My SoA

Lucy1982_2

Right I have created an SoA I think I have covered everything!

Incoming:

Salary: £1,044.58 (average)

Total: £1,044.58

Outgoings:

Rent: £200.00 (I live with my Mother so this includes food, gas, electricity etc)
Sky: £7.50
Mobile: £25.00
Car Insurance: £63.40
Petrol: £80.00
Savings: £80.00
Film Rental: £7.99
RAC Cover: £12.92
Contacts: £10.00
Loan 1: £242.82
Loan 2: £101.85
Bed Repayments: £22.67

Loan 1 (Lloyds) balance - £8,763.75 (APR 7.8%, length 60 months about 3 years left)

Loan 2 (Lloyds) balance - £941.33 (APR 16.9%, length 12 months 9 months left)

Bed balance - £272.00 (APR 0%, length 12 months, 12 still to go!)

Store card 1 balance about £450 (APR 24.9%, limit £500)

Store card 2 balance - £56.12 (APR 17.9%, Limit £300)

Overdraft balance - £490.00 (agreed limit £500. HELP! :eek: )

I think that's everything, please let me know if I've missed anything obvious!

Thanks

lambanana

You shouldn't be paying into savings when you still have debts which is frustrating but the interest you pay on the debts is higher than what you will earn on savings.

Is there any way to change mobile plan/go onto payg?

Good luck paying off your debts!

Lucy1982_2

I did think about going pay as you go, but I end up pay out to much, the plan I'm on lets me pay £25 a month and gives me a £60 allowence each month, so its not so bad.

I understand the savings thing, but I'm a little worried about something going wrong with my Car (not that it should) but as I don't have a credit card I wouldn't have any way of paying for it. Unless I've missed an easy solution!

Debt_Free_Chick

You are left with £190 a month, which you presumably spend. Problem is, you are spending more than £190 a month on "stuff", which is why you are overdrawn.

My guess is that you just spend what you want to and don't realise you're spending more than you have. You could try keeping a spending diary for a few weeks - simply write down every penny that you spend and what you buy with it.

This can be quite an eye-opener when you look back at what you've done with your hard earned cash. (For example, when I did it, I immediately stopped buying magazines and haven't bought one for more than 5 years!!).

The key to your situation is managing your spending - but you need to understand where you are currently spending, first.

HTH

Lucy1982_2

Sounds like a good idea. I know one area that I really can cut back on. I work opposite Sainsbury's and its a nice walk during lunchtime, problem is I tend to buy things while I'm there! So I'm going to stay in the office and read the Money Diet instead!

quantumleap

I can appreicate the desire to have some savings for a rainy day but the reality is that you are in debt and it makes no sense to be paying into a savings account whilst accumulating debt - that is the reality. An additional £80 per month towards the right debt would make a difference.

Also, you are currently paying, including fuel, over £150.00 per month on your car, you need to look at this and determine if there are ways to reduce it.

The film rental should also go ASAP. With regard the phone, perhaps you should resolve yourself to simply using it less in order to make sure PAYG works for you. If you have truely had your lightbulb moment then these are the sort of decisions that you should be prepared to make.

saffronflowers

Right I have created an SoA I think I have covered everything!

Incoming:

Salary: £1,044.58 (average)

Total: £1,044.58

Outgoings:

Rent: £200.00 (I live with my Mother so this includes food, gas, electricity etc)
Sky: £7.50Is this necessary
Mobile: £25.00
Car Insurance: £63.40This is extremely high check out better deals through Quidco and pigsback
Petrol: £80.00
Savings: £80.00All monies should be thrown at debt before saving
Film Rental: £7.99Is this necessary
RAC Cover: £12.92Can you do a family memebership
Contacts: £10.00
Loan 1: £242.82
Loan 2: £101.85
Bed Repayments: £22.67 Total I make it is £855 - leaving about £200 for debts

Loan 1 (Lloyds) balance - £8,763.75 (APR 7.8%, length 60 months about 3 years left)

Loan 2 (Lloyds) balance - £941.33 (APR 16.9%, length 12 months 9 months left)

Bed balance - £272.00 (APR 0%, length 12 months, 12 still to go!)

Store card 1 balance about £450 (APR 24.9%, limit £500) Pay this off first

Store card 2 balance - £56.12 (APR 17.9%, Limit £300)Pay this and then cut up the card!

Overdraft balance - £490.00 (agreed limit £500. HELP! :eek: )

I think that's everything, please let me know if I've missed anything obvious!

Thanks [/QUOTE]

SFx

Lucy1982_2

Your right I can cut back on things. I have started and so far I switch from paying for dial up to free Sky broadband. I'm cancelling my phone insurance today as I have realised it's covered on the home insurance.

I've had a look at the Snowball thing and if I throw the extra money at my debts I should be free of the cards by the end of the year, then they will be cancelled and cut up, I've realised I'm not trustworthy enough!!

I think I am in the stage where I know sort of what I need to do, but I just need to realised that it'll be better for me and wont effect my life so much. That probably doesn't make sense but I'm a little confused about it all

saffronflowers

Lucy - one big problem with getting out of debt is that you really do have to change your lifestyle and the way you think about money. There is no easy way, it is tough but worthwhile.

I dont know how old you are but I assume you are still quite young, if you really work at it hard over the next two years and throw money at your debts it will make a huge differenece to your future life.

Sfx

quantumleap

It's difficult Lucy and you are doing really well. It is hard to accept that they're are certain things now that will have to take a back seat for a while but it will be worth it. Had you continued the way you were the situation would only have gotten worse and become unmanageable.

As it is you can and will get things sorted - you should be very proud of yourself and as the debt decreases the pride will increase.

Lucy1982_2

Thanks Saffron.

I know. I think I have just got so scared of the situation I'm in (and I realise it could be worse) that I tried to pretend it wasn't happening!

But I've faced it now, which has to be a step in the right direction, and you are right I do need to take it in hand and it will be worth while. I have so much I want to do and I don't want to have to worry about money while I'm doing it!

I'm only 24 and a former student so I got hit big time when I was 18, I really should have learnt then!