Over 30K in unsecured debt SOA

Grumpelstiltskin

You have to seriously make your mind up what your priorities are, and seriously rethink your lifestyle choices.


Presents, you can't afford that much at the moment, clothes, manage with what you have got and only buy essentials.


Haircuts try and find somewhere cheaper.


The list could go on.

I guess your family and friends don't know how much debt you have, this can make it difficult to say no to expensive outings, entertainment etc. but it's up to you to decide what you are prepared to give up until this mess is sorted.

JayRitchie

Hi

A couple of questions if I may:

- how secure is your job/ income? Are you likely to continue to earn the same or increase your earnings (such as being a city lawyer) or might this reduce as you get older (for example a lower division rugby player)?

- what is the student loan? Its not listed as debt on your SOA?

- do you have any travel costs? I didn't notice them on your SOA?

Also. for the dull, annoying questions which always get asked but you would have thought of already if practical:

- do you have any scope to take in a lodger? If you have a separate lounge and kitchen could you love into the lounge and rent out the bedroom?

- do you have anything you can sell to get some quick money?

JayRitchie

Oh, and what were the terms of the pension scheme you have suspended contributions for? Employer matched contributions? If so to what percentage?

dfw2019

theoretica wrote: »

In the short term you need to get out of the Payday loans - for a couple of months until this is gone you need to cut things like entertainment, presents, holiday savings, any toiletries you are not in desperate need of. You may need to ask for the PDL to roll over a few hundred a month longer. Once that is gone you can then catch up the holiday savings you didn't make for these two months and concentrate on overpaying the 118.


You have a fairly tough year ahead of you, but with the student loan coming to the end, your salary and your anticipated bonus you should be able to be out of this in a year.



The counselling is much cheaper than slipping back to gambling would be.

Thanks for the encouragement! It would be amazing if I was out of this in a year.

bsms1147

You've identified the problem, and you've got a good salary, with >£1000 a month left over after debt repayments. With the counselling likely ending in a few weeks, and the student loan ending in a year or so, you're in a strong position overall once you get past this month.

I'm sure you could reduce your outgoings, but the numbers balance, so as long as you've identified how you got into this place (I'm assuming the gambling), and it doesn't repeat itself, then I wouldn't say you don't necessarily have to do that.

If you're going to be short this month you need a way to get you through and to buy some time; cut out all non-essential spending, roll over the 118 loan if you can, pay only the minimum on everything but the 118. There are a few more drastic, last resort options if need be, if not paying the 118 will put you in a worse situation (eg very rarely the lesser or two evils will be taking cash out on a credit card, to avoid a default, and accept the cash withdrawal fee/interest) - this would to tide you over for one-month to get you out of a bind and buy more time for next month.

So assuming your SOA is correct, you have ~£3100 for debt repayments each month (not accounting for the fact that you may have more money freed up soon if the counselling stops, and more when your student loan stops in a year or so.)

Correctly snowballing (paying off the highest APRs first, http://www.whatsthecost.com/snowball.aspx) would see you pay off the debt in 12 months at the current rate, without having to adjust your lifestyle (some assumptions made about minimum payments).

If you free up money from changing your lifestyle and the counselling ending (to the tune of ~£3500 being available for repayment each month), you'll be done a month quicker and save a few hundred in interest.

dfw2019

JayRitchie wrote: »

Hi

A couple of questions if I may:

- how secure is your job/ income? Are you likely to continue to earn the same or increase your earnings (such as being a city lawyer) or might this reduce as you get older (for example a lower division rugby player)?

- what is the student loan? Its not listed as debt on your SOA?

- do you have any travel costs? I didn't notice them on your SOA?

Also. for the dull, annoying questions which always get asked but you would have thought of already if practical:

- do you have any scope to take in a lodger? If you have a separate lounge and kitchen could you love into the lounge and rent out the bedroom?

- do you have anything you can sell to get some quick money?

Hi, thanks for your help!

Job is secure and earnings should increase pretty steadily. Not quite a city lawyer but the same kind of thing.

Student loan I would have to call and check again next week but I believe it's around 7000 at this point. Yes it's missing from the SOA, I was thinking about payments that come out of my bank account so forgot about it (it usually comes out of my wages before I get them)

No travel costs. I walk to work and cycle elsewhere. Anything further afield I have included under holidays.

No scope for a lodger I'm afraid (no separation between kitchen and living room) and I've already sold everything I can think of.

dfw2019

JayRitchie wrote: »

Oh, and what were the terms of the pension scheme you have suspended contributions for? Employer matched contributions? If so to what percentage?

I contributed 5% and they contributed 10%.

dfw2019

bsms1147 wrote: »

You've identified the problem, and you've got a good salary, with >£1000 a month left over after debt repayments. With the counselling likely ending in a few weeks, and the student loan ending in a year or so, you're in a strong position overall once you get past this month.

I'm sure you could reduce your outgoings, but the numbers balance, so as long as you've identified how you got into this place (I'm assuming the gambling), and it doesn't repeat itself, then I wouldn't say you don't necessarily have to do that.

If you're going to be short this month you need a way to get you through and to buy some time; cut out all non-essential spending, roll over the 118 loan if you can, pay only the minimum on everything but the 118. There are a few more drastic, last resort options if need be, if not paying the 118 will put you in a worse situation (eg very rarely the lesser or two evils will be taking cash out on a credit card, to avoid a default, and accept the cash withdrawal fee/interest) - this would to tide you over for one-month to get you out of a bind and buy more time for next month.

So assuming your SOA is correct, you have ~£3100 for debt repayments each month (not accounting for the fact that you may have more money freed up soon if the counselling stops, and more when your student loan stops in a year or so.)

Correctly snowballing (paying off the highest APRs first, ) would see you pay off the debt in 12 months at the current rate, without having to adjust your lifestyle (some assumptions made about minimum payments).

If you free up money from changing your lifestyle and the counselling ending (to the tune of ~£3500 being available for repayment each month), you'll be done a month quicker and save a few hundred in interest.

Hi, thanks for your help! I was thinking that if I have to not pay something next month then it should be something that doesn't appear on my credit report - either council tax or student loan. Is that a bad idea? I could then pay double the next month when I have more available. I don't think it's possible to roll over the payments on any of my other loans. Also I should have mentioned that all of my credit cards are already at the max.

JayRitchie

dfw2019 wrote: »

I contributed 5% and they contributed 10%.

Wow - thats a lot of money to give up.

owen_money

Not that it really matters but the monthly mortgage payment seems low on an outstanding balance of £264,840. Even if it ran for another 40 years it would be £830 p/m @ 2.2% apr

Good luck getting debt free and well done for kicking the addiction, stick at it