coke at lunch! It really makes the world of difference when you cut back on small things.

Have a mooch around the boards too, there are some great little ways of earning a few extra pennies.. Do you have any things you no longer need that you could put on Ebay? Also joining up to survey sites is a good idea you wont be rich overnight but it helps ease the pinch a little..

Everyody here is very helpful and you're never on your own, there's always somebody to answer any question you have! I wish you the best of luck, it will be long and hard but i'm sure it will be worth it in the end as I hope to find out!

x

brokeinlondon

Is the £100 for groceries just for yourself? If so, you MIGHT be able to bring it down a teensy bit.

I think the main problem is really your income, as your costs are very low. Is there any way you could bring in some extra money? Sell things on ebay, do more overtime, maybe another part-time job, and have you checked if you're eligible for any benefits?

podperson

I'm guessing you work part-time - if there any chance of you getting extra hours or another part-time job? Could you have a clear out and sell on ebay, do some mystery shopping, surveys etc. to get a bit extra in to go towards the debts.
Think your SOA might need a little bit of tweaking - groceries could perhaps come down a bit if it's just you. Also you haven't added anything for travel (do you walk to work?) presents/entertainment etc. Could be worth putting a budget for those then you aren't just randomly spending on them and wondering where the money is going Could also be worth keeping a spending diary to see where the extra is actually going as assuming you don't end up with £200 spare a month?
You need to find out the aprs on the debts then you might want to look at tackling the ones with the highest interest rates first. If you're not using the cards then could also be worth you writing to them and asking them if they would freeze the interest (some are more helpful then others but if you don't ask you don't get!)
The defaults will stay on your credit record for 6 years but obviously it looks better if people can see that they are being paid off now.
Good luck with it x

gfplux

deegis wrote: »

It's not for prescriptions, it's for private medical insurance, i've got some health problems which require me to get certain tests done every 6 months which the nhs doesn't cover. I put roughly 400 pounds as i only work part time so it depends really, sometimes it's more, sometimes less.

£900 a year on medical insurance is a lot of money. Are you paying this to cover the 6 monthly tests (what do they cost) or to cover treatment if the tests show up a problem.
If the tests are not covered by NHS are you also saying the treatment will not be.
have you challenged the decision of the NHS to not cover this problem.

deegis

Thank you for your replies. Yes I work part time and walk to work as it is very near my house. Also I can't really increase my hours as I am currently studying full time and don't really have much time left. I know things will get better once I graduate and get a proper full time job but I would like to start making changes now. I don't really spend much money on going out or meals out but I think my biggest spending is food as I live with a friend and we always have people over for dinner. Yes i know this could be cut back on, will try to improve on this.
Regarding my medical bills, the insurance does not cover the tests 100% but it helps a lot considering that they would otherwise cost thousands of pounds. The treatment is covered by nhs, i mean i pay the same for prescriptions as everyone else. This is not an issue though as I am very happy with the service I get from having private medical insurance and I know I should make cut backs but health is not something I am willing to compromise.
I think keeping a spending diary will be a good idea, but should I contact each of my creditors asking whether they would accept a weekly sum? I don't know how to go about doing this. Also, if you read my first post, does anyone know why my halifax account does not appear on my experian report? Even though I use it all the time, whereas the natwest one which I never use is on there?
Thank you x

[Deleted User]

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2

Monthly Income Details
Monthly income after tax................ 400 Any way to increase - even try and have something full time in place for over the summer months when you are not studying?
Other income............................ 0 If you are a student, should you not get student loan, bursary, or grand?
Total monthly income.................... 400

Monthly Expense Details
Mobile phone............................ 15 there are some good £10 SIM only deals, also PAYG might also be cheaper
Groceries etc. ......................... 100 I am sure that you could cut back here - drop brands, meal plan, batch cook, cook from scratch, shop with a list, buy things on deals (2 for 1 etc), and go to cheaper supermarkets Lidl/Aldi
Medical (prescriptions, dentist etc).... 75 Have you compared the primiums for different insurance companies - might be cheaper for the same elsewhere - worth looking at if you are not prepared to cancel
Presents (birthday, christmas etc)...... 0 never?
Haircuts................................ 0 nothing?
Entertainment........................... 0 nothing?
Total monthly expenses.................. 190

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR You really need to find out the APR's in order to identify what these are costing you. On your credit report, it should provide contact details of your debtors - get in touch to arrange a payment
Barclaycard....................502.......0.........0
Capital One CC.................743.......0.........0
Loan...........................2360......0.........0
Lowell Portfolio...............266.......0.........0
Lloyds TSB CC..................1359......0.........0
Total unsecured debts..........5230......0.........-


Monthly Budget Summary
Total monthly income.................... 400
Expenses (including HP & secured debts). 190
Available for debt repayments........... 210
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 210 Do you have this surplus at the end of every month? My guess is that you don't if you haven't been paying your debts and you have no cash savings - keep a spending diary to see where it is getting spend - also, sign up to some of the survey sites/mystery shopping/focus groups etc (info on the "up your income" thread) for a little extra income, also when you do shop - check for cashback deals on the cashback sites (Quidco, topcashback, onepoll), also see if you can sell what you have and no longer use (books, clothes, DVD's, CD's etc try amazon, e-bay, gumtree etc).

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -5,230
Net Assets.............................. -5,230

Made some comments above -HTH

D9