Help needed

Money_mad_money_bad

Hi,

I'm fairly new to this. Not sure what I need to do. i read the advice on the DFW thread to get started but not sure but I read the advice but it wasn't very clear what the outcomes are from adding to the thread. Obviously my goal is to be debt free as soon as possible. I completed a Statement of Affairs and Personal Balance Sheet[/b] (see below). I posted to yourselves ages ago and not much as changed as I can never seem to pay more than the minimum on the cards I have and I seem to be unable to transfer now due to what I assume must be a bad credit rating. Not surprising as I've moved address a few times and have so many cards. I went on to debt remedy before and filled in all my details and it just came back with all the usual advice. I can't recall exactly what the outcome was but I believe it just implied that as I can afford to pay off at least the minimum after my outgoings then i should continue. My only worry is, I will need to move into a place on my own soon which will put the outgoings up and I already live like a hermit and have done for a number of years now. Consequently I've developed depression. So don't know you can help but any advice about my situation will be greatly appreciated. If I could just do a balance transfer to a decent rate then it would really help but the rates on a few of my cards are exceptionally steep now.

Monthly Income Details
Monthly income after tax................ 1935

Total monthly income.................... 1935[/b]

Monthly Expense Details

Rent.................................... 350
Council tax............................. 68.5
Electricity............................. 15
Gas..................................... 34
Water rates............................. 21
Mobile phone............................ 30
Internet Services....................... 32.75
Groceries etc. ......................... 160
Clothing................................ 0
Petrol/diesel........................... 80
Road tax................................ 15
Car Insurance........................... 24.61
Car maintenance (including MOT)......... 16
Haircuts................................ 20
Entertainment........................... 29

Total monthly expenses.................. 895.86[/b]


Assets

Car(s).................................. 800


Unsecured Debts
Description....................Debt......Monthly...APR
HSBC...........................10866.....271.6.....23.9
HSBC overdraft.................1498.24...24........19.9
creation.......................3095.78...90.45.....31
student loan...................6000......102.......0
natwest........................1006.85...10.17.....0
marks and spencer..............330.77....8.26......7.05
sainsburys.....................542.8.....12.49.....8.25
barclaycard....................1587.78...35.72.....6.732
Post Office....................1780.46...47........25.77
Santander overdraft............850.......20........0
Santander......................1805.73...40.08.....29.9

So can you recommedn any solutions. Should I be looking a t a personal loan or holding out until my credit rating improves?

I'm doing a part time course at the moment for my job who are subsiding it but once it's over I will probably look to move back home to Liverpool with my parents and change my job as it will help to expedite paying the money back. The course wont finish until September at the earliest though so until then I could do with some assistance.

Many thanks

Paul

Bobarella

Hi Paul

Well done for posting on here, im sorry to hear you feel you have depression, it cant be easy.

Without wanting to judge in any way shape or form, my first question would be, do you know what has led you to this situation? If you have that information at least you could start to try and address it.

Im no expert, I know the reason I have my own personal debt, and the way I am choosing to tackle that, but there are debt charities, & a lot of people on here with relevant experience who can help.

Just wanted to say you will find a way through it, and all the best.

Bob

theoretica

According to those figures you should have about £375 left after minimum payments to overpay - highest interest rates first. If you can put this towards your debt you will be completely clear in under 5 years - I think holding out and excavating yourself slowly is the way forward.

Do you need to move into a more expensive place? Could you accept renting a room for a while?

Do you really need the car? Could you put a bit more time into cooking and trim your groceries a bit?

Money_mad_money_bad

I'll be looking to move in on my own. So far I have tried sharing but being in this position doesn't make a good housemate for someone and I work and study long hours so ideally need a place where I'm not distracting and stepping on each others toes. Unfortunately moving on my own though I imagine will bump the rent up. Still looking around at the moment though.

I think the sensible thing will be rent with someone for about 6 months until my course is over then look to move back north with the parents provided I find a suitable job which should allow me to make increased voluntary payments and significantly reduce my outgoings.

I need to investigate reducing the grocery bill and I do cook every night for myself. I've managed to get it down to £30 some weeks but sure I can trim down further if I look into it. Even if it means sacrificing certain foods.

I was thinking of getting a bike as I could cycle to work. It's 9 miles so think that would take me 45 mins - hour? So not too bad, That would save me about £60 a month. Definitely worth thinking about.

