And so id like to be a debt free girl....but....

Lancashirelass1

Good afternoon all,
I'm very New...
I've been toying and adding and subtracting for a few months after facing up to the hard reality that whatever I write down on paper all my income and outcome just NEVER works out and the end of the month I just don't know where my money goes.

I've set myself a challenge to 'TO BE DEBT FREE WHEN IVE FINISHED BEING 43' it rhymed and I'm 42 and I'm 43 in April so I've given it thought that by my 44th birthday I want to be debt free.

I've now got my credit file, I owe approx 20,000

So, my question is this, they all need paying off and I'm so ready for this challenge, it's like the best feeling that I've got in plucking up the courage getting my credit file, but scary at the same time as its just so much.
Here goes..
Credit union - 6993 I pay directly from wage at £280 per month 6.1%
Barclay card - 4,000 per month it's £95 per month 39% Apr
Capital one 750.00 per month it's 25.00 per month 34% Apr
Aqua 323.00 per month it's £20.00 per month high interest again as all cards are old debts
My car £6,900 per month it's £132.
I then found an old catalogue bill of 2000
Then little debts which can be paid
No defaults I do pay things off but I'm now coming to a point that I want all my money to live my life and I just want things paid.
I've got bills and food etc and I've got 850.00 spare per month, I'll be very honest, I really do not know where this goes, well I do, shopping, food, wasting it and I really want to fix this very badly.
So ANY advice be it straight talking do this, do that because although there are debts that need to be paid my question is.... do I pay the loan that's costing me the most per month or just work at creating the credit cards.
I'm on my phone so harder to email this so sorry if this is all over the place.
I can make my own sandwiches, I've also started shopping at aldi which OMG I love it too!
I'm prepared to do anything to help me pay my debts.
I've just sat here though and thought do I pay the highest costing per month or the highest interest and I'm asking for you guys to assist with advice and telling off for being stupid for getting like this in the first place and I'm looking for positive action plans too.
My father is in a hospice and I'm doing this because he's only 60 and he wants me to enjoy my life and boy has this kicked my !!! into seeking to get it cleared.....because really all this 'stuff' means nothing really and this debt is just a noose and needs stopping.
I do not want bankrupt or iva I want to pay back every penny.
Thank you in advance

LMG1305

First thing everybody suggests on here is to complete the SOA & post it here so people can see where you are able to cut back. There is a link to the SOA in one of the sticky posts at the top of this forum.

Good luck

Makeachange

Welcome to the forum, good luck i will subscribe.

nsl101

Hi well done for posting,

Reading this really strikes a cord with me as your situation is so similar i have just started out on this too, and for a week I've been trying to do an accurate SOA, the first one i did shocked me into how much i didn't know about my own finances... I started my thread much the same way as you, and i wish you luck.. I'm planning to start paying my debt back from the smallest credit card debt first then i will work up to the next smallest and so on... I have been working through my list of expenses trying to produce an accurate SOA and at the same time thinking of ways to reduce them, doing something small each day to try and combat it feel free to take a look at my thread if it gives you any ideas...

I would look at your credit cards, all of mine i transferred to interest free ones, if its possible to do it i would strongly advise you do that, then pick the credit card with the highest rate of interest and start over paying it.

I hope my rambling on helps... :-)

bexster1975

Hello

Very well done on your LBM. :j

nsl offers sound advice above. I would transfer as much of the CC debt at 39%:eek: as I can. Even some is better than none! If you are making payments and all is otherwise well financially, it's certainly possible you will be offered a 0% deal. Need to get rid of the old cards however when transferred, and DONT spend on the 0% card.

A spending diary sounds like a good next step. Write down everything you spend for the month.

I also agree a statement of affairs (SOA) us a good place to start. People here could advise as to savings opportunities.

The snowballing of your debts is def the way to go. Once you gave transferred any to 0% that you can, throw all of the extra cash you have left for debt repayments at your highest interest rate debt first.

Best of luck

Bexster

ReadingTim

You need an SOA to show where it should go, and a spending diary to see where it does go. Plus all the bills you can find, so you have an accurate figure as to what you owe in the first place.

