Finally seen the light

LordThomas

Bit of background.

I have been in the same job for over 13 years, steady income of between £30-60K however I have been terrible with money. I have 2 kids and a wife, we are currently renting and I have for once realised I need to get straight debt wise and start saving for a house. I just waste money each week and end up skint. Its like a vicious circle every month.

Income: £3400 per month

Wifes income: £1600 per month

Household bills (excluding debt payments) - approx £1400 per month.

I have the following debts

Capital 1 - £1465.00 - 30% APR

Likelyloans - £1100 left (not sure on interest however £112 per month)

Car Finance - £7000 left  - (£356 per month over 36 months, have 20 months left) very high interest

Wife

Vanquis - £1500 - 39%

Capital one - £220

Histrocic bad debts (defaulted etc)

MMP financial - £1000, defaulted 2015

PRAC financial - £216

Lowell (halifax) - £4521 - defaulted 2015

I had various other defaults however paid them off as they were only small.

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The wife wants us to save, save for a house however I am trying to make her understand we could pay all that debt off within a year easily and then save? - I keep hearing its best saving 3-6 month wages before anything so not sure what to do?

- If i make overpayments on the HP agreement should this save we interest??

Thanks

Sncjw

Can you do a statement of affairs formatted to mse as it breaks it all down. 

curlytop12

https://www.lemonfool.co.uk/financecalculators/soa.php
hi, this is the link for a Statement of Affairs, format it to "MSE"
use the figures that are Now, not what you would like it to be, you can tweak it as you learn more and have had some advice from the good people on here.

ryanm8655

Post an SOA for more advice.

But agree with clearing the non-defaulted debt.

Have you made payments against the defaulted debt since 2015? If not then that should drop off your file and become unenforceable next year.

enthusiasticsaver

There is no point saving for a mortgage when you have defaults on your credit record unless you are past the six years when they drop off your file. The debts you have are very high interest so I would pay those off asap in particular Vanquis and Capital 1. Initially saving for emergencies (£1000) is a good start however you are paying high interest and from the look of that very basic soa you have a lot of spare income, or you should have so I would prioritise paying off the debt first. 

sharpe106

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The wife wants us to save, save for a house however I am trying to make her understand we could pay all that debt off within a year easily and then save? - I keep hearing its best saving 3-6 month wages before anything so not sure what to do?

- If i make overpayments on the HP agreement should this save we interest??

Thanks

No point saving for a house when you have all that debt, also not really much point having 3-6 months wages when you have that debt as you are just borrowing to pay for rainy day fund. You will have to have a look at the HP agreement to see how much you can over pay and how much it costs you. 
I would be looking at getting rid of the other debt first which is about £4400 which should be manageable in a few months starting with the highest APR ones. Then look at the car, how high is the APR?