How do I get out of this rut?

Uncle_Chunk

Hi All
Sorry for being an annoying newbie, but need some advice!

I am currently in a dreadful finanical rut. As soon as I get paid I am back near my overdraft limit, so am strapped for the month (due to loans, cc's, and penaltys etc). I am also at my credit card (x2) limit, so can't dip into that for help. I have a loan already, so don't want to get another. I've tightened my belt as much as possible.

Any advice please?! is the answer and new credit card with a low interest or low bt rate? I don't think I have a very good credit score at the moment as I've missed a few payments of late (though have paid them now) and gone over my overdraft limit and cc limit many times!

I really don't know what I'm going to do to get out of this hole!
If anyone could give me advice I'd really appreciate it!

Many thanks
Chunks

elantan

hi chunks and welcome ...you will find this site brilliant....i would give the the advice i know everyone will say try posting an soa (look at southern scousers sticky) and we can all have a look and see how we can help from there...i too was like you always in the red and struggling i still do sometimes but i'm much better at this stuff now that i've followed alot of the advice ...it just takes time...good luck

Storm

Hi Uncle Chunks :hello: and welcome to the DFW boards

The first thing to do is post your SoA (see SouthernScousers sticky at the top of the boards) listing all your income & outgoings each month. We can then see where you can save money each month.

If you've been hit with loads of bank charges however your first stop will be to get over to the 'reclaiming bank charges' article that Martin's written, compelte with template letters & what you can expect.

If you're not sure what your credit rating is like, sign up for a free month's trial with Credit Expert through Pigsback - you can see what is on your report, correct any errors etc. If you've only recently cleared some defaults it will probably be worth waiting a while before applying for any 0% deals anyway.

Good luck, and don't worry, we've all been through the horror of the lightbulb!

southernscouser

Love the name mate! :beer: :rotfl:

As el said have a look at this thread about doing a SOA. Only then can we advise you about things like 0% credit cards accurately.

Bambywamby

Hiya Chunk

You have started on the path to debt freedom by posting on this site and asking for help.Well done you. :T


List all your debts and rates of interest.
List all your out goings and then all of your income.

This is called a Statement of Affairs.

It will help people point out areas where you could save and create money.

Bams x.x

Uncle_Chunk

Thanks for being so supportive guys.
I'll have a go at my SOA tonight (along with a very large glass of Wine I'm guessing!)
One more question - where should I post it?!
Thanks
Chunks

southernscouser

Uncle_Chunk wrote:

Thanks for being so supportive guys.
I'll have a go at my SOA tonight (along with a very large glass of Wine I'm guessing!)
One more question - where should I post it?!
Thanks
Chunks

On this thread is fine mate.

scaredy_cat_2

hi welcome aboard i too am new so not much help from me other than support!! and post that soa - facing up to it is almost harder then dealing with it - it is very motivating knowing you are doing something -good luck

oakdale_minx

Hi there - welcome.

I think once your SOA is down on paper/screen warts and all it will feel like a weight has been lifted. Seeing it on paper can be a bit scary to start with, but trust me it is all forwards from there.

There will probably be lots of little things that can quickly be done, which on their own might not seem much £5 here £5 there, but it all adds up and once the little things have been changed, a couple of months down the road you will feel it snowball and slightly bigger steps can then be made.

Uncle_Chunk

Ok - here goes :undecided

I've just gone thorough my online statement and added on all the charges from there - there is a lot from tescos, which includes cash back as well as food (having just given up smoking there is alot on food!!!)

My problem is I know I can afford to live each month - but I can't seem to get off the overdraft limit. everytime I'm getting somewhere, I have a charge or a late payment (I'm sending the letter off today) or something goes wrong with my car!!!!

So here I am, hopefully you guys can give me a point in the right direction.
Is there such a thing as a quick fix - cause I don't know how I'm going to make it to the end of the month on the little I have - esp as there are a lot of bills to come out still!!!

Thanks for all your help
Chunks

My Salary - £1,444

Monthly outgoings:

Rent & bills: 600
Loan – 194
Cc – Egg – 108 (minimum amount) @ 5000 (limit)
CC – Cahoot - £57 (minimum amount) @ 3500 (limit)
Next account – Minimum amount - £49 (though this should decrease, as I’ve just taken lots of stuff back!)
Phone Insurance - £7.99
Car insurance – 28.16
Topshop Card - £5 – minimum amount.
Gym - £55 (never use, should quit –but there’s always a chance I’ll go!!!)
Various Charities - £8
Social - £150
Total: £1262

Food – Never know Varies, but probably a lot more than it should be! Will be hundreds when you include booze as well.

Currently have 4p in my bank account!
Overdraft (with Barclays) is £5,550

webitha

good start but can you break down on your bills for us as we might be able to see if you can get cheaper elsewhere

gym - get rid and walk for free
i would cancel charity too as charity begins at home

youve got a lot for social and you havent put anything down for car expenses mot tax etc
youve also got nowt down for xmas birthdays haircuts clothes etc

i would also advise you to start a spending diary and wirte everything in it that you spend down to the last penny you will be suprised believe me i was