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

Fireflyaway

Well done on your plan! Yes Aldi is great isn't it! I'd start by writing down your income and exact outgoings. For things that are fixed each month - rent / mortgage and utility bills its easy. Then other stuff like food and spending money, make a budget and stick to that. I got plastic wallets from amazon and split each weeks spending money into them. That way you always have a bit of money to look forward to. Good idea to have a miscellaneous fund too. You can use that for unexpected stuff without messing up the budget.
The next bit depends how much you want to protect your credit score. I decided to do the snowball method so I paid minimums on all but the smallest then tackled that. Then move onto the next and so on. If you can do it by paying the required minimum it won't hurt your score too much. In my case I negotiated to just pay £1 on everything so I did incur defaults. It dented my credit file but for the relief it was worth it. I wasn't always looking out the window for a tow truck or unplugging the phone or not answering the door!
Remember to get the best energy deals too. Its easy to switch.
Good luck! Come back and celebrate your success.

EssexHebridean

welcome to DFW and well done for taking the hardest step -
acknowleging that something needs to give! Agree with those saying do an SOA -
that'a bit vital. It needs to be honest you're right - and accurate, and it also as a first draft at least needs to reflect your current situation otherwise it's pointless. For now though I'll make some observations on your list/post below:

Lancashirelass1 wrote: »

Here goes..
Credit union - 6993 I pay directly from wage at £280 per month 6.1% From what you've said this is £300 per month going out of which £20 goes to savings - you have
no option but to carry on paying so just leave this one ticking along. Personally I'd ignore the £20 you're saving too - that will be a nice little extra sitting waiting for you when it's all done!

Barclay card - 4,000 per month it's £95 per month 39% Apr As a matter of urgency see if you can get a 0% deal to switch this too - that interest rate is crippling.
Capital one 750.00 per month it's 25.00 per month 34% Apr Next one to see if you can switch after the Barclaycard - use the MSE Credit Club (free to join) to see about whether you may be eligible for any 0% balance transfer deals.
Aqua 323.00 per month it's £20.00 per month high interest again as all cards are old debts Find out the interest rate - these are all "bad credit" cards I'm guessing?
My car £6,900 per month it's £132.
I then found an old catalogue bill of 2000 Check the interest rate on this one -
catalogues have a habit of being nasty.
Then little debts which can be paid Get them all listed out in full - amounts,
interest etc
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. OK let's put it into context then - £850 a month is over TEN THOUSAND POUNDS per year. Your first priority is to start getting a handle on things and reclaiming this "frittered" money.
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. SOA first so you have a proper picture of what's what. From there you can work out a plan of attack.
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. Good for you!
:T
Thank you in advance

Everything is fixable. Start a spending diary and write down everything you spend. Before buying anything at all stop and think - do you actually need it, or just want it? Re-adjust your thinking on what are "needs" too - you might "need" a drink, but "want" a Costa for example. This is where the spending diary will help too as it will make you think.

Lancashirelass1

Hello all,
well all I can say is OMG what have I done, reflecting on what I have done, a little panic and then I am not ready to put it all in writing with my plan.....


My income first and foremost and then you will see and I HAVE SEEN too what it is I am literally just wasting my money on. I have put it on my list that this week I need to get a spending diary going and I have to learn before I buy whether it is a need or a want - I have given all this a lot of thought, I have looked around my 'stuff'' and what I have wasted my money on and given a lot of thought about going forward.....I have no idea if this is what you need to see but this is how I have done it. I have also negotiated a cheaper deal with EON and I have also realised last night that I have come to the end of my mobile phone contract so that got cancelled this morning.
On my credit file, and then speaking to the credit card company I owe more than what is on the file, but I cant work this out why, but I owe way more than what is on Noodle to the Experian one and I am going off the one that seems more accurate, but all the same I owe slightly more than I first thought but as you have all said, this is a step towards a plan!
Here goes......


INCOME MONTHLY
Wages - £2587.00
Child Benefit - 83.00
= £2670.00


PRIORITIES all paid monthly
Mortgage - £300.00 m
Council - £125.00 m
EON combined £98.00 m
Water £50.00 m
Car Ins - £41.67 m
Home Ins - £46.15m
total - £660.82


Expenditure
Prescription - £8.30m
Mobile - £15.50m - one more month as cancelled today one more month
Home phone/internet - £46.00
Car Ins - £45.65m (includes breakdown cover)
Tax - £11.37m
Petrol - £50.00m
Total - 176.82


Food shopping/sundries
Aldi - £75.00 WEEKLY - this includes some weeks have to buy toiletries/washing etc before this I was shopping at Sainsburys, Tesco and Asda and I was spending most of my money here
Total - 75.00 weekly


Personal
Gym - £35.00m
Protein - £15.00m
Gym - £12.00m - child membership
school - £15.00w child meals
Lottery - 12.50m
Vitamins - 15.00m
Total - 146.50