Money_mad_money_bad

Thanks Bobarella,

It originated from when I went travelling to Oz 9 years ago. I came back with about £500 of debt, I took a stop gap job to help pay this debt but regrettably never did. This is where the problem began. The debt built up but I managed to maintain it for a while but in trying to get a career for myself I left my poorly paid stop gap job and enrolled on a plumbing course as my degree didn't open up many doors. This course meant I had to take a part time shop job but the shifts weren't as good as promised and the debt grew bigger. I passed my level2, and was about to start my level 3 but the course moved the goal posts and said we had to commit three days a week, which would have meant I couldn't continue in the part time job as they wouldn't allow me that much time off. Plus because of the recession no one was taking on trainees. So I had to switch my career aspirations, and became an engineers assistant with a view to becoming a civil engineer or quantity surveyor. The engineers assistant again job, despite being full time and well paid for what it was, wasn't exactly well paid either. I eventually got taken on as a trainee quantity surveyor, studying and working. Admittedly i didn't cut back as aggressivly as i could at this stage as I was confident (naiively at the time) that this would be the start of a prosperous career so the debt grew slightly. I completed a HNC course and was about to begin a masters in quantity surveying (which would have allowed me to command more employability and better wage) only for the recession to really take effect and I was made redundant.

Jobless and with a debt I got a job at the first opportunity which was a lucky break and got me in to marketing in a positon I have worked in for three years. Hopefully this will be the end of the career changes. But only since January have I started to earn a wage that allows me to pay off the debts above the min payments which have accumulated slowly over a decade.

Fortunately I am earning more than my debts (just about) so with certain adjustments and aggressive cutting back I should be able to make some positive inroads

Thanks

Triggles

Unsecured Debts
Description....................Debt......Monthly.. .APR
HSBC...........................10866.....271.6.... .23.9
HSBC overdraft.................1498.24...24........19.9
creation.......................3095.78...90.45.... .31
student loan...................6000......102.......0
natwest........................1006.85...10.17.... .0
marks and spencer..............330.77....8.26......7.05
sainsburys.....................542.8.....12.49.... .8.25
barclaycard....................1587.78...35.72.... .6.732
Post Office....................1780.46...47........25.7 7
Santander overdraft............850.......20........0
Santander......................1805.73...40.08.... .29.9

IMO there are 2 schools of thought on this. First is to pay that £375 extra per month on the highest interest debt first. Second is to pay off a few little debts and then start throwing money at the highest interest. I would do the second. If nothing else, it's a spur to keep going if you see a couple debts taken care of.

For example, the very first month, you could take care of the Marks and Spencer debt, with about £45 left over to put towards the Sainsbury. Then the next month, you'll have £383 extra (adding in the amount you used to then pay to M&S debt) towards the Sainsburys debt. The third month, roughly £150 will clear the Sainsburys debt and you'll still have £245 to start paying on another debt. Each time you pay off a debt, add the amount you were paying on it to the amount you pay off the next debt.

In that way, you'll be able to pay off 2 debts in 3 months, which can often be a huge boost to encourage you to keep going. Plus each debt you pay off gives you more ££ to pay towards other debts.

The sticking point, however, is if you actually HAVE that £375 extra per month. Do you? Or is it being spent? If you don't have it, keep a spending diary and find out where it's going.

Cycrow

Money_mad_money_bad wrote: »

I was thinking of getting a bike as I could cycle to work. It's 9 miles so think that would take me 45 mins - hour? So not too bad, That would save me about £60 a month. Definitely worth thinking about.

9 miles is easily doable on a bike, but you will be saving more than £60 as you also have £80 of petrol listed that you wont need anymore.

you could potentially sell your car and use the money to clear some more debts.

do you have any room to move some money around the cards, you list the barclayard as 6.7% apr, is that correct ?
if so and you have room, you could start spending on that which will give you extra money in your account which you can use to pay more of the higher interest debts like creation.

im not sure moving right now will be a wise move, not only will it increase your outgoings, but you will also need money upfront to cover the deposit/first rent/agent fees/moving fees, etc

theoretica

I rented for a while from an older 'empty nest' lady which was excellent for quiet.

Have you looked on the Old Style forum here? There are excellent ideas there for eating well on a tight budget.

RAS

Money_mad_money_bad wrote: »

Unsecured Debts
Description....................Debt......Monthly...APR
HSBC...........................10866.....271.6.....23.9
creation.......................3095.78...90.45.....31
natwest........................1006.85...10.17.....0
marks and spencer..............330.77....8.26......7.05
sainsburys.....................542.8.....12.49.....8.25
barclaycard....................1587.78...35.72.....6.732
Post Office....................1780.46...47........25.77
Santander......................1805.73...40.08.....29.9

Do not touch a loan.

What are the limits on the cards you have above?

quidsy

Have you tried a snowball calculator.? It will tell you who & how much to pay first & when, if you follow the plan, you will be debt free. I found it incredibly helpful just to see a light at the end.

Good luck

Bobarella

Hi MMMB

It really does sound lke its been one of those situations where you have always had good intentions, but life etc has got in your way. If it makes you feel any better I reckon that most people in debt have become so for the same reason.

How has today been? Any small changes you are pleased with, whilst sorting out the big stuff?

Bob