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Hi

Hello There

I thought I would join this board as I think it may motivate me to talk to you guys!

I stupidly got my self into about 17000 of debt during the course of my time at Uni and I am now paying the price - literally. I had my light bulb moment in October last year and I have since joined a DMP with the CCCS. Currently I am looking at a debt-free date of April 2018, but I hope to try and increase my payments as I learn to be better with my finances and to get out of debt quicker.

I do have a query though. I am due a small lump sum of money soon - maybe about 3K - and I want to put it towards my debt. I wonder if I am better to pay off a couple of my smaller debts in full, whether I should off F&F for a the medium ones or whether I should just give it proportionally over all the debts. Morally I think I think I should do the latter but it is tempting to be rid of a couple of the smaller ones - and therefore increase my payments on the larger ones.

My SOA is:

Creditor Name Estimated Balance
ARC EUROPE LTD (was egg loan) 7528.32
BARCLAYCARD 736.00
EGG CARD 1200.00
HSBC BANK PLC (loan) 1871.61
HSBC BANK PLC (overdraft) 990.00
LINK FINANCIAL LTD (was MBNA credit card) 3225.47

Rent 350
Council Tax Included in rent
Gas Included in rent
Electricity Included in rent


Building and Contents Insurance 10 Contents.
Telephone incl. Mobile/Internet 40 Including mobile
TV Licence 11
Repairs, Service Contract 5
Spares/Servicing for car 20
Road Tax 10
Insurance 77 new driver
AA, RAC, etc 10
Fuel & Parking 200 High mileage for work purposes
Fares & Travel 10
Food, Toiletries, Cleaning 173
Clothing & Footwear 20
Hairdressing 17
Professional/Union Fees 6 Union fees
Medicines/Prescriptions 2 When needed. Reduced from £5.
Dentist/Opticians 13 Includes both.
Sports, Hobbies, Entertainment 15

Sundries / Emergencies 10 Includes xmas and birthdays.

Total Expenses 999
Total Income 1119
Surplus/(Deficit) 120

So Here i am, looking forward to getting to know everyone and to support and be supported!

Emma
«1

Comments

  • Redbedhead
    Redbedhead Posts: 1,131 Forumite
    I am sure someone more knowledgeable will be along soon, but to help them on your SOA can you include the interest rate on the debts please?

    Normally I think you would be recommended to pay the £3k against the debts with the highest interest rates, but if you can offer full and final settlement on a couple of the debts, that may be a better option.
    MFIT No. 81
  • irishemma
    irishemma Posts: 8 Forumite
    The Debts have been negotiated so I am not paying interest through the CCCS, as far as I know.
  • I'm in a similar position myself. I am due to get three lump sums next year in Sept, Jan and May. Payplan advised me to share these among my creditors. However, a few debts are under £500 and I think I will just clear them off, as it'll allow me to concentrate on repaying the larger debts more quickly.
    Debt
    [strike]April 2007 £17197.49
    June 2007 £16593.49
    [/strike]

    Currently: £15293.49 (thanks HSBC!)
    Watch this space for progress!
    Aims:
    To pay off in Oct 07
    £102.39 - Viva La Diva
    £176.20 - Wescot
    £417.88 - MBNA
    To pay off in Jan 08
    £2665.24 - MBNA CC
    To pay off in May 08
    £928.81 - HSBC CC
    £1006.01 - Barclaycard
  • Warriorsith
    Warriorsith Posts: 441 Forumite
    Part of the Furniture 100 Posts Combo Breaker Uniform Washer
    Hi

    Someone will be along to give you a far better critique of you SOA but I had £3k given to me once via a house sell. I cleared the a couple of Credit Cards as the APR changes on them, then cut them up and closed the accounts. Then got rid of my Overdraft as again its unnecessary and it was bringing me down looking at a neagative amount in my bank account. I repaid that then have never got another one back. It's so much better seeing your money in a positive light.

    If you clear some smaller debts then as you said you can focus on the medium debts.

    Good luck on your debt clearing mission.
    "I AM THE GATEKEEPER OF MY OWN DESTINY" Nacho Libre

    'Proud To Be Dealing With My Debts' :DDFW Member No.495
  • angelavdavis
    angelavdavis Posts: 4,714 Forumite
    Mortgage-free Glee!
    Hi and welcome to DFW!

    Well done for doing the work so far on the SOA. Here are my comments:
    irishemma wrote: »
    Hello There

    I thought I would join this board as I think it may motivate me to talk to you guys!

