Help!!! I want to be debt free!!

Chez2k

That' s ok. I don't mind.

Right... here goes. My current SOA are as follows:


Monthly Incomings:

My salary: £891.59 (after tax, NI,etc)
Bonus: Vary every month so not included in SOA.

Monthly outgoings:
Graduate Account Fee: £5.00
Dental Plan £11.00
Mobile £35.00
Blockbusters £14.99
Standing order into ISA £20
Petrol £50
Meals out £30
Car expenses £9.12

Debts

Debenhams cc £1867 (limit £2000) APR 17.5% (Minimum payment 65.00 last statement)

Barclaycard £1577 (limit £1650) APR 19.9% (minimum payment £39)

HFC Flexi Loan/Mastercard £1339 (Limit £3000) APR 25.9% (Minimum payment £42)

Ikea £7.00 (will be cleared in week or so) (Limit 150) APR 25.8%

Egg card £507 (Limit £530) APR 21.9% (Minimum payment £9.00, but I pay £20.00 every month)

Mint Visa £1762 (Limit £1900) APR 23.3% (Minimum payment £40.00)

Virgin £3774 (Limit 3900) APR 14.9% (Minimum payment 69 last statement)

HFC HP (Dixons) £162 (interest is already calcuated on the amount, so does not accumulate over time). (£14.85 every month)

Barclays Graduate O/D £1850 (when full - currently £1789) Interest free.



Hoping someone can give me a bit of advice.
Thanks
Cheryl

Chez2k

Can anyone advise pretty please???

Tashja

Right - I will give it a go but there will be more experienced people along soon !!!

1) Get rid of Blockbusters (think this is DVD rental) and then get going on all those free trials out there !!! If you go through quidco you get cash back too so free DVDs and money for watching them !!! SAVE - £14.99

2) How much in your ISA have you got - it is not really worth having savings if you are struggling with debt. Cancel this payment and use the savings to pay off some of your debts (highest interest rate one should be frst to go) SAVE £20.00

3) Meals out - Ok bit strict here but you are in debt eating out is quite a luxury and you should stop this until you get up and working again in your new job and also when you have lowered your debt. SAVE £30.00

4) Detal Plan. Now we all know the NHS is a bit !!!!!! but needs must !!! Cancel this and get into an NHS dentist for free just until you can afford this !! SAVE £11.00

SAVINGS FROM ABOVE £75.00 per month

In a few months you could easily clear the Ikea, Egg Card adnd the HFC HP. Once these are clear close the accounts !!!

Can you apply for a 0% interest card ??? This could then have one of the higher cards paid on to it to save you interest.

Do you live at home - are you not paying any bills, rent, food, sky, internet, electricity, car expenses, bus tickets, etc ??? Also there is nothing on your SOA for birthdays and Christmas.

Hope this helps a bit but I am hoping someone will be along soon and I am also hoping that person will explain Snowballing to you !!!

Good luck.

T xx

Snaggles

Hi again! Right, snowballing:

Here's the link first of all.

Basically you just follow the instructions and put your debts in, and it will tell you which debts to make the minimum payment on and which to pay as much as you can off, to get everything paid off in the quickest way possible.

Chez2k

Thanks very much. I will have a go at the snowballing. Will have a go today.

I will definately get the ISA payment cancelled and arrange for the money to go onto the highest rate card. I'll sort that out later today.

With the blockbusters... I will have a look at the quidco and see what that is all about. I know that this is not really a necessity so will have to bite the bullet and get rid of it. I joined because i was spending a fortune at the cinema and on rentals and this worked out cheaper.

Will cut out the meals out. I know that this is naughty! I'm trying to loose weight at the minute anyway and have cuts down on these a lot. But I'll cut them out all together.

Will look into getting signed onto NHS dentist... does anyone know anything about the cost for NHS treatments? Just wondering how it compares to the private?

I can't get a 0% card.... tried this one a few months ago and they turned me down. I'm guessing that was to do with my credit score, etc.

At the moment I do live at home and they don't charge me rent, food costs, etc. So I am pretty lucky on that front.

I will have a think about the birthday and christmas cost for my soa.... hadn't really thought about that!!!!

With regards to car expenses... my car insurance is paid up front and i was very naughty... it went on to one of my credit cards.

Car tax will be due in September this year and it will be £110.... so that would work out at £9.12 per month

Thanks
Cheryl

Tashja

Just to say that by paying off some of the lower amounts (you are supposed to pay off high interest but some people find it inspires them to pay the low debts) and cancelling the cards should improve your credit rating.

Well done so far . . . You could use this as your Debt Diary to keep you on track and to show you how far you have come !!!

T xx

Toothsmith

Stay where you are with regards to dentist if you are happy with every other aspect of your care.

Some things aren't worth it.

NHS dentistry is in crisis.

Save £11 per month, cost you your teeth.

I can't understand why Tashja said it'd be free with an NHS dentist - as I can't see any reason for you to be exempt from NHS charges.

If you are somebody who takes care of her teeth, and only has the odd thing now and again, then a filing on the NHS would cost you £43 each.

Dentist would do check-up and basic clean for £15.90, but if you're used to seeing a hygienist, then a lot of NHS dentists make you pay a private charge for this, even though it's technically against the terms of their contract.

Stick with what you know.

£11 isn't the earth!

Chez2k

Isa now cancelled and set up the extra payment to go onto the MINT card.
So that's one bit sorted.

Chez2k

Ok, Toothsmith,

Thanks for that. I think I will leave the dentist as it is. I am very happy with them and have a good one who I dont mind going to see.
Have had bad experiences in the past with NHS dentists so think i'll leave it as it is.

Tashja

Whoopsthats my fault - I get my dental treatment free at the moment so forget you have to pay - sorry

If you are happy though stick with it - those were just suggestions.

T xx