Damsel in Debt

bekah89

Thank you! Yes definitely will be avoiding DMP, I can get a 0% balance transfer for the biggest interest card so will do that next month! The forum has helped a lot so good seeing other people’s situations, that I’m not on my own, and the challenges. I’ve been doing no spend days this month, 3 so far and will check out other challenges. And been getting extra money from surveys and cashback and paying that straight off the cards. Thank you for your support! 

BellaLasagna2018

Haircuts £40 a month is the one that  jumped at me. Can you bring that down? 

Any chance of a part time job to increase what you earn? 

savingholmes

Great news you can transfer

bekah89

BellaLasagna2018 said:

Haircuts £40 a month is the one that  jumped at me. Can you bring that down? 

Any chance of a part time job to increase what you earn? 

Haircuts are only every 8 weeks I included other appointments in that too but I think I’ll spread them all out more next year. 

I did actually start looking last night at possible part time jobs, though with my full time job I’m limited with the hours I can do, there wasn’t a lot that would fit around my job. But I’ll keep a look out!

savingholmes said:

Great news you can transfer

Thank you! Think I can get 14 months 👍

joedenise

If the haircuts are every 8 weeks does that mean you are paying £80 every time or is it really £20 a month and £40 each time?  £40 every other month is far better than £40 a month!

bekah89

joedenise said:

If the haircuts are every 8 weeks does that mean you are paying £80 every time or is it really £20 a month and £40 each time?  £40 every other month is far better than £40 a month!

No the haircuts are £47 which I have every 8 weeks, then I have other beauty appointments that’s £24 every 6 weeks. There wasn’t another category for that. So I worked out how many I have of each per year and divided it by 12 and it worked out 40 a month. It is a lot but I don’t really want to go without at the moment 

enthusiasticsaver

bekah89 said:

Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household........... 1

Number of children in household......... 0

Number of cars owned.................... 0

Monthly Income Details[/b]

Monthly income after tax................ 1585.24

Partners monthly income after tax....... 0

Benefits................................ 0

Other income............................ 7[b]

Total monthly income.................... 1592.24[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 0

Secured/HP loan repayments.............. 0

Rent.................................... 650

Management charge (leasehold property).. 0

Council tax............................. 96

Electricity............................. 67.08

Gas..................................... 0

Oil..................................... 0

Water rates............................. 26.39

Telephone (land line)................... 0

Mobile phone............................ 49.57

TV Licence.............................. 0

Satellite/Cable TV...................... 0

Internet Services....................... 21

Groceries etc. ......................... 125

Clothing................................ 50

Petrol/diesel........................... 0

Road tax................................ 0

Car Insurance........................... 0

Car maintenance (including MOT)......... 0

Car parking............................. 0

Other travel............................ 154.4

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 0

Pet insurance/vet bills................. 0

Buildings insurance..................... 0

Contents insurance...................... 3.33

Life assurance ......................... 0

Other insurance......................... 0

Presents (birthday, christmas etc)...... 20

Haircuts................................ 40

Entertainment........................... 0

Holiday................................. 0

Emergency fund.......................... 0

Bank fee................................ 4[b]

Total monthly expenses.................. 1306.77[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 0

Shares and bonds........................ 0

Car(s).................................. 0

Other assets............................ 0[b]

Total Assets............................ 0[/b]

[b]

No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

Barclaycard....................6861.54...220.......21.1

MBNA...........................2414.16...54........0

Fluid..........................1699.26...17........0[b]

Total unsecured debts..........10974.96..291.......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 1,592.24

Expenses (including HP & secured debts). 1,306.77

Available for debt repayments........... 285.47

Monthly UNsecured debt repayments....... 291[b]

Amount short for making debt repayments. -5.53[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 0

Total HP & Secured debt................. -0

Total Unsecured debt.................... -10,974.96[b]

Net Assets.............................. -10,974.96[/b]

[i]Created using the SOA calculator at www.stoozing.com. 

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

Given you have a shortfall on making minimum payments I am guessing you rely on overtime to  make this up normally? If you are continuing to spend on the cards after only paying minimums you have to stop this as a first step.  Getting rid of the cards is the most important thing to do  when aiming to  clear them on a relatively low salary as you are on.  I would also hazard that you do spend on entertainment but you have not budgeted for it.  What you  need is a sustainable budget long term so if that means allowing yourself £20 for the odd trip to the cinema, coffee out or takeaway then you need to  build that in to your budget.  Unless you get overtime every month I would say £300 is pushing it to repay every month but if you can keep the interest rates at 0% and manage to pay the £300 then you will get rid of the debt in 3 years or thereabouts.  Unless you have a big raise in salary saving in a LISA is definitely not affordable for you so you did right to stop there. 

As soon as the mobile phone deal finishes you can move to SIM only and save yourself between £30 and £40 a month. That is very expensive.  

Clothes can go as I would imagine that you probably do not need new clothes every month. I would reduce that down to about £10 a month and see if you can get the hairdressers down lower by going less often or finding a cheaper one. 

I am assuming the reason you are in debt in the first place though is your salary is relatively low and your housing costs and travel high as a proportion of that so I guess you have been using cards to top up your income for a while. The rent and utilities/council tax are 55% of your income and travel is 10% so you are effectively living off just 35% of your income and out of that you are having to use almost 20% to repay debt.   As a first step you have to stop using the cards and ideally the £200 overdraft every month even if the overdraft is free. If you can raise your  income by taking a second job or doing as much overtime as possible that will help.  It is perfectly possible to do this without a DMP if you can continue to get 0% deals and stick to a budget and stop the spending on cards but otherwise a DMP will be needed. 

bekah89

Haven’t posted an update in a while, nothing much to report. I’ve paid an extra £5 off my highest credit card from money I’ve got from cashback and a train delay. I actually like when my trains a bit late so I can get money back 😅 also waiting for £5 from Swagbucks to come through. 

