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I admit, I have a problem with debt.

Onetoomany
Posts: 11 Forumite
Hi, I'm P. I feel like this is my version of a meeting. I am introducing myself and conclude with, I have a problem with debt.
I haven't spoke to anyone about my problems, not fully anyway, out of embarrassment and shame. I started splurging out on things that would make me feel better when my mother died, it soon escalated into another credit card, then a consolidation loan without closing the cards I had.
I want to change my ways. In 18 months I want to be able to go to Australia to work for a year, with nothing to send money back here for.
The Lowdown
I earn 27000 a year, 1778 per month after tax. My job is secure.
Debts
Barclaycard C/C 4800
BOS Loan 3062
Halifax C/C 2800
Family 1500
Self employment tax 1800 (due jan 2015)
The credit cards have been closed and interest rates frozen.
I have car and bike finance totalling 17000, my plans are to keep paying as much as possible with these, then sell 1 month before I go. They should be both in equity by then.
Monthly outgoings for insurance etc. totals 400 per month.
I keep thinking I should apply for another loan, pay of all my debts and have one payment. I think I have my head firmly screwed on to do this now. I'm scared I get rejected for already being quite committed.
Any suggestions welcome, P
I haven't spoke to anyone about my problems, not fully anyway, out of embarrassment and shame. I started splurging out on things that would make me feel better when my mother died, it soon escalated into another credit card, then a consolidation loan without closing the cards I had.
I want to change my ways. In 18 months I want to be able to go to Australia to work for a year, with nothing to send money back here for.
The Lowdown
I earn 27000 a year, 1778 per month after tax. My job is secure.
Debts
Barclaycard C/C 4800
BOS Loan 3062
Halifax C/C 2800
Family 1500
Self employment tax 1800 (due jan 2015)
The credit cards have been closed and interest rates frozen.
I have car and bike finance totalling 17000, my plans are to keep paying as much as possible with these, then sell 1 month before I go. They should be both in equity by then.
Monthly outgoings for insurance etc. totals 400 per month.
I keep thinking I should apply for another loan, pay of all my debts and have one payment. I think I have my head firmly screwed on to do this now. I'm scared I get rejected for already being quite committed.
Any suggestions welcome, P
0
Comments
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Was just closing putah otm, but saw your post, which you write simply and well.
Welcome to mse and well done for coming here.
The experts will be along shortly, but the first thing we ask people to do is to post up a detailed SOA.
'Monthly outgoings for insurance etc. totals 400 per month. ' just won't cut the mustard
Have you looked and thoroughly read these yet?
http://www.moneysavingexpert.com/banking/Budget-planning?_ga=1.48489126.1425701883.1405021271
IN THIS GUIDE
Why should you budget?
What the results of the budget mean
How to sort your finances
Piggybanking: how to stick to a budget
PRACTICAL TOOLS:
Tool: Full online financial analyser
Video: How to do a budget
Tool: Budget planner: spreadsheet version
Tool: Budget planner: printout version
These will all become your friends, as will people here. You have a target and a goal, Australia.
Today is Day 1:-)CAP[UK]for FREE EXPERT DEBT &BUDGET HELP:
01274 760721, freephone0800 328 0006'People don't want much. They want: "Someone to love, somewhere to live, somewhere to work and something to hope for."
