Statement of my Debts

InDebt2007

Hey everyone,

Like the old adage goes - it's easy to get into debt but hard to get out of it.

I don't have a great deal of it but I wouldn't mind paying it back and if possible maximising my profits.

I don't currently have any problems with my debts, but they are still very annoying, in context;

£940 unauthorised overdraft - my business partner spent spent spent and then went to America, without paying back the debt, so he could be with his girlfriend. 30% annual interest rate and £30 admin charge and a £30 charge for something else. I talk to him on a weekly basis and he sends money over but I wish he would stop living the life of riley in America and come back and shift this debt he created - though it's my debt as well it seems because I am his business partner on paper, on accounts etc.

£4000 personal loan. I mainly got this out for the business, I kept £2k for me, to spend on doing up my car, put £1k in my businesss partners savings account and £1k in the business account (which is now overdrawn).
Total repayable £4552 (8.9% interest rate). I am keeping up with repayments - interest rate seems a bit high though, anyway I can save money on this?

£3,500 Student loan. This will come out of my wage, but only when I'm earning £15k or graduated, I'm not graduated or earning £15k yet. So not too worried about this one. Although I'm not going back to University until my other debts are paid back, seems to make the most sense to me.

£500 personal overdraft. I was charged £40-£50 for going over it, when it was £300. The car insurance payments £90/month and the loan repayments of £126/month haven't helped.

At the moment, I'm around £240 overdrawn, interest free thankfully but still annoying when it doesn't shift. I have taken the step of taking on a second job so I can pay back my overdraft but not too fond of the idea of paying back the unauthorized overdraft as I didn't make that account overdrawn.

With regard to savings, I have £1300 in a Cash ISA and around £100 in another savings account. I don't very much like the idea of touching any of these, but the £100 savings account is taxed on interest and the £1300 cash ISA is only 5.75% interest - around £75 if I leave the £1300 in the account.

With regard to outgoings, £126 for the loan, £90 on car insurance (until May) £140 on food and travel to and from work, (£15 travel, £15 food) £6/week on leisure (my maximum, enough for a cinema film as I'm trying to pay back that overdraft). £25/month on garage rent . So around £391 outgoings a month.


Any help and advice much appreciated,

Thanks!

Karmacat

Hi there

And welcome to mse - I'm snipping in to what you've written.

InDebt2007 wrote: »

Hey everyone,

Like the old adage goes - it's easy to get into debt but hard to get out of it.

I don't have a great deal of it but I wouldn't mind paying it back and if possible maximising my profits.

I don't currently have any problems with my debts, but they are still very annoying, in context;

£940 unauthorised overdraft - my business partner spent spent spent and then went to America, without paying back the debt, so he could be with his girlfriend. 30% annual interest rate and £30 admin charge and a £30 charge for something else. I talk to him on a weekly basis and he sends money over but I wish he would stop living the life of riley in America and come back and shift this debt he created - though it's my debt as well it seems because I am his business partner on paper, on accounts etc.

What's the business? Do you want to stay in business with him? Will he do this again? If you're linked to someone living the life of riley and you have to pay for it....... um, sorry, but you're not particularly in a safe position. And what's the charge for this overdraft - see below for what I've written about Statements of Affairs.

Are you charging the right amount for whatever it is you produce? *Can* you produce it with your business partner out of the country?

£4000 personal loan. I mainly got this out for the business, I kept £2k for me, to spend on doing up my car, put £1k in my businesss partners savings account and £1k in the business account (which is now overdrawn).
Total repayable £4552 (8.9% interest rate). I am keeping up with repayments - interest rate seems a bit high though, anyway I can save money on this?

Yes, there are cheaper loans - you can do a search for them, I think the min. is about 6.4% at the mo.

£3,500 Student loan. This will come out of my wage, but only when I'm earning £15k or graduated, I'm not graduated or earning £15k yet. So not too worried about this one. Although I'm not going back to University until my other debts are paid back, seems to make the most sense to me.

£500 personal overdraft. I was charged £40-£50 for going over it, when it was £300.

So are you charged for this or not ? Can't make it out, sorry.

The car insurance payments £90/month and the loan repayments of £126/month haven't helped.

Um, no :rotfl: Can you get the insurance cheaper?

At the moment, I'm around £240 overdrawn, interest free thankfully but still annoying when it doesn't shift. I have taken the step of taking on a second job so I can pay back my overdraft but not too fond of the idea of paying back the unauthorized overdraft as I didn't make that account overdrawn.

Is this a second overdraft?

With regard to savings, I have £1300 in a Cash ISA and around £100 in another savings account. I don't very much like the idea of touching any of these, but the £100 savings account is taxed on interest and the £1300 cash ISA is only 5.75% interest - around £75 if I leave the £1300 in the account.

Read Martin's articles on the main site about having savings while owing money. If you still want to keep the savings intact (and only you can make that decision) then I'd recommend transferring them (without having the money in your hand, really important, transfer the cash from institution to institution so you keep the tax-free status) to get a higher rate ISA.

With regard to outgoings, £126 for the loan, £90 on car insurance (until May) £140 on food and travel to and from work, (£15 travel, £15 food) £6/week on leisure

Its not much at all for food, but as far as travel is concerned, how far is it? Can you cycle, walk?

(my maximum, enough for a cinema film as I'm trying to pay back that overdraft). £25/month on garage rent .

Is that for the business, or for your car? If its for your car, do you really need it?

So around £391 outgoings a month.


Any help and advice much appreciated,

Thanks!

Although I've tried to give you some feedback, what strikes me is how random your post is about what's coming in and what's going out. It might help you get a sense of control over your money and your finances if you laid it out in lists, what comes in, what goes out, and put in monthly payments and interest rates/APRs. See the first sticky at the top of this board for southernscouser's post on how to do an SOA (statement of affairs). You're nearly there, it just needs a bit of tweaking!

You don't have anything in your list for rent, either - what happens with that? And a phone.

Go for round 2 and see what happens. Good luck!