SOA - not mine - member here who doesnt want to be named...

sammiboo

Good Morning all

Yesterday I recieved a PM from a member who wanted help getting their debt sorted.

They are too scared to post it on here, eventhough I have told them there is nothing to be scared of. As they wouldnt I have offered to post it up on their behalf as there is only so much advice I can give and this person does need advice from as many people as possible.

So here goes

Well here goes - (not 100% sure of all the interest rates)

Wage - £1010 - monthly


Outgoings - board £80

Barclay card (15.9%?apr) £81 a month (£3700 left - min payment is all i can afford to pay)

Goldfish card - (don't know interest) £39 a month (again min payment) - £1900 left

Argos store card (22%?apr) £56 a month (£1300 left)

Addition - (19% arp?) £60 a month - (£1300 left)

Natwest card - (don't know apr) £8 a month (£362 left)

Capital one (don't know apr) - £25 a month - £480 left

lloyds card - (don't know apr) £5 a month - £150 left


Nawest loan - £220 a month - £9902 left



Petrol - £30 a month

Mum and dad pay car insurance at the mo (until it needs renewing in nov!!!)


Phone bill £42.50 a month


Spend on treats etc - about £40 (inc entertainment)

Luch for work about £40 a month

The maths:

Debt:

£19094

Monthly paments

£494 on debt repayment

£237.50 everything else

Total of monthly payments:
£731.15

Wage
£1010

Left: £287.85

I have offered advice over PM

The said person has told me that they have been refused 0%/low interest cards to shift some of the debt on. Thought i would add that before anyone suggests it

climbgirl

there's not much slack here to cut back in the budget really, the phone is high and could be cut.

What's the situation with the car? Is selling an option? Cars cost a lot to run and not having one would help (and maybe bring in some cash to throw at the debt from the sale). Is public transport an option?

Given that there's not much slack in the budget to cut back, the only real option is to get a second job to bring in more money.

floss2

I agree, especially if the car insurance has to be paid from thin air from November.

Only suggestion I would add is maybe look at taking packed lunches, but even if the phone is cut down too, it doesn't equate to the shortfall.

Lots of places are starting to advertise part-time jobs for Christmas - a few months of extra work could clear the last 3 off the debt list, and make a hole in the next one.

Hope this helps your pal, Sammiboo.

katiekittykat

A second job would mean being taxed more, so wouldn't really be worth doing?

katiekittykat

This may sound like a daft question but when i add them all up i don't get £826? I get £494???

Am i adding up wrong?

Dr_Hook

katiekittykat wrote: »

A second job would mean being taxed more, so wouldn't really be worth doing?

It'll be taxed at basic rate but it's still worth doing!

katiekittykat

I thought you got taxed more for having a second job? (sorry i can never get my head round tax etc!)

Dr_Hook

katiekittykat wrote: »

This may sound like a daft question but when i add them all up i don't get £826? I get £494???

Am i adding up wrong?

If you are adding up wrong, I must be too - definitely make it £494

Cazzdevil

katiekittykat wrote: »

This may sound like a daft question but when i add them all up i don't get £826? I get £494???

Am i adding up wrong?

No, I get £494 too...

Dr_Hook

katiekittykat wrote: »

I thought you got taxed more for having a second job? (sorry i can never get my head round tax etc!)

You don't get the allowances, i.e. no tax on the first £5,220 (depending on tax code) you earn and 10% on the next £1k-ish, so pay 25% on everything you earn in your second job, but that still leaves 75% to throw at debts.

katiekittykat

Right i understand now - i never get tax!!!


So maybe they could do mystery shopping to get extra income?