Turning over a new leaf.....working towards being debt free!!

WoodyWoodpecker

I am currently looking towards becoming debt free and need as much advice as I can get.

After years of financial stupidity if honest I really need to get on track for the good of my health.

I owe approximately £14,500

£3,500 on cards with life of balance transfer rates of 3.9% and 5.9%

The other £11,000 on MBNA and Barclaycard which are low interest at the minute but longer term I will need to switch to other 0% cards or take a hit.

Any advice on how to work towards a positive outcome would really be appreciated. I know I cant change the past but really want to look forward to the future.

pennypusher

Hi Woody, post up your Statement of Affairs and people will be able to give you some good advice.

WoodyWoodpecker

This might sound a little silly.............what is a statement of affairs? Being a newbie I've no idea.

catmiaow

WoodyWoodpecker wrote: »

This might sound a little silly.............what is a statement of affairs? Being a newbie I've no idea.

Everything you spend, owe, have etc. There is a sticky on the front page of the board if you haven't already done one for yourself.

WoodyWoodpecker

My statement of affairs - Fire away with your suggestions

Monthly Incomings

Wage £1538


Monthly Outgoings
Mortgage £339
Life Insurance £15
House Insurance £15
Travel Expenses £200 (Partner is in Glasgow and I am awaiting a Transfer from my work. Hope this will be resolved within 6 months maximum)
M+S Credit Card £30 (4.9% life of balance)
Barclaycard £100 (16.9%)
Capital One Credit Card £42 (6.9% life of balance)
MBNA £100 (6.9% life of balance)
Mobile Phone £32
Alliance and Leicester loan £270 (Ends in April 2012)

Outgoings £1143

Tixy

Hi woody, welcome to the debt free wannabe board.

It would probably be useful to use the calculator to do your statement of affairs as you seem to have a lot of costs missing - I see you have a mortgage, but don't have any other household costs such as council tax, utilities etc. Also you haven't included things like groceries, entertainment etc on your list.
If you use this calculator it should prompt you to think of all the things you spend money on and to budget for them - http://www.makesenseofcards.com/soacalc.html

Are you just paying minimum payments on your cards at the moment?

WoodyWoodpecker

Yes just paying minimum at minute but once i get my transfer that opens up £200 to plough into the cards

MFWannabe

WoodyWoodpecker wrote: »

Yes just paying minimum at minute but once i get my transfer that opens up £200 to plough into the cards

Try to pay more than minimum on your credit cards; even by a few pounds; it looks better on your credit file; especially when you have to try and get a new 0% card