I'm going to make it no matter what

bambos

Hi everyone,

I have been doing a lot of reading on here but thought I would now share my plans with you guys.

I had an overdraft with Nationwide which stood at £1050. It crept up for various reasons and I just couldn't get out of the spiral, I tried and tried but just felt like every time I got paid it disappeared and I never knew what was coming in/out etc then Nationwide cut my overdraft limit in half, so I took heed of some advice I saw on here and opened a basic account with no overdraft facility and manually moved all my payments including wages to the new account; it took me three hours to complete but was well worth it.

I agreed a payment scheme with Nationwide based on affordability and once this was done I cut the card up. I have been using my new account and it's working so well I am relieved and happy to be able to see exactly what's going on with my finances. Any extra I have been moving into the overdraft to pay off extra.

Then I started to look at my credit card with Capital One. It's standing at £1380 and I make a payment monthly of £48.93 but when I looked the other day £35 is the interest :eek: and I think the APR is about 34% :eek::eek::eek: so I'm planning on upping my payments to £100 per month which is all I can really afford at the present time.

I also have a Studio Cards account which I missed a payment on at the start of Feb; I had to make a choice to pay this or the gas bill so gas won as I know although I will get charged £10 extra on Studio Cards for missing it I can make a double payment of £50 when I get my first wage packet from my new job that I started late January.

I would love to save for a rainy day as we have had a few unexpected costs that have arisen and my parents have bailed us out. I am paying my dad £120 a month and cleaning their house weekly for free today this off it was £800 but is now down to £380 as we had to have repairs done on both cars. :eek:

We have decided since my husband changed jobs that we are selling one of our cars next month so that will free up some pennies as we will be saving £3000 per year :T

Any advice or tips would be hugely welcome. :j Thanks for reading everyone.

thecassman86

I know that usually "consolidating" is frowned upon and others may advise differently, but, with an interest rate of 34% (OUCH!) I'd consider going for a 0% credit card and paying off the o/d debt and the Studio Card.

If you say that you can afford to throw £100 at it, then, at 0%, you'd be paid off in little over 1 year... Even after upping your current payment to £100, at 35% interest, it's going to take you over 18 months to pay off just the overdraft and cost you around £330 extra in interest payments alone!

Also, post up an up-to-date SOA and you might get some help on getting your overall spending down which will give you further cash available to plough through the debts!

bambos

thecassman86 wrote: »

I know that usually "consolidating" is frowned upon and others may advise differently, but, with an interest rate of 34% (OUCH!) I'd consider going for a 0% credit card and paying off the o/d debt and the Studio Card.

If you say that you can afford to throw £100 at it, then, at 0%, you'd be paid off in little over 1 year... Even after upping your current payment to £100, at 35% interest, it's going to take you over 18 months to pay off just the overdraft and cost you around £330 extra in interest payments alone!

Also, post up an up-to-date SOA and you might get some help on getting your overall spending down which will give you further cash available to plough through the debts!

Thanks thecassman, I was hoping to get a 0% but have been declined once in the past and once a couple of months ago, I completed the 'soft search' on here but had no luck with a 0% so it's not looking good really will def do an SOA in the next couple of days.

