The start of my journey in becoming debt free :)

Getoffmycloud

Okay so where do I start, I am currently in almost 9 grandof debt. It started many years ago with a small loan, then a credit card, thena secured loan against my flat, followed by two more, followed by another loanetc etc. I’m trying to sort myself out now. I re-mortgaged my flat around sixyears ago which means I no longer have any loans secured against my flat, butit also means my mortgage is the value of my flat as property prices havedropped since I re-mortgaged. Anyway at this point I just had credit cards so Itook out a small unsecured loan to pay off credit cards, which I did, but thenthey mounted up and I had a catalogue too and it all got out of hand again. Asit stands I owe £1257 to Natwest for a personal loan, £1495 to Littlewoodscatalogue, £1454 to Natwest Credit Card, £4430 to MBNA Credit Card, £208 toCapital One Credit Card, £77 to Orangefor an old contract, £85 in Ebay fees and £28 to the vet.

I have written to MBNA about my difficulties and they haveagreed a reduced payment of £72 a month and have stopped all charges etc (phew –they are wonderful). I have today written to Natwest Credit Card to ask if theywill take a reduced payment and stop charges too. The catalogue has beenswitched to a loan type thing and I am supposed to pay £85.28 a month fromthat, but they want the payment every 28 days, which doesn’t help when I getpaid calendar monthly so I’m getting charges from them nearly every month, as Iam from Natwest Credit Card.

I have rung Sky (which is phone, broadband and TV) and threatenedto leave and have reduced that by about £12 a month and have reduced my lifeinsurance by £20 a month. Not sure what else I can do. I’m feeling a bitfrustrated that my debts aren’t going down quicker so thought maybe if Idocumented my journey it might show how things are going.

MallyGirl

If you post a SOA people may be able to spot other things that might help - also can you say what the APRs are on the debts?

Getoffmycloud

To be honest I'm not sure what the APRs are and I don't know how I would find out? I know I can't switch credit cards though, I've tried Will post a SOA though......

bsms1147

Getoffmycloud wrote: »

I have rung Sky (which is phone, broadband and TV) and threatenedto leave and have reduced that by about £12 a month

I would cancel this completely, Sky is not a necessity.

Interested to see the full SOA.

Getoffmycloud wrote: »

To be honest I'm not sure what the APRs are and I don't know how I would find out?

It'll be on your statements.

Getoffmycloud

Is there a link to an SOA anywhere please?

bsms1147

Getoffmycloud wrote: »

Is there a link to an SOA anywhere please?

http://www.stoozing.com/calculator/soa.php

Getoffmycloud

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2


Monthly Income Details
Monthly income after tax................ 1335
Partners monthly income after tax....... 500
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1835


Monthly Expense Details
Mortgage................................ 405
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 45
Council tax............................. 95
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 31.2
Telephone (land line)................... 0
Mobile phone............................ 70
TV Licence.............................. 12
Satellite/Cable TV...................... 25
Internet Services....................... 25
Groceries etc. ......................... 400
Clothing................................ 50
Petrol/diesel........................... 100
Road tax................................ 35
Car Insurance........................... 80
Car maintenance (including MOT)......... 30
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 10
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1563.2



Assets
Cash.................................... 0
House value (Gross)..................... 85000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 86000



Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 82500....(405)......0
Total secured & HP debts...... 82500.....-.........-


Unsecured Debts
Description....................Debt......Monthly...APR
Littlewoods Catalogue..........1494.16...85.28.....0
Natwest Loan...................1256.51...98.78.....0
Natwest Credit Card............1454.02...50........0
Vets...........................27.99.....0.........0
Ebay fees......................85.12.....0.........0
Orange.........................76.43.....0.........0
Capital One Credit Ca..........207.5.....10........0
MBNA Credit Card...............4430.83...72........0
Total unsecured debts..........9032.56...316.06....-



Monthly Budget Summary
Total monthly income.................... 1,835
Expenses (including HP & secured debts). 1,563.2
Available for debt repayments........... 271.8
Monthly UNsecured debt repayments....... 316.06
Amount short for making debt repayments. -44.26


Personal Balance Sheet Summary
Total assets (things you own)........... 86,000
Total HP & Secured debt................. -82,500
Total Unsecured debt.................... -9,032.56
Net Assets.............................. -5,532.56

bsms1147

Getoffmycloud wrote: »

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2 Do you need 2?


