Time to get Debt Free!

ryan92

OK, this seems a great place to not be judged so here's my current situation!

MONTHLY INCOME

Basic Pay : £437.97


EXPENDITURE :

Virgin Media : £29.99
Sky : £16
Vodafone : £33
Vodafone iPad : £26 ( Ends February 2015)
TSB CC : £30 minimum
Nationwide CC : £40 minimum
Capital One CC : £12 minimum
Rent : £250

DEBTS :

TSB CC : £1540.41
Nationwide CC : £1920.04
Capital One CC : £440.58
Studio : £366
Littlewoods BNPL : £380 ( period ends november)
Littlewoods BNPL : £80 ( period ends december)

0% Overdraft : Currently sitting at -£864.81 by the end of the month (£1000 interest free)

KEY POINTS :
Plenty of Overtime at Work! So far this month my estimated wage should be £846.02 and next month with the overtime I've clocked up for first 2 weeks in payment cycle is £645.12 (2 weeks of overtime not released yet!)

I really need to get out of the overdraft as comfortably as possible. It won't be easy but I think I have the right attitude.

-taff

Get rid of sky, if you have virgin already I assume you have broadband etc with them? That'll save you £192 a year.
Try and pay more to the credit card with the biggest APR, not neessarily get rid of the smallest debt first.

ryan92

I'm not sure how to approach that ; my guess would be clear the little woods before the promotional bnpl period ends as that rate will be the highest.

I'm just heading to work ATM so I'll be able to fully add in the apr rates for everything.

I'm also with sky until October so I'll be able to cancel from then

NHS_worker_bee

What are the APRs on your debts? Put them in the snowball calculator

http://www.whatsthecost.com/snowball.aspx?country=uk

Also try this for a more thorough SOA:

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

Best of luck. With dedication and extra money from overtime, you will be on track to become debt free

ryan92

Capital one is 26.4%
Nationwide is 19.9%
Tsb is 17.9%
Studio is. 29.9%
Little woods is 0% until November then I've no idea what but it's likely to be the highest

19lottie82

ryan92 wrote: »

Capital one is 26.4%
Nationwide is 19.9%
Tsb is 17.9%
Studio is. 29.9%
Little woods is 0% until November then I've no idea what but it's likely to be the highest

Hi Ryan, as already suggested, please complete a proper statement of affairs (SOA)

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

It's important to be accurate, make sure you put in what you realistically will spend. No point in putting £0 in for clothes / entertainment ect, if you are still spending.

marliepanda

Get rid of Studio asap. General rule is get rid of the highest APR ones as soon as you can,

Definitely try and get the Littlewoods gone before November but just make minimums on them until your TSB and Capital One are gone.

Just get all the work you can, spend as little as you can and hammer then within an inch of their life, you'll do great.

Only thing that stands out is theres a lot spent on media, VM, Sky, and then the two vodafone lines. Can any of those be cut out?

NHS_worker_bee

Based on the info you've posted, this should be your priority order (until November):

1) Studio is. 29.9%
2) Capital one is 26.4%
3) Nationwide is 19.9%
4) Tsb is 17.9%
5) Little woods is 0% (until November)

Work out your budget properly (use the SOA), then work out how much spare money you have left for debt repayments each month (be realistic - no point in overpaying then having to use your credit cards again just to get to the end of the month.

Set up minimum payments by direct debit to all the debts if you can (so that you don't miss any payments) but overpay on the highest APR debt 1 (studio), once this is cleared continue making the minimum payments on the remaining debts but start overpaying on debt 2 (capital one) etc.

Reassess the situation re: Littlewoods in October using the snowball calculator, and continue with the 'highest APR debts first' strategy.

Keep up the overtime, you can do it, but if you prioritise your debts effectively, you'll clear them much quicker

(And obviously stop spending on your credit cards if you haven't already!)

FinanciallyUnsavvy

Definitely get rid of Littlewoods and Studio ASAP. Make sure Littlewoods is gone before the interest-free period ends. They sting big time with interest - believe me! I had about £90 of a £220 BNPL left when the interest free period ended. Didn't just get the interest for the £90, oh no. Got whacked with the whole interest of the £220, over a 3yr BNPL thing. Almost doubled the initial cost of the item. I absolutely abhor the way they work, and they aren't very forthcoming about their charges and interest either.

ryan92

Thanks for all the fantastic so far! I will definitely get a SOA on when I'm
Home from work at 10 tonight!

The iPad is the earliest that can go and that's February 2015 sky can go in November and Virgin in November

I'm due to start driving soon so I'll need to factor in that cost..... When the time comes

But I think I should definitely clear the littlewoods first and then studio as second priority!

marliepanda

ryan92 wrote: »

Thanks for all the fantastic so far! I will definitely get a SOA on when I'm
Home from work at 10 tonight!

The iPad is the earliest that can go and that's February 2015 sky can go in November and Virgin in November

I'm due to start driving soon so I'll need to factor in that cost..... When the time comes

But I think I should definitely clear the littlewoods first and then studio as second priority!

No point clearing the Littlewoods if its 0% until Nov. Clear Studio as thats costing you money right now, as are the others.

Yes if it comes to October and you still have other debts then get LW sorted, but not until then, as its not costing any extra.