bambos

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\f0\fs22 \cf2 \cb3 \expnd0\expndtw0\kerning0
\outl0\strokewidth0 \strokec2 Statement of Affairs and Personal Balance Sheet\
\
Household Information\
Number of adults in household........... 2\
Number of children in household......... 2\
Number of cars owned.................... 1\
\
Monthly Income Details\
Monthly income after tax................ 670\
Partners monthly income after tax....... 1200\
Benefits................................ 0\
Other income............................ 400\
Total monthly income.................... 2270\
\
Monthly Expense Details\
Mortgage................................ 559.4\
Secured/HP loan repayments.............. 0\
Rent.................................... 0\
Management charge (leasehold property).. 0\
Council tax............................. 92\
Electricity............................. 113\
Gas..................................... 45\
Oil..................................... 0\
Water rates............................. 35\
Telephone (land line)................... 7\
Mobile phone............................ 57\
TV Licence.............................. 12.12\
Satellite/Cable TV...................... 32\
Internet Services....................... 10\
Groceries etc. ......................... 200\
Clothing................................ 0\
Petrol/diesel........................... 200\
Road tax................................ 9.42\
Car Insurance........................... 33\
Car maintenance (including MOT)......... 15\
Car parking............................. 0\
Other travel............................ 0\
Childcare/nursery....................... 0\
Other child related expenses............ 0\
Medical (prescriptions, dentist etc).... 5\
Pet insurance/vet bills................. 5\
Buildings insurance..................... 10.64\
Contents insurance...................... 10.64\
Life assurance ......................... 42\
Other insurance......................... 0\
Presents (birthday, christmas etc)...... 25\
Haircuts................................ 10\
Entertainment........................... 0\
Holiday................................. 0\
Emergency fund.......................... 0\
Total monthly expenses.................. 1528.22\
\
\
Assets\
Cash.................................... 0\
House value (Gross)..................... 165000\
Shares and bonds........................ 0\
Car(s).................................. 800\
Other assets............................ 25000\
Total Assets............................ 190800\
\
\
Secured & HP Debts\
Description....................Debt......Monthly...APR\
Mortgage...................... 113000...(559.4)....3.2\
Total secured & HP debts...... 113000....-.........- \
\
Unsecured Debts\
Description....................Debt......Monthly...APR\
Nationwide C.C.................1700.....200.......0\
Capital One....................1380......48.93.....34\
Studio Cards...................310.......15........0\
Overdraft......................1007......35........0\
Total unsecured debts..........4397.00.....298.93....- \
\
\
Monthly Budget Summary\
Total monthly income.................... 2,270\
Expenses (including HP & secured debts). 1,528.22\
Available for debt repayments........... 741.78\
Monthly UNsecured debt repayments....... 298.93\
Amount left after debt repayments....... 442.85\
\
Personal Balance Sheet Summary\
Total assets (things you own)........... 190,800\
Total HP & Secured debt................. -113,000\
Total Unsecured debt.................... -4397.00\
Net Assets.............................. 58,103\
\
Created using the SOA calculator at https://www.stoozing.com. \
Reproduced on Moneysavingexpert with permission, using other browser.}

The extra assets are a flat we rent out.

asparagus1968

bambos wrote: »

\
Monthly Income Details\
Monthly income after tax................ 670\
Partners monthly income after tax....... 1200\
Benefits................................ 0\DO YOU NOT GET CHILD BENEFIT £81 A MONTH?
Other income............................ 400\
Total monthly income.................... 2270\
\
Monthly Expense Details\
Mortgage................................ 559.4\
Secured/HP loan repayments.............. 0\
Rent.................................... 0\
Management charge (leasehold property).. 0\
Council tax............................. 92\
Electricity............................. 113\VERY HIGH?
Gas..................................... 45\
Oil..................................... 0\
Water rates............................. 35\
Telephone (land line)................... 7\
Mobile phone............................ 57\REDUCE TARIFF/ USAGE/ GO PAYG
TV Licence.............................. 12.12\
Satellite/Cable TV...................... 32\FREEVIEW
Internet Services....................... 10\
Groceries etc. ......................... 200\
Clothing................................ 0\
Petrol/diesel........................... 200\
Road tax................................ 9.42\
Car Insurance........................... 33\
Car maintenance (including MOT)......... 15\
Car parking............................. 0\
Other travel............................ 0\
Childcare/nursery....................... 0\
Other child related expenses............ 0\
Medical (prescriptions, dentist etc).... 5\
Pet insurance/vet bills................. 5\
Buildings insurance..................... 10.64\
Contents insurance...................... 10.64\
Life assurance ......................... 42\
Other insurance......................... 0\
Presents (birthday, christmas etc)...... 25\
Haircuts................................ 10\
Entertainment........................... 0\
Holiday................................. 0\
Emergency fund.......................... 0\COULD DO WITH SOMETHING HERE
Total monthly expenses.................. 1528.22\
\
\
Assets\
Cash.................................... 0\
House value (Gross)..................... 165000\
Shares and bonds........................ 0\
Car(s).................................. 800\
Other assets............................ 25000\
Total Assets............................ 190800\
\
\
Secured & HP Debts\
Description....................Debt......Monthly...APR\
Mortgage...................... 113000...(559.4)....3.2\
Total secured & HP debts...... 113000....-.........- \
\
Unsecured Debts\
Description....................Debt......Monthly...APR\
Nationwide C.C.................1700.....200.......0\
Capital One....................1380......48.93.....34\
Studio Cards...................310.......15........0\
Overdraft......................1007......35........0\
Total unsecured debts..........4397.00.....298.93....- \
\
\
Monthly Budget Summary\
Total monthly income.................... 2,270\
Expenses (including HP & secured debts). 1,528.22\
Available for debt repayments........... 741.78\
Monthly UNsecured debt repayments....... 298.93\
Amount left after debt repayments....... 442.85\
\
Personal Balance Sheet Summary\
Total assets (things you own)........... 190,800\
Total HP & Secured debt................. -113,000\
Total Unsecured debt.................... -4397.00\
Net Assets.............................. 58,103\
\
Created using the SOA calculator at www.stoozing.com. \
Reproduced on Moneysavingexpert with permission, using other browser.}

The extra assets are a flat we rent out.

