Debt free graduate!

greensalad

Is it possible? I'm going to try.

I have a fair bit of debt but I also have a terrible credit rating due to a handful of CC defaults last year and lots of unpaids going through during hard months. I am really keen to improve it, but not only clear the debt but have some savings.

My main savings goal at the moment is for travel. I should probably start focusing on a house deposit at some point but really I want to get a chance to see the world. My best friend moved to Australia two weeks ago and I miss her dearly already. I work for a travel company so lets see if I can get my debt paid off and enough saved for some travel before she jets off to another place! :rotfl:

Current debts:

£800 CC
£1500 Natwest
£500 Barclays
£1500 owed to Mum
£300 owed to Grandparents

And then the student loan, which I'm still trying to get some solid numbers on...

I haven't actually graduated yet. I officially stop being a student on 30th June, and I have my ceremony on 16th July.

At the moment, my biggest question is what to pay off first. Credit card would seem sensible, and I plan to use it for petrol on my commute (£150 a month). I figured that regular spend + paying off every month would help my credit rating.

Both my overdrafts are interest free until August 2015 but will have "steps" down so I need to be paying off little by little.

All my utilities and bills have been set to a new joint account with my boyfriend. I have included here all my contributions, this is what I pay for bills, not both of us together. (Some are split 50% and some are split variable on our usage and incomes. I haven't put in his income for that reason.)

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1492
Other income............................ 500
Total monthly income.................... 1992

Monthly Expense Details
Rent.................................... 510
Council tax............................. 63.5
Electricity............................. 45
Mobile phone............................ 12.5
TV Licence.............................. 9.4
Satellite/Cable TV...................... 19
Internet Services....................... 21.75
Groceries etc. ......................... 100
Clothing................................ 50
Petrol/diesel........................... 150
Car Insurance........................... 56
Contents insurance...................... 5.41
Presents (birthday, christmas etc)...... 10
Haircuts................................ 54
Entertainment........................... 25
Holiday................................. 30
Emergency fund.......................... 0
Total monthly expenses.................. 1161.56


Assets
Car(s).................................. 500
Other assets............................ 200
Total Assets............................ 700

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt
Credit Card....................800
Natwest OD.....................1500
Barclays OD....................500
Total unsecured debts..........2800


Monthly Budget Summary
Total monthly income.................... 1,992
Expenses (including HP & secured debts). 1,161.56
Available for debt repayments........... 830.44
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 830.44



My income seems high but it includes £500 I get from a second job, so I need to save for my tax bill (I am looking into it, seems I might have to pay around £1200? Not too sure. Due in 2015 though).

greensalad

Been researching and thinking about my options regarding savings.

I have an ISA which has £300 in it. I'm thinking of putting my savings for the tax bill in here, and the rest of my savings divided between my credit card and paying my Mum back (which is on her CC so is costing interest).

30th June
£100 to Mum
£100 to CC
£150 to ISA

Debt remaining
£700 CC
£1500 Natwest
£500 Barclays
£1400 owed to Mum
£300 owed to Grandparents


15th July
+£900 from flat deposit
£300 to grandparents
£200 to Mum
£200 to CC
£200 to ISA

Debt remaining
£500 CC
£1500 Natwest
£500 Barclays
£1200 owed to Mum
£0 owed to Grandparents

31st July
This month I should get £450 I am owed from a job. £50 to go into savings for tax
£400 to Mum
£100 to ISA
£100 to CC

Debt remaining
£600 CC
£1500 Natwest
£500 Barclays
£1000 owed to Mum


Does this seem like a sensible way to go, or should I be saving more? I'm holding back because we still have furniture to buy for the house, boyfriends birthday (he wants a big lavish meal) and I want to keep some money back for tarting up the house a bit.

I'm also not sure whether saving into an ISA is worth it, or if I should focus on my credit card. I know it makes sense to pay off the debt with the interest rate first, but as I have to put some of it into my student overdrafts as parts of them become interest free, it makes sense in my head to start saving away some of that so that when it's requested I can pay it out of savings...