debt advice

mattyw82

hello. I thought I would post my position and see what others suggest I do or try to overcome this mess. I am currently around 17k in debt.:eek::eek: I am shocked as I write this as I had no idea it had crept up so much.

Overdraft 1600
Personal Loan 2856 (12 instalments left)
Halifax cc 5550 (0% until Jan 2014)
MBNA cc 3300 (0% until April 2013)
Natwest cc 2400 (0% until Mar 2014)
Barclaycard cc 1300 (6.9% APR for remainder)

My income is relatively good at about £2,173 per month take home, and although my card above are at very low rates, I am really keen on trying to be come debt free by May 2014.
I always make payments (minimum) but really want to get hold of this debt now as I would like to start saving for a house, I have just turned 30 and don't want to spend my 30's living how I did in my 20's... please help.

DFW

camuk81

Ok, first things first

http://www.makesenseofcards.com/soacalc.html

Fill in a statement of affairs, this can help you see where to cut back

Then check:

http://www.whatsthecost.com/snowball.aspx

To see which to pay off first

camuk81

PS whats the rate on the loan and the overdraft, and have you thought of keeping a spending diary?

Bublin1

You should do the snowball method of paying off your debts and start living a bit more frugally - that alone should pay off your overdraft in time - this means bringing lunch into work every day, no more Starbucks coffees. No more glossy magazines, no more new clothes etc.

Attack your debt in this order. Move onto the next when one is paid off but be sure to keep paying the minimum on the others.

Barclaycard cc 1300 (6.9% APR for remainder)
Personal Loan 2856 (12 instalments left)
MBNA cc 3300 (0% until April 2013)
Natwest cc 2400 (0% until Mar 2014)
Halifax cc 5550 (0% until Jan 2014)

mattyw82

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned....................
Monthly Income Details
Monthly income after tax................ 2173
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2173
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 671
Management charge (leasehold property).. 0
Council tax............................. 70
Electricity............................. 9
Gas..................................... 30
Oil..................................... 0
Water rates............................. 10
Telephone (land line)................... 0
Mobile phone............................ 25
TV Licence.............................. 5
Satellite/Cable TV...................... 20
Internet Services....................... 5
Groceries etc. ......................... 80
Clothing................................ 30
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 111
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)...... 16
Haircuts................................ 16
Entertainment........................... 480
Holiday................................. 130
Emergency fund.......................... 0
Total monthly expenses.................. 1708

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

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Overdraft......................1600......0.........0
Personal Loan..................2856......238.......0
Credit Card....................5550......56........0
Credit Card....................1300......28........6.9
Credit Card....................2400......24........0
Credit Card....................3400......33........0
Total unsecured debts..........17106.....379.......-

Monthly Budget Summary
Total monthly income.................... 2,173
Expenses (including HP & secured debts). 1,708
Available for debt repayments........... 465
Monthly UNsecured debt repayments....... 379
Amount left after debt repayments....... 86
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -17,106
Net Assets.............................. -17,106

mattyw82

Loand rate is 6% and my od is £1 a day (usually about 15-20 days a month) over the £300 interest free amount

blitzboy

What on earth do you do for entertainment to spend £5760 a year?!

This seems the obvious place to start.

As for your debts, you seem to have done well with getting 0% deals etc. Focus on paying just above the minimum amount on the 0% cards and pay as much as you can afford on the 6.9% card to clear that one first. Once that card is cleared they may offer you a new 0% deal when the other card's offers run out which may save you taking out further credit.

mattyw82

blitzboy wrote: »

What on earth do you do for entertainment to spend £5760 a year?!

This seems the obvious place to start.

As for your debts, you seem to have done well with getting 0% deals etc. Focus on paying just above the minimum amount on the 0% cards and pay as much as you can afford on the 6.9% card to clear that one first. Once that card is cleared they may offer you a new 0% deal when the other card's offers run out which may save you taking out further credit.

Entertainment includes going out to the pub, restaurants, etc. Looking at this its way too much and this is the first place I am looking to reduce my spending

Would I not be best to clear my MBNA card which runs out in October - £1700 on this and then focus on the remaing MBNA balance which is next April of the same amount before tackling my very low rate barclaycard?

Debt_Free_Guy

Firstly, you made the right first step by owing up to the fact that there is a problem, this is both brave and very helpful.

Secondly I would consider focusing on paying down debts with the highest interest rate first.

Thirdly are you in a position to take on extra hours at work, or a 2nd income. Latch on to your core skills and market them. I've been able to generate a 2nd income and pay of debt more quickly by utilising my writing skills.

Find what you are good at and use it to develop 2nd income and perhaps even a future career change.......

I wish you all the very very best

Googlewhacker

does your partner not contribute to the bills at all?

gizmo111

Are you sure you only spend £80 a month on food for 2 of you and £480 on entertainment?