Trying to Tackle Debt

benlwatts

Hi,

This is the first time i believe i've posted so hopefully there is help out there for me.
My partner and i are trying to reduce our credit card debts.

I've registered with a few credit score sites which would suggest that my score is boarding on the poor side, which i don't understand as i've never missed a payment.

We've been looking at ways to reduce or debt and manage the amount and have looked into 0% balance transfer credit cards and debt consolidation with low interest loan.

However whenever i fill out an application for credit cards i get turned down or the ocassional yes but with a reduced limit so i wouldn't be able to transfer the whole amount which is no good.

for the loans i fill the whole application out only to be told yes your approved but not with the low interest.

This is begining to really frustrate me as i'm trying to pay off and make my debt more manageable but cant'

Any help would be most appreciated.

Ben

Kitten868

Getting all your debt onto 0% is very attractive when you're trying to reduce your debt but working out why you're in debt and reducing your outgoings will have a much bigger impact.

Look at doing an SOA and the snowball calculator. Have a look at the diaries on here and start your own.

You will get there xxx

Kitten868

Oh and stop applying for credit - that's why your rating is down the pan. Give it six months and pay it all down and you'll start getting offers from your creditors x

benlwatts

Hi Kitten,

Thanks for your reply,

What is SOA?

MallyGirl

benlwatts wrote: »

Hi,


However whenever i fill out an application for credit cards i get turned down or the ocassional yes but with a reduced limit so i wouldn't be able to transfer the whole amount which is no good.

Ben

transferring some of it to 0% would have been better than nothing.
You could have paid off some at the higher APR then asked for that limit to be reduced so overall you would have no more credit exposure but some would be costing you less.
I think you are shooting for the moon to get a 0% card that covers the full amount of your current debt - better to address it in bitesize chunks

Kitten868

Statement of affairs. You plug in your income and outgoings and see where you can make cutbacks. There are links on here but I can't put them on. You can google it.
Use your last 3 month statements and get an average so you know where your money is going x

benlwatts

Below is my SOA done to the best of my knowledge. i've seen a few areas which could be cut such as cigerettes which is easy for me to say as i'm not the smoker and cutting back on entertainment costs. Gas usage is combined with Electricity as its one bill. Main issue we have is that my partners income tends to fluctuate from anything to as low as 1400 to 1800 as its tied to business sales and performance.

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1169.21
Partners monthly income after tax....... 1500
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2669.21

Monthly Expense Details
Mortgage................................ 632.3
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 132.75
Electricity............................. 75
Gas..................................... 0
Oil..................................... 0
Water rates............................. 47
Telephone (land line)................... 0
Mobile phone............................ 120
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 150
Road tax................................ 4
Car Insurance........................... 88
Car maintenance (including MOT)......... 4
Car parking............................. 75
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 31.34
Buildings insurance..................... 16.25
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 15.25
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 50
Holiday................................. 20
Emergency fund.......................... 20
(Unnamed monthly expense)............... 0
Cigerettes.............................. 120
Lunch Meals............................. 97
Amnesty................................. 3
Wedding ................................ 150
Currys.................................. 6
Total monthly expenses.................. 2089.01


Assets
Cash.................................... 0
House value (Gross)..................... 170000
Shares and bonds........................ 200
Car(s).................................. 8000
Other assets............................ 0
Total Assets............................ 178200


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 150000...(632.3)....3
Total secured & HP debts...... 150000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Everest........................5000......101.3.....0
Barclaycard....................7250......184.......21.9
Lloyds Credit Card.............5000......150.......18.9
Engagement ring................3000......60........0
Total unsecured debts..........20250.....495.3.....-


Monthly Budget Summary
Total monthly income.................... 2,669.21
Expenses (including HP & secured debts). 2,089.01
Available for debt repayments........... 580.2
Monthly UNsecured debt repayments....... 495.3
Amount left after debt repayments....... 84.9

Personal Balance Sheet Summary
Total assets (things you own)........... 178,200
Total HP & Secured debt................. -150,000
Total Unsecured debt.................... -20,250
Net Assets.............................. 7,950

Created using the SOA calculator at stoozing.com
Reproduced on Moneysavingexpert with permission, using other browser.