DEBTS
Credit Union - £300.00m - directly out of wages - balance owed £6943.00
Barclaycard - £4,000.00 - £95.00m high APR
Cap one - £750.00 - £35.00m
Vanquis - £2063.00 - £23.00
Aqua - £1150.00 - £15.00
car loan - 6983.00 - £132.00
Catalogue - £2100.00 - not paying as didn't know about it - very strange on my credit file and no action taken - VERY STRANGE!!
Lowel - 210.00 - an old cat bill and spoke to them today


total - 600.00


Checked my bank statement and I have listed every direct debit and I have noted that last month before I was doing this I paid over 350.00 on rubbish, nipping into the supermarket for bread and milk and spending £86.00 on one trip!
Over the last two weeks I have shopped at Aldi and both trips I have spent £66.00 and on another £71.63.
But then went to Tesco in the week and spent £35.00 and then again another 19.68.
All this amounts up and also taking into account that some months have a 4 week/5 week month.
I cant cancel my gym membership this cannot be cancelled at all, myself and my daughter walk, we run, we walk the dogs, we do lots of free things, spending time with family etc and we love the gym.
I do not drink at all and I do not smoke....I also don't watch TV as you will note I have no TV licence!
Today I have brought in sandwiches and I have worked it out that not only saving money, but the health benefits of prepping my own lunch is better than a shop bought quick sandwich...


So guys this is a lot WORSE than I thought I was really upset this morning but I have cancelled the mobile phone and they did try to get me to take out another contract and I didn't do it!
I have also got EON to agree to change my prices as I was paying 140.00 and now they have agreed due to being in credit that I can pay off 98.00 per month.


So the Lowell, shall I pay this off this month? then snowball everything?


Go easy on me guys!


Thank you
LL

tallyhoh

I think you may have missed a fair bit out like presents, haircuts, clothes etc, it would be best if you filled in the MSE SOA

bexster1975

Hi there

I agree with tallyhoh first off. However, comments on what you have listed.

Council tax: is this over 10 or 12 months? You can change to pay over 12 months to free up cash monthly for debt repayments if not already done. Also, are you the only over 18? Does this amount include 25% single adult allowance? If not, contact council if it applies.

EON: are you in contract? If it's just two of you in your home this seems high. Try MSE energy comparison to see if you can reduce this. I'm in a 2 bed, admittedly out at work all day mon-fri but pay £36 dual fuel.

Water: are you on a meter? Mine is, and is less than half your monthly payment.

Home insurance: is this buildings and contents? Again, this seems high unless you have specialist stuff insured. As I'm leasehold my buildings insurance is in my annual charge, but my contents insurance costs per year what your insurance is costing monthly.

Food: meal plan, you can absolutely feed two of you for less than £75 a week - even allowing for cleaning/ toiletries. Don't need to live on beans on toast either

Personal: I think your maths is wrong. I make that about £105 not £146 so that's £40 more!

The frittering of money is very common. People really don't know they are doing it. It's not worth dwelling on, just important to know it and stop it.

Try not to feel too overwhelmed by how much you owe. I probably would pay the Lowel bill this month, but ideally you want to focus on the most expensive debt first. You need those APRs I'm afraid for that step.

If any of the above save you some more cash, all to the good. That can be added to the debt repayments for now.

Keep your chin up

Bexster

harrys_dad

You seem to have car insurance listed twice, once in priorities at £41.67 and once in expenditure as £45.67 incl breakdown cover.

datlex

If you cut your gym memberships, vitamins etc you would save over £1000 a year. £75 is a lot a week for you and a young'un for food.

Lancashirelass1

My first attempt at this, I was actually quite proud of it, but rushed I'm really sorry but thanks for the feedback. So an explanation.....
OK, I live in a larger house, the council tax is correct, I pay over so it's finished in Jan it's supposed to be 105 per month.
The house insurance is with hiscox which is because of the age of the house etc and it's building and contents and accidental.
Eon again, they wanted 130 a month so I pay 98 per month.
I do find I'm in credit then it falls nicely for winter.
Whilst I'm really really not knocking advice, basically, BUT my gym membership is me looking after myself and for two years, has literally prevented me from going mad, my father is only 60 and developed a serious heart condition, he's been told he's terminal.
The stress that this causes for us all and the gym is what keeps me strong both mentally and physically because I'm the eldest child in five of us, and to be honest it keeps me sane.
The vitamins and protein I've over budgeted really.
Maybe this should be in life insurance because it includes medicals, checks, blood tests etc and I get it cheaper with my work......I'm really actually saying here that I've nothing else in my life in terms of enjoyment!!!
I also get 250 per month extra from maintenance payment.
I save some for trips, birthdays, clothes the rest we put it into trust.
This money is for my daughter and her upbringing and I never touch it or include it for my stuff.
Right guys, I'll take a look at it properly, thought it was a good first attempt!

can I just say though that I really do appreciate this advice, seeing it through a different pair of eyes as I didn't even notice my mistake and my sums.....oh dear that's what got me into this in the first place, my poor maths.
Thank you all its turning out not too painful either.

Oh and I'll pay Lowell tomorrow. Thank you LL

Lancashirelass1

Agreed on the food, again, I looked on my banking app and averaged it, some weeks, I'm hoping to pay less, but some weeks, I buy toiletries etc and I'm writing this and already thinking its too much.
My statement from last month was just ridiculous, trips to the supermarket for milk ending up spending a fortune.
I'm going to look at this with my diary and go with a list.
Aldi is now my favorite shop though.
Thank you

bexster1975

Hi

Do consider the 12 months rather than 10 for council tax, unless you will throw the 125 for the two months not paying CR at debt.

I think EON are still overcharging at £98 a month for fuel. A comparison site will say either way.

It's not a bad first effort, it just needs filling out, and APRs put in. You will get there.

Bexster