Looking for advice

I'm looking for some advice on paying off our debts. We don't have much income left over each month as we recently took out a loan, but , I'd like some advice on getting somewhere with paying off our debts even with our limited income.

Income :
Take home wages monthly : £1158.62
Child Benefit : £17.00 a week

Outgoings Monthly (not including debts):
Bills : £546.52 (includes £346.00 rent)
Life Insurance : £30.00 (both of us)

OH also pays £98.57 to a pension scheme but its taken out of his wages before we see it anyway so that's not missed.

Budgeted :
OH Mobile bill : £40.00 (sometimes its under/over, he refuses to change or get rid on account of being able to contact me if the car breaks down)
Food/grocery shopping : £40.00 a week (2 adults, 4-year-old, covers everything we need including cleaning, laundry, etc)
Gas/electric : £60 a month - based on winter spending (looking at changing suppliers. Need to check with landlady first that she would be okay with us changing to monthly meters instead of prepay, but she's away ATM)
Nursery "snack money" : £4 a month
Petrol : £30 a week (usually works out at £27 every 9 days or so but extra money pays for trips to see in-laws which uses up a tank of petrol)

Debts:
Time Retail Finance1 (APR 29.93%): £10.08 a month - Balance remaining £200 approx
Time Retail Finance2 (APR 29.9%): £18.64 a month - Balance remaining £671 approx (by my calculations, could be more by theirs)
Credit Card (APR approx 17.48%, Limit £5700): £1392 - £5 or 3% minumum - Budgeted £35 but I think its going to be higher this time around due to interest.
Bank Loan (APR 6.6%): £153.05 a month - Balance £5050.65 approx.
Student Loan (APR currently 3.10%) : DEFERED - Last official balance August 2004 : £4,096.51

TOTAL MONTHLY INCOME (4 week month): £1226.62
TOTAL MONTHLY OUTGOINGS (4 week month): £1177.29
"Spare" : £49.33 which only just covers the extra week in the 5 week months. Plus OH subscribes to a magazine but I'm not sure how much it costs a month, but I know it's cheaper than buying it from the shops.

We are currently getting £21.16 a week in Child Tax Credit but I think that is an overpayment so I'm not going to count that money as income until this years claim is sorted out. I estimate this could be about £10 a week once everything is worked out properly. Plus by my calculations we still owe them £50.

I've looked at snowballing the debts, but don't know what to do first. I was thinking of paying off the Time Retail Finance Loans using the credit card which has a lower APR and putting that money towards paying off the credit card.

I've just got the paperwork through for a 0% for 6 months capital one card (didn't get the 18 months which I applied for) BT £1200 from current card (this was the balance when I applied, MOT & repairs have been charged since then) , just working out what the monthly payments would be first before I send it off incase we can't afford it. Also wondering whether I could transfer the Time RF loans to Capital One as extra BT? (will post that as a seperate question in Credit Card forum though)

What would you suggest?
Creeping back in for accountability after falling off the wagon in 2016.
Need to get back to old style in modern ways, watching the pennies and getting stuff done!
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Comments

  • ADAM001
    ADAM001 Posts: 134 Forumite
    First Anniversary Combo Breaker
    the first thing i would do is SCRAP TIME FINANCE thier interest is nothing short of extortionate,look to pay that off with a 0% deal if poss,even when your introdutory rate finishes you will still be better off,change after 6 months if you like. Have you thought about a PAYG mobile. it works out cheaper if youre mobile is only used in an emergency. i would also advise changing your 17.48 % card or phone your card company and ask for a better deal. some card companies offer anniversary promotions on balance transfers(egg). if you do this you will need another card to transfer it out and back again thus changing the nature of the debt. good luck!
  • nicki_2
    nicki_2 Posts: 7,321 Forumite
    First Post Photogenic First Anniversary I've been Money Tipped!
    OH mobile is a sort of PAYG Virgin mobile, he only pays for calls made and gets some money back but it is a monthly bill. Trouble is he likes to text people alot as well as phone me. I've tried to get him to change but he says he doesn't want to change his phone number :mad: We both have sisters who regularly change their numbers to take advantage of offers of free minutes/texts so it's not as if he doesn't know whats available.

    I have a PAYG mobile which I only spend about £10 every 3+ months (infact I last topped up with £10 at new year and still have £2.66) on so I can usually scrape that together out of coppers from the weeks shop if I'm really really careful. I mainly have it so people can contact me as I spend so much time on the internet or out.
    Creeping back in for accountability after falling off the wagon in 2016.
    Need to get back to old style in modern ways, watching the pennies and getting stuff done!
  • robnye
    robnye Posts: 5,411 Forumite
    First Anniversary Combo Breaker
    nicki wrote:
    I've tried to get him to change but he says he doesn't want to change his phone number .

    i believe you can transfer your number from one company to another company
    smile --- it makes people wonder what you are up to.... ;) :cool:
  • ADAM001
    ADAM001 Posts: 134 Forumite
    First Anniversary Combo Breaker
    I have an 02 sim card-got them free off the net(yahoo in this case) just filled in a form- for every tenner i top up i get 300txts a month,u could keep your old number also.
  • roger56
    roger56 Posts: 478 Forumite
    As you are on a pre-pay meter, take a look at this company with a fair trade policy.
    Martin highlighted them in one article - I believe they are the only non profit making supplier and their prices are the same for everyone regardless of how they pay (meter, DD, cheque etc).

    http://www.ebico.co.uk/about.htm

    And yes, get rid of those high interest debts now!
    Check with your bank for a loan, many like Smile and A+L offer reasonable rates.
    But aim to pay that loan off, don't treat it as a holiday.