You'll only get out of debt by spending less than you earn, so work out ways to spend less and earn more. Get a grip on that, then look up more advanced techniques such as snowballing - they help, but you need to master the basics first.

bexster1975

Just to add, I, nor many others here, will tell you that you are stupid. That's not really useful at this point. As the name of the group suggests, there are a great many people who have gone before you, and many who will follow.

Lots of positive action, get to a point where you understand how you got here, then work on fixing it.

Will follow your journey with interest.

Bexster

Lancashirelass1

I will do this tomorrow as I'll have to log into my account on banking! So, how did I get here in the first place..... I can honestly say that when I got my 15 grand loan from credit union it's now down to nearly 7 I also paid lots off, divorce, being single, flashing my very kind cash, buying 'things' and so forth.
I knew what I was doing, paying so much a month is easy right??? How wrong I have been....But then my car broke, I do need my car, then, daughter comes home with a school trip letter, and other things that when you do you income at the start of the month, you don't add in the trip to the shop for just milk and end up spending 40 pounds and a diary is very handy right now. I started to realise that I'm only just living and getting by to my next wage. This has been going on a while.
I could sit here crying and worrying but there's more to life, I was a bit scared when I got my credit file and thought, well, I've made the first step, I may as well finish getting it sorted out!
I have titled my Excel spreadsheet sheet debt free when I'm 43 and I can honestly say I'm feeling positive.
I'm going to interested too at how I'm going to do this, bexster1975 and I hope to post monthly...
So I'll do a brutal honest soa then I'll check my bank.
when I did my figures today I'm really setting myself huge targets, perhaps seeing my dad like this, is actually, what's getting me through this.
He asked me the other week how many years I've got on my passport and he said to use it as often as I can.....
So I really really need to start living like a person getting myself out of it....
Nsl101 not rambling like I said any advice is much appreciated.

Apologies as I'm very very New to this site, a wonderful place, full of advice from what I've seen, I'm on my phone so not sure if I'm replying properly, I'll get used to it......as I've got some months ahead of me to get sorted out so I'm sure I'll get the hang of it.....
I'm uplifted with your replies and thank you it's made me feel better.....

bexster1975

I understand you would feel like crying. I'm glad your not tho, much like any self indulgence we partake of, it never changes the situation!

In terms of tough targets, it will be important to make them achieveable, otherwise you will fail and that's pants! They should be challenging, but make sure you do all the sums and ensure they are not impossible. I await your SOA.....

Bexster

ETA: do see how much interest is applied to those credit cards at +30%. My CC interest maths is not fantastic, but I wonder at £95 per month if you are even covering the interest on the barclaycard. There is some motivation!

Lancashirelass1

No, I'm only paying the minimum payment, it's 34. Something Apr and I paid it today and I explained that I'm aiming to try and pay off, I've owed them 4 grand for what seems forever, but not for much longer.
One thing I was stuck with thinking today was the credit union Loan which costs me 280 a month but I've got to pay 300 as 20 has to go in savings and I'd read whichever costs you the most needs to be paid first.
I'm very impressed by some posts I've read today, some very good advice on here and so just from my reckoning I'm Def paying the credit cards off first.
I'll do my stuff tomorrow evening, I am in meetings all day tomorrow, but I do feel better about it all.
As long as me and my daughter are OK that's all good for me.
I am expecting some really hard advice tomorrow, but it's all OK, as I keep saying today, it's just like ripping off a plaster and once it's all out, I can start doing an action plan.....I reckon the hardest part is done now.....
Thank you so much

bexster1975

Hi

I wouldn't worry about the £20 savings you have to pay. Is that a condition of the Credit Union loan? If so, that's just the way it goes.

People on here are generally very kind. The worst you tend to see are a few straight shooters ( no names mentioned!) but that's all useful stuff too. Any trolls, we just ignore so I wouldn't worry about harsh comments here.

Bet you sleep better tonight just knowing you made a start.

Bexster