Help controlling my finances and clearing debts

bigdavecox90

Hi guys, first of all I'd like to thank anyone involved in advance for their replies or help with this subject.

I will start by being completely open and admitting I am on a rather small £14k salary as my job is largely comission based, therefore I can earn extra on top of this.

I take home roughly around £1000 per month.

My current debts include:

£2500 overdraft, £700 credit card and £6200 owed on a loan borrowed for my car.

All monies owed are kept in one place, as all are through Lloyds TSB.

My official monthly outgoing work out currently at:

£120 per month lodgings (rent), £225 on my monthly loan, £75 car insurance, £150 per month fuel, £45 per month phone bill.

Obviously working these out, this adds up to just over £600 per month, so I should be left clear for the end of the month.

I obviously like to go out and socialise with friends and have a good time as every young person does, but this is not excessive and is never more than £100 per month.

I am reaching the end of everything month with a matter of pence left in my overdraft.

I hate to go on and I'm fully aware there is no 'instant fix' to this problem, but any help or advice would be greatly appreciated to get me out of this mess.

Thanks again,

Dave

dr_adidas01

I think this is better placed in the debt free wannabe board as it will get a better responce, it sounds like even though your wages are £1k you are still nearly £1.5k into your overdraft after this £1k has been paid in?

I notice you don't mention payments on your £700 credit card or anything for food?

Time to probably stop going out so much and put that £100 month you spend on paying off some of your debts which will be better for you in the long run.

bigdavecox90

dr_adidas01 wrote: »

I think this is better placed in the debt free wannabe board as it will get a better responce, it sounds like even though your wages are £1k you are still nearly £1.5k into your overdraft after this £1k has been paid in?

I notice you don't mention payments on your £700 credit card or anything for food?

Time to probably stop going out so much and put that £100 month you spend on paying off some of your debts which will be better for you in the long run.

Apologies if placed in wrong forum, mods please move if you feel appropriate.

That's correct. Even after I've been paid, I'm still £1500 overdrawn, not ideal right?

Credit card payments are made "here and there" when I have the spare cash to do so. Bad I know.

Food is bought daily at work, at a cost of £3-5 per day, which I know this is a cost I can cut back on by preparing food at home. I plan to start doing this.

Debtslayer

Hi
You really need to post on the Debt free wannabe forum to get best advice and help; otherwise you will get missed on here

Fill out an soa using the one at www.makesenseofcards.com so you and we can see exactly all incomings and outgoings and we can advise where you can make some cutbacks.

Reference payment to credit card being here and there; you need to set up a direct debit to pay just above the min payment. If you miss payments not only will you incur charges you will trash any credit rating you have

Also please be aware that as all your debts are with your bank then they can take your money at any time (offsetting) to pay the debts

bigdavecox90

Thanks for all advice so far.

Mods, please move to Debt free wannabe forum.

dr_adidas01

bigdavecox90 wrote: »

Thanks for all advice so far.

Mods, please move to Debt free wannabe forum.

They won't move it you'll have to post this again in the debt free wannabe forum.

matttye

Where is the other ~£300 going? Are you sharing it amongst your debts?

Usually I would recommend paying off smaller debts first because then you can pay more money towards the larger debts, but IMO it's important to get your overdraft sorted out and fast. That's a pretty dangerous debt you have there because banks can order you to repay it at any time, and considering you're never actually in credit, if they decide to do this you won't have any money.

Do you have another bank account (preferably one that's in credit or at least has a zero balance) with another bank that you can ask your wages to be paid into at short notice if your bank demands that you repay your overdraft?

You should look at cutting your socialising budget to about £10 per week until you sort your overdraft out!

If you have a lloyds classic account, you will pay less by upgrading to a premier account (this costs £25 per month) if you have an overdraft of £1,500 but I think you would pay more with your current overdraft. Based on my rough calculations! The reason is that you get a fee-free overdraft and no interest is charged on the first £500 with a premier account. Your bank will be able to confirm which will cost you more.