Need help with my debts :(

Knalchemist

I have some debts, they aren't anything huge, however I'm struggling with them, and it's all becoming a bit overwhelming.

Basically, I was on top of everything until I went off work sick for 5 weeks in May due to mental health issues. I was not paid for all of my time off, which meant I couldn't pay some of my bills. This has lead to arrears, and now debts.

My rent covers my food and my part of the bills.

I just need some help regarding which order to pay and such.

I am charged £12pm by Littlewoods for non payment + £12 for letters to be sent to me. Or, if I pay something but not the whole lot, I'm still charged £12.

I am also charged £12pm by Aqua + interest, though I cannot remember the interest rate.

Ideally I'd like to keep the CC, as it will come in handy for building my credit rating once my debts are cleared.

I do have a £3000 car, however I do not want to sell this. I've only had it a year, and it's very reliable. I do not want the hassle of selling it, then having to buy a cheaper car just for work.

I also owe my boyfriend some money, however he wants me to clear my debts first, before paying him back (which is very nice of him).

Here is my SOA….

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................ 687
Partners monthly income after tax....... 0
Benefits................................ 93
Other income............................ 0
Total monthly income.................... 780

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 0
Petrol/diesel........................... 30
Road tax................................ 10
Car Insurance........................... 55
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Storage................................. 40
iPad.................................... 31
Total monthly expenses.................. 506


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 3000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Provident......................390.......50........0
Littlewoods....................493.94....0.........0
Aqua...........................397.72....95........0
o2.............................77........0.........0
Total unsecured debts..........1358.66...145.......-


Monthly Budget Summary
Total monthly income.................... 780
Expenses (including HP & secured debts). 506
Available for debt repayments........... 274
Monthly UNsecured debt repayments....... 145
Amount left after debt repayments....... 129

Personal Balance Sheet Summary
Total assets (things you own)........... 3,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -1,358.66
Net Assets.............................. 1,641.34

cookyy2k

You have quite a bit left over after debt repayments, I would recommend pouring most if not all of the remaining £129 into your highest rate debt to get it payed off, then pouring the all the spare into the next debt and so on.

theoretica

Do you really need to pay nearly £500 a year on storage? Could you sell whatever you have in store, clear your debts and start saving to buy similar stuff when you need it?

Knalchemist

Yes, the storage is needed. If I didn't need it, I wouldn't have it.

I have quite a lot of belongings in there from when I moved out of my flat, and in with others. There wasn't room to take everything, so I've had to put it in storage. Some of the stuff has sentimental value.

I am paying less on storage than I was paying on rent + bills in my own place, so I'm not complaining about that.

To me I's rather save money by living with others and having storage, than living on my own and having £0 at all for my debts.

Bublin1

Deleted....I didn't read the OP correctly.

Northerness

Seems obvious...but have you looked at a balance transfer to a 0% interest credit card? This would get rid of your problems with Littlewoods and give you time to pay off a little of the capital each month?

You mention "building" your credit rating though...so I'm not sure if you've already tried to open a new 0% card - or if you already know you'll have problems getting one?

You're also paying £101 per month for your ipad/mobile phone/storage. All of these are luxuries when you struggle to pay the £12 p/m for Littlewoods. Perhaps see how quickly you can stop your contracts for the iPad/mobile...you could get a decent PAYG sim deal for £15 per month and use wifi on the iPad?

Just a few thoughts. Good luck with it, you don't have much to pay off so a few small sacrifices now should get you back on track in no time

thewhiteavenger

Hi


No need for drastic action like selling the car. Just stick to that budget and you have £274 per month to pay off £1358 of debt. Should be gone in around 6 months.

I would stick to the £50 per month arrangement on Provident as that is front-loaded interest. However with an apr around 250%, don't ever use them again.

If the o2 debt is an old mobile, frozen at that figure, just set up a standing order to pay it off maybe at £11 pm.

The remaining £213 goes to the other two. You are already paying £95 to Aqua (min paymt around £20) so £118 to Littlewoods should see both gone by Spring 2014.

Then you can start saving for your next tax and MoT on the car, repaying your bf, and perhaps building an emergency fund in a current account that gives a bit of interest.

dancingfairy

I'm not too sure which is the highest apr. I think they are all fairly high debts. You could always pay O2 off which although not the highest interest debt will have the added advantage of one ticked off the list and give you some ooomph to tackle the rest.
df

tallyhoh

I would seriously consider getting rid of the car, £30 PCM in petrol, you can't be going too far?

Sedge123

Sorry but I would have to agree about the car. You could sell it, pay off all of your debts and buy a cheap runaround for about £1000. If I were you my priority would be not owing anyone any money and I would do whatever I had to.