Help - where do I start?

theflute

Hi
I really need some advice on how to manage our debt, what to pay off first and really just how to budget - not my strongest point.

Here is our income and outgoings

Deep breath here goes...

Joint gross income: £3,144
Mortgage £643 - interest only
Direct Debits: £1,139.00
Travel to work & petrol: £220
Housekeeping: £400.00
Kids clubs £50.00

Debt:
N.Rock Loan: £9,798 5 years left 7.4% £128.92
Black horse loan: £7,000 3 yrs left 7.4%£188.22
Barclaycard £3047 £68.57 0% credit card
Overdraft £2,350
Professional studies loan £21,000 8 yr loan £336.91

Savings: £2,000
We own 2 cars but we are selling one, we own both of them.

Just not sure where to start and I would really appreciate some advice.
Many Thanks

LittleMissGiggles123

I cant give you much advice myself as I am fairly new on here, but I know the more experienced members will probably advise you to post a SoA. This will help them to see where you can cut down.

Good luck

x

McKneff

LittleMissGiggles123 wrote: »

I cant give you much advice myself as I am fairly new on here, but I know the more experienced members will probably advise you to post a SoA. This will help them to see where you can cut down.

Good luck

x

Correct, you need to detail out everything, incomings and outgoings. Post an SOA

CH27

Use the SOA link towards the top of the page as it's more detailed.

theflute

Following your advice here is my financial statement...
My income: £1,063
partner: £2,081
Child ben: £134.00

Direct Debits
Mortgage interest only 3.5% £643.00 - £220,000
Gas & Electric: £102.00
Water on a meter: £31.05
Internet/Lline: £19.50
Mobile: £59.61 (I realise we can reduce this but tied into contracts)
Sky: £20.50
TV License: £12.37
Council tax: £181.00
Car insurance both cars: £48.54
House/bldgs ins: £35.00
Petrol & travel to work: £213.00
Groceries & entertainment: £400
childrens clubs: £30.00
Misc don't know where it goes.... £300.00 this is an area to work on

Liabilities - the worst part
Loan 1: N.Rock Loan: £9,798 5 years left 7.4% £128.92
Loan 2: Black horse loan: £7,000 3 yrs left 7.4%£188.22
Barclaycard CC £3047 £68.57 0% credit card
Overdraft £2,350
Professional studies loan £21,000 8 yr loan £336.91

Savings: £2,000
We own 2 cars but we are selling one, we own both of them.

I would like to know which debt to pay off first?

GeorgieFTB

theflute wrote: »

Following your advice here is my financial statement...
My income: £1,063 - anyway to up this?
partner: £2,081
Child ben: £134.00

Direct Debits
Mortgage interest only 3.5% £643.00 - £220,000
Gas & Electric: £102.00 - seems high, comparision site to check, start turning things off more anything else to bring it down
Water on a meter: £31.05
Internet/Lline: £19.50 - can this be bundled into the SKY?
Mobile: £59.61 (I realise we can reduce this but tied into contracts) - you might be able to drop a tarriff if you ask
Sky: £20.50
TV License: £12.37
Council tax: £181.00
Car insurance both cars: £48.54 - comparision site and quidco/topcashback to check its cheapest
House/bldgs ins: £35.00 - ditto
Petrol & travel to work: £213.00 - drive more economically? there is a guide on the main site
Groceries & entertainment: £400 - a family of four can be fed for about £200, batch cooking and cooking from scratch will really help, head on over to the old style board for ideas
childrens clubs: £30.00
Misc don't know where it goes.... £300.00 this is an area to work on - yep, misc is a worry...

Liabilities - the worst part
Loan 1: N.Rock Loan: £9,798 5 years left 7.4% £128.92
Loan 2: Black horse loan: £7,000 3 yrs left 7.4%£188.22
Barclaycard CC £3047 £68.57 0% credit card
Overdraft £2,350
Professional studies loan £21,000 8 yr loan £336.91

Savings: £2,000
We own 2 cars but we are selling one, we own both of them.

I would like to know which debt to pay off first?

OK, your budget is a little lite on details, don't panic most first attempts at an SOA is, you need to start a spending diary, write down everything you pay for, down to the coffee on your way to work or the packet of chrisps you just felt like. Once you have sorted out what misc covers then you will be able to see where you can cut back.

Which loan to pay off depends on what penalties they will each charge, you will need to dig out paperwork or phone them to find out. You also need to look at what your overdraft is costing you, that might be the debt to pay off first.

There is a comprehensive SOA at http://www.makesenseofcards.co.uk this site also has a snowball calculator which will give you an order to pay off your debts and how long it will take you. This will only work if you know how much extra you can throw at your debts.

Good luck
Gx