Ems needs help

xemsitx

Im new to this so please bear with me

I'll write a list of my debts and if anyone has any suggestions on how I can sort this out anything will be greatfully recieved!

Right, here goes

£15034.32 HSBC loan (not too sure but think the APR is about 11%)
£4754.46 7.7 % cahoot loan
HSBC credit card £1904.00, this is 0% until next jan
Marks and spencer £1175.00 17.9% (I have also withdrawn some cash on this approx £150.00, which i know is a much higher apr!)
£250.00 next directory which is approx 20%

At the moment I take home approx £950 per month, sometimes slightly more somethimes slightly less as I work on commission as well as a basic salary. I live at home with my parents so don't have too many other outgoings.

Car insurance £26.00
Phone bill approx £45.00 per month
Petrol £50 per month
RAC £12.95 per month

at the moment my re-payments look something like this
HSBC £268.47
cahoot £169.06
credit card hsbc £54.00
m&S £ 30.00
next £40.00

I also try and pay £80 per month housekeeping.

I would also like to budget enough for some socialising, but obviously the bills come first.

All help greatfully recieved!!

chevalier

I would suggest you get your credit report as a first point of call. If you go via www.quidco.com, you can get a months free trial from Experien (just make sure you cancel it before the end of the trial). If you credit score is still good, then maybe you can apply for a low life of balance credit card to transfer some of the higher apr debt onto?

Can you get another job? £950 a month is not very high with your commitments, and with Christmas coming there is a lot of temp work around.

The other thing that stands out is RAC. This seems very high. I think you can get cover cheaper with another provider. Also if you have a high spec current account, check that you don't get break down cover as part of the package.

Lastly do your parents know about the debt. If they let you of the housekeeping for 3 months this would pretty much clear your Next card.

chev

xemsitx

yeah mum knows and has let me off, for a few months,

Im on the hunt for a new job have been doing cv's etc to sort that one out.
I will look at my credit rating, thanks for your help.

poodlehorse

So assuming you pay the £80 housekeeping you have £174.52 left over. If my maths is right.

Do you really need the RAC? I know it is nice to have but I am 35 and used to commute to work in the middle of nowhere so if I did break down I would have been at the mercy of a local farmer and I have never had a problem. I wonder if it is worth the "risk" although I guess that depends on how reliable your transport is. The other obvious thing is the phone. Do you really need it? And what do you spend £45 on? If this is a contract then I would reduce it and try and work on restricting your spend. PAYG if possible if you really feel you need a mobile. I think it often becomes a habit to call/text people. Remember the days when we didn't have them? We managed just fine. That is an extra 57.95 a month if you can go cold turkey on the phone but any less would be a help.

Make sure you take a packed lunch from home rather than buying at work etc. Look at the snowball calculator to see how best to pay back your debts but that NExt one wouldn't take too much to kick into touch (no more spending on it mind, chuck that directory in the bin right now) and that is 20% so you want that gone. and then get that M&S one gone although that will take time.

NExt you need to increase your income, can you get a better paid job, a second job? Christmas is coming so you should be able to pick something up easily enough unless you already work shifts. Although if you are commission based then I guess that is a big motivator. And then there is the sell everything you own and can feasibly do without on Ebay or carbooters etc. Also join the likes of Pigsback and Quidco and make sure you do the free daily clicks etc. and go through them for any spending you HAVE to do.

And take heart, it can be done. IT might seem like a long hard struggle and I can't pretend it won't be but there are ways to make it more of a game (see how much extra I saved this month etc) and I know people are often loathe to admit to their parents but maybe if you could they would rally round and help you come up with a plan, maybe if you can save them money on their groceries they can take the difference off the housekeeping or whatever. BTW does your mum use all her Tesco Clubcard points? Heaps of people never bother using them and you can sell them on Ebay too. Just try and chuck as much extra cash at your target debt as you can, just a few extra quid paid in early can make a difference long term. Good luck

Ooops sorry that post took so long to write you already answered about your parents

david_hellier

Hi and welcome.

The others are more expert at cutting back, but the RAC subscription is a rip off. Check out the other options.

According to my figures you have £39.71 per week to spend on yourself or from which to make a contribution to the housekeeping. In my figures I have assumed car tax at £150 per year and no car service. You would do well to stay at home for the time being until your income rises.

You would be much better off if you could do without a car. Cars are a very costly form of transport.

I suggest you cut up your CCs and pay off the Next account asap. Next charge an unreasonably high APR. If you can sell the car, pay off your highest APR debts first.

Good luck, the figures:

incomeweeklymonthlyself £ 950.00 partner total0.00950.00divide by 4.33 £ 219.23 £ 219.23 total weekly incomespendweeklymonthlyrent/mortgage £ - council tax £ - elec £ - gas £ - water £ - secured loans £ - TV licence £ - fines £ - Car Ins £ 26.00 Car Tax £ 12.50 phone £ 45.00 petrol £ 50.00 rac £ 12.95 hsbc loan £ 268.47 cahoot loan £ 169.06 hsbc cc £ 95.20 M&S cc £ 58.75 next £ 40.00 total0.00 £ 777.93 divide by 4.33 £ 179.52 £ 179.52 total weekly spendStart= income - spend = £ 39.71 per week

robnye

are the repayment figures for hsbc, m&s the minimum payments.
if they arent then reduce to minimum and throw excess at next store card.
check out www.moneysupermarket.com for cheaper breakdown cover..... i pay £80 per year and it covers 2 drivers and 2 cars, and full home start cover

also as mentioned - you need to increase your income, whether it be by selling stuff on ebay or getting a 2nd job