Starting over...

DaveL84

Here I go again...


After a bad few months (kinda still going through it) not sure if I was full on depressed on just massively fed up with my lot but I am back on the horse to start making a dent and get rid of the debt hanging over me.


Need to update the signature but it currently stands as;
Loan - £3,826.40 (£313.91pm 13.97% - expecting a payout and hope to clear by August)
Natwest CC - £7,357.31 (Interest free until July 2016)
Barclays CC - £8,817.08 (Interest free until June 2016)
MBNA CC - £6,554.99 (Interest free until Feb 2018)
Virgin CC - £6,292 (Interest free until March 2018)


Glad to have a majority on interest free and once the loan is paid off the £300 will be added to payments on the Natwest Card and so on... In my head I can do this but it is daunting seeing the figures, a total of £ 32,847.78.


On plus side, reduced sky package from £87pm to £45pm (includes phone and broadband).


Spending a lot of spare time at gym and swimming (£25pm) so being a lot more conscious of what I am eating, meaning no take aways or microwave food and noticing a saving on spending there.


Just downloaded YNAB so hoping to see benefit from that as well.


I can't get onto a SOA, work internet blocking it but this is an idea of what I am spending;


Salary £ 1,900.00
Mortgage £ 206.36 Part buy part Rent
Rent £ 340.50
Council Tax £ 97.00 Paid over 10 months
Electric + Gas £ 23.24
Water £ 40.00 Around £120 quarterly
Home Insurance (contents only) £ 4.00 Paid annually £40
TV/Phone/Broadband £ 45.00
Gym £ 25.00
Mobile £ 30.00
Car £ 260.02 1 year of repayments left (in negative equity)
Car Insurance £ 42.10
Car Tax £ 10.84 £130 pa
Petrol £ 50.00
Loan £ 313.91
CC1 £ 200.00
CC2 £ 100.00
CC3 £ 90.00
CC4 £ 90.00
Total -£ 67.97


And this is before a few nights out a month and around £65 a month on food, although I can be under that some months.


I'm sure a lot of this is Friday afternoon rambling but helping me putting it down... any help appreciated.. (The more harsh the better)

MallyGirl

DaveL84 wrote: »

Salary £ 1,900.00
Mortgage £ 206.36 Part buy part Rent
Rent £ 340.50
Council Tax £ 97.00 Paid over 10 months. Switch to 12 month instalments - lightly lower amount but smoother for budgeting
Electric + Gas £ 23.24 impressive
Water £ 40.00 Around £120 quarterly Seems very high. Do you have a meter?
Home Insurance (contents only) £ 4.00 Paid annually £40
TV/Phone/Broadband £ 45.00
Gym £ 25.00
Mobile £ 30.00
Car £ 260.02 1 year of repayments left (in negative equity)
Car Insurance £ 42.10
Car Tax £ 10.84 £130 pa
Petrol £ 50.00
Loan £ 313.91
CC1 £ 200.00
CC2 £ 100.00
CC3 £ 90.00
CC4 £ 90.00
Total -£ 67.97

?prescriptions, haircut, dentist, clothes, building insurance (unless included in rent)

And this is before a few nights out a month (maybe take a break from these till you have finished paying the loan in August ) and around £65 a month on food (pretty good if that includes loo roll, cleaning products, shampoo, razor blades, etc), although I can be under that some months.


I'm sure a lot of this is Friday afternoon rambling but helping me putting it down... any help appreciated.. (The more harsh the better)

a few comments in green

andyfromotley

Hi Dave,

Dude you are in a massive DEBT EMERGENCY!!!! and it is GETTING WORSE!!!! Every single month.
There are some things you cannot do when you have a debt emergency.

1. Have sky tv
2. Have gym membership
3. Spend £30 pm on a mobile
4.Have a 'few' nights out each month. (if they are nights out which include spending money)

i see you are expecting a payout to kill the loan debt soon. Things will obviously improve enormously when this arrives, but those things have a nasty habit of not turning up. You have no emergency fund, spend very little on food/household items and Mally has highlighted other areas you are missing expenditure.

You wanted harsh words and thats not really my style, but even in this debt emergency you seem to have awarded yourself a lifestyle that you havent earned and you cant afford. I assume that is how this huge debt was built up? Not judging, i did exactly the same and i was earning a whole heap more than you.

Clearly when you do get rid of this debt you will have a sweet life and be able to live like one of the 2% of richest people on the planet, which is exactly what you are. So crack on and get to grips with it.

Andy

DaveL84

Thanks for the replies guys, and with the points you make, of course I already knew them but guess sometimes you need others to tell you..


I actually called and cancelled sky yesterday, going to spend some time today looking for cheaper deals on landline and broadband.


Mobile contract finishes in September I think and at that point I will go onto a cheap sim only deal and as suggested try cutting the nights out until the loan has gone.


The water rates, I will need to ring the water company and find out if these are correct, always just paid as assumed it would be correct but not on a meter.

enjoyyourshoes

The reality of the situation :-


1, Loan cumulating £44 interest per month
2. CC1 to pay it off before 0% expires = 525.52 per month
3. CC2 ditto = £678.24 per month
4. CC3 ditto = £198.63 per month
5.CC4 ditto = £185.06 per month


6. WITHOUT any loan repayments the 4 CC need £1588 per month


Can you pay the loan off quicker as its the highest rate of interest. Can you stop spending and use every last conceivable penny to pay off all the debts ?


Can you solve the problem (your debt is the symptom which is taking all your mental efforts to resolve) as this is the what needs to be sorted out ?

Karen777

hi - agree with what others have said - I would caution against cancelling gym membership though. I don't think 25 quid a month is that much for something that you enjoy and that keeps you mentally and physically well. If you are trying to cut down on nights out then maybe keep that otherwise spare time can loom in quite a scary way. Also look at netflix/ iplayer type stuff for tv, much cheaper than sky and no tv license needed if not watching live.

andyfromotley

Karen777 wrote: »

hi - agree with what others have said - I would caution against cancelling gym membership though. I don't think 25 quid a month is that much for something that you enjoy and that keeps you mentally and physically well. If you are trying to cut down on nights out then maybe keep that otherwise spare time can loom in quite a scary way. Also look at netflix/ iplayer type stuff for tv, much cheaper than sky and no tv license needed if not watching live.

Hi Karen,

would you advise this even though he does not have enough money to pay his bills, and every month his debt is growing? Cant agree with that. Yes it could be the first thing to reinstate but until he can balance his books, (which may be very soon) it has to go imo.

esbm

andyfromotley wrote: »

Hi Karen,

would you advise this even though he does not have enough money to pay his bills, and every month his debt is growing? Cant agree with that. Yes it could be the first thing to reinstate but until he can balance his books, (which may be very soon) it has to go imo.

Agree. I'm ver pro exercise, but there are tons of ways to exercise free