Help and Advice Needed

welshbird1979

Hi everyone

The time has come for me to sort my debts and life out!! Back in 2004 I ran up debts of around £10K, I was stupid at the time and I just ignored all the letters from the creditors and did nothing about them until 2006. I know I was stupid but at the time I just thought if I ignore all the letters and the phone calls then all the creditors would just magically disappear!! The result of this was 2 CCJs (I've satisfied one of them now!!) and a really bad credit rating. I have started to deal with my debts but it just feels like its going to take forever to clear them. I'm feeling really low at the moment as I'm always stressing about money and the lack of it

I would be very grateful if anyone out there can give me any advice on how to deal with these debts and how to make cut back to my budget.

I've also been wandering if I'm entitled to claim back any of the late payment charges which were added on to the balance and how would I go about doing this??

Here's how my situation looks:
My Income:
Main Job: £908 month
Weekend Job: £297 per month
Total=£1205

My Outgoings (monthly)
Rent £400
Council tax £65
Tv Livence £12
Car Insurance £12
Phone £15
Electric £20
Gas £20
Water Rates £36
Internet £15
Sky £18
Food Shopping & Petrol £300
Savings and Emergency £100
Christmas Savings £50
Debt Repayment £130
Total = £1193

Debts
Aktiv Kapital - £245.86 (£10 per month)
Connaught Collections - £5328.63 (£60 per month)
Cabot Financial - £529.12 (£20 per month)
Wescot Credit Services - £511.78 (£15 per month)
Moorcroft Debt Recovery - £1204.56 (£25 per month)
Total Debt = £7828.95

RAS

Hi Welcome

Can you add a bit more information. Particularly the APRs on any loans or CCs and how many in your family?

Also, can you split down the Food and petrol?

Whare is car tax, insurance and repairs?

rchddap1

How many people does the food entry sustain?

welshbird1979

Hi

I live on my own with two lovely cats!!! All the debts are with DCA and there is no interest on them. Shopping Budget £50 per week and Petrol £25
Car tax I usually pay yearly and take the money out of my savings account, same goes for any repairs. I'm a bit naughty as I dont have any household insurance, but my car insurance is paid £12 per month.

rchddap1

Shopping seems high to me. Check out the Old Style boards for advice on how to cut this down.

ltm07

Hi & welcome shopping £50 per week is alot for one person. This can easily be cut to £25-£30. As your debts are at 0%,then having savings is a good option,but as you feel that the debts are a weight around your neck,you could save a little less each month,maybe £50 a month. The other £50 a month would pay off an extra £600 in a year & cutting your food bill in half would give you another £1300. On top of the £1560 a year you are already paying this would give you a massive £3460,leaving you with £4368.95 to pay after a year so you will be completely debt free in just over 2 years. Good luck.

RAS

it is worth having a look at the comparison sites for all your insurance and utility acounts. Even if the cost is the same for the same product, you may be able to use www.quidco to get cash back on a switch, joy to the debt.

is there anything that you can put on e-bay or amazon?

Certainly you can cut the food and other costs. One thought would be to head over to the Money Saving Old Style forum with a list of what is in your cupboards and freezer and do a Storecupbord Challenge. if you hardly have to buty for a month, that will kick start the debt clearance.

if you are feeling brave, let the MSOS crew lose on your till receipts and they will show you how to cut your expenditure to the bone.