Help Please - SOA Posted

Matt-_2

Hi,

I am in debt to the region of approx 8k inc payday loans (5k is hire purchase on car) and credit cards. I know to some this may not seem a lot but I am only 20 and living at home. I was stupid with money for about a year and got into masses of debt, personal circumstances that I dont really want to air.
I work full time and get around 1k a month after tax and have also got a second job, this varies from month to month but this payday I will have a further £500 after tax (took very long days to get that much some 19-20hour shifts on 5 hours sleep).
I have worked out that I should have cleared all payday loans by April and then will have a reasonable income to hopefully save up and repay credit cards and put some aside to hopefully clear the hire purchase.
I am worried that this huge amount of debt will look bad on credit report, does anyone have a similar experience or any tips to help me clear the debts quicker?
Thanks :j

Angry_Bear

Matt- wrote: »

I am worried that this huge amount of debt will look bad on credit report...

It will, especially with payday loans, but as long as you don't have to miss payments and are clearing the debt your credit report will improve quickly.

Why don't you post your SOA and the good folks round here will have advice galore : http://www.makesenseofcards.com/soacalc.html

Matt-_2

Hi,

Thanks for the reply please find attached SOA.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 3
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1000
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 500
Total monthly income.................... 1500
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 143.3
Rent.................................... 150
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 36
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 50
Clothing................................ 15
Petrol/diesel........................... 60
Road tax................................ 7.5
Car Insurance........................... 166.43
Car maintenance (including MOT)......... 14.85
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 8
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 701.08

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

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 5000.....(143.3)....29
Total secured & HP debts...... 5000......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Capital One....................250.......18........49
Barclay Card...................400.......36........39.99
Vanquis........................250.......18........49.99
Payday Loans...................2000......891.1.....0
Total unsecured debts..........2900......963.1.....-

Monthly Budget Summary
Total monthly income.................... 1,500
Expenses (including HP & secured debts). 701.08
Available for debt repayments........... 798.92
Monthly UNsecured debt repayments....... 963.1
Amount short for making debt repayments. -164.18
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -5,000
Total Unsecured debt.................... -2,900
Net Assets.............................. -7,900
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

[Deleted User]

Matt- wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 3
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1000 Any way to increase? Overtime? second job?
Other income............................ 500 What is this? Any way to increase?
Total monthly income.................... 1500

Monthly Expense Details
Secured/HP loan repayments.............. 143.3
Rent.................................... 150 Are things like Ctax included in your rent?
Mobile phone............................ 36 Whn/if you are out of contract, look at SIM only deals and PAYG - GiffGaff offer really good deals on SIM only and PAYG - I have saved a fortune
Groceries etc. ......................... 50 Is this realistic if you are paying for your own food?
Clothing................................ 15 Stick with what you have for now, sell on eg E-bay what you no longer wear.doesn't fit
Petrol/diesel........................... 60
Road tax................................ 7.5
Car Insurance........................... 166.43
Car maintenance (including MOT)......... 14.85
Presents (birthday, christmas etc)...... 10
Haircuts................................ 8
Entertainment........................... 40 What does this cover - can you get the same/similar for cheaper elsewhere?
Emergency fund.......................... 0
Total monthly expenses.................. 701.08


Assets
Cash.................................... 0 You probably need to have a little bit here for your non-monthly expenses eg presents, MOT
Car(s).................................. 0 what's the value of your car?
Total Assets............................ 0[/b]

Secured & HP Debts
Description....................Debt......Monthly...APR
Hire Purchase (HP) debt ...... 5000.....(143.3)....29
Total secured & HP debts...... 5000......-.........- If this is for your car, could you sell it and downgrade it?

Unsecured Debts
Description....................Debt......Monthly...APR
Vanquis........................250.......18........49.99
Capital One....................250.......18........49
Barclay Card...................400.......36........39.99

Payday Loans...................2000......891.1.....0 What is the APR here, I suspect it is the highest costing debt of the debts that you have, and for that reason, I think this needs to be your priority, pay the minimum towards all of your debts, and then everything that you have left in your SOA (your monthly surplus) needs to go towards getting rid of this. Once this is fully repaid, then you need to focus on the Vanquis debt in the same manner, and then the Capitol one card, followed by the Barclay card debt
Total unsecured debts..........2900......963.1.....-


Monthly Budget Summary
Total monthly income.................... 1,500
Expenses (including HP & secured debts). 701.08
Available for debt repayments........... 798.92
Monthly UNsecured debt repayments....... 963.1
Amount short for making debt repayments. -164.18 As you payday loan is a short term loan, and you could have a couple of really uncomfortable months, you really should try to pay the pay day loan off ASAP, have a good clear out - clothes, DVD;s, CD's, books, etc and see what's there that you no longer need and can be sold and see if you can pay this off with the proceeds.

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -5,000
Total Unsecured debt.................... -2,900
Net Assets.............................. -7,900
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

Hi,

I have made some comments above, it seems to be the payday loan that is crippling you. You really need to see if you can pay this off by trying to get some extra cash together this month (car boot, ebay, amazon, gumtree etc) and if that;s not going to be possible, then you need to give them a call and see if you can come to some kind of arrangement with them.

Comments above - hope they help.

D9

Tixy

Are the £891 on payday loans the roll over fees? or based on repayment plans you've agreed with them?
You say you've worked out you can be free of them by April but your SoA shows a shortfall each month.

Your outgoings are obviously low living at home with folks, except for the car insurance of course, which is scary high - especially considering the low mileage spend.
How soon is the car insurance due for renewal?
Could/ would parents allow you to reduce board or have a few months off and make up payment once the payday loans are cleared?