Advice and Support - Newbie! :-)



I have been a lurker on here for a very long time and think you all are doing a great job and would just like to ask for a little bit of advice please?
I've decided to face my debts head on {not as much as most on here but I'd like to nip them in the bud before they spiral out of control}
I'm a single parent who works part time with one child under 4. I have a credit card debt, a next account debt and owe my landlord 4 weeks of rent. I'd like to pay off my debts, decrease my outgoings and manage to save some money.
Thanks in advance for any help/advice.
Kirsty
PAD 2023 Debt total as of Dec 2022 £18,988.63*April £17,711.03
Halifax CC £3168.21
Halifax loan £6095.47
Car finance £7639.02
Next £0/£808.33
#22 - 1p savings challenge 2023 £166.95/£667.95
Saving for Christmas - £1 a day savings challenge 2023 £50/£1000
Comments
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Hi Louise
The first step taking control is to work out what money you have coming in and going out on a monthly basis at the moment. If you could complete a statement of affairs and then post the results on here people will be able to see your position and suggest ways to improve things and reduce costs etc.
We use this calculator http://www.makesenseofcards.com/soacalc.html which should show if you have a shortfall or surplus each month.
Have you checked you are getting all the benefits you are entitled to as well?A smile enriches those who receive without making poorer those who giveor "It costs nowt to be nice"0 -
Hi,
Here is my monthly income and outgoings, thank you so much for the very quick response, I really appreciate it. {i've had to edit this three times because it wouldn't paste the figures so i've typed it all manually :-)
Income
Monthly Income: £468
Benefits: £1193.83
Maintenance: £195
Expenditure
Rent: £500
Council Tax: £44
Electricity: £48
Gas: £50
Water: £44.59
Landline: £5
TV License: £12.37
Sky: £25
Groceries: £180
Clothing: £20
Petrol: £80
Road Tax: £10
Car Insurance: £59.88
Car Maintenance: £20
Nursery: £280
Contents Insurance: £16
Presents {Xmas Birthdays...}: £35
Haircuts: £5
Entertainment: £10
Unsecured Debts
Next Account: £250 Min payment £10 APR 0%
Vanquis Credit Card: £1762.59 Min Payment £79.31 APR 39.9%
Rent Arrears: £461.52 Min Payment £115.38 APR 0%
Assets
Car: £600
Additional Information
Adults In Household: 1
Children In Household: 1
Number Of Cars: 1
Summary of Monthly Income, expense and surplus
Total Monthly Income: £1856.83
Expenses {incl secured debts and hp}: £1444.85
Available for debt repayments: £411.98
Unsecured debt repayments: £204.31
Surplus: £207.67
Personal Balance Sheet Summary
Assets: £600
Secured dbt/hp: £0
Unsecured debt: -£2474.11
Net Assets: -£1874.11
Does this make sense to you?
Thanks again
KirstyPAD 2023 Debt total as of Dec 2022 £18,988.63*April £17,711.03
Halifax CC £3168.21Halifax loan £6095.47
Car finance £7639.02
Next £0/£808.33
#22 - 1p savings challenge 2023 £166.95/£667.95Saving for Christmas - £1 a day savings challenge 2023 £50/£1000
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I can't see any of your figures.0
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They're on now GlynD.
Thank you :-DPAD 2023 Debt total as of Dec 2022 £18,988.63*April £17,711.03
Halifax CC £3168.21Halifax loan £6095.47
Car finance £7639.02
Next £0/£808.33
#22 - 1p savings challenge 2023 £166.95/£667.95Saving for Christmas - £1 a day savings challenge 2023 £50/£1000
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You seem to be well organised. I'd start by using your surplus to pay off your credit card faster. Can you get a loan from the bank to pay it off in full and pay the bank loan back at a lesser interest rate?0
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I can't get a loan from the bank as I was declared bankrupt back in 2007, which is why I'm so aware of not getting back into that!
Also after paying my landlord the 4 weeks I owe him {monthly} I will then use the £115 per month to pay that off my credit card also.
Thank you for your reply
KirstyPAD 2023 Debt total as of Dec 2022 £18,988.63*April £17,711.03
Halifax CC £3168.21Halifax loan £6095.47
Car finance £7639.02
Next £0/£808.33
#22 - 1p savings challenge 2023 £166.95/£667.95Saving for Christmas - £1 a day savings challenge 2023 £50/£1000
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Can you get a water meter as that is high for two people?
i think you need to get rid of Sky. Anything extra you get needs to go on the Vanquis card; if you pay the minimum on that with that APR, the debt will increase over the next year.If you've have not made a mistake, you've made nothing0 -
krustylouise wrote: »I can't get a loan from the bank as I was declared bankrupt back in 2007, which is why I'm so aware of not getting back into that!
Also after paying my landlord the 4 weeks I owe him {monthly} I will then use the £115 per month to pay that off my credit card also.
Thank you for your reply
Kirsty
Looking at the way you're managing your money the credit card is the only thing I can see which glares out at me. 39% is a shocking rate of interest to be paying and as someone else has pointed out, paying the minimum back on that is going to take forever. The only other option I can see is to do a balance transfer to another credit card provider but if you're not clear of your bankruptcy yet then it is doubtful if you could get another card.
You're doing the right thing. Pay off your landlord and then, as you said, get more paid off your credit card and stop those people charging you 39%.0 -
Hi there
I'm also quite new but have been trying to cut stuff down for ages now. I would agree with the Sky...do you really need it? If you don't then I would suggest cutting down to freeview. Also £180 groceries for two people seems like alot to me. Can you bring that down by shopping around a bit more or cutting to store names or some value stuff? We are a family of four and I pay £200 for the four of us and I cook fresh most days. I am not sure how easy it is for you to get around and source cheaper products but if you can, then I would definitely suggest it as a way of spending a bit less on your food and drink.
Good luck with it all, you already seem very organised which I definitely am not
Leila0 -
Hi,
Thank you so much for your quick replies. I can't cut Sky out as I have a package deal, free line rental and free broadband plus unlimited calls for £5 pm and the rest is the tv packages. As for shopping that is a rough estimate, but I do buy value brands from Tesco's so I get clubcard points on top of that.
Also I do already have a water meter.
Also I'm not just paying the minimum payment on my card, it's just that's what the info thing requested. I was going to aim to pay £100 pm on my card and £115 to my landlord and then as once I've paid my landlord off in 4 months I was going to pay £215 off my crit card per month. Also by then my daughter will have started school so I won't be paying £280 childcare fees per month and will hopefully be increasing my hours at work from 16 - 30.
Thanks again for your replies.
KirstyPAD 2023 Debt total as of Dec 2022 £18,988.63*April £17,711.03
Halifax CC £3168.21Halifax loan £6095.47
Car finance £7639.02
Next £0/£808.33
#22 - 1p savings challenge 2023 £166.95/£667.95Saving for Christmas - £1 a day savings challenge 2023 £50/£1000
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