My SOA - 36K in debt,please help

debtblue

hello guys

I took your advice and have prepared my SOA. Any advice would be helpful, please help. total debt 36k

Monthly Incomings:

My salary - £1272
My second salary - £150
Total Monthly income: £1422

Monthly Outgoings:

Rent - £263
Council Tax - £55
Water Rates – inclusive in rent
Electricity (economy 7)- £12
Telephone + broadband - £12
Mobile – pay as you go
Housekeeping - £50
Petrol - £120
Car Insurance - £24,50
Car Road Tax - £10,41
TV License - £12,09
Food - £60

Creditors:

Name Outstanding debt [Monthly Payment Interest]
HSBC Credit Card £2 646,13 [£80,00 15,90%]
BarclaY Motor Loan£9 050,00 [£149,50 15,67%]
Marbles £96,56 [£5,00 14,90%]
HSBC Grad Loan £3 919,50 [£102,50 7,90%]
Hamilton Direct £5 492,42 [£83,19 7,50%]
HSBC PG Loan £3 817,11 [£100,50 5,50%]
Amex Credit Card £4 836,69 [£124,00 4,90%]
HSBC Overdraft £1 200,00 [£7,00 0,10%]
Control CLI (debt collector)£3 224,44 [£20,00 0%]
DFS (GE money) £1 632,00 [Starts next yr 0%]
DFS (GE money) £614,00 [Starts next yr 0%]
Total £671,69


Total Monthly Outgoing: £671,69 + £619 = £1290,69

I m very desperate to get out this debt and sometimes feel very depresed and stressed out about it as I know I have got more money outgoing in near future.

Please help!!!

james32_uk

Snowball, snowball, snowball! A few months cutting back and throwing money at your debts and you'll be back in control before you know it.

Good luck!

sashacat

I would ring the cc companies and banks and ask each of them to suspend the interest charges or ,at the very least reduce the interest rate, and then concentrate on paying off the one with the highest interest rate. Pay only the minimum payment on the others

debtblue

this is what i cant understand, i did try but my bank just refused to either suspend interest charges or reduce it. How do u actually do it??? and why should banks do me a favour???

Uniscots97

Hi, apart from whats already been suggested could you squeeze a few more miles out of your petrol? Do you always need to take the car? Keep you tyre pressure at what it should be. Check it weekly. If you don't have a tyre pressure guage use the garage ones (the free ones) but stick to big chains or supermarket petrol stations as they calibrate their pressure guages every week. Even if your tyres are only out by 10% this could mean you using more fuel than necessary. Even if you could shave of a tenner a month extra or even £20 then you could put this towards one of your higher interest debts.
Also remember (not that it really applies now we're in winter but) that always fill your fuel tank when its cold i.e. at night rather than when its warm as petrol expands with heat but is sold by volume. This is why if you fill up on a hot day and get in the car the next morning the needle will have dropped considerably on the guage. So fill up when its cold and you'll get more for your money. Also look at petrolprices.co.uk for the cheapest petrol/diesel prices in your area. It might only save you a few pence but it'll all add up.

lynzpower

Hi there
your outgoings look really low in lots of areas here, are you certain that you are not underestimating anything? Is this because you are sharing with someone?

quantumleap

Agree with Lynzpower, you're outgoings do seem very low. If they are this low then I would suggest that snowballing would help considerably because you do have some money to throw at you're debt.

However, my initial reaction would be that you should keep a debt dairy for a period of time (a month at least) in order that you can further understand what you are spending. I'd be concerned that you won't have as much left over at the end of each month as you're SOA indicates.

debtblue

lynzpower wrote:

Hi there
your outgoings look really low in lots of areas here, are you certain that you are not underestimating anything? Is this because you are sharing with someone?

Yeah i share flat with someone,so my outgoings are less. But even then some unexpected purchases cost me and always keep me in debt.

debtblue

sashacat wrote:

I would ring the cc companies and banks and ask each of them to suspend the interest charges or ,at the very least reduce the interest rate, and then concentrate on paying off the one with the highest interest rate. Pay only the minimum payment on the others

this is what i cant understand, i did try but my bank just refused to either suspend interest charges or reduce it. How do u actually do it??? and why should banks do me a favour???