help. my SOA

shamu95

Essential outgoings

secured loan £36000 @ 8.8% variable £375.86
joint account £460 totally non-negoitable. have spoke to partner millions of times but like talking to brick wall. my debts my problem.
shopping £100
savings £40 cashbuilder account currently worth £1800
emergency fund £25
mobile £35 inc free broadband
insuranc £6
income protection £7.50
Pension £31.88 have sent a letter to stop this but need to follow up
car £50 inc parking
gym £12 3 year contract and try as i have i cant get out of it
Total £1143.24

debts.

Citifinancial £12572.89@15.95 £377.19
halifax visa £6672.23 @ 22.53% £133.43 (limit is £6500 and they have court order to pay back charges of £240 which they say will take 90 days i have 62 days left to wait)
Dad £7000 @ 0% £125
abbey £1762.19 @ 22.44% £52.86
Morgan stanley £908.60 @ 0% £19
Mbna £2400 @ 0% till may 08 £72

Total £31315.91
£779.48 per month

Income

main job £1200
Avon £100
child benefit £118
grandparents £100
'taxi' box £20
Family tax credit £40
Playgroup £60
Mystery shopping £25
Ebay sales £50

Total £1713

Now i know that looks like i have a mass shortfall but i have put my earnings down as my guareented income. As the amount of extra work i get varies. For example in june my playgroup wage will be double and my mystery shopping earnings was £85 last month.
Also my grandparents have helped giving me a fair bit of help recently.
my other problem is that all my income is variable and im finding it really hard as i get paid every 2nd thursday from main job and every 3 weeks from avon. grandparents also give me money every other thursday and as i dont have any money in my account even when my monthly amount earnt does equal my monthly outgoings i will have gone overdrawn at some point then im charged etc.

can anybody suggest anything please.

angchris

hiya:hello: congrats on a great first post! the thing that sticks out the most to me is your savings of £2500, its pointless having savings when you have debts which are costing you more..pay the money off your highest rate apr credit cards.

shamu95

the reason i have kept them is in 9 years they are meant to pay out over £10000 and my bloke has said if i get out of unsecured debt in 4 yrs i can tie rest in with mortgage but i must pay off my lump sum savings when they come through

onedayiwill

Hi shamu. Congrats on the first post. I'm new here but my first thought was the same as angchris...if you've got £2500 savings, use it to pay off some of your debt.

If it were me, I'd pay off the Capital One Visa (£1591.05) and Abbey (726.65). Two debts wiped out just like that. And I'd put the rest on the capital one mastercard which has the highest interest rate. I know we should pay off the highest interest rate first, but to me the psychological boost of removing some debts completely really is a huge motivator. You'd only need another £183 to wipe out the Cap One mastercard completely.

Smile, you're here and people will help.

shamu95

i am hoping that i can pay them in a week or 2 with my dads loan. blimey i have more money than i thought!

onedayiwill

Shamu we were posting at the same time. Nine years is a long time. Your bloke is not the one with the debt. It's your choice.

earwig

the question is can you aford to save what i mean is are you saving the money each month but spending money on cc or overdrafts cause you dont have enough money to last you because you are saving

dont get me wrong saving is good but only if you are saving and not adding to your debt to do it have a look at ss sticky for snowballing and newbies i think this will work for you as you have atidy sum to start with

however if you are not adding to your debt then stop saving and start snowballing your saving money at your debt the higher intressest one first there are people on here with bigger debt then you and have done the snowballing and their debts are coming down at a fast rate because of it good luck

shamu95

indeed i can pay off some of my debts at last but i still wont have enough income to pay minimums on my remaining debt

earwig

then mybe a dmp is what you need if you dont have enough money to pay your debt speak to the cccs or payplan they can help with this

CLAPTON

maybe i'm seeing this wrongly but as i see it


your income is 1,493 but falling to 1,243
your spending is 1,220

which leaves 273 for debts but falling to 23

but your debt repayments are 745 per month

so currently you have a shortfall of 472 which is getting worst to be 722.

if you take your father offer of a loan at 125 per month which replaces the current payment of 166 per month

then you still have a shortfall of 306 but
getting worse to 556

using your 2,500 to pay off some small debts will still leave you significantly short e.g. if you pay back capital one and abbey that will save you about 40 per month so you will still be short between 266 and 516

you have identified some spending savings but you haven't said who pays for car tax/mot/insurance/ etc clothes , present, xmas etc .

so it seems to me that the only ways you can proceed are

a. continue to spend on credit cards to make up the shortfall (obviously a hopeless strategy for anything other than a month or so)

b. have a much more frank discussion with OH about you debt situation and for him to help out this situation.

c. approach CCCS /Payplan and default on your debts and go into a DMP/IVA

until you really look into this and try to see where you will be in six/twelve months time then i wouldn't accept your father's offer at this time because it will cause huge problems if you have to go into a DMP/IVA etc.

shamu95

totally frank discussion with oh already. he not budging. has great attitude and thinks will serve me right. doesn't realise how much this will affect him and kids. have even had our boss speak to him for me.
i really am not wanting to go down an iva. the car is all mine so i pay for it all. cant afford clothes or dentist etc.
if i can somehow get through just till kids 6 week holidays then i'm sure i can get back on the straight and narrow. as get lots and lots of hours at work.
is it possible to reclaim all credit card charges or is this totally different to bank charges? have sent letters asking for all charges made.