Debt Advice - Am I doing the right thing?

wangtastic

Hi there,
After finishing university I was left jobless and homeless.

I moved back in rented with my mother and got a 0% credit card to support myself at the time.

I also had -£1000 overdraft on my current account thanks to university. (0% too)

I now have a Job earning a measly £640 a month.
I have a new 0% credit card (taken out a few days ago) with £1400 balance transfered to it and only £700 of debt on my current account now. (still 0%)

I am wondering whether or not I am in an OK place debt wise?
and how I should proceed moving forward?

RAS

Hi

I am cinfused as to why you needed a credit card to support yourself after moving back home? Did you not claim JSA?

wangtastic

Oh sorry yes I did, but I used the card to support myself as well, bad move I know.

I just want to know if I am in a bad place or if I will be ok...starting to panic!!

RAS

I think you need to do a proper SOA http://www.makesenseofcards.com/soacalc.html

as it is very unclear what you mean by "support myself."

wangtastic

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 3
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 634
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 634

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 100
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 25
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 30
Clothing................................ 0
Petrol/diesel........................... 150
Road tax................................ 0
Car Insurance........................... 85
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
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.................. 390


Assets
Cash.................................... 50
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 2050

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
MBNA...........................1400......40........0
Natwest........................700.......40........0
Total unsecured debts..........2100......80........-


Monthly Budget Summary
Total monthly income.................... 634
Expenses (including HP & secured debts). 390
Available for debt repayments........... 244
Monthly UNsecured debt repayments....... 80
Amount left after debt repayments....... 164

Personal Balance Sheet Summary
Total assets (things you own)........... 2,050
Total HP & Secured debt................. -0
Total Unsecured debt.................... -2,100
Net Assets.............................. -50

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

wangtastic

This is just a breakdown for me, my sister and mother have been left out for now.

RAS

You need to budget for clothing, car maintenance and road tax, properly and you need to find out the APRs on those cards.

There is a good snowballing link on www.whatsthecost.com, that explains how to pay off debts most effectively.

And do you really, really need a car? Not want, like or find it more convenient, but need.

Foggster

RAS wrote: »

You need to budget for clothing, car maintenance and road tax, properly and you need to find out the APRs on those cards.

There is a good snowballing link on www.whatsthecost.com, that explains how to pay off debts most effectively.

And do you really, really need a car? Not want, like or find it more convenient, but need.

The OP has said they are 0% at the moment.

OP - I agee with RAS you havent budgetted in any car expenses which appear quite crucial based on your fuel useage. The first question someone will ask is whether the vehicle is necessary and whether there is public transport available.

When do these 0% periods end on the OD and card?