A new start but some help needed

kb_soma

Hey, welcome to the forum. This is a great place to start and there are some brilliant minds on here. I'm sorry to hear about your situation, but you're totally in the right place to get started.

Your future starts now

I cleared my debt with a debt management plan - I set this up with stepchange and they were fantastic. If you decide to not go down the route of borrowing more money, I would advise you do this.

There are forums on here who offer mutual support and there is a wealth of knowledge from these guys: https://forums.moneysavingexpert.com/discussion/5623951

Good luck.

enthusiasticsaver

Pay it off in order of most expensive first. That means Tesco, MBNA and the rest to reduce the Barclaycard. If your mum is asking for £500 per month then you have the loan payment, M and S and the HSBC overdraft plus remainder of BC. Make sure you close some of those cards down so you don't get in a mess again. That is still almost £23k of debt left so things will be tight for a while on your income but if your dad is willing for you to stay rent free that will help. That mobile phone bill is obscene. I pay £11 sim only for my husbands phone and £15 for my Samsung contract phone.

[Deleted User]

Are any of the debts solely in your wife's name?

[Deleted User]

ANewStart wrote: »

Mobile phone............................ 75

This is a crazy amount, to be paying for a mobile phone. :eek:

ASAP, go PAYG/sim only, for around £10 pm.

Satellite/Cable TV...................... 30

This is money you could be putting toward your debts.

Cancel ASAP.

Amount left after debt repayments....... 267.5

Why isn't some (ie. most) of this being put toward your debts :huh:

At the current rate of paying, your Tesco debt will take will take 50 months to pay off, and cost you £2,863 in interest.

If you went PAYG/sim only, for £10 pm, and cancelled your pay TV, you would have an additional £95 pm, that you could put toward Tesco.

That would reduce the repayment time to 26 months (almost halving it), and the interest to £1,357. That's over £1,500 in interest saved.

If you also put say £200 (of the £267-50) you have left over, toward it, you would have it cleared in 13 months, and pay just £634 in interest.

ANewStart

My mobile phone is with o2 and the 24 month contract ends in September.
The 75 is 35 for the tariff and 40 for the phone as that's how o2 now work their contracts.

The sky tv/internet is what I pay at my dads as a deal for him letting me stay there rent free so I cant really moan about that.

From 1st June I am going to be so strict on myself and pay off every last pound I can towards my debt each month with spending minimal money.

I just want a plan in place as I know if I have something there I will be strict and stick to it.

I was thinking of paying off the overdraft as I never know when the bank could ask for it back and I obviously wouldn't have the cash to clear it.

****UPDATE****

I have just obtained my login for my MBNA online and my interest isn't as bad as I thought it was so here is what it is......

Unsecured Debts
Description.................... Debt...... Monthly.. . APR
M&S............................ 8200...... 202...... . 15.9
BARCLAYCARD....... 6500...... 145...... . 18
MBNA........................... 5220...... 63....... . (2,764 @ 4.84%, 2,456 @ 0% until Oct 2018)
HSBC OVERDRAFT... 1800...... 0......... 15
LOAN........................... 10930..... 232.5.... . 0
TESCO.......................... 5275...... 165...... . 23.65
Total unsecured debts. 37925..... 807.5.....-


I have 1,000 available to pay debts off if I stick to my plan so would you tackle the following…

Tesco (full)
Barclaycard (full)
Overdraft (full)
M&S 8,200 to 6,800 (1,400 off)

ANewStart

So I have just done my snowball calculation based on my debts now without the £15k loan I will get from my mum within the next few months........


These are all up to date and fully accurate, could I please have thoughts on where to allocate the 15,000 once I get it as I think I should stick to this snowball plan until then



unsecured debt balance interest payment end balance snowball
Tesco 5275 94.15 165 5204.15 no
mbna 2 2456 0 29 2427 no
Barclaycard 6500 90.27 145 6445.27 no
m & s 8200 101.45 202 8099.45 no
overdraft 1800 21.09 20 1801.09 no
mbna 1 2764 10.91 34 2740.91 no
loan 10930 0 232.50 10697.50 no
TESCO 5204.15 N/A 172.50 5031.65 YES

Jadin

Hi,

This is my first post here, and I mean no harm with any of the below, just counting.

ANS, I understand you are living with your father, and only need to pay for the satellite/cable TV bill, but don't you have other, occasional outgoings, like toiletries, replacing worn out clothes, etc.?

Also, I'm wondering how much would actually be left of the spare cash once the £15 thousand loan's monthly installments are in place. I've read your comments where you plan the rate of overpaying, but did you deduct the £500?

Although you will need to pay less for the minimum amounts toward the banks, but with the £500 to pay to your mum, will actually have much less for overpayments. (I'm not saying it's not a win situation, as this loan would mean paying much-much less in interest.)

If you pay back, for example, Tesco, MBNA, and the bigger part of Barclaycard, you will be paying less by about £358, theoretically. But you will be paying this, plus another £142 to your mum. So your left over money will be around £125.

Tesco............... 5275..... 165
MBNA............ 5220........ 63
Barclaycard..... 4505..... 130
........................15000..... 358

Remaining minimums:............. 449.5
Payment to mum:..................... 500
Overall minimum repayments:. 949.5

Available for repayments:............... 1075
Overall minimum repayments:........ -949.5
Remaining money to allocate/OP:.... 125.5

Good luck with your repayment journey!

ANewStart

Every angle I look I have different thoughts on which debt to clear with the loan from my mum....


From the snowball plan I have calculated the total interest I would be charged over the 46 months it will take to be completely debt free and this is what it is....


TESCO - 965.30
MBNA 2 - 116.87
BARCLAYCARD - 2,340.48
M & S - 2,838.73
OVERDRAFT - 970.14
MBNA 1 - 391.32


The Barclaycard will definitely have to be the first to go as that will save me a huge amount on interest.
The M & S card has a low interest rate but the largest amount on it, would I clear that aswell.




PLEASE help me decide which route to take as the more angles I look at it I come up with different ways.....I NEED a definite plan for when I get this money off my mum

Jadin

ANewStart wrote: »

PLEASE help me decide which route to take as the more angles I look at it I come up with different ways.....I NEED a definite plan for when I get this money off my mum

I think it would be easiest to stick to what you feel most comfortable with (whether that be the choices others have offered, or the ones that you have come up with), because if you are left with doubts, you might be more inclined to drift from the plan.