I'm in a mess

crystal101

Hello....I need some advice desperately!

I have a lot of debt left over from my younger years and don't know what to do to get rid of it.

I currently earn £17,000 per year and have £6000 on a credit card. I can't balance transfer because I am not allowed such a high limit because of my low salary...

Out of my £1100 every month, I currently spend £750 on mortgage, food, bills etc, then £200 on credit card repayments, £10 on a mobile phone, £10 on a Microsoft package I need for work and around £50 on petrol which leaves my with £80 a month left over for other stuff...stuff which KEEPS popping up - family coming to stay, birthdays, weddings etc etc, I can't seem to get a break from things.

I have about £20 in savings and I don't know what to do to clear this damn credit card, it would make SUCH a difference to me to have that £200 a month. I would love to have a baby with my partner but can't until I clear this debt, it wouldn't be right, but I am getting on now and it feels like i will never happen!

Any suggestions about what to do? I am going to apply for uniform tax, I have no idea if I qualify for PPI (I got this credit card about 7 years ago?), I have a few bits to sell on ebay but it wont amount to much...I'm out of ideas! I can't borrow off anyone...I have no idea what to do? I have looked at my eligibility on other cards but I can get a maximum of about £1200 and I don't know if I am savvy enough to get 4 of them and move my money around and I have NEVER missed a payment and don't plan to...

jayII

Can you balance transfer part of it to just one or two 0% or low rate cards?

Then you could focus on paying off the remainder on your current card (just make minimum payments on the 0% / low interest cards at first), before tackling the transferred balance.

ETA: also post up an SOA so that people can suggest areas where you can cut back.

crystal101

I pretty much have posted my SOA - that is all my spending! I cant cut back on petrol or my mortgage, spend the basics on food and am going to swap my electric over again once I have paid the current bill, can't swap my water...

My only worry with that is remembering to pay the all every month, I really dont want to miss one and risk a black mark?

jayII

You should be able to set up direct debits (for minimum payments) when you do the balance transfer, or immediately afterwards

That's the safest way because the card company takes the payment when it's due, which avoids any problems with payment dates changing or payments being delayed due to bank holidays and so on.

sourcrates

How much debt do you have from your younger years ?

I'm assuming this 6 k on the credit card is "new" debt yes ?

Is the old debt still on your credit file, have you checked your credit file recently ?

Pixie5740

What do in your OP isn't pretty much your SOA that's why things keep popping up. Things shouldn't keep popping you should already have budgeted for them. You need to look at the whole year as well and not just your monthly outgoings.

fatbelly

If you don't want to post a SoA, that's fine - I guess what you're asking is pretty much 'how do I deal with owing 6k on a high-interest credit card?'

1. Get copies of your credit reports from the three agencies, check info on there is correct and take basic steps to improve things

http://www.moneysavingexpert.com/loans/credit-rating-credit-score

Set up a direct debit to make the minimum payment on the card, plus the mortgage and the mobile - those are the only things likely to report a late payment to the credit agencies.

2. If you have ever paid ppi, claim it back

http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

3. Try for a 0% balance transfer

http://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards

If you have to go for a poor credit credit card, try for Barclaycard Platinum and use the pre-eligibility checker first - other options may be aqua and capital one.

You'll still pay the minimum payment each month but (after the initial fee) it will all go to paying down the debt.

4. Get cashback on everything you can. TSB are offering £250 if you switch bank account to them and use it actively. You can get cashback on that Barclaycard through Topcashback, plus cashback on most insurance products and a ton of other things

AFK_Matrix

If you are struggling in anticipating expenses popping up I can highly recommend YNAB (You Need A Budget).

This will help you portion out your monthly paycheck to things you need to pay for this month and then things you know you need to save up for. So Xmas, insurances etc, you put a little away each month and then by the time you get to having to pay for it you have the money saved.

This program has helped me huge amounts and I now have no worries about upcoming payments and have a decent amount saved.

Others on here use the software, go take a look.

ada-or-ardor

The only other thing I could say, to echo the previous posters who say there is more benefit to doing an SOA and clarifying your budget (it's not all just in your OP - what about haircuts, dentist, when you need medicine, when something goes wrong with the house...), Is to have conversations with your nearest and dearest and ask for a present amnesty for a year. You can limit what you spend on other people, and sometimes you just have to.

However, I would suspect there's more holding you back than birthdays and Christmas, hence why it's always recommended to post a full SOA based on real spends over the past few months.

BettyBoof

I second doing a budget and recommend YNAB too - it's life changing for many people! Tracking ALL of your spending will show up any little holes which you can fill or overspends you hadn't considered. By giving each pound you have a job, (and you can start any day, you don't have to wait until payday) you get a really clear picture of your finances. It can all be changed as and when it's needed - e.g. I had allocated some money for a course I wanted to do but the car broke down so I moved the money from my education 'pot' into my car 'pot'. Of course I'll have to wait until next month before I can do my course but it's so nice to know that the money is there for the car and there's no need to even consider using credit. It really changes how you think about money in my experience. Google YNAB - you can get a free trial.

I also second getting a 0% balance transfer card or two and transferring as much as you can from your £6k card. You might not be able to transfer the whole balance but paying 0% on even a grand or two will save you a lot of money. You don't need to be too savvy, just set up direct debits to pay the minimum on the 0% interest card/s and pay down the original one as fast as you can. As soon as that is paid off, funnel the money from that repayment into the 0% interest cards - again, direct debit will mean you don't miss a payment - and they'll be gone before you know it.

mangle101

You mention having a partner, I assume you don't currently live together as you pay the mortgage, bills etc etc Could you move in together to halve your monthly outgoings?