Finally escaped PDL's, long way to go

moneymoron1

Hello again,

Following on from these two threads

https://forums.moneysavingexpert.com/discussion/4589761=

https://forums.moneysavingexpert.com/discussion/4589773=

I have an update so felt it necessary to start a new thread as i now believe i have a real chance of sorting myself out.

I managed to kind of come clean with my mum regarding my debt problems, she agreed to loan me a sum of money that would enable me to clear all my payday loans and meet the bills for the month that was approaching. I have to pay this back as soon as possible. The only issue with this is that she now believes i am debt free (i could never tell her about the PDL's)

I feel i am incredibly lucky to have had the opportunity to borrow this amount of money from my mum, without this i would have been left with no choice but to go for a DMP (which is the best thing to do in those circumstances). I have been in the payday loan trap for two years, constantly in that time i have been rolling debts over to pay them off and borrowing money to keep them from defaulting, when what i should really have done would have been to DMP two years ago and be well on the road to recovery now. I dread to think what i have spent on the PDL's not to mention credit card and overdraft interest and bank charges.

Also, i actually owe my Mum thousands, probably above 30000, which is something i intend to sort out, firstly though, i need to clear my unsecured credit that is costing me interest each month, my mum will be happy with a regular monthly payment for the time being

Right, below is my SOA, I have a few things to mention, the minimum payments on my unsecured debts arent necessarily the minimum, they are what i am currently paying, which i would like to continue unless it would be more effective focusing elsewhere.

The halifax overdraft is one of those that is £2 a day over £2000.

With regards to rent and mortgage, i have my own place (mortgaged but rented out) and i currently rent a house with my wife, the bills i have shown are just for me as we currently operate completely seperately whilst i clear my debts

The last thing i would like to mention is that i actually get paid 4 weekly, the figure in this SOA is a four weekly figure, if i was to calculate it monthly it would be around 200 higher, my annual wage is 47150.


Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 2285
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 700
Total monthly income.................... 2985
Monthly Expense Details
Mortgage................................ 600
Secured/HP loan repayments.............. 0
Rent.................................... 525
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 50
Gas..................................... 50
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 7
Mobile phone............................ 25
TV Licence.............................. 0
Satellite/Cable TV...................... 10
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 50
Petrol/diesel........................... 150
Road tax................................ 20
Car Insurance........................... 70
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 7
Other insurance......................... 14
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 20
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Total monthly expenses.................. 2008

Assets
Cash.................................... 0
House value (Gross)..................... 130000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 135000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 86500....(600)......4.69
Total secured & HP debts...... 86500.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Capital One CC.................475.......25........31.29
Barclaycard CC.................2435......75........26.95
Sainsburys CC..................710.......25........25.98
Santander Overdraft............2750......30........10.91
Lloyds TSB Overdraft...........1475......30........20.36
Halifax Overdraft..............2825......100.......28.05
Halifax CC.....................2225......50........20.45
John Lewis Store Card..........1250......120.......23.76
Santander CC...................1740......75........25.33
Total unsecured debts..........15885.....530.......-

Monthly Budget Summary
Total monthly income.................... 2,985
Expenses (including HP & secured debts). 2,008
Available for debt repayments........... 977
Monthly UNsecured debt repayments....... 530
Amount left after debt repayments....... 447
Personal Balance Sheet Summary
Total assets (things you own)........... 135,000
Total HP & Secured debt................. -86,500
Total Unsecured debt.................... -15,885
Net Assets.............................. 32,615
Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

Any advice would be very welcome and also any questions i will answer as soon as posisble

Sorry for the long post, i hope you got this far

Thank you

mm1

moneymoron1

Following on from the post above, i have been reading threads about banks withdrawing overdrafts.

I have a significant amount of debts in the form of overdrafts, and have been paying them all off equally, what is the general opinion on this, should i focus on clearing the overdraft or concentrate on the credit cards?

theoretica

Are the bank accounts with overdrafts used? If you have money both going in and coming out then the banks seem happier than if they are just sitting in the red all the time.

I would pay the minimum off all your debts except one - I would say start with the capital 1 card as it is a small debt and the highest interest (do you really have 447 left, could you pay it off this month?). Then the Halifax overdraft to get it down below £2k.

ValHaller

Your overdrafts are loose cannon. Clear them before starting on the highest APR debts.

[Deleted User]

Why are you paying mortgage and rent :huh:

Dump the pay TV. I know it's only a tenner, but still.

BTW. No TV Licence :huh:

£50pm on clothes, every month?

Swap the £20 from Holiday to Emergency Fund.

You need the latter, far more than you need the former.

Also, you should be able to cut back a bit on groceries.

Use every spare penny, to pay the Capital One CC. That interest rate is terrifying. :eek:

At the rate you are currently paying it, it's going to take over 2 years to pay it off, and will cost you £165 in interest.

R_P_W

Am I missing something? You borrowed more money from your mum to pay off debts but STILL have £15k debt and your mum has already lent you 30k?

Can I just ask - where has all that money gone?! Is your wife fully aware of all the debt? I hope you have not misled your mum into lending you more on the basis that yo would be 'debt free'?

Trapezius

Bedsit_Bob wrote: »

Why are you paying mortgage and rent :huh:

Shared ownership?

Make the minimum payments on each, and plough the rest into one debt, starting with Capital One as the rate is bad and the amount is low.

You can do this!

R_P_W

Bedsit_Bob wrote: »

Why are you paying mortgage and rent :huh:

Dump the pay TV. I know it's only a tenner, but still.

BTW. No TV Licence :huh:

£50pm on clothes, every month?

Swap the £20 from Holiday to Emergency Fund.

You need the latter, far more than you need the former.

Also, you should be able to cut back a bit on groceries.

Use every spare penny, to pay the Capital One CC. That interest rate is terrifying. :eek:

At the rate you are currently paying it, it's going to take over 2 years to pay it off, and will cost you £165 in interest.

The op says in his post that he has a mortgage on a property that he then rents out. He the rents a place to live with his wife.

theoretica

Also, what is your wife's contribution to the household finances? Many of those numbers look OK for the full cost, but very high for half.

moneymoron1

theoretica wrote: »

Are the bank accounts with overdrafts used? If you have money both going in and coming out then the banks seem happier than if they are just sitting in the red all the time.

I would pay the minimum off all your debts except one - I would say start with the capital 1 card as it is a small debt and the highest interest (do you really have 447 left, could you pay it off this month?). Then the Halifax overdraft to get it down below £2k.

The santander overdraft is used, which my wages go into, the other two overdrafts I don't use although money does transfer in and out of them, they are quite a few years old and the bank makes plenty out of them so is maybe why they haven't been recalled.

I will try to pay the capital one CC of this month, but I will keep the card open in case the bank pulls the overdraft, only 500 but will go towards it should the do so.

moneymoron1

Bedsit_Bob wrote: »

Why are you paying mortgage and rent :huh:

Dump the pay TV. I know it's only a tenner, but still.

BTW. No TV Licence :huh:

£50pm on clothes, every month?

Swap the £20 from Holiday to Emergency Fund.

You need the latter, far more than you need the former.

Also, you should be able to cut back a bit on groceries.

Use every spare penny, to pay the Capital One CC. That interest rate is terrifying. :eek:

At the rate you are currently paying it, it's going to take over 2 years to pay it off, and will cost you £165 in interest.

Wife pays TV Licence, 50 is a very high estimate, I very very rarely buy clothes, same with groceries.

In reality I don't have pots for each thing so the figures are put against what I am thought of