Need help getting rid of debt in as timely a manner as possible without consolidation

SF2be

Cutting a long story short, a divorce last year has left me in a massive amount of debt, both credit card and bank loan, currently owe circa £24k and repaying at. £950 per month and want to get it sorted

1 bank loan and 3 credit cards, all cards on balance transfers but two of the cards have spending on top of the balance transfers so charging some interest but not completely.

Bank loan is due to finish in May 2016, repayments are £450 per month,

Credit cards I'm paying back at around £500 per month, two of which are minimum payments, one is double minimum payment currently.

Really want to get this sorted as it is on my mind a lot and trying to get it under control.

It's not an increasing debt now I've realised I can't add to it as I need to clear it , but I am running dangerously close to my limits of payments I can make.

Help please

SF2be

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\outl0\strokewidth0 \strokec2 [tt]Statement of Affairs and Personal Balance Sheet\
\
Household Information\
Number of adults in household........... 1\
Number of children in household......... 3\
Number of cars owned.................... 1\
\
Monthly Income Details\
Monthly income after tax................ 1950\
Partners monthly income after tax....... 0\
Benefits................................ 406\
Other income............................ 80\
Total monthly income.................... 2436\
\
Monthly Expense Details\
Mortgage................................ 0\
Secured/HP loan repayments.............. 0\
Rent.................................... 650\
Management charge (leasehold property).. 0\
Council tax............................. 99\
Electricity............................. 50\
Gas..................................... 45\
Oil..................................... 0\
Water rates............................. 32\
Telephone (land line)................... 50\
Mobile phone............................ 35\
TV Licence.............................. 12\
Satellite/Cable TV...................... 0\
Internet Services....................... 0\
Groceries etc. ......................... 240\
Clothing................................ 50\
Petrol/diesel........................... 120\
Road tax................................ 20\
Car Insurance........................... 50\
Car maintenance (including MOT)......... 20\
Car parking............................. 0\
Other travel............................ 0\
Childcare/nursery....................... 0\
Other child related expenses............ 80\
Medical (prescriptions, dentist etc).... 0\
Pet insurance/vet bills................. 0\
Buildings insurance..................... 0\
Contents insurance...................... 11\
Life assurance ......................... 0\
Other insurance......................... 0\
Presents (birthday, christmas etc)...... 30\
Haircuts................................ 45\
Entertainment........................... 0\
Holiday................................. 160\
Emergency fund.......................... 0\
Total monthly expenses.................. 1799\
\
\
Assets\
Cash.................................... 0\
House value (Gross)..................... 0\
Shares and bonds........................ 0\
Car(s).................................. 8000\
Other assets............................ 0\
Total Assets............................ 8000\
\
No Secured nor Hire Purchase Debts\
\
Unsecured Debts\
Description....................Debt......Monthly...APR\
Barclaycard ...................9200......206.......0\
Mbna ..........................7500......160.......0\
Natwest .......................4000......60........0\
Barclay loan ..................8700......450.......7.2\
Total unsecured debts..........29400.....876.......- \
\
\
Monthly Budget Summary\
Total monthly income.................... 2,436\
Expenses (including HP & secured debts). 1,799\
Available for debt repayments........... 637\
Monthly UNsecured debt repayments....... 876\
Amount short for making debt repayments. -239\
\
Personal Balance Sheet Summary\
Total assets (things you own)........... 8,000\
Total HP & Secured debt................. -0\
Total Unsecured debt.................... -29,400\
Net Assets.............................. -21,400\
\
[/tt]}

SF2be

Earnings are an average as I am JUST making the payments I need currently, I'm self employed so it varies from year to year.

ChopinonaBudget

I'm not an expert and more will be along later, but some ideas to get you going on your monthly outgoings

SF2be wrote: »