    I stupidly got my self into about 17000 of debt during the course of my time at Uni and I am now paying the price - literally. I had my light bulb moment in October last year and I have since joined a DMP with the CCCS. Currently I am looking at a debt-free date of April 2018, but I hope to try and increase my payments as I learn to be better with my finances and to get out of debt quicker.

    I do have a query though. I am due a small lump sum of money soon - maybe about 3K - and I want to put it towards my debt. I wonder if I am better to pay off a couple of my smaller debts in full, whether I should off F&F for a the medium ones or whether I should just give it proportionally over all the debts. Morally I think I think I should do the latter but it is tempting to be rid of a couple of the smaller ones - and therefore increase my payments on the larger ones.

    I would advise you look at the debt snowball calculator on www.whatsthecost.co.uk/snowball.aspx to see which debt to attack first - as a guide, I would go for the higher interest ones. Obviously, if there is one lender that is giving you more aggravation, you might want to go for them instead - its your call at the end of the day.

    My SOA is:

    Creditor Name Estimated Balance Has the interest been frozen on these? If not, can you find out the aprs?
    ARC EUROPE LTD (was egg loan) 7528.32
    BARCLAYCARD 736.00
    EGG CARD 1200.00
    HSBC BANK PLC (loan) 1871.61
    HSBC BANK PLC (overdraft) 990.00
    LINK FINANCIAL LTD (was MBNA credit card) 3225.47

    Rent 350
    Council Tax Included in rent
    Gas Included in rent
    Electricity Included in rent
    Water also included?

    Building and Contents Insurance 10 Contents.
    Telephone incl. Mobile/Internet 40 Including mobile
    TV Licence 11
    Repairs, Service Contract 5
    Spares/Servicing for car 20
    Road Tax 10
    Insurance 77 new driver
    AA, RAC, etc 10 You should be able to get a deal for £30 for one years cover through Tesco, etc if you collect tesco clubcard points for shopping. Also, sign up to quidco and see what deals they are offering.
    Fuel & Parking 200 High mileage for work purposes What about car sharing - if you take a passenger that can give you money towards the petrol it might be worth looking into? It might be worth putting a note on the notice board at work.
    Fares & Travel 10 On top of your mileage - is this really used?
    Food, Toiletries, Cleaning 173 Look over on Old Style Board for moneysaving ideas - you should be able to halve this amount easily for just one of you. I also bet you have piles of stuff in cupboards, having a search for the storecupboard challenges to clear out the contents and delay shopping for a bit longer
    Clothing & Footwear 20 Do you spend this?
    Hairdressing 17 Do the local college do hairdressing courses and offer reduced rates. My local college offers beauty therapy treatments and hairdressing at reduced rates. Trainees are over-seen by skilled tutors.
    Professional/Union Fees 6 Union fees Do you work in an environment where this is essential?
    Medicines/Prescriptions 2 When needed. Reduced from £5. If you regularly need prescriptions, there are prepayment plans available to reduce costs.
    Dentist/Opticians 13 Includes both. Do you actually use this?
    Sports, Hobbies, Entertainment 15 Do you actually use this? Buy a freeview box, look for cinema special offers, look at local authority sports centres, etc.

    Sundries / Emergencies 10 Includes xmas and birthdays.

    Total Expenses 999
    Total Income 1119
    Surplus/(Deficit) 120 Is this in your pocket by the end of the month? This could easily go toward a debt.

    So Here i am, looking forward to getting to know everyone and to support and be supported!

    Emma

    In addition to the above, I would suggest you:

    1) Meal plan (see old style) this will easily help you save on food.
    2) Keep a spending diary so you can see where that £120 is going to every month. In addition, the figures above could be trimmed if you aren't really spending this every month.

    Hope that helps!

    Best wishes
    :D Thanks to MSE, I am mortgage free!:D
  • angelavdavis
    angelavdavis Posts: 4,714 Forumite
    Mortgage-free Glee!
    Sorry Emma, just saw that your interest rates are frozen - in that case, I would be tempted to pay off Barclaycard, Egg card and overdraft.
    :D Thanks to MSE, I am mortgage free!:D
  • irishemma
    irishemma Posts: 8 Forumite
    Hi

    thanks for your advice. Just to clear up the 120 a month that is surplus from my expenditure goes to my debt.


    Unfortunately car sharing isn't an option as I use my car for home visits in work. I already walk on the days that I do not use my car. Also I do use the fares as I am in uni part time in a city 40 miles away and it works out cheaper to get the train than to drive and park. I will look into the deals for AA etc though!

    Again, I have already done the storecupboard thing so that is not currently an option. However I have spotted a Lidl nearby so I am going to start shopping there and see if that makes a difference. I will go and have a look at meal planning but I do kinda do that anyway. I make packed luches, home-made soups and pasta sauces etc.

