Debt free advice.

Lukealthomas

Hi everyone,

So I wanted to post my situation up to see if anyone has any advice to how to help become debt free.

Monthly
Income : 1628
Spouse : 900
Child support : 88

Outgoing
Rent : 1120
Loan 1 : 332.10 (11k left on it)
Loan 2 : 161.92 (6k left)
Insurance : 19.70
Gas / electric : 88
Sofa : 50 (8months left)
Council tax : 155
Water : 24
Internet / phone : 40
Mobile 1 : 40 (12 month contract left)
Mobile 2 : 40 (18 month contract left)
Child nursery : 300
Food : 240 (60 per week)
Petrol : 200 (both drive to work)
Car insurance : 97

Total in : 2616
Total out : 2510.72
Totals left : 105.28


We are - £3200 in our overdraft and are really struggling to get out of it. With very little to play with, we have got stuck in our rut, any ideas of how we can reduce our debt, get out of our overdraft and stop paying up to £6( a month in overdraft fees?

Any help would be really appreciated

Luke

Willing2Learn

Hi Luke,

From the partial SOA you have posted, you appear to have £105.28 left over each month. Is that correct? (It must be wrong because, for example, the overdraft (and fees) is not listed.

I strongly recommend you complete a full SOA, so that we can see the full financial picture. Just complete the form linked below, then click on the format for MSE button, and copy/paste on to this thread
http://www.stoozing.com/calculator/soa.php

Unicorn_cottage

Where do you live? Your rent is very high - any chance of moving to somewhere cheaper?

dan958

Rent is the only thing that really stands out to me. The food bill can probably be reduced as well, and your phone contracts are also quite high. Rent is the main killer though.

Onemanandtwolittleladies

You need to go through your spending, systematically. I’d recommend starting a spending diary, your partner too.

Write down every penny you spend for the next month. Then look at it coldly, what can you cut. Only then will you know whether you can cut the debt or whether you need to take further action such as IVA or repayment plan etc.

JCS1

It might be worth just double checking your figures. Salary will be every month, food you have as £60 per week and have put £240 for a month. But most months have more than 4 weeks, so you would need to take £60 x 52 / 12 to get monthly, which would be make it £260 a month. I know it's only £20 difference, but it might explain where some of £105 is going each month.

JayRitchie

What are the interest rates on the loans?

Choccygirl123

How many children do you have? I see the £88 for child support, but no child benefit?

Choccygirl123

Forgot to add does your employee offer the child care vouchers, which should help reduce your nursery bill as saved the tax.