I Have Seen The Light

Bavski

My very first post, so please be gentle.

Well I guess it has finally happened, the moment of epiphany. The so called light bulb moment.:idea:

And not before time. So here goes with the SOA, pretty scary seeing it all written down in one place.

S.O.A.

Monthly Incomings:

Wages £1000


Monthly Outgoings:

Rent 210
Gas 20
Elec 30
Water 10
TV Licence 10
Gym 35
Internet 20
Charity Donation 10
Mobile Phone 50
Food 120
Loan 323 57 payments left
Credit Card Min Payments 150

Total Income 1000
Total Expenditure 988

Surplus £2

Lloyds TSB Loan £18,074
Lloyds TSB Credit Card £4,735.79 (£6,000 limit)
Barclaycard £2110.67 (£5,000 limit)

First off I’d like to thank the people on here, you have made a big difference, I hope you realise this. Just knowing that there are people in debt like me out there makes me happier…(Does that make me a bad person?)

Anyway, I’ve already started to implement some of the advice I’ve seen on here. I’m starting to write down everything I spend, as accurately as possible.

I tried to get a lower rate loan but have been refused, even though the repayments are lower and over a shorter period. Makes sense right!!

Been in touch with my bank and they will offer a typical 6.4% loan to me at an atypical 8.9%. This would replace my original loan and be over 48 payments rather than 57 with the same cost per month. Does this sound reasonable enough or should I carry on looking??

Ive been looking around the payplan site, possibly wondering about a DMP?
Anyone have any thoughts on these? Would it help in my case?

Any feedback, or if you just want to say hi, I’d appreciate it.

Like I said, my very first post, feel better for finally getting it all down. If I’ve missed out anything feel free to shout.

Thanks.

moneymuddler

hi!!!!! i got nothing to advise but just wanted to say hello!!!!!!!!!!!!!

whatatwit

Hi Bavski,, well done for posting your SOA and starting to sort things out.

The two things from your SOA that jump out are the gym fees and the charity donation, i think these need to go until you are debt free.

good luck.

Bavski

whatatwit wrote:

The two things from your SOA that jump out are the gym fees and the charity donation, i think these need to go until you are debt free.

Thanks for the replies.

I know what you mean, I guess the gym isnt a must have, just wondering if I can get out of the contract without too much hassle.

And the donation, well what can I say, Im a giver. :rolleyes:

whatatwit

Try giving it to your credit card company, I'm sure you'll feel much better.
What are the APR's on your cards, as any overpayment should go against that one.

lynzpower

hiya bavski

A few things from me.

I agree about the gym, cancel that.

Also the charity donation scrap that. If you want to give offer time to a charity instead of money. Or old stuff that wont sell on ebay to a charity shop I have given away more than 100s worth of stuff to the charity shop this year, more than if I was to give money IYSWIM

Is that food just for you? You can halve that with some very savvy shopping., thats what I spend on 2.

What have you got to sell ?
Can you get a second job?

mjdh1957

And another welcome to the Debt-free boards from me!

I'd second the ideas you've heard about scrapping the gym and charity donations. Look after your debts first and give your unwanted stuff instead.

Good luck!

K9cuddles

Your SOA is very simiular to mine! I have to agree.. Gym has to go take up running it's free! Also charity donation has to go! The food shopping is defo too high for 1 person!

Phone seems expensive? Can you downgrade your tariff?

Bavski

Thanks

OK, I'll be making appointment at the gym on Monday, then off to the charity shop, Ive got plenty of clothes I can give them. Dont know why I didnt think of that before.

Thats £40 a month better off.

This time next year I'll be a millionaire. :beer:

The phone is too high, I agree, the second job is out Im afraid as I work strange hours and never know when I'll be working away from home. Hence the phone bill.

justmarried06

Hi there - well done for posting your SOA and good luck with getting the debt down. I agree with the others about the gym, charity and the mobile bill - I sue mine instead of a landline and its still never above £30 a month so check out the alternative tariffs etc on one of the shopbots - or change over to PAYG as its easier to keep track of the costs?

Also, you're talking about potentially taking out another loan - are you thinking of consolidating everything including your credit cards? You'll need to think about it very carefully if its sustainable costs to you every month, and is it costing you less than the payments you're making currently. You don't say what the apr is on your loan at the moment, I take it thats higher? And if you've only had it three months (I'm guessing it was a 60 month term) then will they really let you change to a different loan agreement with no early redemption fees on the existing one?

HTH,

JM x

lynzpower

what are the APrs on your debts?

I would also reduce the credit limits on your debts there

Lloyds TSB Credit Card £4,735.79 (£6,000 limit)
Barclaycard £2110.67 (£5,000 limit)

Eg, I would take barclaycard to 2200 if they will do that and 4800 on your lloyds card.

this will mean that your credit rating will look good :A as you are settling some debt