    I do feel my union membership is essential. I actually missed out my professional body membership too. Thats another 120 a year. in the current NHS climates you definately need representation from your union and I have to be a member of the BPS to practice - I do get tax rebate on that though. I probably don't spend the money on clothes that is mentioned, but I do need to look professional. I will look into hairdressers college too.

    It was recommended by CCCS that I keep a little aside for prescriptions, optician and dentist. Do you think I should not do that? What happens if there is an emergency?

    Maybe I am not serious enough about this but to me 15 a month does not seem excessive for entertainment - prehaps that is in comparision to what it used to be!!! I mean it is 5.70 to go to the cinema. I always use the orange wedneday deal for it. So thats twice a month and a bottle of wine with a friend once a month....i don't know, is that too much. I worry about my mental health if I don't have some entertainment.

    It looks like I am arguing with your points, but I am not at all. I am very grateful for the input you have given me, and I will certainly look into the things I can change.

    Thanks

    Emma
  • steve700
    steve700 Posts: 312 Forumite
    irishemma wrote: »
    Maybe I am not serious enough about this but to me 15 a month does not seem excessive for entertainment - prehaps that is in comparision to what it used to be!!! I mean it is 5.70 to go to the cinema. I always use the orange wedneday deal for it. So thats twice a month and a bottle of wine with a friend once a month....i don't know, is that too much. I worry about my mental health if I don't have some entertainment.

    That seems perfectly reasonable to me ;)
  • angelavdavis
    angelavdavis Posts: 4,714 Forumite
    Mortgage-free Glee!
    Hi Emma,

    No offence meant or taken!

    Suggestions are only that - areas where you could cut back - just a question of a fresh pair of eyes looking on a situation.
    irishemma wrote: »
    thanks for your advice. Just to clear up the 120 a month that is surplus from my expenditure goes to my debt.

    Cool
    irishemma wrote: »
    Unfortunately car sharing isn't an option as I use my car for home visits in work. I already walk on the days that I do not use my car. Also I do use the fares as I am in uni part time in a city 40 miles away and it works out cheaper to get the train than to drive and park. I will look into the deals for AA etc though!

    Yes I think you can definitely save on the £120 membership. Thanks for clarifying the other stuff.
    irishemma wrote: »
    Again, I have already done the storecupboard thing so that is not currently an option. However I have spotted a Lidl nearby so I am going to start shopping there and see if that makes a difference. I will go and have a look at meal planning but I do kinda do that anyway. I make packed luches, home-made soups and pasta sauces etc.

    Sounds like you are doing well. Lidls will definitely save you - I find I can't buy everything there, but it is my main shop now. I have found that I save £20 on my usual £80 Tesco food shop there (I do 2 x £60 shops per month at Lidl, plus one £100 at Tesco every 3 months plus a weekly milk/fruit/veg shop (about £5 usually) to feed two of us - a total of around £175 per month which also includes beers, HM bread, a couple of bottles of wine, cleaning stuff, the odd bottle of spirits and toiletries). I usually ask for the more expensive perfume for Christmas/birthdays and use any vouchers for my shop when I can.
    irishemma wrote: »
    It was recommended by CCCS that I keep a little aside for prescriptions, optician and dentist. Do you think I should not do that? What happens if there is an emergency?

    I do agree, but what do you do with the money when you don't spend it on this? I would build up a pot of say, £200 (obviously more if you wear glasses or have dental issues), which I would not allow to go under £150 - once you have set aside a pot for such a purpose, you can then use the monthly money whilst this pot is topped up on your debts. I use HSA (Denplan or a similar scheme is also available) which reimburses you to partially fund expensive treatments - although I suspect it may cost more than £15 per month.
    irishemma wrote: »
    Maybe I am not serious enough about this but to me 15 a month does not seem excessive for entertainment - prehaps that is in comparision to what it used to be!!! I mean it is 5.70 to go to the cinema. I always use the orange wedneday deal for it. So thats twice a month and a bottle of wine with a friend once a month....i don't know, is that too much. I worry about my mental health if I don't have some entertainment.

    No, I don't think its excessive at all - you definitely need to give yourself a break when you are moneysaving - we would all lose our marbles if its all we did! I just think that you could look at savings on it now and again - looks like you are hooked into the orange deal which is great. There are vouchers, etc that can be used to save a bit more - or extend the £15 too.

    I think saving on your food will provide you with some real savings.

    I think you have done really well with your money saving so well done!
    :D Thanks to MSE, I am mortgage free!:D
  • irishemma
    irishemma Posts: 8 Forumite
    Thanks again for your help!
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