Can you advice on S.O.A?

Kimberley

I want to pay more off my debts and I already pay more then my minimum but I want to know if you suggest I pay even more each month.

S.O.A

Income:

Monthly
£603 Wages
£520 WTC/CTC
£80 CB
£320 board from 2 Adult Children
= £1,523

Debts
HitachiCapital (DFS Sofas) £1,118 with interest free credit and a fixed payment of £68.50
Argos £600 APR 29.9
Littlewoods Visa £200 APR 29.9
Vanqish £2,000 APR 34.0
Capital One £1,400 APR 34.0
Overdraft £600
= £5,918

Outgoings
Littlewoods Visa = £47 (including an overpayment)
Hitachi Capital = £68.50 (Fixed payment but can pay more if i wanted)
Argos = £65 (includes an overpayment)
Capital One = £125 (includes and overpayment)
Vanqish = £100 (includes and overpayment)
BT = £24.50
TV Licence = £12.12
Water = £29.30
Electric = £45
Gas = £55
Car Insurance = £62
Petrol = £100
O2 = £25.50
Overdraft Int = £7
Petplan = £15.90
World Of Warcraft = £8.99
Tescco Online Shopping = £200-£265
AA Breakdown and Relay Cover = £19.73
Camelot = £5
Sky TV (Sky Plus Only with Freeview) = £10
Cashplus (Pre-paid card) = £25 (saving for xmas)
= £1,115,57

Leaves about £400 spare for my debts. According to a Snowballing calculater I have to pay more on the Capital One card is that correct?
:beer:

Time_to_face_the_music

Hi Kimberley

You should drop all your other debt payments to minimum and pay everything you can as extra off the Capital One debt which should clear it in 4 months. Then do the same on the Vanqish then Littlewoods visa and finally Argos. Your payments will get larger as each debt is paid off and you will be debt free in no time :T

Kimberley

That easy? Cool thank you x

mildredalien

Yep it's that easy!

Although you may want to pore over your bank statements for the last couple of months and check where that extra £400/month usually goes as it can so easily disappear...

rising_from_the_ashes

Hi Kimberley, I'd advise doing a full SOA using the "MSE format" http://www.makesenseofcards.com/soacalc.html

There's quite a few things missing from the "everyday monthly" payments that need to be included / budgeted for to ensure money's there when they're due (car maintenance, presents, haircuts etc etc) and you'll get a more realistic idea of what's really left using this (and advice on how to go forward). HTH

rising_from_the_ashes

Time_to_face_the_music wrote: »

You should drop all your other debt payments to minimum and pay everything you can as extra off the Capital One debt which should clear it in 4 months. Then do the same on the Vanqish then Littlewoods visa and finally Argos.

Pay more than the minimum to the other debts - even £1 / month - credit files now report a minimum payment with a big fat M beside them and it looks bad to lenders if you're only making the absolute minimum amount.

Even £1 more than the minimum stops this happening

Barbeduk

^^ ddn't know that, thanks rising.

Time_to_face_the_music

rising_from_the_ashes wrote: »

Pay more than the minimum to the other debts - even £1 / month - credit files now report a minimum payment with a big fat M beside them and it looks bad to lenders if you're only making the absolute minimum amount.

Even £1 more than the minimum stops this happening

Have you actually seen this on a credit file? Or is it only visible to prospective lenders? Have never heard this before and wondered if it is fact or an urban myth :huh:

rising_from_the_ashes

Time_to_face_the_music wrote: »

Have you actually seen this on a credit file? Or is it only visible to prospective lenders? Have never heard this before and wondered if it is fact or an urban myth :huh:

It's fairly new - I got the shock of my life when I last got my credit file (end of last year) as I'd had a few months paying min to the cc earlier in the year when things were really tight.

Yes, it is visible to lenders and sticks out a mile, it shows the balance at the date the statement was produced and the amount you've paid that month, with a big (and believe me, it is big!) M beside if it it's the minimum

See "credit card behavioural data" on the following link http://www.equifax.co.uk/About-us/Press_releases/2011/EQUIFAX_WELCOMES_THE_ICO_CREDIT_FILE_CAMPAIGN.html
or see this http://www.experian.co.uk/downloads/consumer/YCREJul08.pdf (section called "Credit account information with account management details" (Page 16 - about 1/2 way through doc) for more info and a diagram. HTH

Time_to_face_the_music

rising_from_the_ashes wrote: »

It's fairly new - I got the shock of my life when I last got my credit file (end of last year) as I'd had a few months paying min to the cc earlier in the year when things were really tight.

Yes, it is visible to lenders and sticks out a mile, it shows the balance at the date the statement was produced and the amount you've paid that month, with a big (and believe me, it is big!) M beside if it it's the minimum

See "credit card behavioural data" on the following link http://www.equifax.co.uk/About-us/Press_releases/2011/EQUIFAX_WELCOMES_THE_ICO_CREDIT_FILE_CAMPAIGN.html
or see this http://www.experian.co.uk/downloads/consumer/YCREJul08.pdf (section called "Credit account information with account management details" (Page 16 - about 1/2 way through doc) for more info and a diagram. HTH

Hi rising from the ashes

Thanks very much for the information and the links.

When we checked our credit files before and just after starting our DMP there were definitely no letter Ms there. We had been paying minimum payments for some time but always rounded our payments up to the nearest pound so maybe that saved up from the dreaded M mark! :rotfl:

I would say I dread to think what the credit files say now but really we don't care, our credit days are done for ever :T