Norman Kirk, NZLP- Prime Minister, 1972
***JE SUIS CHARLIE***
'It is difficult to free fools from the chains they revere' François-Marie AROUET
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welcome. no judgement here. you are doing a good thing by facing this. do an soa and work out how you can settle your debts and get on with your life.Debt at highest - June 2013 - 26k/ March 2018 - 2500
Proud to be dealing with my debts0 -
Welcome to MSE
What you need to do firstly is go an SOA (statement of affairs) then you can work out exactly what your spending each month and we can see what can be lowered etc
Debt free once - Back again | Current debt: £2479.50 - January 2025 | Make £2025 in 2025 #11 - £41/£20250 -
Statement of Affairs and Personal Balance Sheet\
\
Household Information\
Number of adults in household........... 3\
Number of children in household......... \
Number of cars owned.................... 1 car 1 motorcycle
\
Monthly Income Details[/b]\
Monthly income after tax................ 1778\
Partners monthly income after tax....... 0\
Benefits................................ 0\
Other income............................ 0\
Total monthly income.................... 1778\
\
Monthly Expense Details\
Mortgage................................ 0\
Secured/HP loan repayments.............. 0\
Rent.................................... 0\
Management charge (leasehold property).. 0\
Council tax............................. 0\
Electricity............................. 0\
Gas..................................... 0\
Oil..................................... 0\
Water rates............................. 0\
Telephone (land line)................... 0\
Mobile phone............................ 50\
TV Licence.............................. 0\
Satellite/Cable TV...................... 0\
Internet Services....................... 0\
Groceries etc. ......................... 200\
Clothing................................ 0\
Petrol/diesel........................... 100\
Road tax................................ 8.75\
Car Insurance........................... 59\
Car maintenance (including MOT)......... 35\
Car parking............................. 0\
Other travel............................ 0\
Childcare/nursery....................... 0\
Other child related expenses............ 0\
Medical (prescriptions, dentist etc).... 0\
Pet insurance/vet bills................. 0\
Buildings insurance..................... 0\
Contents insurance...................... 0\
Life assurance ......................... 30\
Other insurance......................... 71\
Presents (birthday, christmas etc)...... 25\
Haircuts................................ 10\
Entertainment........................... 20\
Holiday................................. 40\
Emergency fund.......................... 0\
Total monthly expenses.................. 648.75\
\
\
Assets\
Cash.................................... 0\
House value (Gross)..................... 0\
Shares and bonds........................ 0\
Car(s).................................. 0\
Other assets............................ 0\
Total Assets............................ 0\
\
No Secured nor Hire Purchase Debts\
\
Unsecured Debts\
Description....................Debt......Monthly...APR\
Barclaycard....................4800......120.......12\
Halifax........................2800......75........19\
BOS Loan.......................3062......213.......24\
Bike...........................5200......171.......4.1\
Car............................12000.....232.......5\
Tax............................1861......0.........0\
Family.........................1500......0.........0\
Total unsecured debts..........31223.....811.......- \
\
\
Monthly Budget Summary\
Total monthly income.................... 1,778\
Expenses (including HP & secured debts). 648.75\
Available for debt repayments........... 1,129.25\
Monthly UNsecured debt repayments....... 811\
Amount left after debt repayments....... 318.25\
\
Personal Balance Sheet Summary\
Total assets (things you own)........... 0\
Total HP & Secured debt................. -0\
Total Unsecured debt.................... -31,223\
Net Assets.............................. -31,223\
\
Created using the SOA calculator at stoozing.com. \
Reproduced on Moneysavingexpert with permission, using other browser.}
I am fortunate I live with my father in a rent and council tax free house. I buy the big shops, and provide food for the household. He buys the dailies, milk, bread etc.0 -
Do you have the 300 left each month? Why are you paying 30 a month for life assurance when it sounds like you don't have dependants who might need a payment if you died?
Is the other insurance of 71 your bike?
Is your phone on contract or can you get a cheaper sim only deal? Easy savings there if so.
Depending on the above I think you can get another 100+ a month towards clearing your debts.
Good luck.Debt at highest: £8k. Debt Free 31/12/2009. Original MFD May 2036, MF Dec 2018.0 -
Im still pretty new here but feel I have learnt loads in my wanderings!
Just wanted to pop by to say good luck and your plan sounds good!!
JodlesMFW2020 #115 250/3000 J-250
1% challenge- /1525Save 1k in 2020- /3000
Joining in UberFrugalMonthChallenge set up by the Frugalwoods!
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Yes I have around 300 left. Im only just starting to be strict with myself, and count my spending. I usually put some extra to a C/C.
30 life insurance is split into two. A critical illness policy to cover my wages. This was taken out because I used to be self employed. I suppose this could be canceled.
The life insurance policy I won't cancel, because my mother canceled hers to change to a better deal, in the time she was without life insurance she was diagnosed with skin cancer. She then couldn't get life insurance. Myself and my father had her estate to settle and funeral costs to cover. I won't let anyone go through that with me.
The other insurance is the bike, I might be able to cancel it during the winter. It won't help my premium next year though.
Yes phone Is on contract. Managed to knock 20 a month off by haggling and paying by direct debit now.0 -
don't you have rent or any bills to pay? is the £200 for groceries for 3 of you? if so that's really good, or you may be underestimating (as most people do, including me)
I would say try to pay less for mobile once your contract is up, especially if its just 1 phone (mine is £36 a month for pretty much unlimited everything on 3 or about £20 on the same plan on sim only)0 -
No the house is part of dad's salary. He pays the electricity, tv licence, the sky, broadband and home phone, and buys milk and bread. I am quite good at keeping to a budget with the grocery shopping, just need to transfer that to the rest of my life.0
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So... As previously stated I currently live with my father, very cheaply in his cottage that he gets with his work.
He told me tonight he is looking for another job, and it may be too far away from my work to justify commuting.
I don't want him to stay in a job he hates, but be could have timed it a little better.
The positive for today, I went to an agricultural show, got 2 entry tickets and parking for free, spent 17.89.0
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