Owe just over £10000 to 28 different companies

nfollows1982

woohoo_postingid wrote: »

£37k a year is more than £1803 per month take home.

Agreed, NETT pay on that salary should be £2307.

£1803 per month is more in line with an annual income of £28-29k per annum.

AFK_Matrix

Yeah i was going to say the same thing as I am on 30k a year and that's around 1900 a month.

Also well done on getting yourself sorted out and good luck with reducing your debt. I think you should cut down on something of the things like others have said.

As I would see it as maybe what 5 months of hardship, so no going out or anything and getting cheap shopping etc and then your debt free and can start actually saving your money and I would bet that you will feel so much better and happier. Just my 2 pence worth but I would rather have a difficult few months and be debt free instead of having 2 years of being in debt.

weezl74

It could be £1803 if you are paying into an occupational pension, is that the reason? Or are you on a reduced tax code as you are in receipt of a company benefit?

Timetogetfree

woohoo_postingid wrote: »

£37k a year is more than £1803 per month take home.

Indeed it is more than 1803, i pay for pension and sharesave with work.

woohoo_postingid

Timetogetfree wrote: »

Indeed it is more than 1803, i pay for pension and sharesave with work.

That's quite a chunk off your take home. Pension is sensible but you must be paying quite a hefty chunk into the sharesave. That's money that could be servicing your debts.

Timetogetfree

woohoo_postingid wrote: »

That's quite a chunk off your take home. Pension is sensible but you must be paying quite a hefty chunk into the sharesave. That's money that could be servicing your debts.

I pay pension, shares and also pay for vouchers each month that i put towards my shopping that are discounted as i dont pay tax on these.

I have been paying into the shares for the last 3 years so it would be counter productive to take them out now as i wont recieve the benefit untill after 5 years. Then i basically double what i put it. This will then be used to put down as a deposit for a morgage if i can get one hopefully after sorting out the debts i have.

The aim as it stands is to use the 1803 i get per month aswell as the extra money i get from doing the odd extra work once or twice a month to pay off the debt.

I am thinking more long term then that and looking for a 5 year plan to get myself on the property ladder. Which means keep paying into my shares as this will basically ensure i have a deposit ready in 2 years time. In that time i hope to have sorted out all of the debts i owe using the money i have left per month.

Options are as follows;

1. Cancel shares and pay off £7500 of debt leaving £3000 to pay meaning i could be debt free in 5 or 6 months. Leaving me to then save the money i was going to pay the debt with.
Total money for deposit in 2 years would be £12000

2. Pay into shares for 2 more years so i gain the full benefit of company policy meaning i will have about £19000 with a debt level of £0 if i stick to my plan.

Time_to_face_the_music

Do you have defaults? You need to look at the picture your credit rating currently presents and then fast forward 5 years and ask yourself, will anyone give me a mortgage?

If not, use the share options to pay debt now, clear your debt and then start saving.

woohoo_postingid

So your shopping spend is even more than what is on your SOA ?! Personally I would keep the sharesave if you can afford to do so. Quite simply you need to cut down on your spending on food, clothing etc.

Timetogetfree

woohoo_postingid wrote: »

So your shopping spend is even more than what is on your SOA ?! Personally I would keep the sharesave if you can afford to do so. Quite simply you need to cut down on your spending on food, clothing etc.

Yeah i guess the shopping needs to be cut down alot to help pay off the debt, the vouchers i get are saved up and used for wedding, bday's that i cant attend(too many people getting married and having kids.lol)
Also they are used to purchase equiptment i need as i plan on starting a part time business aswell as working to raise extra money. Also for getting new sports equipment as and when i need it.

Its about trying to change my mind set to buying things i need rather then things i want.

Angry_Bear

Don't forget to have a look at the snowball calculator to work out who to pay, when. http://www.whatsthecost.com/snowball.aspx

As far as the smoking goes, have you considered roll-ups? If you do decide to give giving up a go (so to speak) I can't recommend the nicotine replacement stuff highly enough!

You've already come so far you've obviously got motivation coming out your ears and you seem very willing to listen to advice without getting defensive (how refreshing!), I'm sure you'll be debt free in no time. :T