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Debt advice required

Hi All,

Never ever posted on this forum before but after reading various posts I think it’s wonderful how there is so many of you out there willing to take the time to reply and advise others. I could do with a bit of advice but admittedly my situation is not hurrendously bad compared to a lot of what I’ve read on here, I just hope that each and everyone of you that is in trouble with your finances can get through, and I’m sure you all will with decent friends on here and good strong will power.

So my situation (if your not asleep yet lol)

I’m 34, I’m Single and I work. I live with parents, you wouldn’t think I’d be in debt but there are reasons and they are all stupid reasons..

Never had much luck with cars, friends that take me for a ride (bye bye to them) and women that, well, lead you on etc and take advantage of my good nature, but part of me was also very stupid too. I got sacked from one of my jobs and was also made redundant on several occasions, I was out of work quite a while and things all added up. Note: I’m not suggesting that all women are bad.

At present moment, this is where your jaws all drop, I have approx £16,000 worth of unsecured debt, I also owe my sister approx £30,000. However, the good news is very little of it is gaining interest as I have all cards on 0%. Some end in 2018, 2019 and 2020. I pay my sister £100 a month and I have no problems keeping up with my payments and with overtime I can even pay large chunks off.

It’s not like I can’t pay it, I’d just like advice as to the best way to tackle it all and in what order...

These are the cards and when the 0% ends:

Barclaycard £1600 2020
Tesco 1 £5900 2018 (December)
Tesco 2 £6000 2020
Lloyd’s. £765 2019
Very. £729. 2018

Overdrafts..

Nationwide £250 approx £15 p/m
Tesco £830 p/m

Income guarantee £1090 but if I do
overtime then it’s approx £1500

Expenditure

Tesco £130
Barcoaycard £41
Lloyd’s 10
Monthly budget £300
Mom/dad £120.50
Phone £27.99
Overdraft £27
Sister £100
Church £15
Car tax £11.81

I have about £1000 savings

My question, is what’s the advice /best way to tackle it so that I pay the debt but also save for my self as a back up too, do I aim to pay it all off ASAP and leave myself with nothing at the end of it or do I pay it off gradually and transfer it to 0% when the time comes and keep saving for back up purposes.

Any help/advice gratefully received, I’m not on here all the time but will check frequently and respond when I can to any questions

Thankyou all in advance for your time
«1345

Comments

  • It would be helpful if you could complete a full SOA, but on the face of it you are in a fortunate position as your housing costs are so low.

    Must admit, I'd love to know you came to owe your sister £30k. She is being very generous in allowing you to pay it back over 25 years!

    Good luck.
  • Thankyou for taking the time to reply.

    I will complete an SOA and post it on here when I’ve done it, might be tomorrow.

    Re the 30k: it is something that has built up and built up over the years and she has been very kind to help me out in all sorts of difficult situations, I was in debt before with cards but got my self out of it eventually. When I went out of work I was struggling with it as high interest was kicking in then approx between 2010 and 2014.

    My ‘new’ debt but under control with 0% interest stemmed due to being too generous out to the ladies I thought the world of - big fool was I lol.

    Will get back to the forum with an SOA.
  • Forgot to add to that post, I don’t intend to let my sister wait 25 years for her money back, I love her too much which is why I’m here because I want advice and want it all sorted the best and right way possible.
  • sourcrates
    sourcrates Posts: 31,961 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    Hi,

    Your debts are nearer £46,000, not £16,000.

    This appears to be a recurring theme, getting into debt, then fortunately having your sister to bail you out, so to speak, although you are not on your own in that respect, it’s just that others normally resort to costly consolidation loans.

    You really need to address the reasons why this debt has accrued, then make sure you don’t repeat them.

    Once the SOA has been done, we will know more.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Thankyou, and you are right with what you have said. Like I say, I have absolutely all intentions of dealing with this and making sure she is sorted out, I’ve usually refrained from posting on here but the time has come that I feel I need to get it out and need to deal with it with good advice. Will get the SOA done by the end of tomorrow.

    Thankyou again to all for your responses
  • -taff
    -taff Posts: 15,417 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    There are different ways of paying off your debts. Some people pay the smallest one off first because it gives them a boost that there will be one less to pay.
    SOme people pay them off in order of highest interest first.

    I would still post an SOA, because you are in an overdraft? Personally, I'd be getting out of that first if it charged interest because paying off debts while incurring interest debts from the money you use seems a bit daft.
    Non me fac calcitrare tuum culi
  • DCFC79
    DCFC79 Posts: 40,641 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 22 January 2018 at 9:34PM
    If it were me in your shoes, I would get my spending down to a minimum, ditch the tv pacakge and stick with just Netflix/Now TV, sell anything not used for a while, consider selling the games console and games, no lavish grocery spending.

    And work as much OT as I could.
  • Can somebody post me a link for an SOA please? Thankyou.

    You are right Taff, I am silly re the overdraft, I've been silly most of my life money wise but now I've turned to this forum to put an end to the silliness, listen to all the great advice and to act on it.

    I'm a very determined individual to sort it.
  • I disagree that your situation is not bad. £46000 of debt with no or little assets is bad and if your parents were not willing to support you, you would be in real difficulties.

    You have a chance now to sort it out whilst your outgoings are low and the overdrafts are expensive so I would be paying those off in month 1 as the cards are 0. Those credit card payments look like minimums so the cards are not going to be repaid within the 0% deal period so tackle the one due up in 2018 first which is Tesco 1. I would up the payments considerably and you need to stop accepting help from your sister who has done you no favours by constantly bailing you out. This would have been so much easier to sort with £10k of debt rather than £46k.

    Separate your finances from your relationships. You can’t afford to throw money either at girlfriends or cars.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

    Click on this link for a Statement of Accounts that can be posted on the DebtFree Wannabe board: https://lemonfool.co.uk/financecalculators/soa.php

    The 365 Day 1p Challenge 2025 #1 £667.95/£451.50
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  • Si1983_uk wrote: »
    Can somebody post me a link for an SOA please? Thankyou.

    You are right Taff, I am silly re the overdraft, I've been silly most of my life money wise but now I've turned to this forum to put an end to the silliness, listen to all the great advice and to act on it.

    I'm a very determined individual to sort it.

    http://www.stoozing.com/calculator/soa.php

    Format it for MSE
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

    Click on this link for a Statement of Accounts that can be posted on the DebtFree Wannabe board: https://lemonfool.co.uk/financecalculators/soa.php

    The 365 Day 1p Challenge 2025 #1 £667.95/£451.50
    Save £12k in 2025 #1 £12000/£12450
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