Hello Everyone - MY SOA and Debt Dairy

stevenc75

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sammiboo

Hi

welcome to the forum

First thing to point out is that we need to know exactly where all your money is going. What you have coming in. All the bills you are paying each month and very importantly what rates of interest you are paying for each of your debts.

This way we can offer more practical advice on slimming those debts down

trying-very-trying

Hi, Steven and welcome to the site. Someone will he along shortly to give you knowledgeable advice, but by admitting your problem you've started on the road to becoming debt free. Stick with it, it won't be easy, but I keep telling myself it will be worthwhile.

fuschia_2

hi Steven,
I'm new too - like the above have said - well done for deciding to sort your finances and you can do it!!

F
x

Crown

Hi and welcome to the forum! Looks like you have a had your lightbulb moment.

Please take a look at Southern Scousers first time posters thread at the top of this forum and take the time to read the general advice given. Then please post up your Statement of affairs and we will be able to offer you some advice on where we think you may be able to make some savings and the best way to repay your debt.

http://forums.moneysavingexpert.com/showthread.html?t=107280

Can I just say that there are priority debts that you need to make sure you pay as otherwise you could end up homeless or in court.

Your priority debts are

Mortgage/Rent
Secured Loans
Gas/Electricity
Council Tax
Water

Anything else is considered unsecured what means if you cannot afford to pay all your priority debts (Like your Mortgage £2000 arrears) then you need to make a reduced payments on the unsecured debt why you get it sorted out.

Look forward to further info.

RAS

Hi

Welcome

Head over to this thread and put up your SOA so that folks can see whether your income and expenditure can be assisted to get you out of the situation.

http://forums.moneysavingexpert.com/showthread.html?t=107280


As you do this, can you also list the APrs and limits on your debts as some of these names would suggest that they are high?

You must remember that getting the situation regarding your house sorted is abslute priority. If necessary the others will have to accept reduced payments.

is the mortgage repayment and interest or interest only?

Crown

Hi Steven, Make a cup of tea or whatever and get all your paperwork out and make start on it. I know its pretty scarey but trust me when I say when you finally know exactly what you owe it it is a strangley a relief and gives you a target to aim for.

With regards to paying one creditor and not paying another then this will cause problems on your credit file. I will not go into a lot of details until you have posted your SOA up but you may be able to arrange a DMP (Debt Management Plan) where you pay a certain amount a month to each creditor.

At the moment im paying just £1 a month to each of my creditors on debts of around £38k so dont worry at this stage. Before you can make a real start getting it sorted then you need to have this info to hand.

sammiboo

stevenc75 wrote: »

Thanks guys. sammiboo, working that out will take a while. I'm embarressed to admit that I don't honestly know what interest rates I'm paying.

No need to be embarrassed. When I used to apply for loans and cards APR meant nothing to me. But it is important to know what interest you are paying. Just by changing my loan from barclays to egg it saved me a total of £500 and would also be paid off quicker. for the same amount but paying the lender less for that pleasure

skint_spice

Hi Steven,

Well done on taking your first steps, I don't want to depress you but I can't see council tax or water rates on the SOA, are they included elsewhere?

HairyHandofDartmoor

It would help if you could itemise seperately the amounts for food, petrol and electricity and gas. You may find it helpful also to go to the CCCS website and fill in their online questions. It doesn't commit you to anything but can suggest a course of action for you. There is a link to it somewhere on here.

tealady

The APRs are the place to start plus use the snowball calculator to see how quickly you can clear your debts. The old style board is fantastic for saving on the necessaries such as food. Also keep a spending diary, write down EVERY penny you spend even if its just 40 on a choc bar. Finally ebay or Amazon everything thats not nailed down.
Don't forget to treat youself occasionally, when I was in debt I needed to find cheap versions of treats I enjoyed otherwise it was just a long slog.