Where to start?!

wizzywig27

I am looking for some help/motivation/advice on how to deal with my current situation.

I will be 100% honest with my situation, as lying will not help me in anyway.

My current salary is just short of 28k (been on this for 6 months – before that 21k

I come out with just short of £1800 per month

My current debts are:

Vanquis – Limit £2500 – Balance £2300 – Min payment £110 ish – but actually pay £150 a month – APR 54.9%
Capital one – Limit £200 – Balance £182 – Min payment is roughly £5 but pay about £15 a month – this is progress card which I wouldn’t mind keeping as the APR drops! but it is currently 34.9%
Capital one – Limit £200 – Balance £170 – Min payment is roughly £5 but pay about £15 a month – APR 34.9%
Aqua Card – Limit £500 – Balance £470 – Min payment is roughly £15 and pay that per month via direct debit – APR 32.9%
Next – Limit £1500 (although this goes up and down every month) – Balance £1330 – min payment is roughly £140 a month and pay just over this (to nearest pound)
Isme – Limit £250 – Balance £210 – Min payment £18 a month
K&Co – Limit £1200 – Balance £647 – Min payment roughly £100
Very – Limit £1400 – Balance £1330 – Min payment roughly £70
Jacamo – Limit £500 – Balance is £320 – Min payment £37

Total: £560

Other commitments:
£100 payment to family member per month for money owed to move into rented property
Payment to Cabot £13 a month

Total £113

Bills/rent:

Rent £300 pcm
Council Tax: £60
Water £12
TV Licence £8
Gas/Electric: £40
TV, Phone, Broadband: £50
Mobile Phone £36

Total: £506

I also have a £300 overdraft with Halifax and £200 with Barclays – both interest free

Grand total: £1179

According to this there is £600 spare per month, but that is not the case, so not really sure where that goes?!

I definitely want rid of the Vanquis

I would like to keep the cap1 progress, and at least one of the catalogues along with next (but clear the balance)

I have recently cleared and closed accounts from Fashion World, JD Williams and Lloyds TSB (bank account).

I am not sure where to start, although obviously the higher APR’s seem the most appropriate, I would also like to clear more balances.

Any help and advice would be most welcome

Thanks

Wizz

System

Hi Wizz and welcome.

First thing is to post an SOA (Statement of Affairs) in the usual format that forumites are used to seeing. That way we will be able to see better where you can make savings.

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

The other thing is that if you're not sure where the £600 goes each month then you must keep a spending diary for a month and it will reveal quite a lot.

Good luck!

Red.

ellesbellesxxx

Hi.
You haven't said anything about food expenses, transport, entertainment etc... I would imagine 600 could easily be swallowed up with all this!

If you fill in a SOA http://www.makesenseofcards.com/soacalc.html you will soon be able to see EXACTLY where that money is going - and identify where to make cut backs. Straight away I would say mobile/TV phone package could do with some shaving off.

Credit card wise, you need to start with the highest APR throwing all money at this and making min repayments on the others until the credit card with the highest APR is paid off - in this case Vanquis. Once you have done this, move onto Capital One cards. Until you have paid off the Vanquis, although it is demoralising to have lots of open accounts, you must ensure you tackle one at a time as otherwise the Vanquis will cripple you!

Well done for realising something needs to be done.

Jenny0050

Hello!

Firstly, well done on taking your first step to sorting out your finances!

'Snowballing' -the term given to paying as much as you can off your highest APR card and minimum repayments on the others...then when the highest APR card is paid off move on to your next one- pay as much as you can off that one- and so and so.... is something I have recently discovered on this website and something which I am going to use to pay off my debts- it's the quickest and cheapest way to clear your debts.

Just looking at what you have posted- it seems to me like you have an awful lot of 'shopping accounts' - Next, Isme, K&Co, Very, Jacamo -and these are costing you ~£365 a month just in the minimum repayments. If I was you, once they have been paid off I would close them- say to yourself if you can't afford to go out and pay cash for it then you'll wait and save up for it until you can (rather than putting it on credit).

Best wishes

LittleChicken89

I would definitely say do a spending diary of some sort! I was shocked at where all my 'extra' cash went! Then you can do a budget and hopefully use some of this cash to pay off the high interest cards