Monthly Income Details
Monthly income after tax................ 1335
Partners monthly income after tax....... 500
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1835


Monthly Expense Details
Mortgage................................ 405
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 45
Council tax............................. 95 Pay over 12 months instead of 10 if not already
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 31.2
Telephone (land line)................... 0
Mobile phone............................ 70 Seems high. Is there scope to reduce this? Aim to be paying no more than £10/month for a contract
TV Licence.............................. 12
Satellite/Cable TV...................... 25 Get rid
Internet Services....................... 25 See if you can shop around. £25 is at the lower end but you should be able to get landline+internet for £13
Groceries etc. ......................... 400 Two adults, aim to reduce towards £240/month, then even lower as you can
Clothing................................ 50 Cut out all non essential clothes buying
Petrol/diesel........................... 100
Road tax................................ 35
Car Insurance........................... 80 Worth shopping around even if not at renewal
Car maintenance (including MOT)......... 30
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20 £240 a year, would a prepayment certificate save you money?
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 10
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0 None?
Entertainment........................... 30 Reduce/cut down
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1563.2



Assets
Cash.................................... 0
House value (Gross)..................... 85000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 86000



Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 82500....(405)......0
Total secured & HP debts...... 82500.....-.........-


Unsecured Debts
Description....................Debt......Monthly...APR
Littlewoods Catalogue..........1494.16...85.28.....0 Get the APRs for all these
Natwest Loan...................1256.51...98.78.....0
Natwest Credit Card............1454.02...50........0
Vets...........................27.99.....0.........0
Ebay fees......................85.12.....0.........0
Orange.........................76.43.....0.........0
Capital One Credit Ca..........207.5.....10........0
MBNA Credit Card...............4430.83...72........0
Total unsecured debts..........9032.56...316.06....-



Monthly Budget Summary
Total monthly income.................... 1,835
Expenses (including HP & secured debts). 1,563.2
Available for debt repayments........... 271.8
Monthly UNsecured debt repayments....... 316.06
Amount short for making debt repayments. -44.26


Personal Balance Sheet Summary
Total assets (things you own)........... 86,000
Total HP & Secured debt................. -82,500
Total Unsecured debt.................... -9,032.56
Net Assets.............................. -5,532.56

You're running a negative monthly budget, this needs to be reigned in now. There is scope to free up a few hundred more per month to star throwing at the debt.

I'll throw out some numbers to put your debts and interest repayments in perspective, but will need the APRs for that.

Getoffmycloud

Hi BSMS, Thank you for your reply.
I have online statements for my credit cards. Just logged on to Natwest and I can't find it anywhere though I am sure it is around 35% APR, the MBNA one is 0%, the loan is around 7%. Sorry to be a bit vague here.


That is for my mobile and my husbands. I have only just taken out the contract so still a year and a half left on mine and hubby has around six months.


Sky I agree is expensive and I have tried shopping around as I don't need my phone line (its an all in one package TV, broadband and phone), but I can't find anyone that does broadband without a phone line apart from Virgin and we don't have them here I did phone up sky and threaten to leave and reduced it by around £12 a month.


I am getting better with the shopping. I have started shopping at Lidl and if I do the shopping myself I can do a week for about £40, but if hubby comes he puts all sorts in the trolley.


Clothing I can cut out not a problem and if I do need anything I shop on Ebay for as cheap as possible.


The car insurance I will definitely be shopping around when it comes up, which is next month - can't wait!!


The medical expenses are contact lenses for us both, but it's the cheapest way we could do it with only one of us paying for solution and sharing it.


Haircuts no none. Hubby does his own and I get vouchers for my birthday and only get it cut then.


I am also a member of lots of survey sites and product trial sites. Plus anything that isn't nailed down gets sold on Ebay. haha. Every little helps!

bsms1147

Getoffmycloud wrote: »

Sky I agree is expensive and I have tried shopping around as I don't need my phone line (its an all in one package TV, broadband and phone), but I can't find anyone that does broadband without a phone line apart from Virgin and we don't have them here I did phone up sky and threaten to leave and reduced it by around £12 a month.

Still though it's £50 a month for phone, internet and TV, that's £600 a year.

Tesco broadband+line rental+evening/weekend calls is £15.40 a month (£5 upfront for delivery) so over £400 cheaper a year. You don't need and you can't afford Sky.
http://www.moneysavingexpert.com/phones/cheap-broadband

You are making positive steps in other areas though so keep pushing what you are doing.

Getoffmycloud

Ohh thanks for the tip. I'll check that out