£4k in debt need help!

JoshyBoy_2

Here's my S'ment of affairs, I haven't taken into account B'day's etc and as I live with parents I only pay £120 "keep" PM. I obviously go out with mates, but will cut this down right away, and I am an WBA fan (Football) and have been addicted to going, but will stop or go to one off games (or ask for a Season Ticket for my B'day! lol) But yeah, this is a basic over look.

Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 750
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 750
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 120
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 70
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 60
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
Course fee's (1 year costs / 12) ....... 80
Total monthly expenses.................. 330

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
Lloyds TSB Account.............1000......20........0
Natwest Account................500.......20........0
ASDA Store Card................1000......30........25
Master Card ...................975.......25........25
Barclays Credit Card...........1500......100.......25
Argos Store Card...............600.......30........25
Total unsecured debts..........5575......225.......-

Monthly Budget Summary
Total monthly income.................... 750
Expenses (including HP & secured debts). 330
Available for debt repayments........... 420
Monthly UNsecured debt repayments....... 225
Amount left after debt repayments....... 195
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -5,575
Net Assets.............................. -5,575
Created using the SOA calculator at.
Reproduced on Moneysavingexpert with permission, using IE browser.

Thanks for any help, again with the course fee's that's an overview. I don't pay £80 P/M I pay a one off fee when I need to ever so often. Any question please ask!

Little_Miss_Uni-Debt

Hi JoshyBoy,

I think if you work hard now you will save yourself lots of money and be able to be debt free while you are young. Well done for dealing with it now!

As far as I can see you have the following accounts to pay off:-

1500 Barclays CC
975 Other CC
500 Argos
900 Asda
1000 Overdraft
500 Overdraft

A quick total shows that at about £5375. My best advice I can give you is to track your exact total down to the penny.

I just don't want you thinking you have £4k, working really hard, paying off a chunk only to find out you had your starting total wrong. That is the biggest demotivator ever and it's important to stay positive!

I can guarantee that working hard now will result in you having more freedom and fun, debt free - while you're still in your twenties!

Next task after accurate total is to get your APR% rates filled in next to that list. You can then use the snowball calc to show you the cheapest order to pay your debts off in.

EDIT** Just as I posted this, I saw your SOA go up! Great start, are all your debts at 25% interest?

JoshyBoy_2

I've been a typical young un really! I opened up the Natwest account to try and get some savings going to clear debt, then I started using the overdraft facility!

Ditto by taking out numerous credit cards, with the store cards it sounds like a good deal at the time (in my case I purchased laptops and tv's) saying buy now pay within 6 months! but it didn't work out like that!

Really stupid I know, but hey we all make mistakes! I've learned the hard way, just really really want a clean slate!

rdchick

LMU-D is right, know exactly what you owe otherwise you might get stung! Take each payday as it comes and pay off all you can afford. Stay focused on that house you want

ElmerFudd

JoshyBoy, you should contact your mobile provider even if you are fixed to a plan. I have a plan for two mobiles (pretty good Androids) for £40 a month for two phones!! I have unlimited internet, 6000 minutes, 6000 texts. If your service provider can't do you a good deal perhaps you can switch to a competitor.
As all your APR's are the same (25%) target the smallest balance first to overpay and pay the minimums on the others. It's easy to lose balance and fall off the bandwagon. I usually keep a spending diary so I know where all my money is going. You'll be surprised where it all goes.
Good luck on your debt free journey.

JoshyBoy_2

I have a conracted phone plan though? I doubt they will move from this?

Also how can I switch?

I thought once the deal was done, it was done so to speak!

dancingfairy

It depends on how far into your contract you are - you should be able to leave at the end of the contract though - I believe you phone them up and ask for your MAC and get in touch with another provider with your MAC and sign a new contract with them. The only thing the MAC is for is to transfer your number I think so you could just sign up with a new provider (as long as you can cancel the other one -you don't want 2 on the go!).
You might also find that if you phone up wanting to switch they might offer you a deal to keep you.
Other than that if you are still in contract they may allow you to downgrade a tariff or 2 - some will let you after 6 months, some let you go down a tariff a month etc - it's down to your provider.
Oh and your SOA shows a surplus of 195 a month which is great. Personally I would use some of that for entertainment/birthdays etc as I can't see you will last a year etc without going out at all but any spare should be chucked at the debt. You need to learn some student tactics re entertaining - ie drinks at home before going out, 2 for 1 deals, cheap cinema tickets with orange wednesday, mates over for a beer - anything thats cheap or free!
df

Niv

I have a 18month O2 contract mobile phone but after 8months you can reduce your package by 1 per month. You may be able to do this to reduce your mobile bill. So you may not be able to go from £70pm to £25 in one go but slower over a period of a few months.

If your APR's posted are correct I personally would pay the min's (obviously) but overpay the argos card first as its the smallest card debt so once it is gone (soonish) it may make you feel liek you are getting somewhere?

Niv

dancingfairy

I think I would put the 80 a month in a savings acc so when your next course fee becomes due you'll have something in there. O.K it'll only earn a small amount of interest in there.
Technically you'd be better off using the money each month to pay down your debts and then go back into more debt when your course fees become due but I can see that could be demoralising and it would be easier to 'loose' that 80 a month and only make smaller payments to the debts rather than the debts payment you'd normally make plus that 80 pounds if that makes sense.
There aren't really any shortcuts to getting the debt paid off apart from spend less - but there's only a certain amount you can cut down on and earn more. I think you need to focus on trying to earn more somehow - a night working in a pub? a saturday job? odd jobs for negihbours- eg car washing, gardening, dog walking, etc. Leaflet delivering or selling stuff at carboot / ebay etc -maybe sell other peoples stuff for them and take a commission fee or see if people will donate stuff as it's partly to help you through your education.
Another thing that you may be able to do is to borrow off your parents to pay off a debt and repay them - this would save you paying masses of interest but obviously it would depend on whether you parents were able to help you out.
Anyway best of luck
df

rdchick

could ask your folks if you could slip on the 'keep' for a few months add that to the 80 quid and you have an extra 200 a month to throw at the debts