MallyGirl

benlwatts wrote: »

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1169.21
Partners monthly income after tax....... 1500
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2669.21

Monthly Expense Details
Mortgage................................ 632.3
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 132.75
Electricity............................. 75
Gas..................................... 0
Oil..................................... 0
Water rates............................. 47 high - get a meter
Telephone (land line)................... 0
Mobile phone............................ 120 crazy high
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200 high for 2 people
Clothing................................ 0
Petrol/diesel........................... 150
Road tax................................ 4
Car Insurance........................... 88
Car maintenance (including MOT)......... 4
Car parking............................. 75
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 31.34
Buildings insurance..................... 16.25
Contents insurance...................... 0 is this included in buildings?
Life assurance ......................... 0
Other insurance......................... 15.25 for what?
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 50
Holiday................................. 20
Emergency fund.......................... 20
(Unnamed monthly expense)............... 0
Cigerettes.............................. 120 give up - you can't afford itt
Lunch Meals............................. 97 take packed lunch
Amnesty................................. 3
Wedding ................................ 150 for how long
Currys.................................. 6
Total monthly expenses.................. 2089.01


Assets
Cash.................................... 0
House value (Gross)..................... 170000
Shares and bonds........................ 200
Car(s).................................. 8000
Other assets............................ 0
Total Assets............................ 178200


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 150000...(632.3)....3
Total secured & HP debts...... 150000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Everest........................5000......101.3.....0
Barclaycard....................7250......184.......21.9
Lloyds Credit Card.............5000......150.......18.9
Engagement ring................3000......60........0
Total unsecured debts..........20250.....495.3.....-


Monthly Budget Summary
Total monthly income.................... 2,669.21
Expenses (including HP & secured debts). 2,089.01
Available for debt repayments........... 580.2
Monthly UNsecured debt repayments....... 495.3
Amount left after debt repayments....... 84.9

Personal Balance Sheet Summary
Total assets (things you own)........... 178,200
Total HP & Secured debt................. -150,000
Total Unsecured debt.................... -20,250
Net Assets.............................. 7,950

Created using the SOA calculator at stoozing.com
Reproduced on Moneysavingexpert with permission, using other browser.

thought above in red

benlwatts

Wedding savings until November this year. The cost of the cigerettes is an estimate but i agree my partner should give up or at least try and cut back by £100 per month. Water meter may not be benefical as have a lodger who will be joining us in June at £200 per month.

Agree the mobile phone cost is excessively high and i was unaware how high it was (this is for 2 mobile phones, partners phone has allowance for international calling so that she may call her family in europe) but will be looking into this more later. Grocieries i've included pet food and pet sundries such as litter etc

Contents insurance is covered by building insurance
the other insurance is for boiler breakdown cover. We recently moved into a house which has an ageing boiler close to 15 years old. So have this maintenance cover for the time being until we can afford the cost for it to be replaced.

Ebe_Scrooge

benlwatts wrote: »

Wedding savings until November this year. The cost of the cigerettes is an estimate but i agree my partner should give up or at least try and cut back by £100 per month. Water meter may not be benefical as have a lodger who will be joining us in June at £200 per month.

Agree the mobile phone cost is excessively high VERY HIGH ! and i was unaware how high it was (this is for 2 mobile phones, partners phone has allowance for international calling so that she may call her family in europe Can you not ditch this and use Skype instead ?) but will be looking into this more later. Grocieries i've included pet food and pet sundries such as litter etc Still high, try Lidl/Aldi

Contents insurance is covered by building insurance
the other insurance is for boiler breakdown cover. We recently moved into a house which has an ageing boiler close to 15 years old. So have this maintenance cover for the time being until we can afford the cost for it to be replaced.

My thoughts above. Additionally :


Internet Services....................... 0 - Do you not pay for broadband ?
Car parking............................. 75 - I realise you may be somewhat restricted on this, but is there any way you can cut this down ?
Other travel............................ 20 - What's this ?
Entertainment........................... 50 - That's quite a lot every month for just 2 people who are trying to make budget cuts
Lunch Meals............................. 97 - That's a lot, you can make packed lunches for a fraction of that.
Amnesty................................. 3 - what's this ? OK, it's only 3 quid, but as Tesco would say ......



Hope this helps

benlwatts

Ebe_Scrooge wrote: »

My thoughts above. Additionally :


Internet Services....................... 0 - Do you not pay for broadband ?Covered in a TV/Phone/Internet package (Virgin "Rubbish" Media)- Looking into terminating cost of terminating contract early or down grading
Car parking............................. 75 - I realise you may be somewhat restricted on this, but is there any way you can cut this down ?This is a cost from my partner but i believe this maybe lowered if she can car share, which she is looking at doing
Other travel............................ 20 - What's this ?Cost for yearly 1 week visit to see family in europe
Entertainment........................... 50 - That's quite a lot every month for just 2 people who are trying to make budget cuts This I agree can be cut
Lunch Meals............................. 97 - That's a lot, you can make packed lunches for a fraction of that. Yes I can, just need to get into the habit of doing it
Amnesty................................. 3 - what's this ? OK, it's only 3 quid, but as Tesco would say ......Charity donation



Hope this helps

For the mobiles the skype thing has been thought of but her mum lives in a remote area so signal isn't great for data and surprisngly doesn't have an internet connection. I originally calculated the cost of the 2 phones to be more along the lines of £80 so need to call up and ask about the difference

as for food we have started using Lidl/Aldi and this has already reduced it down to about £120 this month the figure stated is going on what we used over the past 3 months.

answers in red and noted.

Will definitely be starting that expenditure diary, fully track my expenses.