HI, you have a healthy surplus :T
you could pay off studio cards this month with this surplus, then close the account, will be settled on your credit report, thus better for when applying for )%deals.

if no one will give you a )% what about a balance transfer to a low interest for life of balance card?

you really ought to have an emergency fund.

keep a spending diary to see where your surplus money is going!

good luck

thecassman86

According to your SOA you have over £400 available after all of the bills / spending. Is that the case? Or does it always end up less than that?

If it's the latter, then i'd second asparagus1968's suggestion above and keep a spending diary to see what spending is being left unaccounted.

There are a few bits that could be tweaked as highlighted above but it's a pretty healthy SOA in general and i'm sure the debts can be cleared quickly.

bambos

Hi the cassman,

Yes it does look like a healthy surplus but we never seem to be able to see it. My husband's o/d seems to eat his surplus and for the past couple of months mine has gone on car issues :mad: my husband has a £1000 overdraft which is maxed but he has no payment plan for this and his wages get consumed every month, he is reluctant to do what I did with my account but he is always in his overdraft no matter what.

I feel like we should be seeing this surplus but it's never there :think:

bambos

Hi asparagus 1968,

Will keep the spending diary and see what's going on. Your right about the mobile phones, my husband needs to ring Orange and cancel his but I'm in a contract for the next 16 months.

Electricity is high as we had a £485 debt with them so I'm hoping it will reduce come March as the debt will be paid off and I'm going to ask them to lower our direct debit.

thecassman86

bambos wrote: »

I feel like we should be seeing this surplus but it's never there :think:

Spending diary is definitely the way to go then ... We've all been in the same position and it's only when you write things down that you see all of the slow trickles of money that add up quite quickly! Keeping a diary also shocked me into being more frugal; when each and every spend is in black and white it makes you think about it.

The overdraft obviously needs sorting so your OH can see a positive in his bank balance but the priority has to be getting down that 35% card. The overdraft, according to your SOA, is interest free so while that's the case it's better to get rid of the debts that are actually costing you money.

E._Tenebris_Lux

bambos wrote: »

Assets\
Cash.................................... 0\
House value (Gross)..................... 165000\
Shares and bonds........................ 0\
Car(s).................................. 800\
Other assets............................ 25000\
Total Assets............................ 190800\

The extra assets are a flat we rent out.

Is the flat only worth £25,000? Is there a mortgage on it and, if so, how much is left? If it's viable to sell the flat and repay your more urgent debts, I'd suggest doing that. It does mean that you don't have the extra property for rent income and capital appreciation, but it sorts your debts out and you still have a roof over your head.

bambos

E._Tenebris_Lux wrote: »

Is the flat only worth £25,000? Is there a mortgage on it and, if so, how much is left? If it's viable to sell the flat and repay your more urgent debts, I'd suggest doing that. It does mean that you don't have the extra property for rent income and capital appreciation, but it sorts your debts out and you still have a roof over your head.

Hi Tenebris Lux,

It's a great idea in theory but unfortunately it's jointly owned by my husband and his ex wife as a silent partner but was split in court so she has no say and we have no say in her rental property but if there was a default on ours YBS could go after her and if a default on hers they could come after us.

YBS wouldn't transfer the buy to let mortgage to us when we got married and we couldn't get a buy to let on our own. The ex wife was in the same position and we all agreed in court to leave it in situ (not ideal but it works) we pay the mortgage on our one and get the profit as she does with her one.

Yes it is on a buy to let mortgage and we have 15 years left on it. The £25,000 is what we would get clear profit if we sold tomorrow but the ex wife has told us outright that she wouldn't go for it as it would mean selling hers and to be honest the only reason we got our mortgage on our family home is because we had the rental income from the flat.

Oh dear the complications make me feel :eek: