My first step

Justin_GB

For the last few months I had not worked out my debts but today I added them all up and have a grand total, tomorrow is the first day of my new life to try somehow to sort them out, and save myself and my business/income.

Total debt [FONT=&quot]19254.78

Justin
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CreditMonkey

Hi justin, don't know if you have yet but if not, post an SOA and let the experienced members(not me) of this fantastic tool come up with a solution to your particular situation.

Lemon_Tree

you definately need to post a SOA but well done for calculating the amount. Now you know what you are facing and fingers crossed it will only get lower.

Justin_GB

Hi I have posted this else where but I have recalculated as it makes better sense to show the complete household income as it will be both of us repaying the debt.

Our household income per month is £1164.50 Please remember we are self employed and do not pay ourselves a salary as such, the above figure is based on last years income.


Benefits - £326

Total - £1490.50

Monthly Outgoings:

Mortgage/Rent - £166.19
Council Tax - £58.57
Water £31.05
Gas - 0 no Gas Supply
Electric - £90
TV License - £11.30
Sky £15.00
Phone - £50
Food - £120
Car Insurance - £31.86
Petrol - £80
Life Insurance £31.28
House Insurance £40.95
Total: £614.34

Debt Record November 2007

Credit Card 1 6.4%

1526.08

Credit Card 2 16%

552.53

Credit Card 3 26%

69.35

Personal Loan 6.4%

8000.00

Credit Card 4 Int Frozen

5131.74

0

0

Credit Card 5 6.4%

3975.08

0

0

0

0

0

0

19254.78

Larumbelle

:hello: Hi Justin!

Glad you decided to stick around!

I will write something constructive soon, I promise

Justin_GB

Day one..............

Debt Record November 2007
Credit Card 1 6.4%
1526.08 PAID
Credit Card 2 16%
552.53
Credit Card 3 26%
69.35
Personal Loan 6.4%
8000.00
Credit Card 4 Interest Frozen
5131.74 PAID 200
0
0
Credit Card 5 6.4%
3975.08
0
0
0
0
0
0
19254.78 NOW 17528.70

We put together ALL our pennies and what bits of savings we had and paid off one of the credit cards, we chose this one because it is a Barclaycard and as we bank at Barclay's and they could have tried taking ALL the debt from my current account without asking and that is the current account that receives all my income,

New weekly budget for food etc set at £45 spent £44.96

I just did a house insurance challenge at my local bank and they lost, they could not undercut my current insurers so the upside is I get FREE house hold insurance for a year, only worth £80 but it all helps.

I have thought of an on line diary but have decided that the good old fashioned book diary will suit me better.

Any thoughts of what to do next?

Karmacat

Those are good steps you've taken, well done you. These are my thoughts, for what they're worth:

Monthly Outgoings:

Mortgage/Rent - £166.19
Council Tax - £58.57
Water £31.05
Gas - 0 no Gas Supply
Electric - £90 I appreciate that you have no gas, but this seems high.
TV License - £11.30
Sky £15.00
Phone - £50 Appreciate that you're self employed, but this seems high too. I'm self employed and work from home, and mine is much less than this. Have you used the call checker that Martin supplies? Is this your mobiles too? Are you on the best tariffs for landline and mobiles?
Food - £120 Sounds like you're cutting this down.
Car Insurance - £31.86
Petrol - £80 Do you avoid using the car whenever you can? Costs are sky high, and there are other car costs that you haven't listed, I'm afraid.
Life Insurance £31.28 Monthly? Does that cover the mortgage? Seems high.
House Insurance £40.95 Seems CRAZY high! I have a £300, house and pay just under £200 a year insurance, house and contents.
Total: £614.34

Hope this helps!

Larumbelle

Justin, do you carry some or all of your business out from home? Could this be why certain bills are so high?

If so, make sure you are getting those costs back before you and your partner divvy up your takings. If you aren't doing so at present it just isn't fair on you; if you are, then you need to make a clear divide between your home SOA and your business P&L.

Other than that Karmacat is bang on. You seem to pay well over the odds for your utilities, insurance and car costs.

doodledo_2

Hi Justin and welcome to the forum.

These is a fab place and you will find loads of support and advice.

Good luck

taxi73

HI and welcome to the forum....you are doing well...could you not pay the high interest CC next as it's only £69.35 and thats another debt out of the way..otherwise just following the advice above will help ...but I don't get the insurance thing...you state £40.95 p/m then later say that you gave a challenge for the bank to beat it and they lost..so your insurance is free...so does that mean you don't have to pay £40.95 then?...I'm confused

taxi73

There is also a lot of stuff missing off your SOA...ie...all car costs,tax maintainance etc..
Also you have no budget for paying tax and national insurance ...its hard to budget when SE ...I know as I'm SE..but for a budget you need to do what comes into the business and what comes out of the business and then tax and insurance and this is what is left for your own budget...then take away all the household stuff..this may give you a realistic figure...hope this helps you