If you don't mind sharing your advice

Rileybaby

Ive decided that I need to get on top if my financies I'm in the region of £17kin debt due to a marriage breakup and I'd like to get debt free ASAP however I have NO idea how to got about it the debts are as follows:-

Loan £10k (paying £60 a month off this)
Credit card £2300
Overdraft and bank charges ( old acc) £1200
Next £39
Mortgage areers £3500 (paying £30 a month off this would like to pay more)

I earn a fair wage approx £1781 a month how can I get rid of this ASAP?

Thank you for taking the time to read and I look forward to the benefit of your advice

mildredalien

Hi Rileybaby, well done for making the decision to tackle your finances

The first steps should probably be:
1. Make sure you get a full list of all your debts including interest you are paying
2. Get a hold of your bank statements for about 3 months and check out how much you are currently earning and paying out
3. Fill out a statement of affairs at http://www.stoozing.com/msoc/soacalc.php with your income, necessary expenditure and what you think are reasonable amounts for all 'non essentials'. The more detailed the better!
4. Post your SOA here (click format for MSE, and scroll down and delete the link so you can post it)
5. Await advice

Rileybaby

Thank you fir your reply.

How do I get a full list of my debts and interest? Sorry to sound thick!

Blue_Elephant

Do you know who everyone you owe money to is? If so make that list first, if not you may need to access your credit files - Experian or Equifax are good for this. Once you have a complete list, go through all your paperwork and find the statements.agreements which will have your interest rate on them. If you still can't find the interest rates, you may need to contact the provider.

mildredalien

Statements from your creditors should suffice if you have them - e.g. credit card statements, or if you can access them online to figure out how much is left. You seem to have a general idea so that's something! If you are unsure, you can either order a statement for £2 from the credit agencies Blue Elephant mentioned, or sign up for a free trial (but MAKE SURE you note down when you sign up and cancel it well in advance or you will end up paying £15/month).

Rileybaby

Cot hank you it your advice?

I've got the interest on my debts stopped ( that's something at least) so I can fill the SOA on line and post it so you can tell me where I'm going wrong!!!

Thanks agin everyone who's already taken the time to post

Rileybaby

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1781
Partners monthly income after tax....... 0
Benefits................................ 140
Other income............................ 0
Total monthly income.................... 1921

Monthly Expense Details
Mortgage................................ 510
Secured/HP loan repayments.............. 30
Rent.................................... 0
Management charge (leasehold property).. 6.66
Council tax............................. 175
Electricity............................. 40
Gas..................................... 65
Oil..................................... 0
Water rates............................. 56
Telephone (land line)................... 21
Mobile phone............................ 36
TV Licence.............................. 14
Satellite/Cable TV...................... 21
Internet Services....................... 10
Groceries etc. ......................... 250
Clothing................................ 80
Petrol/diesel........................... 140
Road tax................................ 10
Car Insurance........................... 50
Car maintenance (including MOT)......... 20
Car parking............................. 90
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 63
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 30
Contents insurance...................... 35
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 0
Entertainment........................... 50
Holiday................................. 100
Emergency fund.......................... 0
Total monthly expenses.................. 1952.66


Assets
Cash.................................... 0
House value (Gross)..................... 165000
Shares and bonds........................ 0
Car(s).................................. 3500
Other assets............................ 0
Total Assets............................ 168500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 50000....(510)......0
Secured Debt.................. 3500.....(30).......0
Total secured & HP debts...... 53500.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................2300......50........0
loan...........................10000.....60........0
next...........................39........5.........0
o draft b charges..............1200......0.........0
Total unsecured debts..........13539.....115.......-


Monthly Budget Summary
Total monthly income.................... 1,921
Expenses (including HP & secured debts). 1,952.66
Available for debt repayments........... -31.66
Monthly UNsecured debt repayments....... 115
Amount short for making debt repayments. -146.66

Personal Balance Sheet Summary
Total assets (things you own)........... 168,500
Total HP & Secured debt................. -53,500
Total Unsecured debt.................... -13,539
Net Assets.............................. 101,461



I've contacted the credit card co and the loan co and they have both frozen the interest.

I'e also been going through my old bank statements over the last 7 years and im disgusted with the fact that i have been charged 7335 in respect of bank charges some simply charges on charges can i do anything about that?

