Massive level of unsecured debt....

retromother

Money Dashboard is my favourite for spending tracking, simply because it automates the tracking. Better for some accounts than others (ie with HSBC you have to use the annoying little card reader for every refresh), but overall I've found it great to see where my money goes each month. It's more of a spending diary than budget tool though.

solvencyseeker

Hi sophiemae12.

We are in a similar position with regards to the level of unsecured debt and for similar reasons. I started posting on here in March and, thanks to lots of good advice, we have started to see our debts reduce each month.

The best thing we did at first was a spending diary - we just got a notebook and wrote in everything we spent each day (I'd not heard of Money Dashboard before - going to check that out). We have also started a spreadsheet to track and plan our spending.

Meal planning and shopping more carefully have also made a big difference. I have also had some success selling stuff online.

I now spend a bit of time every day checking online banking, updating our spreadsheet and posting on here. It helps me to keep focussed and not lose track.

I wish you all the best in sorting this out.

Beaker99

wow your income and outgoings and family set up are near identical to mine, our debt is half your however and dropping.


Main thing we do is simply to take out £150 per week in cash and that's our weekly money, all food and entertainment. It helps focus the mind to see the money in the pot and you don't want to spend it! Eventually, you get used to living on a smaller amount. - oh, and shop at Lidl!

sophiemae12

Thank you all. I have stuck to the 150 easily this week, long May it continue. I can see that going out for lunch and a takeaway a week soon eats into what can be paid off instead. Today consisted of a picnic in the park and it was brill

sophiemae12

couple of quick q's....
I know I applied for that loan (still not heard anything, presume rejected)
BUT I have done a soft search on 0% cards and it come up with a huge list with 80% chance of approval - what do you think?


Also....cos we have a joint account, and with debts and day to day and bills, its daunting cos of dates of things coming out etc.


I'm thinking of getting my salary paid into my other current account (just my dd's for cards come out of there, I transfer money in when I get paid.)
I'm thinking of perhaps setting it so £1000 goes into the joint, and £850 goes straight off cards... but how to do it? Highest balance ? more daunting but higher interest being paid. Snowball the smaller one first?


Also, I have a Next card (nothing on it) but a £5k (!!!!) limit, am I best closing it altogether? There's also a Amex that I've never used but with a £3k limit. close that too?

wannabe_credit_free

80% sounds a likely acceptance. I went for the Nationwide BT, did'nt think I would get it, but hurrah, I did and I got accepted on the basis of my housekeeping money which is £1,300 per month. Not paying interest has allowed me to drop my balance fast.

Also I'm a thrifty shopper and spend £50 per week on groceries, cleaning products, toiletries for 2 adults, 1cat and 3 toy dogs. My freezer and fridge are full and we have not gone hungry yet.It is doable.:j

AFK_Matrix

Hi sophiemae12,

If it is going to be easier to deal with your money if you put it in your seperate current account then go ahead and do that.

As for paying off your debts in what order it depends on you really. Some people will pay the minimum amounts to all debts except the one with the highest interest and throw everything at this then when this is gone move on to the next lowest interest debt. This will mean you pay less interest in the long run. But then again some people go for the smallest amount of debt first as a boost to moral and confidence to see that you have actually paid off some of your debt and gotten rid of that card or loan etc. But you will pay more interest in the long run. So you need to have a sit down and think what you want to do.

I would definitely close off the Next and Amex cards if you are not using them as they are a temptation for you to use if there sitting there.

sophiemae12

Yeah I'm going to close them. I'm not tempted, I've had the odd £200 on Next every now and again but never used the other (applied for it last yr n I thought it was 0%, but turned out it was 0% purchases) so just never used it. Will ring them later. Thanks.

sophiemae12

hi
small update from me. So I got approved for the loan so one loan and one card are consolidated. Makes me £95 a month better off and I feel like I'm getting somewhere.
Cancelled that card.
Also, as part of my job I'm getting an increase which will either be
a. A company car (meaning I can sell my car and pay it straight off remaining card)
b. Rise of £250-£300 a month (pay straight off card)


Hope everyone else is ok

sourcrates

sophiemae12 wrote: »

Also, as part of my job I'm getting an increase which will either be
a. A company car (meaning I can sell my car and pay it straight off remaining card)
b. Rise of £250-£300 a month (pay straight off car)

I want your job, don't care what it is, lol