Number of adults in household........... 1\
Number of children in household......... 3\
Number of cars owned.................... 1\
\
Monthly Income Details\
Monthly income after tax................ 1950\
Partners monthly income after tax....... 0\
Benefits................................ 406\
Other income............................ 80\
Total monthly income.................... 2436\
\
Monthly Expense Details\
Mortgage................................ 0\
Secured/HP loan repayments.............. 0\
Rent.................................... 650\
Management charge (leasehold property).. 0\
Council tax............................. 99\ is this over 12 months or 10? If 10, get council t change to 12, it'll take down your monthly cost
Electricity............................. 50\
Gas..................................... 45\
Oil..................................... 0\
Water rates............................. 32\
Telephone (land line)................... 50\
Mobile phone............................ 35\ can you go PAYG? Can do this for £10 month
TV Licence.............................. 12\
Satellite/Cable TV...................... 0\
Internet Services....................... 0\
Groceries etc. ......................... 240\
Clothing................................ 50\
Petrol/diesel........................... 120\
Road tax................................ 20\
Car Insurance........................... 50\ ouch! Can you shop around to find cheaper?
Car maintenance (including MOT)......... 20\
Car parking............................. 0\
Other travel............................ 0\
Childcare/nursery....................... 0\
Other child related expenses............ 80\
Medical (prescriptions, dentist etc).... 0\
Pet insurance/vet bills................. 0\
Buildings insurance..................... 0\
Contents insurance...................... 11\
Life assurance ......................... 0\
Other insurance......................... 0\
Presents (birthday, christmas etc)...... 30\
Haircuts................................ 45\ seems high. Someone else will give you better advice in cost for this, but that's a lot for haircuts per month
Entertainment........................... 0\
Holiday................................. 160\ you really can't afford this right now. That's a massive outlay for a holiday. Cut back a LOT or get rid :eek:
Emergency fund.......................... 0\
Total monthly expenses.................. 1799\
\
\
Assets\
Cash.................................... 0\
House value (Gross)..................... 0\
Shares and bonds........................ 0\
Car(s).................................. 8000\ can you sell the car and either buy a cheaper one or use public transport? £8K is a lot of asset you could put towards your debt. even if you sell and buy a used car for £2k, you'd still have £6k to pay things off with
Other assets............................ 0\
Total Assets............................ 8000\
\
No Secured nor Hire Purchase Debts\
\
Unsecured Debts\
Description....................Debt......Monthly...APR\
Barclaycard ...................9200......206.......0\
Mbna ..........................7500......160.......0\
Natwest .......................4000......60........0\
Barclay loan ..................8700......450.......7.2\
Total unsecured debts..........29400.....876.......- \
\
\
Monthly Budget Summary\
Total monthly income.................... 2,436\
Expenses (including HP & secured debts). 1,799\
Available for debt repayments........... 637\
Monthly UNsecured debt repayments....... 876\
Amount short for making debt repayments. -239\
\
Personal Balance Sheet Summary\
Total assets (things you own)........... 8,000\
Total HP & Secured debt................. -0\
Total Unsecured debt.................... -29,400\
Net Assets.............................. -21,400\
\
[/tt]}

ChopinonaBudget

Ps why are you paying double minimum on a credit card when you're running so close to the wire with your income/outgoings?
I'm self employed too, and my income fluctuates wildly from month to month (some months I don't even make the rent, others I make enough to more than cover that shortfall). I set all my payments to minimum then see what I've got left at the end of each month and use the surplus to pay off the debt with the highest interest. Keeping everything to the minimum payment means I can afford it all when my earnings are low, but I'm (getting) very disciplined about actually using that surplus to make the overpayments.

That could be a better plan for you if your income is wobbly from month to month.

PinkPoppies

ChopinonaBudget's suggestion of paying the minimum and overpaying any surplus sounds very sensible to me.

Have you seen the snowball calculator? http://www.whatsthecost.com/snowball.aspx I am near the start of my journey and have found it really REALLY useful- it has been so interesting and encouraging playing about with the figures and seeing the big difference even a little extra overpayment to a CC each month can make long term.

Have you anything at home you could flog on ebay or gumtree etc? It truly is amazing how little bits add up.

Tixy

Hi SF2Be

Do you get an child support from the other parent of your children? is that the £80? is that a fair amount based on their circumstances?

How much spending do you have on the 2 credit cards where you are being charged interest?
Have you stopped using them now for spending? and are you targeting paying off the spending portion of the cards first? Is the one you are paying more than the minimum to (MBNA?) the one with the highest APR on the spending?

Your costs mostly look reasonable, although I would rethink the holiday cost if you don't have anything booked currently.
Perhaps try shopping around for cheaper deals on the landline/mobile and car insurance.

If you can meet minimum payments without reusing credit then I would continue to do that, but don't make any payments over the minimums if your income is lower in a particular month.

If you find that on your average income you cannot meet minimum payments then you may need to conisder speaking to one of the debt advice charities and perhaps consider a DMP.