Debt Free Wannabe- Any help/advice?

anfieldred

Hello everyone.

I'm not after a quick fix solution to this, as i know its not going to happen. Having read some people's DFW diaries, my debt looks nothing compared to them, but feels like a mountain to me!

Was wondering if anyone had any tips/suggestions as to how to sort myself out a bit?

Ive checked my credit score on creditexpert.co.uk (experian) and it is very poor at the moment, due to when i was younger and naive with credit cards missing a few payments, and now i fear this has messed me up for god knows how long in future. I dont know how i can go about repairing my credit score, to get it anywhere near good enough to get credit ever again?

I recently started a new job, which i now have a regular income of about £1150-1250pcm. I'm fortunate enough at the moment to not be paying any rent at home, i recently left uni and my parents have let me off for a while.

My outgoings are as follows:

Travel to work 5 days a week: £2.50 on trains, then around £3 for dinner , (usually take a packed lunch but on the odd day i dont then that is usual cost.)

3 credit cards :
1)Limit £200, balance £180. Min Payment usually around 10-15
2) Limit £400, balance £390 Min Payment usually around 20-25
3) Limit £1000, Balance £980. Min Payment usually around 20-25

Phone bill: around £40-50 a month, i have already contacted 02 about changing contract to a lower tariff.

Web Hosting : £25pm.

I don't go out that often, ive kind of grown out of that having done it at uni, id say i spend around £75 a month going to football matches, depending on how often i can get a ticket.

I also have a student overdraft at £1500.

I dont know where to start with all this lot, and like i said, to some people this probably seems nothing, but i dont know what to do?

Any help/tips/suggestions would be very much appreciated.
Thanks
Tony

CLAPTON

i would suggest the following

firstly work everything out on a monthly basis, doing some bits daily/weekly and some monthly will only confuse you (and us).

secondly start a spending diary and find out exactly where you money actaully goes..all your spending needs to be included
...including of course the obvious i.e. travel, socialising, football, but also clothes presents, xmas costs any holiday plans, any optical/dental/medical etc ...for the one offs and annual costs work out everything you will spend over the next 12 months, divide by 12 to get an average... add that to your monthly budget and save that amount each month so you will have it saved when you need it rather than simply borrowing it on credit cards.


thirdly add the total spending (without debt repayments) so you can see where you are

forthly find out the APRs on each of your debts (including the overdraft).
use the snowball method to pay your debts off.. i.e. pay the minimum on each debt expect the one with the highest APR..on that one pay as much as you can until its cleared off ..then move on to the next one with the next highest APR.

then add up the total debt and the total monthly repayments.

finally stop using the CC at all. think saving for things rather than borrowing.