Help me get rid of debt!

Sam84

Hi people,

First post here. I'm after a bit of advice regarding the best way to get rid of my debt. I'm coping, but not really paying anything off as such. I really want to get my debt down as I am looking to move into my first house with girlfriend in the summer.

Anyway my SOA...

MONTHLY INCOME:

Wages - £1450

I am a Building Surveyor and sometimes do private work (drawings etc.) for which I can get £300 - £1000 a month extra. I do not want to rely on this as I may have nothing for months at a time.

MONTHLY OUTGOINGS:

HSBC Loan (£14500 balance) - £250
Tesco Loan (£1000 balance, 8 months left) - £70
HSBC Gold Card (£4400 balance) - £130 min
Mint Card (£3200 balance) - £75 min
HFC Flexi Loan (£900 balance) - £20 min
Comet Store Card (£170 balance - £10 min
GE Capital, TV purchase (£500ish balance) - £30
Overdraft HSBC (£550) - Wages go here?
Rent (living with parents) - £100
Petrol (use car for work) - £200
Phone - £65
Lunch - £40

So I have some money left over each month (on paper anyway- I tend to spend a lot of money socialising! - I will cut down), how should I start to takle these debts?

Thanks in advance

Sam

LookingAhead

Hi Sam.

If you can post the APRs for your debts this will help...

I reckon you need to start "snowballing".

Check out Southern Scousers "fixed" thread on this chat forum for Debt Free Wannabees as this will help you outline *all* your expenditure and all the other info that the DFW nerds (don't worry it's a term of endearment!) will need to sort you out.

Definitely get your APRs together though.

Good luck!

LA x

LookingAhead

Actually here is the link to SS's useful post:

http://forums.moneysavingexpert.com/showthread.html?t=107280

CLAPTON

first thing is to find out where your money is all going....you have listed no annual costs atall...you need to work out all the things you are going to spend in the next 12 months..divide by 12 and add to the budget and then re add it up.
otherwise when you come to pay your car tax (or whatever) you will be increasing your debt rather than paying from your saving.
so what do you spend on car tax, insurance, MOT, servicing, RAC/AA, clothes, presents, xmas, weekends away, holidays, boytoys etc... all these you have to save up each month so you have the money when you need it rather than increase debt.

also start a spending diary...write down everything you spend and see where it all goes...socialising, haircuts, lunches at work, CD/DVDs, magazines/newspapers, hobbies, sport or whatever.

find out all the APRs on your loans..with whatever 'spare' money you have each month, then snowball the debts ...that is pay the mimimum on each debt except the one with the highest APR..on that one pay as much as possible until it is clear then go onto the next one etc.

do myou have PPI on any of the CC..if so think about cancelling

can you increase your income...overtime or parttime work?

southernscouser

Welcome to the site Sam! :beer:

OK now your total debt comes to £24,720! The best thing to do is try and get as much of this on the lowest APR possible. My advice would be to apply for a low life of balance transfer card. I think the M&S More card is the cheapest around right now at 3.9%!

Also maybe think twice about moving in with your girlfriend until you are debt free. :think:

Sam84

Thanks LA, updated with APR's (some are aprox, as I dont have my file with me...

MONTHLY OUTGOINGS:

HSBC Loan (£14500 balance) - £250 APR 11.0%
Tesco Loan (£1000 balance, 8 months left) - £70 APR 9.0%
HSBC Gold Card (£4400 balance) - £130 min APR 14.0%
Mint Card (£3200 balance) - £75 min APR 11.9%
HFC Flexi Loan (£900 balance) - £20 min APR 24.9%
Comet Store Card (£170 balance - £10 min APR 29.9 %
GE Capital, TV purchase (£500ish? balance) - £30 APR ??
Overdraft HSBC (£550) - Wages go here? APR ??
Rent (living with parents) - £100
Petrol (use car for work) - £200
Phone - £65
Lunch - £40

Sam84

Thanks guys,

My car is a company lease car so I pay nothing for that. As for presents, haircuts, treats, holidays etc. it works out about £250 a month (a lot I know!)

I would like to transfer debts to a low interest card or 0% for a while, but don't think I'll get one as my salary is £28,000 a year and I almost owe that amount?

Sam

LookingAhead

Well I only earn £18000 and my debts are £15k!! :eek:

Someone will correct me if I am wrong I am sure but if I were you I would be looking at either getting a lot of the high APR stuff onto either a 0% or low interest rate for the life of the balance. Probably the latter if you don't think you can clear a lot of them within 6 - 9 months.

LookingAhead

Sorry I should have said, people seem to be falling over themselves to offer me 0% balance transfers every year and given my debt & salary, you, on your salary should at least try. Oooh don't mean that to sound like a teacher "try"....just, give it a go!

southernscouser

I personally don't like 0% cards. The chances are you won't be able to pay off the full balance by the time is up and there is no guarantee that you will get accepted for another one when this happens. I prefer the security of a constantly low APR for the whole term.

Sam84

Think I'll apply for a low life of balance deal and see what I can get on it. I always get offers through the post but this doesnt neccessarily mean I'll get accepted.