I have over 1000 of charges for the last year alone!!!

Im so ashamed by this but im determined to get it sorted once and for all

mildredalien

Rileybaby wrote: »

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1781
Partners monthly income after tax....... 0
Benefits................................ 140
Other income............................ 0
Total monthly income.................... 1921

Monthly Expense Details
Mortgage................................ 510
Secured/HP loan repayments.............. 30
Rent.................................... 0
Management charge (leasehold property).. 6.66
Council tax............................. 175 are you paying over 10 months or 12?
Electricity............................. 40 have you checked comparison sites that you are getting best deal for electricity and gas?
Gas..................................... 65
Oil..................................... 0
Water rates............................. 56
Telephone (land line)................... 21
Mobile phone............................ 36 can you go PAYG?
TV Licence.............................. 14
Satellite/Cable TV...................... 21 may need to get rid of and stick with freeview, or see if you can get combined internet/landline/TV for cheaper
Internet Services....................... 10
Groceries etc. ......................... 250 check old style boards for ways to reduce shopping
Clothing................................ 80 this is high - need to reduce and/or sell old clothes to fund new ones
Petrol/diesel........................... 140
Road tax................................ 10
Car Insurance........................... 50
Car maintenance (including MOT)......... 20
Car parking............................. 90 this seems quite high - any way to reduce?
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 63 what does this cover?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 30 have you checked comparison sites? might be able to get cheaper if you combine buildings + contents
Contents insurance...................... 35
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50 this is quite high, need to reduce
Haircuts................................ 0
Entertainment........................... 50 this is quite high, need to reduce
Holiday................................. 100 you can't afford this at the moment...
Emergency fund.......................... 0
Total monthly expenses.................. 1952.66


Assets
Cash.................................... 0
House value (Gross)..................... 165000
Shares and bonds........................ 0
Car(s).................................. 3500
Other assets............................ 0
Total Assets............................ 168500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 50000....(510)......0
Secured Debt.................. 3500.....(30).......0
Total secured & HP debts...... 53500.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................2300......50........0
loan...........................10000.....60........0
next...........................39........5.........0
o draft b charges..............1200......0.........0
Total unsecured debts..........13539.....115.......-


Monthly Budget Summary
Total monthly income.................... 1,921
Expenses (including HP & secured debts). 1,952.66
Available for debt repayments........... -31.66
Monthly UNsecured debt repayments....... 115
Amount short for making debt repayments. -146.66

Personal Balance Sheet Summary
Total assets (things you own)........... 168,500
Total HP & Secured debt................. -53,500
Total Unsecured debt.................... -13,539
Net Assets.............................. 101,461



I've contacted the credit card co and the loan co and they have both frozen the interest.

I'e also been going through my old bank statements over the last 7 years and im disgusted with the fact that i have been charged 7335 in respect of bank charges some simply charges on charges can i do anything about that?

I have over 1000 of charges for the last year alone!!!

Im so ashamed by this but im determined to get it sorted once and for all

Hiya, I've made some comments above in bold. At the moment you are spending more than you earn not even including minimum payments on debts, so you need to make some serious reductions. I hope the advice doesn't come off as harsh, but it's important to make sure you aren't spiralling into even more debt! £50 for entertaining your entire family may not seem high, but when you are in deficit each month its more than you can afford!

I'm assuming charges are in place because of making late payments or going over your overdraft? You can complain and see if you can claim for unfair or out of proportion charges, but I wouldn't bank on this to help you manage your debts. If it happens it'll be a nice bonus

It may be worth contacting a free debt charity like CCCS or Payplan for their advice.

midnight_express

Are you getting any money from your kids other parent? If not maybe you should contact the CSA.

Rileybaby

Thank for your comments.

Some of the bank charges are simply charges on charges and amount to over 3k!!!

I agree with what you have said regarding holidays and the like. With regard to the mobile phone / sky/ its on contract and I cant cancel it.

I have reduced my home insurance and gas electric bills already.

The 63 is for afterschool club for my daughter

unfortunately my ex hubby is self employed and now APPARENTLY he doesnt earn enough to make a payment the csa have said that on his earnings i will only get 5 a Month!!

BettiePage

Water rates seem high for just 3 of you. Could you change to a water meter?