Time to tackle my debt!

rollercoaster88

So this year I finally plan on tackling my debt which I have ignored for a long time now and put to the back of my mind. I hope that by joining the forum and seeing other stories it really will empower me to clear it.

I totally overspent when I was younger (26 soon) through partying, gambling, shopping, buying unnecessary things of which I have none of them to show for it! I think I was definitely guilty of trying to spend where I lacked other things in my life and hope that going forward I can change my attitude and most of all would like to be in a good financial situation should I meet someone nice :-)

I am still living at my parents and would have loved to have moved out this year, and also wanted to learn to drive however I have accepted that I would be much better clearing my debt and having a fresh start!

My total debts are £8775.00 over several creditors some quite small and others larger, My aim is to clear this in 12 months So that by 2015 I am debt free!

Phew and sorry for the length of the post!

Any help/advice would be much appreciated!

its_maths_not_magic

Welcome to the forum and well done you for tackling your debts :beer:.

The best place to start is to read the last sticky on this thread about where to go for advice. I have spoken to both the national debt helpline and stepchange and they offered such great advice and support that I highly recommend them. They are staffed by lovely people who are non-judgmental and just there to help. Plus dealing with them is free, including phoning them.

You can also find, in that sticky, a statement of affairs (SOA) link, if you fill one out and post it, people here will go through it and find places in your budget that can be made cheaper. I would also suggest reading through this site as there are just so many articles and resources to help get your financial life in order.

Hope that helps, and good luck starting on this journey.

debtfreenewbie

I would recommend step change however you can do it yourself. Their website is brill though and you can look at your finances in writing and discuss your options.
If you have surplus income then you should be in a good place to start.
Well done on your lbm.

rollercoaster88

Thank you both

I already have arrangements in place with most of my creditors (though not enough!) and none are incurring interest as they are all with debt collectors.

I will have a look at the SOA and post on here.

2 creditors I have not heard from in 2 years...how would I go about finding out who I need to pay?

rollercoaster88

Below is my SOA,

[FONT=&quot]Statement of Affairs and Personal Balance Sheet[/FONT]
[FONT=&quot]Household Information[/FONT]
[FONT=&quot]Number of adults in household........... 1 [/FONT]
[FONT=&quot]Number of children in household......... 0[/FONT]
[FONT=&quot]Number of cars owned.................... 0[/FONT]
[FONT=&quot]Monthly Income Details[/FONT]
[FONT=&quot]Monthly income after tax................ 1482[/FONT]
[FONT=&quot]Partners monthly income after tax....... 0[/FONT]
[FONT=&quot]Benefits................................ 0[/FONT]
[FONT=&quot]Other income............................ 0[/FONT]
[FONT=&quot]Total monthly income.................... 1482[/FONT]
[FONT=&quot]Monthly Expense Details[/FONT]
[FONT=&quot]Mortgage................................ 0[/FONT]
[FONT=&quot]Secured/HP loan repayments.............. 0[/FONT]
[FONT=&quot]Rent.................................... 120.00[/FONT]
[FONT=&quot]Mobile phone............................ 45[/FONT]
[FONT=&quot]Groceries etc. ......................... 87[/FONT]
[FONT=&quot]Clothing................................ 30[/FONT]
[FONT=&quot]Other travel............................ 69[/FONT]
[FONT=&quot]Medical (prescriptions, dentist etc).... 13[/FONT]
[FONT=&quot]Presents (birthday, christmas etc)...... 42[/FONT]
[FONT=&quot]Haircuts................................ 15[/FONT]
[FONT=&quot]Social/Entertainment.................... 160[/FONT]
[FONT=&quot]Holiday................................. 50[/FONT]
[FONT=&quot]Emergency fund.......................... 70[/FONT]
[FONT=&quot]Total monthly expenses.................. 701.00[/FONT]

[FONT=&quot]Assets[/FONT]
[FONT=&quot]Total Assets............................ 0[/FONT]