    Lastly, I agree with previous posts - get that mobile on pay as you go and minimise calls!

    Hope that helps and Good Luck.
  • nicki_2
    nicki_2 Posts: 7,321 Forumite
    First Post Photogenic First Anniversary I've been Money Tipped!
    I actually received an email from British Gas who are our suppliers. I know they are expensive but it was a bank holiday weekend when we moved in and the previous tenant had already, unbeknown to us, used the emergency button. We didn't have gas and only £1 of electricity to last us. We couldnt get through to anyone else at the time and I haven't been worried until recently when money has got really really tight.

    Anyways, they said :
    I can confirm that we do not charge to exchange meter but there is a process some customers may have to go through. It all depends on why the prepayment meters were installed. If they were installed to recover a debt, the account would need to be clear and then we would ask for a security deposit. It the meters were already in the property were would do a credit check. If you would like us to go through the process can you forward all the information and a contact telephone number. The information I need is

    Your full postal address
    Your full name
    Date of birth
    How long lived at this address
    Current meter readings for both gas and electricity
    Credit on meters for both

    When I receive this information I will be happy to call and confirm what action I will be taking. Thank you for your patience in this matter.

    I'm going to check with our landlady incase she wants it to be left as prepayment meters as previous tenants haven't been very good and built up big debts. I guess they could always be changed back, after all we're planning on staying here for at least 3 years unless we come into ALOT of money ;)
    Creeping back in for accountability after falling off the wagon in 2016.
    Need to get back to old style in modern ways, watching the pennies and getting stuff done!
  • nicki_2
    nicki_2 Posts: 7,321 Forumite
    First Post Photogenic First Anniversary I've been Money Tipped!
    Well I checked out the figues and have found that with what we are prepared to allocate to debt in total (£220 a month plus any extra money we get) if we BT all our card loans onto the capital one card, we should be able to pay it off easily, especially if I "Tart" ;) .

    OH has spoken to Time Retail Finance about his loan and found out that the closing balance currently stands at £502.50 which is valid until 8th May. So thats alot less than I thought, but it does add another 3 months worth of payments to what we originally had as a closing date (when we took out the loan that is) but that won't matter unless we can't BT it to capital one.

    I've cut gas & electric to £50 this month as the weather is starting to warm up now and I'd rather pay money off debt than having it "sitting on the meter/card".

    I'm making changes slowly, but I need to keep in mind that we have school supplies (i.e. uniform) to buy soon for our daughter and Christmas currently un-budgeted. :( I need to know what is happening with Tax Credits and Capital One before I can allocate funds sensibly. It's so frustrating waiting on other people when I want it sorted NOW!
    Creeping back in for accountability after falling off the wagon in 2016.
    Need to get back to old style in modern ways, watching the pennies and getting stuff done!
  • homersimpson_3
    homersimpson_3 Posts: 1,249 Forumite
    This may sound harsh but in addition to above what about cutting out magazine subscription- can OH read it in library or on line? Every little helps.
  • Philip624
    Philip624 Posts: 711 Forumite
    Name Dropper First Anniversary First Post
    It all about getting the money saving mentality going.

    No doubt you have looked thru this site but open an account with £1 in Egg, and download the money manager for a free £10 (act quickly though as this offer ends at the end of April). Open an ING account for £1 with one of the referrals on the referrals board and get £10. Open an account with First Direct and get £25, no need to change salary. Thats £45 for a litte effort and no expense.

    Register with the cashback sites esp Linemypocket - again with referrals you can get £1 to start you off.

    Check out the gambling loopholes forum for risk free arbitrage betting - but read up how to do it very carefully, again you can make small amounts which all add up.

    Got any junk going spare, sell it on Ebay (you get £3.25 for registering for Ebay thru line my pocket.

    Days/meals out - always check on line, put in the name of the place in google along with discount,coupon money-off - youd be amazed at the bargains this brings you.
    I can offer no resistance, I can offer no respite
    Wake me when conflict is over,
    I aim for a peaceful life,
    Wake me up when the fury is ended
    I like living a peaceful life
  • we are in almost exactly the same posisiton,

    £1,800 in and £1,800 out. It's called life I think. You can't really expect your partner to stop his magazine and his mobile, what else does he get for going to work ?

    Good luck, if you want to compare bills then message me.

    cheers.
    nothing.
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