Debt advice please.

dh1986

Hi, quick introduction. My names Damien im 20 and currently in full time employment. Im an estate agent in wales and earn roughly £750 a month after tax but have the oportunity to earn more becauase commision is earnt on sold houses.

Enough about me, the main reason i am here is because i am desperate for a tidy car and organised finances. Below is a quick break down of everything i owe and who i owe the money too.

Halifax, i have a student current account. had an arranged overdraft of £1200 which they decided to cancel and demanded back all in one go ! This forced me unarraged borrowing. I now owe them £1262.04 and pay them £30 a month.

Alliance and Leicester had a £2000 loan, matter has been passed to a company called global debt managment. my remaining balance is £2730.48 and im paying them £30 a month also.

Capital one, have £500 limit but owe them £600. I havent reached a repayment agreement with them yet.

Natwest is my current bank account providers, i only have a £100 overdraft on this account, and have kept the account in order most of the time.


Basically i want some advice if possible and advise about getting the finances to buy a new car.

Thanks, Damien.

david_hellier

Hi and welcome to the site.

For us to help we'll need to see a Statement of Affairs (SOA). This is a list of all your outgoings each month along with all income per month/week.

Regards.

dh1986

Minimum Earning:
£720

Outgoings:
Halifax £30
A&L £30
Car insurance £25
Car parking £30
Gym £19
Petrol to and from work £200
Parents £100

These outgoings are things i have to pay for and monthly figures. i think ive covered everything there, if i remember anything ill be sure to add it.

poorbutrich

HI there - is the £100 to parents include food and rent? Can you provide more detailed info on spending -eg phone, presents, going out, birthday presents etc?

Can you start the ball rolling with claiming any bank charges back?

dh1986

The £100 goes to my parents as rent yep, that covers food and all other things such as internet, phone etc.

Other thing i would spend my money on is my girlfriend and having a good time with her. Alot of the time i pay for her, shes 18 and still in school so is totally pennyless. I hardly ever go out and my mobile phone is payed for by my company.

Id say ontop of everything id spend about £30 a week on myself. Mounting to about £120 a month. Thats a ball park figure.

Thanks for the help so far ! speedy i must say.

Damien.

moozie_2

Hello Damien

I think with your current finances, it is impossible to get a car. Sorry to be blunt but you simply don't have enough left over each month, based on your basic salary to add an amount for saving or paying to a finance company.

I think the best way forward would be to start a spending diary so you can see where all your money goes and you don't estimate. Then focus on paying more than £30 each on your debts. I presume you are charged APRs on both your debts so once you know what they are, chuck as much money as you can at the highest one.

Have you considered additional employement? You need to boost your income on a regular basis.

Good luck!

david_hellier

Hi,

According to my calcs you have £56 per week to spend on yourself and GF. I suggest you write this amount in a little book on a Monday and keep a note of what you spend/withdraw. I have added some more car costs. I would say you are not in a position to buy a new car. If you have any of the £56 over each week, put it to your most expensive debt (the OD?). Once your debts are cleared then save up for a car.

Good luck the figures are as follows:

income weekly monthly
self 720.00
partner







total 0.00 720.00 divide by 4.33
£166.16

£166.16 total weekly income

spend weekly monthly
rent/mortgage 100.00
council tax 0.00
elec 0.00
gas 0.00
water 0.00
secured loans 0.00
TV licence 0.00
fines 0.00
halifax 30.00
a+l 30.00
car ins 25.00
mot 3.33
car ins 25.00
car tax 15.00
car park 30.00
gym 19.00
petrol 200.00













total 0.00 477.33 divide by 4.33
£110.15

£110.15 total weekly spend

Start= income - spend = £56.00 per week

CLAPTON

firstly you have to actually find out where your money goes...the list you gave adds up to 435 and you earn at least 720.

you need to list absolutely everything you spend ...so if you spend money on the GF then that has to go down, if you spend money on general socialising or sport or magazines/DVD/CDs boys toys, ipods or whatever write it down.

do you spend on holidays, any xmas/birthdays presents, any clothes...for all these you need to work what you think you will spend over the next 12 months , then divide the amount by 12 and put it in your monthly budget. you need to save up this amount each month so you have it in a savings account when you need and dont need to borrow.

at the moment you should be concentrating on clearing the debts asap; cut out all unnecessary spending and focus on those debts. you need to be clear of those debts before you can even comtemplate getting a car with all the associated expenses and who knows you may want to move out of home.

anniestar

Welcome and Good Luck.

dh1986

Thanks for the advice so far. I think the idea of not bothering with a car is a good one. as far as another job goes, i will be joining the RAF in september so i am finding it hard to find someone who will take me on for a short term basis.

I will start making a diary and increase my repayments for february. To start off i think im going to increase both to £45, and see how i get on.

Thanks, Damien.

dh1986

Just a quick note, ive already taken action on natwest and halifax to reclaim charges. Natwest is paying me £698 and halifax are giving me £360. !