New Debt-Free Wannabe

cloudstrife_2

Hi guys!

Just looking for some advice etc.

I have about £2700 in debt which might not seem alot but it is to me!

I have a poor credit rating hence why I have been declined for loans left right and centre, even applied for a staff loan at the bank I work for but got refused.

Thought the end was in sight today when I was 'accepted' by YES Loans, did some checking online afterwards and was shocked at all the negative reviews. I did think it was a bit strange when I was aked to send a £49.50 charge.

I have done a budget and can just get about but is difficult even more so at the moment!

I have just switched energy suppliers, emptied savings (which was not much), am asking for CC interest to be frozen and trying to cancel my mobile contract (they want £130) all in a bid to save some cash.

I have cut back on spending, and in the new year I have decided just to deal with most things in cash and setup cash jars at home for my spending so when its gone its gone and I dont use credit!

Can anyone offer any advice on how I can get rid of this debt so I can start afresh?!

lynzpower

WELCOME!

Your best bet is to start off by doing a Stament of Affairs ( SOA) once you have done this, we can help you cut back in places or advise

Until youve done this, you wont know where you are up to , so read Southern scousers sticky "first time posters" and post the findings up here, and we can take it from there

Happy moneysaving
Lynz
x

taxi73

Hi and welcome to the boards...I can't say much more than the above poster...if you put your Soa on we may be able to find you some ways to cut back also the old style boards are very good...they have some great recipes,cleaning ideas etc all will save you money ...which you can then throw at your debt

slowlyfading

hey welcome and just to echo the others, you need to do a SOA so people can help you

cloudstrife_2

Sorry about that guys, read the sticky last! It pointed out a charity called CCCS which has helped highlight my debts etc.

Halifax Overdrafts £900
Halifax CC £500 (paying £10 pm)
Natwest Overdraft £300
Tesco PF CC £645 (paying £40 pm)
Mint CC £319 (paying £30 pm)

Current income is £750 after tax etc with my total expenses being £707 (using the CCCS online debt remedy service).

I am looking to reduce the MINT payments as the minimum is only £7.00.

CCCS are also posting me details of a Debt Management Plan, would this be a good way forward?

Thanks for all your replies!
Cloud

lynzpower

cloud

you need to do a full SOA with your incomes, ALL your expenditure ( eg rent/ bills - all seperately please) and the APRs on each of the debts.

Until we see these we cant see whether a DMP is right for you or not

cloudstrife_2

Ok will gather this info tonight/tomorrow and report back with my full SOA.

Thanks,
Cloud

cloudstrife_2

Here we go, hope its all here!

Income
Salary: £750 (approx after tax etc)
Outgoings
Rent: £240.00
Council Tax: £77.00
Gas & Elec.: £40.00
Contents Ins.: £16.00
Telephone, Mobile, Internet: £60.00
TV Licence: £11.00
Buses: £80.00
Food, toiletries, cleaning stuff: £110.0
Meals at work: £40.00
Clothing, Entertainment and emergencies: £30.00

Total In: £750
Total Out: £704
Remaining: £46

Current Debts
Bank Acc 1 Overdraft: £499.99 @ 15.9% EAR
Bank Acc 2 Overdraft: £13.96 @ 13.9% EAR
Bank Acc 3 Overdraft: £547.83 @ 18.86% EAR
Credit Card 1: £471.84 @ 0% APR (for about 2/3 months)
Credit Card 2: £266.94 @ 19.9% APR
Credit Card 3: £605.83 @ 19.9% APR
Total Debts: £2406.39

I use the 2nd bank account for all my bills so it may seem like a small amount but there is my rent and council tax due out next week.

Thanks,
James

Bunnie1982

Your contents insurance seems quite high, is there any possibility you could reduce this?

Also your meals at work, are they necessary or could you take sandwiches which would work out cheaper?

For the buses, what type of ticket do you get?

Also you haven't mentioned water rates, is that included in your rent?

cloudstrife_2

Contents is with a discount, I can get it for £13 with someone else, the meals at work thing means I will defo look at making something rather than spending silly amounts on prepared sarnies from a shop.

I get a weekly saver ticket, costs £20 per week which saves me around £3 off the normal standard return tickets and gives me a weeks unlimited travel in the north east uk (oh and this is the only pass available too!).

Water rates are included in the rent for the property.

Its not until know that you realise exactly what your spending!

Cloud

piggeh

How far is the bus journey? Maybe get a bike? Would save you quite a bit and then I'd imagine you'd only need the bus for going out/shopping.

You'll have a tough job paying £80/month though, regardless. imo a DMP is the way to go and should also (in my experience) mean interest will be frozen.