Got to get debt free!

sunshine81

Hello,

I figured I need to start this diary for me, and if others want to contribute to help me along the way so be it.

I live with my OH, we have a little boy who is just one and our second son is due this October. We've had an up and down couple of years financially, with me having a period on SMP (and will be having another) and OH only just getting a permanent job, having worked for agencies and had periods of unemployment in the past.

So there have been periods when we've been short of money, but I've just buried my head in the sand, not paid some debts, shoved random treats on credit cards etc etc etc.

We moved house in October 2014, and since then the new tenant of the old house has been destroying our post, so all sorts of letters have probably been sent but as this idiot has been destroying them it has, to be honest, served as an excuse to bury my head in the sand further. This week the landlord of the previous property forwarded a couple of letters, and so I've had to sort this crap out!

I really want to get this sorted, my current credit rating on Noddle shows 1/5 and I hope by writing this diary we will be able to get debts sorted and even start saving.

OK debts:
Royal Bank of Scotland arranged overdraft: £180 (limit £200, get charged £6 per month for being in this)
Geoffrey Leaver Solicitor (Open Uni debt that has defualted): £496.37. Had to agree to pay £50 per month.
Santander arranged overdraft: £1400 (use this as current account, get charged around £30 per month for being in this)
Next account: £570
Simply Be account: £85
Tesco credit card: £2971 (£5000 limit, 1.3% monthly interest)
Barclaycard credit card: £3393 (£3500 limit, 0% on the balance transfer of £1000 for another 20 months, 18.9% on purchases)

Total: £9095.37

Ouch... where do I start....

belleandthebudget

Good luck Sunshine - you're sorting things out now and that's the important part! There's so many helpful people here to give advice and cheerlead when you need it.

sunshine81

[tt]Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1140
Partners monthly income after tax....... 960
Benefits................................ 82
Other income............................ 0
Total monthly income.................... 2182

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 600
Management charge (leasehold property).. 0
Council tax............................. 72
Electricity............................. 35
Gas..................................... 40
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 16.4
Mobile phone............................ 52
TV Licence.............................. 12
Satellite/Cable TV...................... 24
Internet Services....................... 7.5
Groceries etc. ......................... 170
Clothing................................ 0
Petrol/diesel........................... 140
Road tax................................ 20
Car Insurance........................... 70
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 320
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1618.9


Assets
Cash.................................... 2700
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2800
Other assets............................ 0
Total Assets............................ 5500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................3393......75........18.9
Tesco..........................2971......68........17.9
RBS overdraft..................180.......10........0
OH owes his mum................650.......25........0
Simply be......................81........7.........40.82
Next...........................570.......35........24.99
Open Uni ......................496.37....50........0
Santander overdraft............1400......0.........0
Total unsecured debts..........9741.37...270.......-


Monthly Budget Summary
Total monthly income.................... 2,182
Expenses (including HP & secured debts). 1,618.9
Available for debt repayments........... 563.1
Monthly UNsecured debt repayments....... 270
Amount left after debt repayments....... 293.1

Personal Balance Sheet Summary
Total assets (things you own)........... 5,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -9,741.37
Net Assets.............................. -4,241.37

[/tt]

jwil

Good luck

The cash savings you have - are they for your next maternity leave? If not, could you clear a couple of small ones with that?

Alternatively, what about putting Simply Be and Next on the Tesco card as the interest is a lot less there?

sunshine81

Thank you.. started this morning by ringing the utility companies with accourate readings. I am £116 in credit with water, and £120 with gas and electric, so those refunds are on their way.

The cash savings we have are supposed to be going to replacing my car, as I am expecting my second child and I can't get two car seats and a double buggy in there (I have tried!)

Ooh that's a really good idea about putting Next and Simply Be on my Tesco card, then I can close the accounts with them so I don't need/want to use them again. I would never have thought of that!

twiggy86

I just wanted to say good luck!

Also (appreciate this involves spending money when you're trying to save) if it would help you to sort everything out, you could pay to redirect any post sent to your previous address in your name. I think it's £50-£60 for a year. Alternatively, (and probably the best option) make sure you update your address with everyone.

I agree with jwil - I'd either pay off the Simply B completely or use the Tesco CC as that is a very high interest rate.

sunshine81

Thank you! I really should have redirected the post when we first moved. I am pretty confident there's nothing that will go there now so I won't redirect and call it MSE!

I am going to see how much I get paid next Friday, as I work shifts my wage can vary, if the enhancements are over £80 I'll pay simplybe off and if it's not I'll put the excess on the credit card to close simplybe. I should have done that months ago!

Another MSE win and a loss today... Sky would not reduce my package any further as I'm already getting 20% off TV. I'm in a contract until December so I think I'll leave it until then, ask for a freesat box for Christmas and then look at cheaper broadband and phone. My maternity pay doesn't drop until April next year, so I can cope!

As a win though, I complained to RBS as when trying to pay my unauthorised overdraft they passed me around for over 2 hours. The phone call, on my mobile, cost £30 as I stupidly did as they told me to and rung the 0845 number. Anyway they've agreed to credit my RBS account with £50 to cover phone call cost and compensation, so I now owe RBS £130 rather than £180.

Done some swagbucks and one poll over lunch, they're not as good as they used to be though.

sunshine81

Followed all the MSE advice and can reduce OH's car insurance from £75 to £35 per month and get £45 cashback! Will get him to check his renewal date later and get that done, that'll be £40 a month off debt too x

jwil

Great start!

sunshine81

Been a busy day today, unfortunately not a no spend one due to a hospital appointment where they charge £3 to park!
Received an email from United Utilities (water), my direct debit will be dropping to £30 from £40 as of next month, another £10 towards debt payments! Also spoke to o2 via online chat to see if OH could reduce his tariff, you used to be able to reduce it half way through your contract, but not anymore. So that will have to wait until December, and it's only £25 anyway.

Tomorrow OH gets paid, he's promised to check his car insurance renewal date so we can get him changed to the cheaper policy and apply online to switch his current account to one with a switching bonus.

So, still work to do...

sunshine81

Not a lot for me to do today, waiting for OH to get home so we can do the current account and car insurance.

But I've been thinking about the Open Uni debt that has defaulted. I haven't had any notices that the amount was going to be defaulted, I received emails asking me to contact them to discuss the account, but nothing more. I'm a bit stressed that it's going to stay on my file for 6 years despite that fact I will be paying it all off, is there anything I can do? It doesn't even show on my Noddle credit file at the minute.