[FONT=&quot]Unsecured Debts[/FONT]
[FONT=&quot]Description....................Debt......Monthly.. .APR[/FONT]
[FONT=&quot]Lloyds Overdraft...............3782.......83.......0[/FONT]
[FONT=&quot]O2 mobile b/b contract.........528........22.......0[/FONT]
[FONT=&quot]O2 phone contract..............727........30.......0[/FONT]
[FONT=&quot]Fashion world catalogue........656.........0.......0[/FONT]
[FONT=&quot]Orange phone contract..........632.........0.......0[/FONT]
[FONT=&quot]JD Williams catalogue..........294........12.......0[/FONT]
[FONT=&quot]Tmobile phone contract.........464........20.......0[/FONT]
[FONT=&quot]Santander Overdraft............154.........5.......0
Halifax Overdraft..............143........20.......0[/FONT]
[FONT=&quot]Payday loan....................145........18.......0[/FONT]
[FONT=&quot]Virgin phone contract..........189........24.......0

Quickquid......................153........14.......0[/FONT]
[FONT=&quot]Capital One....................159.........0.......0
RBS overdraft..................750.........0.......0[/FONT]

[FONT=&quot]Total unsecured debts..........8776......248.......- [/FONT]

[FONT=&quot]Monthly Budget Summary[/FONT]
[FONT=&quot]Total monthly income.................... 1482[/FONT]
[FONT=&quot]Expenses (including HP & secured debts). 701[/FONT]
[FONT=&quot]Available for debt repayments........... 781[/FONT]
[FONT=&quot]Monthly UNsecured debt repayments....... 248[/FONT]
[FONT=&quot]Amount left after debt repayments....... 533[/FONT]
[FONT=&quot]Personal Balance Sheet Summary[/FONT]
[FONT=&quot]Total assets (things you own)........... 0[/FONT]
[FONT=&quot]Total HP & Secured debt................. 0[/FONT]
[FONT=&quot]Total Unsecured debt.................... 0[/FONT]
[FONT=&quot]Net Assets.............................. 0[/FONT]

Sedge123

On paper you have quite a good amount of disposable income. Do you a actually have this left at the end if the month? Maybe keep a spending diary so you can see where the surplus goes.

One tiger thing that really jumps out at me is that five of your debts are mobile contracts???!!

rollercoaster88

If you would have asked me 2 months ago then I would not have this disposable income however I have made this budget with a view to changing my habits and clearing my debt

I am living with my parents with minimal rent so my outgoings are quite low really.

I was very irresponsible with regards to phone contracts by taking out several and most are several years old

merlot123

You are quite fortunate really by most peoples status, you can repay these debts off quite easily within 13 months if you throw £700 per month at them.

Do you have unused mobile phones you can sell either on ebay or to a mobile phone buying site?

You have acknowledged the debt whilst you are in a good position to repay it in a fairly short time, 13 months isn't really that long.

Merlot123

Sazzie23

Think you maybe need some motivation to keep going, can you snowball your debts and use a spreadsheet to see them coming down and disappearing one by one?

LittleMissGiggles123

If you have that much left over every month & you're making your minimum payments, why don't you then use that £533 to clear some of the smaller debts in one go. I know when snowballing you should clear the highest apr debts first, but I think seeing some of those debts down to zero would be good motivation to keep going.

In one month you could clear the Payday loan and the Halifax & Santander overdraft.

Just a suggestion.

Good luck

x

Monkeyballs

Hi RC88,

Out of curiosity... Are you still gambling?

I ask because I see multiple phone contracts (take a contract, sell the phone) and the only time I've seen folk with loads of contracts have had gambling problems? I spotted it because I used to do it.

While you are setting out with the best intentions, if you are having problems then you need to get help or you'll just end up sabotaging yourself which can lead to a rather horrible vicious circle...

Also, some of the debts don't have repayments beside them?

Description....................Debt......Monthly.. .APR
Fashion world catalogue........656.........0.......0
Orange phone contract..........632.........0.......0
Capital One....................159.........0.......0
RBS overdraft..................750.........0.......0

MB