Advice to clear my Debts.....

obev0098

Good Morning Everyone.

I have decided to create this post to try and get some advice of the best way to prioritise and pay off my debts.

I work full time and bring home approximately £1300 pcm after tax. At the moment I am really struggling and find it difficult to clear the minimum payments plus pay for food and rent.

I don't blame the creditors, Its my silly fault to borrow so much.

Here is a list of what I owe.

Halifax CC £1600
Lloyd's CC £1500
Capital One CC £500
Very/Littlewoods £2700
Plus an Orange contract that I no longer use of £57 a month.
Bank Overdrawn £1600 - Usually I reach this by the end of the month.

If you need any more info please let me know, any advice would be great thank you.

Chris

DevonGirl

Hello Obev

I'd suggest you click on the 'sticky' on the Debt-Free Wannabe home page - Help for First Time Posters & SOA Calculator - and draw up an SOA (statement of affairs), including all your income and outgoings, plus monthly payments on your debts, so that people can advise. (See other posts with 'SOA' in the title for how this works).

And don't worry about feeling silly - we've all made mistakes but the positive thing is you're making steps to sort them out - people tend not to be judgemental on this site so you're in safe hands.

myhonestanswer

I agree with Devongirl - do a list of all incomings and outgoings, and I'm sure everyone will have lots of friendly advice for you soon.

Don't worry that you feel a bit silly, we all do! The main thing is you've realised you need to sort it out and come here, it's the best place for you. Good luck!

obev0098

Thanks for the link I'll be able to fill that info in when I get home.

Do you think its worth me ringing my creditors and advising them I am struggling?

Regards

Darlyd

obev0098 wrote: »

Thanks for the link I'll be able to fill that info in when I get home.

Do you think its worth me ringing my creditors and advising them I am struggling?

Regards

Better off doing that in writing. And offer what you can afford, concentrate on paying the lowest first. I know Littlewoods/Very will set up an arrangement with you. But It will go on your credit file (unless things have changed) They have just left my file. When did you take the credit out with them? IF before a certain date, you can request a signed credit agreement and get away without paying them back, naughty I know but all legal, unless things have changed?

Tixy

I would try to work out the statement of affairs first so that you know how much you can afford before you contact them - and its generally advised to inform them in writing if you do need to offer less than the minimums - as they tend to just say no by phone, but in writing are more likely to consider your offer and circumstances..

Also if your main bank account is with one of those creditors listed then definitely don't ring them as you run the risk of them closing your bank account/recalling the overdraft.

Phelpsie001

Agree with all of the above. However, one thing I have done has made a HUGE difference ... Could you get a job for a friday night or a cleaning job on Saturday morning? It might only be £30 a week but it really helps

Little_Miss_Uni-Debt

I think it depends on the results of your income/outgoings.

I would only approach them if you can only make small/reduced payments. If it's a case of you just need to cut back a bit to start making a dent in the debts then I don't think they would help much.

Go to this site http://www.makesenseofcards.com/soacalc.html fill it in according to how you spend currently and post it up here. Then we can see where you are struggling and offer the right kind of advice.

obev0098

Below are the results from the Calculator

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 1010
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1010

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 280
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 30
Gas..................................... 0
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 0
Mobile phone............................ 80
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 250
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 90
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 7.99
Presents (birthday, christmas etc)...... 0
Haircuts................................ 18
Entertainment........................... 25
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 830.99


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
Very/Littlewoods...............2700......100.......35
Halifax Credit Card............1600......35........29.5
Lloyds Credit Card.............1500......30........19
Capital One....................500.......15........19
Total unsecured debts..........6300......180.......-


Monthly Budget Summary
Total monthly income.................... 1,010
Expenses (including HP & secured debts). 830.99
Available for debt repayments........... 179.01
Monthly UNsecured debt repayments....... 180
Amount short for making debt repayments. -0.99

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -6,300
Net Assets.............................. -6,300

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

obev0098

Phelpsie001 wrote: »

Agree with all of the above. However, one thing I have done has made a HUGE difference ... Could you get a job for a friday night or a cleaning job on Saturday morning? It might only be £30 a week but it really helps

I've been thinking about doing some Bar work in a club on Saturday nights, I'm not sure though as people are saying i'll get taxed loads and it wouldnt be worth it.

obev0098

I am particullarly concerned regarding the Very/Littlewoods account. The interest applied to the account on the 15/08/11 was £170 however the payment required was only £100. I asked how this was calculated and I got this reply.

"Thanks for contacting us about Buy Now Pay Later interest.

Interest is charged from the date of purchase but it will not be applied to the account until the end of the BNPL period.

You can avoid any interest by contacting us and paying the cash price in full, before the end of the BNPL period.

Buy Now Pay Later purchases are excluded from Take 3 and any other Interest Opt Out account facility.

The interest amount shown, is higher than the minimum payment required, as the interest has not yet been charged to your account.

If you have any further questions, just let us know and we'll be happy to help you."