Reformed but need help

ashie12001

Hi everyone,

I'm in a bit of a tricky situation.I ran up quite a lot of debt when I was at University. On top of a student loan I accumulated £8000 in credit card debt (and I was working part time as well. Boy, could I spend money back then!). Since then I have got myself a decently paid job (£25000 a year) and have not got into anymore debt in the three years since I graduated. However, since I am only making the minimum payments every month I am not really making much headway with the amount of debt outstanding. I have applied for a loan to try and consolidate the debt, but I was turned down as my credit score was too low.

Does anyone have any ideas on how I can get rid of this debt quicker? It's not really something I want hanging over my head for years to come.

Thanks

emzig123

Hi ashie,

Post a Statement of Affairs (SOA) using southernscousers sticky post at the top of the DFW board and the experts can see where they can help you. Most people on here believe that consolidation is not a good way of dealing with debt because it doesn't address the root cause of spending. Good luck!

ashie12001

Hi again,

I've done an SOA which is here

Monthly Incomings:

My salary - £1,456.72


Monthly Outgoings:

Mortgage/Rent - £455
Council Tax - £35
Gas - £12
Electric - £15
TV License - £10.99
Telewest :£50
Phone - £35
Food - £200
Credit card (Cahoot) Limit £4500 : Payment of around £75 APR 15.9%
Credit card (Egg) Limit £3500 : Payment of around £65 APR 15.9%
Gym: £35
Life Insurance £17.90

Total: £1005.89

emzig123

Well done Ashie, I'm no expert but your SOA looks good to me, start a spending diary to see where the remaining 450 quid is going and use the snowball calculator to calculate a debt free date.

Good luck x

nethesi

hi ashie,

firstly well done on facing up to your debts - it's 1/2 the battle!:o I've had a little look down your SOA and a few things stand out:


Monthly Incomings:

My salary - £1,456.72

good salary. You could also try selling stuff/clutter on ebay etc for fast 1 off hits, getting cash back from quidco etc... basically any extra cash you can make!


Monthly Outgoings:

Mortgage/Rent - £455
Council Tax - £35
Gas - £12
Electric - £15

seems reasonable - are you in a shared house?

TV License - £10.99
Telewest :£50

wowsa! is this internet and tv? if so 'i'd suggest cuttung back to just bband (i get it for 9.99 a month - see the ntl/telewest thread for the number to call) if it includes phne then i'd still get rid of the cable and buy a freeview box: when ou've paid off your debts you can then treat yourself! - saving £20

Phone - £35

mobile? ring up and ask to move contracts. if your outside contract switch to PAYG. - saving £15

Food - £200

from the rest i'd guess you are single? you shd be able to cut down to £100 a month, my husband and i eat for about £150 and because we're not in debt we treat ourselves. see the old style board for recipes, meal plans etc! - saving £100

Credit card (Cahoot) Limit £4500 : Payment of around £75 APR 15.9%
Credit card (Egg) Limit £3500 : Payment of around £65 APR 15.9%
Gym: £35
are you on an annual contract? if so see if you can get someone else to take it in: my local gym allows people to transfer their membership. otherwise cancel and take up walking, cycling, swimming (£2.5 a weekish) - saving £25


Life Insurance £17.90

As a singleton i doubt you need this: its to give your dependanrs a nest egg if you die. if you don't have any you'd be better off paying it off our ccard - saving £18

Total: £1005.89

you don't include any transport costs, entertainment, toiletries, haircuts etc in your list: have a look at your bank sttements.

anyway excluding thse costs you have £450 surplus and i reckon you can save an extra £178 a month.:j

plus selling your unused gadgets, clothes that don't fit, etc on ebay/amazon!
if you have ppi on your loans cancel it!

it'll take some effort but i think you can do it!

good luck and well done on facing up to it!

nethesi xxx