£4k in debt need help!

josephine82

JoshyBoy wrote: »

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!

So, this looks like with some careful consideration you might be able to start making some extra payments on those debts. I would do the following:

1. Phone your mobile company and ask if there is any scope to change your plan to reduce your bill. You should be able to get a decent contract for about half this, and some maybe even less

2. you need to allocate money for 'entertainement' or going out. I suggest £40. This sounds horrible, but you can get used to it. I did it for 2 years while paying off my debts. You learn to appreciate free things and just going round to a friends for a cuppa rather than going to the pub or out for dinner!

3. You need to set up a standing order to another account for the £80 a month for your course fees. You need to pay these so put the money aside every month.

Then you will be left with £155 a month. You need to them make extra payments on to the credit cards to clear them quicker. I found it easier to throw all my extra money at cards one by one, effectively clearing one debt at a time while still making the minimum payments. Or you could just divide this equally between the 4 cards until they are clear.

This is going to take you a while with your current salary- but if you set up all the payments and get used to living on what's left, time will pass and hopefully your salary will increase in that time.

Of course, if you can reduce your mobile bill you will have some extra cash to play with too.

Does your salary get paid into the Lloyds or natwest account? If it does then I'd recommend opening a new account without an overdraft and treating the overdrafts in the other accounts as debts- then its easier to 'see' your salary and know when you don't have any money left.

Think that's everything I've got to suggest...good luck!