Finally trying to clear my debts but need some advice

trinity4mum

Hello all, I've been on this site for quite a while, reading things to help me, but until now I have plodded along. My husband has gone away on a 4 month tour to Afghanistan and I've realised that with his op allowances I can finally make a dent in the debt, and if I really work at it get it all paid off by early next year.

The main problem I have is that we have a £5000 overdraft and £1800 maxed out credit card on our main bank account, and I've realised that I need a new account for my husband's pay to go into and then pay from incase natwest ever decide to just take our money. My question is what account is best for that? Also, do I leave the direct debits on my main account and then transfer my spending money to the new account or have it as the main account? Any help would be most appreciated.

I have a debt of £10500 which I am very ashamed to admit, but here's hoping that finally saying it out loud will help in my aim to get it paid off. I have suffered from depression since 12, and with my 4 children and husband constantly away with the RAF I've just gotten into the habit of shopping and spending, and then having a panic later on. I'm sick of getting to the end of the month with no money in the account, never getting into credit on my bank account, and lying awake at night worrying about how I'm ever going to get financially sorted.

Hovel_lady

Hello and well done for posting. Don't be ashamed of the debt, be proud of youself for deciding to tackle it.
As regards a new bank account choose one belonging to a bank you don't owe any money to - OD, credit cards, loans etc. I would transfer everything to the new account and then arrange with the bank where the OD is how you're going to clear it.
If you want to post a SoA (statement of affairs) here I'm sure we'll be able to help more.
Good luck x

trinity4mum

I know I must sound silly, but what is a statement of affairs?

Thank you for the advice with the bank account, I will get onto that asap.

j19842

trinity4mum wrote: »

I know I must sound silly, but what is a statement of affairs?

Thank you for the advice with the bank account, I will get onto that asap.

A SoA is basically a comprehensive list of everything you have coming in and going out hun

Little_Miss_Uni-Debt

Hello and welcome!

I think if you throw yourself into tackling the debts it's almost as addictive as shopping and spending. That can be your focus and it will be a great sense of achievement!

Go to this site http://www.makesenseofcards.com/soacalc.html fill in your current outgoings and incomings and post up the results here.

We can then see what is the best way for you to pay your debts off and offer advice where to save money!

Hovel_lady

Sorry, should have given you the link. Here it is:

https://forums.moneysavingexpert.com/discussion/107280

It's a complete picture of your finances - money in, bills, debts etc.

Tixy

Hi and welcome

Has your overdraft actually been recalled? are you going over the limit at all? Are you up to date with credit card payments and do you anticipate that you will remain so?
If your are staying within your overdraft and not behind on the card then it is unlikely that the overdraft would be recalled. And it certainly shouldn't be without advance notice.

If you want to a new current account elsewhere and stop paying much into this account then it is possible they might recall it when that happens. Also you might want to check if its in the terms of the account that you pay in a set amount each month (some require £1000 to be paid in each month for example).

Aside from that choose a bank account that you don't currently have any debts with, and go for an account that doesn't charge a monthly fee. And avoid santander (personal opinion!)

trinity4mum

Thanks for the advice on Santander, I was just looking at them. Is it better then to get a basic card and just put the spending money on there so Natwest have the money going in but not staying there? Or does it not work like that?

We're paying just over the minimum on the card (I will do the SOA now) but we do go over the overdraft.

Tixy

If you are going over your od limit then I would probably suggest moving to a new account altogether and then just transferring back enough to cover the credit card repayment and whatever you can afford for the overdraft.

Santander must have some happy customers (but I've not seen many on here).
Who else do you owe money to? - its best to go for a bank thats not connected to any of your creditors at all.

trinity4mum

Here's my SOA
Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 4
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 1500
Benefits................................ 467
Other income............................ 0
Total monthly income.................... 1967

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 75
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 75
Gas..................................... 75
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 30
Mobile phone............................ 40
TV Licence.............................. 13
Satellite/Cable TV...................... 30
Internet Services....................... 0
Groceries etc. ......................... 500
Clothing................................ 0
Petrol/diesel........................... 200
Road tax................................ 15
Car Insurance........................... 49
Car maintenance (including MOT)......... 10
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 85
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 7
Buildings insurance..................... 0
Contents insurance...................... 40
Life assurance ......................... 15
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 100
Overdraft interest ..................... 70
Hospital appointments................... 150
Total monthly expenses.................. 1669


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 10000
Other assets............................ 0
Total Assets............................ 10000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 900......(75).......0
Total secured & HP debts...... 900.......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Natwest Overdraft..............5000......50........19.9
Natwest Credit Card............1800......40........16.9
Vanquis Credit Card............1000......30........45.9
Very...........................1300......65........29.9
Next...........................750.......38........29.9
Capital One....................500.......15........29.9
Total unsecured debts..........10350.....238.......-


Monthly Budget Summary
Total monthly income.................... 1,967
Expenses (including HP & secured debts). 1,669
Available for debt repayments........... 298
Monthly UNsecured debt repayments....... 238
Amount left after debt repayments....... 60

Personal Balance Sheet Summary
Total assets (things you own)........... 10,000
Total HP & Secured debt................. -900
Total Unsecured debt.................... -10,350
Net Assets.............................. -1,250

Created using the SOA calculator
Reproduced on Moneysavingexpert with permission, using Firefox browser.

trinity4mum

I forgot to add that I owe my dad £3000 from years back and I'm supposed to pay £250 a month, but as you can see from my SOA I can't afford to do that, so more often then not I don't pay.