Where do i start?

alana171

Help please!!!
Basically I have the following debt - not too sure on all the APR's etc::

Alliance and leicester loan approx £6k paying £234.45 per month

Royal Bank of Scotland Loan approx £9000 paying £27599 per month

Black horse finance (CAR) £13k @ £179.88 per month

Marks and Spencer credit card £4000 at 14.9 i think minimum payment is £100

Virgin Money Mastercard £4000 ?? paying a minimum of £100

RBS mastercard £2500 @ 15.9 ? payment around£75

Barclaycard flexi rate card £850 usually only pay the minimum around £20

Car insurance is £70.02

Gym £37 but going to cancell for sure!

Phone £50 but should ony be around £25 so going to phone and see what is happening.

I dont really go out as i dont have the money and dont buy much for myself i the way of clothes etc - maybe an impule buy once evry two weeks but never more that £20

I still live with my parents so dont pay rent - just got myself into such a state with being greedy when i was about 19.

I am 23 now and have so much debt - the bank dont help one bit - need some advice and quick.

I dont really want to go down the IVA route as i have applied to become a police offer and it has initially been accepted (even with my poor credit!)

Its really getting me down so much as I recently lost my job and am now temping everyday for £9 per hour which is ok and bringing me in around £900 per month (not sure on this figure as i havent done a month yet but i have done 10 days and got just over £500 so far - i get paid weekly), but I am struggling so so much and dont know what to do.

My fiance has helped with money from our joint savings which was going towards a deposit for a house, but he gave me £1k when I lost the job so i could pay bills.

I dont have any savings and am currently in my overdraft of £500 by £321 but getting paid around £500 next friday
Please help _pale_

RAS

Welcome

You need to edit your post, add the APRs and maximums, so that we can get a better idea.

However, my guess is that you current debt is three times your current income. What will you earn as a rookie police officer?

I would not necessarily recommend an IVA but you need to talk to an advice charity ASAPm who are listed here
http://www.moneysavingexpert.com/loans/debt-help-plan. Avoid the companies who charge for debt advice.

Would a DMP ruin your chances of joining the police?

Do you have bank charges that you can reclaim, anything that can hit e-bay to bring in a bit of cash and can you sell the car. No way you can afford it.

Finally, you need to put up a full SOA of your ordinary monthly spends, as you need to tackle what got you into this state in the first place. You need clothes but those impulse buys are costing you £500 a year. To put it bluntly, where is the money for knickers and tights on your SOA?

*zippy*

Hi alana :hello:

See ras has already given you great advice so welcome to the board, you will find how to set out your soa in the link below

http://forums.moneysavingexpert.com/showthread.html?t=107280

zippy x

GeorgeUK

Hi Alana
(I'm not stalking you - honest)

I'd go back to the advice on the unfair dismissal thread and try to action some of the suggestions there. Don't know if you'll be able to get any kind of comensation from it, but hopefully your reference won't be screwed up.

Have you asked the banks if you can reduce the APR or some of the accounts to a LOB one?

angelavdavis

Hi Alana and welcome to DFW!

Well done for all you've done so far.

Looking at your SOA, there are items you need to clarify further to help put your debts in order.

As Ras says, you need your aprs, phone your providers to find out the interest rates. While you are at it, in the case of the credit cards - simply ask if they will reduce the interest rates. You would be surprised, some providers will do this.

I have set out your SOA, you might want to further check SouthernScousers first time poster sticky thread for more information/tips.

Amended SOA:

Monthly Income

Salary £900

Debts & monthly payments

Alliance and leicester loan apr=? term=? £6k @£234.45
Royal Bank of Scotland Loan apr=? term=? £9k @ £275.99
Black horse finance (CAR) apr=? term=? £13k @ £179.88
Marks and Spencer credit card £4000 at 14.9 min =£100
Virgin Money Mastercard £4000 ?? min=£100
RBS mastercard £2500 @ 15.9 ? min=£75
Barclaycard flexi rate card £850 min=£20
Overdraft = £321 apr?

Total debts = £39,671
Monthly payments = 985.32

Other Outgoings

Car insurance = £70.02 - this is horrendous! Could you shop around for a better deal?
Gym = £37 (due to cancel)
Phone = £50 but should only be around £25 so going to phone and see what is happening.
Food?
Lunches?
Hairdressing?
Opticians?
Dental?
Car tax?
Car servicing?
Going Out?

Some tips:

1) Fill in the gaps. I know its hard doing the SOA, but it allows you to really see the scale and put it into perspective.
2) Start a spending diary, grab a notepad and make a note of every penny you spend - it will help open your eyes to what you are really spending. You mention your impulse buys - but these amount to about £2100 every year! Its money you simply don't have at the moment! Take all the cards out of your purse and leave yourself with an emergency tenner. Take packed lunches to work to stop you getting tempted to go out spending at lunchtime!
3) Do you have anything to sell on eBay to reduce some of these debts? Can you sell the car - £13k is a hell of a lot to be paying out when you are earning taking home than this per year (at the moment). You could buy a cheaper car which in turn could reduce the insurance.
4) Do you have an old mobile you can sell for cash? Mobipay, amongst others will buy up old phones.
5) Cut up the credit cards and put into a sealed envelope (in case you need to refer to them in future).
6) Do you have any other cards? If so, phone them up and see if they will offer a 0% transfer rate to keep you as a customer, if they won't simply cancel the account and cut these up too. If they do offer a deal, ask for a limit to match one of your debts + 10% and ensure its one of the higher interest rate cards.
7) Its good that your OH is supporting you. Being in debt isn't easy but its easier when you have someone supporting you.
8) Is it possible for you to get a bar job or similar part time work that will help boost the income until your day job income increases?

Good luck Alana!