Debt advice required

phizzimum

Hello Si

It’s great that you’re so determined to sort out your finances. Try not to get overwhelmed- it really does seem achievable

The SOA will really help you. According to your list of expenditure you should have between £400 and £800 spare every month. As you’re overdrawn this money is clearly being spent ...but on what? Your SOA will tell you!

Are you still spending on the credit cards? You have savings that can be an emergency fund in case you need repairs on the car. You have spare income every month. If I were you I would cut the cards up and close your catalogue account.

Let us know how you’re doing

enjoyyourshoes

Why do you continue to overspend?

Sort that out as a priority, as your previous tactics seem to have failed?

To answer your Q:-

2 OD?- just have one bank a/c and get that straight first

Tesco 1 £5900 (dec 18) set up dd today for £492 every month

Very £729 2018 (when? 0% expire) (guessed at Aug2018 so 8 months to pay) thus set up DD £92 per mont to pay

Do all overtime possible and tell manager that you want every hour possible.

Now pay Lloyds (£765) off in Jan/feb 2018 from the £582 repayments set up 2018 for Tesco & Very

Then pay off Tesco 2 & B'ard (£7600) over the following 13 plus month.

Then start increasing the sister repayments to £682 (£582 + £100) over the next 4 years till you will be debt free. 2023 or similar.?

Si1983_uk

Again, many thanks to all for your responses and advice which I will be taking all on board later.

Am currently on quick five minute break at work so am just popping on to acknowledge your responses and will be getting back to this forum in more detail later.

SOA and answers to various questions asked will be answered by the end of tonight.

Thanks again.

Si1983_uk

Monthly income after tax................ 1090
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 410
Total monthly income.................... 1500

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 120.5
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 27.99
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 9.99
Groceries etc. ......................... 100
Clothing................................ 25
Petrol/diesel........................... 25
Road tax................................ 11.81
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 6
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Two week holiday april.................. 0
Car insurance due beginning of april.... 0
MOT due by end of march................. 0
Going out etc........................... 150
Total monthly expenses.................. 501.29


Assets
Cash.................................... 2017
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 800
Total Assets............................ 3817

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Tesco 1........................6058.48...65........0
Tesco 2........................5940.42...65........0
Lloyds.........................765.......10........0
Overdraft......................1100......27........0
Very ..........................729.......0.........0
Barclaycard ...................1598.11...41........0
Total unsecured debts..........16191.01..208.......-


Monthly Budget Summary
Total monthly income.................... 1,500
Expenses (including HP & secured debts). 501.29
Available for debt repayments........... 998.71
Monthly UNsecured debt repayments....... 208
Amount left after debt repayments....... 790.71

Personal Balance Sheet Summary
Total assets (things you own)........... 3,817
Total HP & Secured debt................. -0
Total Unsecured debt.................... -16,191.01
Net Assets.............................. -12,374.01[/b

I wasn’t too sure where to add my sisters payment, this is also £100.

The charges per month for overdraft is £27 in total.

I have car MOT (£40) due end of March, Car insurance (£565) 1st April and my two week holiday in April for that I will need £800. I’m guessing the £2017 (I thought I had £1017) would be used for those, I also have my gym membership, yearly £195 due end of this month.

I will answer all other questions that have been asked to me in more detail later.

Thanks again for your help.

Si1983_uk

Although there is money available, I panic

A) because £410 extra income is never ever guaranteed though I always have had it

because credit cards 0% offers are ending and I always wonder if I will sort it in time

And c) because I owe my sister and I feel guilty about being in this situation

So am after advice as to the best way to prioritise everything.

phizzimum

It’s great that you have enough in your savings to cover the MOT, insurance and holiday so you won’t be tempted to put those on the credit card.

Although the car expenses and gym are annual payments you need to divide them by 12 and add to your SOA so that you can get an accurate idea of what you have left over each month

Have you searched for the best price for car insurance? It seems high considering your age and value of car

National_Debtline

Hi Si


Just a couple of observations from me.


Conventional wisdom would be to prioritise any debts accruing interest (or due to start doing so in the near future). However you need to weigh that up against how you perceive the debt owed to your sister (which, I'm assuming, she is not charging you any interest on?) - if you are feeling "guilty" about it, are you prepared to accept incurring interest on the other debts if it means you can start paying her more substantial amounts a bit sooner? What are her current thoughts on the matter?


As for the overtime not being 100% certain, perhaps the way to go is to work out an initial budget based only on your guaranteed wage, and to then use any overtime earned to make extra lump sum payments off balances owed in whatever order is appropriate (see "sister vs interest" above).


You've mentioned a few forthcoming expenses, for which you seem to have enough cash put by - it's then a question of how badly you want that holiday and/or gym membership - it's your prerogative, Si, but obviously every penny spent on non-essentials is a penny less you can attack these debts with. It's all a balancing act between wanting to shift that burden and trying to lead a rounded existence.


Dennis
@natdebtline

Si1983_uk

Ok, thanks for the useful advice.

Yeah I’ve done some searching but I had 3 points on my licence (gone by 2019) and one or two bumps which I think have contributed to the costs. I used moneysupermarket.com to search for the best prices.

Si1983_uk

Thanks for that Dennis.

She doesn’t charge me interest, in fact she tells me to ‘pay what I can’ though, I’m adamant she will receive no less than 100 per month.

The gym, I do badly need it as I also need to sort myself out physically and being in quite a physical job I need to make sure that I’m fit for the job - without the job - I’m stuffed. Holiday is a situation where I’ve alread paid for some of it and I don’t particularly want to let me friend down who is assuming that he’s on a flight with me to our destination! It will actually be the only holiday of the year that I will have.

Thanks for your thoughts and observations, and the idea regarding overtime seems quite a good idea in all fairness

starting_again_in_the_sun

Agree with Dennis completely, you should base your budget on your base income then the extra can go to the debts.

Personally I would be giving your sister at least half of the extra but Dennis has explained your choices above.

I would recommend keeping a spending diary to make sure your SOA is accurate.