Debt Advice!

Poecile

So long story short I am a:
-University Graduate
-New job (first month in position at 1500 a month until April which will then go to 1300, this is something to do with the tax year? But I am on 18k a year)
-Spent 2 last summers working at a summer camp in NY which was a big reason of the debt
-Used to have terrible money management due to gambling instability ( this has been fixed for a year or so now so no worries on that front)

So essentially just started my first career job and I am looking to just clear my debt as efficiently as possible and need to know the best way to go about it.

I currently need to pay the following:
£103 Car Payment (3.5K Left on 3.2% APR Hitachin Finance)
£111 Car Insurance
£195 Amigo Loan (49.9% APR, Ouch, This is for £4000 over 36 Months)
£100 Minimum payment on my BarclayCard (19.7%APR, £3500 is the limit and it is maxed)
£100 rent a month
2 x Lending Stream payday loans which were used for my car tests/petrol and insurance deposit of £364 (The Lending Stream payments needed to clear of debts are £564 or 154 Per month for one and 88 per month for the other going up to 6 months (Which is a lot of money )
£115 owed to my Aunt
£190 owed to my Grandmother
£60 a month speeding ticket (£280 in total)
£1100 overdraft ( I get charged £30 a month for this)

I know this is a lot of debt hence why I am trying to figure out the best way to clear it, I cannot stress enough of how aware I am of my current situation so I have not came here for an uneducated rant just looking for advice to get my life back on track from people more financially minded than myself. I get paid on the last Friday of every month so my next pay will be the 30th and due to Christmas my following pay after wards will be the 21st.

I considered trying to expand my Amigo loan to 6k over 36months to pay off my speeding ticket, my family debts and my Lending Stream/Overdraft which would yes make my monthly payments higher but allow me to concentrate on the 2 main bills (Amigo and Barclaycard)

Thoughts?

DCFC79

Poecile wrote: »

So long story short I am a:
-University Graduate
-New job (first month in position at 1500 a month until April which will then go to 1300, this is something to do with the tax year? But I am on 18k a year)
-Spent 2 last summers working at a summer camp in NY which was a big reason of the debt
-Used to have terrible money management due to gambling instability ( this has been fixed for a year or so now so no worries on that front)

So essentially just started my first career job and I am looking to just clear my debt as efficiently as possible and need to know the best way to go about it.

I currently need to pay the following:
£103 Car Payment (3.5K Left on 3.2% APR Hitachin Finance)
£111 Car Insurance
£195 Amigo Loan (49.9% APR, Ouch, This is for £4000 over 36 Months)
£100 Minimum payment on my BarclayCard (19.7%APR, £3500 is the limit and it is maxed)
£100 rent a month
2 x Lending Stream payday loans which were used for my car tests/petrol and insurance deposit of £364 (The Lending Stream payments needed to clear of debts are £564 or 154 Per month for one and 88 per month for the other going up to 6 months (Which is a lot of money )
£115 owed to my Aunt
£190 owed to my Grandmother
£60 a month speeding ticket (£280 in total)
£1100 overdraft ( I get charged £30 a month for this)

I know this is a lot of debt hence why I am trying to figure out the best way to clear it, I cannot stress enough of how aware I am of my current situation so I have not came here for an uneducated rant just looking for advice to get my life back on track from people more financially minded than myself. I get paid on the last Friday of every month so my next pay will be the 30th and due to Christmas my following pay after wards will be the 21st.

I considered trying to expand my Amigo loan to 6k over 36months to pay off my speeding ticket, my family debts and my Lending Stream/Overdraft which would yes make my monthly payments higher but allow me to concentrate on the 2 main bills (Amigo and Barclaycard)

Thoughts?

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


Fill it in and post the results.

Poecile

Total monthly income: £

1,500

Expenses (incl. HP & secured debts): £

767

Available for debt repayments: £

733

Unsecured debt repayments: £

525

Surplus (shortfall if negative) £

208

Personal Balance Sheet Summary
Assets: £

3,500

Secured & HP Debt £

-3,500

Unsecured Debt £

-8,064

Net Assets £

-8,064

Pixie5740

Poecile wrote: »

Total monthly income: £

1,500

Expenses (incl. HP & secured debts): £

767

Available for debt repayments: £

733

Unsecured debt repayments: £

525

Surplus (shortfall if negative) £

208

Personal Balance Sheet Summary
Assets: £

3,500

Secured & HP Debt £

-3,500

Unsecured Debt £

-8,064

Net Assets £

-8,064

You have to fill in the whole SOA, format for MSE and then paste it in.

Who is the guarantor for your Amigo loan?

enthusiasticsaver

Do not extend the Amigo loan. 49.9% is a horrific rate of interest and taking out more borrowing will put you in a worse position especially if your salary is due to decrease in April. Payday loans are also dreadful so do not take out any more of those.

You have £941 monthly commitments before paying utilities and food and general living expenses like food, petrol etc. That also does not include any payments to your aunt and grandmother. What arrangements have you made to repay them?


There is no magic solution to repaying debt. Essentially you spend less than you have coming in and you budget to keep monthly expenditure costs low and maximise income. You have a steady salary and your minimum outgoings are less than your income so that is a positive. I would keep tight control over your spending by drawing out cash each week to cover fuel, food and general living expenses. Normally I would say save an emergency fund but I would say it is so critical to get rid of the payday loans and the Amigo loan and overdraft that these should be your priorities. Will your relatives wait until the speeding ticket is repaid? If not I would ask if they will take repayment over 6 months which would be about £50 per month.

I think it would be a massive mistake to borrow any more as presumably your credit record is very poor for you not to qualify for anything at a lower rate of interest than 19.7%. Don't compound your problems by looking for a quick fix. There isn't one. Just keep tight control of your spending and target any spare money towards the most expensive debts first.

DCFC79

Poecile wrote: »

Total monthly income: £

1,500

Expenses (incl. HP & secured debts): £

767

Available for debt repayments: £

733

Unsecured debt repayments: £

525

Surplus (shortfall if negative) £

208

Personal Balance Sheet Summary
Assets: £

3,500

Secured & HP Debt £

-3,500

Unsecured Debt £

-8,064

Net Assets £

-8,064

Should have said, at the bottom of the form there's a button that formats the info so it can easily be read on here.

Unicorn_cottage

Hi Poecile

Are you still reading? I know it will take time for the information given to you to sink in but the advice given to you is good and worth acting on. As you know you are gonna have to haul !!! to deal with this but it will be worth it. You need to snowball your debts (how long are the Lending Stream loans over - can you overpay?) - are you able to up your income? 2nd job/weekend job or do you have any expensive items you could sell? Do you use your car a lot? Could you use it less by cycling etc? Please don't take out any further debt. Concentrate on the task in hand and you will get there.