Got to sort this once and for all...

aceface1981

Afternoon all,

So my situation is I'm 33 and since leaving university 10 years ago have forever been in debt. This has got to change. I've never missed a payment and never had anyone chasing me for money but enough is enough and I want to be able to start making plans and be in a position to sometime in the not to distant future buy a house...

Although I've been aware I need to pull my finger out for some time today I would class today as my LBM as today is the first time I've sat down, made the phone calls, and written down exactly what I owe. Unsurprisingly on paper its worse than I thought.

Heres my SOA;

Statement of Affairs and Personal Balance Sheet

Household Information

Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2

Monthly Income Details

Monthly income after tax................ 1900
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1900

Monthly Expense Details

Rent.................................... 250
Mobile phone............................ 35
Satellite/Cable TV...................... 5.99
Groceries etc. ......................... 50
Clothing................................ 30
Petrol/diesel........................... 100
Road tax................................ 24.93
Car Insurance........................... 28.45
Car maintenance (including MOT)......... 30

Total monthly expenses.................. 584.37[/b]


Unsecured Debts

Description....................Debt......Monthly...APR

Santander Loan.................10675.6...347.4.....14.7
Virgin CC 0% SEP2016...........5936.83...64.28.....0
Halifax CC 0% APR2017..........4171.67...100.......0
Sant'dr CC 0% MAY2015..........1367.58...20........0
Total unsecured debts..........22151.68..531.68....-


Monthly Budget Summary

Total monthly income.................... 1,900
Expenses (including HP & secured debts). 584.37
Available for debt repayments........... 1,315.63
Monthly UNsecured debt repayments....... 531.68
Amount left after debt repayments....... 783.95


Total Unsecured debt.................... -22,151.68



My current financial situation is a bit unusual at the moment as you can see. My girlfriend and I are currently utilising a friends empty house hence the low rent and lack of bills to worry about. This is while she completes her final year of university before going back to work full time in September. Other bits and bobs such as the main groceries, tv licence and internet she takes care of and so I haven't included those here. According to the above calculator I've around £783.95 left to play with after all my expenses which I would say is about right. For the past few months I have been putting £500 of this onto my Santander credit card on which the 0% runs out in May - My aim being to get rid of the outstanding debt on this by then and then start throwing that £500 at the Virgin card.

The loan repayment of £347 I've been making for two years now and have I three more to go. Would the spare £500 i have from May (once the Santander Card is paid off) be better spent putting towards this loan rather than onto the cards that are currently 0%? It makes sense to me but im scared of what happens when those 0% get close to running out and i still have big balances on them?

I know I'll probably be able to balance transfer them to new 0% cards but there's no guarantee ill get those new cards when I need them..?!

I also have two credit cards with nothing on - A Nationwide with a limit of £4000 and Barclaycard with limit of £8900. Should I cancel and get rid of these? The Barclaycard Ive had for years and has always been a card I use as opposed to the others which have been only for balance transfers. Im just thinking that come a year or so I might need to become a 'new customer' with these again to take advantage of the latest balance transfer deals ?

Any thoughts appreciated..

Aaleigha

I question about your statement of affairs is the grocery amount yours alone or a share amount if you are both putting in 50 then I think 400 a month is very expensive - I and my husband allow about 225 a month (going to bring that down another 25 this month) and that includes some dog food (not much about 12 cans of butchers)
if it is the sum you pay for both of you is there a reason you are paying the whole of the grocery bill
you have nothing down for s or entertainment do you never go out buy a bottle of wine to have in
give yourself a little allowance so you dont get a surpise also dental optitian and docs you could be ill next month and need a prescription I am sure there are other things I could have missed

as for the cards I think I would close one and keep the one with the best interest level on it and that one I would freeze in a big block of ice so you have to really want to spend to be bothered to decide it
you dont say if you have an over draft if not at your age WELL DONE

aceface1981

I put £50 a month in for groceries as generally my other half takes care of all that but i might end up buying the odd bits here and there. I basically pay my friend £250 for use of the house and she spends an equal amount combined on the main groceries, our gym membership, the internet and tv licence etc.. sorry if there was some confusion but like i say its a pretty odd set up we have at the moment whilst shes not earning (she a trainee teacher and gets student loan but no wages).

Regarding things like entertainment, wine, beers etc...thats where the other £283 a month goes after ive taken that £500 out of whats left... same goes for one off expenses like the dentists or prescriptions.

As for the over draft i was about £3000 overdrawn for years after uni and that was consolidated in the loan i took out two years ago so not sure i deserve a well done...