How best to pay this debt?

kandishuffle

Hi everyone.

I’m the typical long time lurker, first time poster.

I was wondering if anyone can help me figure out how best to tackle my debts.

Lloyds Loan
£9,648.87 — 3.3%
Monthly payment: £292.39

Lloyds Overdraft
£1000.00 — the first £500 is free, the other £500 is around 11%
Monthly payment: nothing. My salary comes in, pays the whole thing off and then I Max it out again.

Santander Loan
3,575.29 — 22.89%
Monthly payment: £107.76

Santander Overdraft
£500.00 — no idea how much interest. But last month it cost me around £17 to have it maxed out.
Monthly payment: £20.00

Halifax Credit Card
£2,356.84 — 22.44%
Monthly payment: £50

Barclaycard
£1,081.47 — 19.1%
Monthly payment: £25.00

Monzo Overdraft
£750 — no idea what the interest rate is.
Monthly payment: £20.00

I earn just shy of £20k.

I have too much debt to apply for another loan or BT cards as I’ve already tried that.

Any advice would be appreciated, thanks.

...Yes, I know I’m an idiot.

kandishuffle

Oh! I meant to add I have no late or missed payments in the last 6 years. The only negative thing on my credit report is the high level of debt compared to my salary and the fact that I’m not a home owner.

MovingForwards

Fill out a statement of affairs and we can offer constructive advice.

kandishuffle

Ah, do you know where I can find a template? I’ve been Googling statement of affairs + MSE and it just brings up other peoples’ threads. I also keep seeing ones from other websites but I know everyone who posts a SOA here has a particular look.

enthusiasticsaver

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

kandishuffle

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 3
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1350
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1350

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 36
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 25
Clothing................................ 30
Petrol/diesel........................... 50
Road tax................................ 17.06
Car Insurance........................... 42
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 9
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 0
Entertainment........................... 25
Holiday................................. 75
Emergency fund.......................... 0
Gym..................................... 21.99
Spotify................................. 9.99 (willing to give this up)
Netflix................................. 7.99
Total monthly expenses.................. 729.03


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1200
Other assets............................ 0
Total Assets............................ 1200

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds Loan....................9648.87...292.......3.3
Lloyds Overdraft...............1000......0.........11
Santander Loan.................3575.29...108.......22.89
Monzo Overdraft................750.......20........NaN
Barclaycard....................1081.47...25........19.1
Halifax Credit Card............2356.84...50........22.44
Santander Overdraft............500.......20........NaN
Total unsecured debts..........18912.47..515.......-


Monthly Budget Summary
Total monthly income.................... 1,350
Expenses (including HP & secured debts). 729.03
Available for debt repayments........... 620.97
Monthly UNsecured debt repayments....... 515
Amount left after debt repayments....... 105.97

Personal Balance Sheet Summary
Total assets (things you own)........... 1,200
Total HP & Secured debt................. -0
Total Unsecured debt.................... -18,912.47
Net Assets.............................. -17,712.47

Hope I’ve done this right.

I live with my aunt and uncle so my main food comes under ‘rent.’ The £25 for groceries is toiletries, girl stuff and the occasional junk food.

My phone contract finishes in 2021 as I took it out earlier this year.

I pay for Netflix and both my uncle and aunt use it. I don’t want to stop this because I feel like it’s the least I can do for them seeing as I’m living at their place so cheaply. Spotify can go though.

Car insurance was taken out a month ago.

theoretica

The Santander overdraft should be your first target - at £17 a month it is costing you about 40% - and is small to give you an early success. Throw both the £105 you have for extra debts payment and the £50 presents budget at it - it will be gone in time to then save up for Christmas, but also start thinking about cheaper thoughtful presents to give.

elsien

This is not a criticism, but a genuine query.
If your costs are so low, how have you got into so much debt? That's what needs addressing moving forwards.
At 20k worth of debt, how badly you want to fix it? Because you have the option of a cheaper mobile, fewer new clothes, free Spotify, cheaper holiday, scrapping the gym and less on presents. For example.

combeferret

Did you buy any expensive things for you to have all that debt? First step would be to stick some of it up for sale on Facebook Marketplace. I did the same thing last month and got £500+ for things I hadn't used in years.

TripleH

It might also be worth opening another bank account BUT one WITHOUT an overdraft facility (basic account), with a bank other than Lloyds, Monzo or Santander and get your salary paid into that. This means that you can pay down the overdrafts at a pace manageable by you without a chunk of your salary being eaten up straight away in clearing the overdraft down in full.

You need to take charge here, decide what you want to pay off, and when you pay off each debt, close each account / card / loan down.

Good luck.

kandishuffle

Just opened a letter from Halifax today. They are increasing my interest rate to 27.45%!!!

The limit on my card is £3000. I know I’m using a lot of my limit but I’ve never been over my credit limit nor have I missed a payment or paid late. I try and pay over the minimum even if it is by a few pounds.

The new rate is effective from 20th September.

Thanks to everyone that has replied. I will respond now but I may be slow as I’m using my phone!