Compared to when I started on here I was at 6861.54 on my biggest balance it’s now at 6706.57. Although I have to be honest I think I will be spending on my card this month because I’m going away for the weekend next week 🤦🏻‍♀️ Train and hotel is already paid for it’s just spending money which I’ve budgeted 150 for. It’s either go into my overdraft or add it on my lowest interest card which is 8% lower. But I’ve got overtime coming in my next pay packet which will cover that and then some! 

I’ve been trying to spend less on groceries but I’ve spent £50 in the last 11 days, and I’m only a third of the way through the month. Now I’m keeping track of what I’m spending more it’s painful seeing it all add up 😬 

Also I see people have text in a signature under their comments.. could anyone tell me how I add that please? Is it heading 1 or 2 or something else? Not great with tech 😆

savingholmes

If you go to profile ( bottom right on phone) you get to settings on the left there should then be a signature option. Pick it, write it, save it and it should then appear.

Good luck with your plans.  Can you scale back your spending plans for while you are away? Very difficult to make headway when you are spending on a card still... 

bekah89

enthusiasticsaver said:

bekah89 said:

Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household........... 1

Number of children in household......... 0

Number of cars owned.................... 0

Monthly Income Details[/b]

Monthly income after tax................ 1585.24

Partners monthly income after tax....... 0

Benefits................................ 0

Other income............................ 7[b]

Total monthly income.................... 1592.24[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 0

Secured/HP loan repayments.............. 0

Rent.................................... 650

Management charge (leasehold property).. 0

Council tax............................. 96

Electricity............................. 67.08

Gas..................................... 0

Oil..................................... 0

Water rates............................. 26.39

Telephone (land line)................... 0

Mobile phone............................ 49.57

TV Licence.............................. 0

Satellite/Cable TV...................... 0

Internet Services....................... 21

Groceries etc. ......................... 125

Clothing................................ 50

Petrol/diesel........................... 0

Road tax................................ 0

Car Insurance........................... 0

Car maintenance (including MOT)......... 0

Car parking............................. 0

Other travel............................ 154.4

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 0

Pet insurance/vet bills................. 0

Buildings insurance..................... 0

Contents insurance...................... 3.33

Life assurance ......................... 0

Other insurance......................... 0

Presents (birthday, christmas etc)...... 20

Haircuts................................ 40

Entertainment........................... 0

Holiday................................. 0

Emergency fund.......................... 0

Bank fee................................ 4[b]

Total monthly expenses.................. 1306.77[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 0

Shares and bonds........................ 0

Car(s).................................. 0

Other assets............................ 0[b]

Total Assets............................ 0[/b]

[b]

No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

Barclaycard....................6861.54...220.......21.1

MBNA...........................2414.16...54........0

Fluid..........................1699.26...17........0[b]

Total unsecured debts..........10974.96..291.......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 1,592.24

Expenses (including HP & secured debts). 1,306.77

Available for debt repayments........... 285.47

Monthly UNsecured debt repayments....... 291[b]

Amount short for making debt repayments. -5.53[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 0

Total HP & Secured debt................. -0

Total Unsecured debt.................... -10,974.96[b]

Net Assets.............................. -10,974.96[/b]

[i]Created using the SOA calculator at www.stoozing.com. 

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

Given you have a shortfall on making minimum payments I am guessing you rely on overtime to  make this up normally? If you are continuing to spend on the cards after only paying minimums you have to stop this as a first step.  Getting rid of the cards is the most important thing to do  when aiming to  clear them on a relatively low salary as you are on.  I would also hazard that you do spend on entertainment but you have not budgeted for it.  What you  need is a sustainable budget long term so if that means allowing yourself £20 for the odd trip to the cinema, coffee out or takeaway then you need to  build that in to your budget.  Unless you get overtime every month I would say £300 is pushing it to repay every month but if you can keep the interest rates at 0% and manage to pay the £300 then you will get rid of the debt in 3 years or thereabouts.  Unless you have a big raise in salary saving in a LISA is definitely not affordable for you so you did right to stop there. 

As soon as the mobile phone deal finishes you can move to SIM only and save yourself between £30 and £40 a month. That is very expensive.  

Clothes can go as I would imagine that you probably do not need new clothes every month. I would reduce that down to about £10 a month and see if you can get the hairdressers down lower by going less often or finding a cheaper one. 

I am assuming the reason you are in debt in the first place though is your salary is relatively low and your housing costs and travel high as a proportion of that so I guess you have been using cards to top up your income for a while. The rent and utilities/council tax are 55% of your income and travel is 10% so you are effectively living off just 35% of your income and out of that you are having to use almost 20% to repay debt.   As a first step you have to stop using the cards and ideally the £200 overdraft every month even if the overdraft is free. If you can raise your  income by taking a second job or doing as much overtime as possible that will help.  It is perfectly possible to do this without a DMP if you can continue to get 0% deals and stick to a budget and stop the spending on cards but otherwise a DMP will be needed. 

No I've rarely had overtime since the pandemic, the clothes budgets wasnt really accurate, when I did buy clothes it would go on credit card but I havent bought any for a while so will cut this back pretty much completely now.  I normally pay just over 300 on my credit cards per month, I get extra money every month from cashback, surveys and selling things. I do need to add into the budget for extra things but just did the SOA quite frugally because I want to pay as much money as possible off my credit cards and with my debt I cant afford to spend on coffee out and takeaways etc and I can live without. 

I used to pay 200 into my LISA per month very comfortably, it's only because of my debt I stopped because I need to pay that off before saving again. I dont think my salary is low, I do have alot of deductions, pension and student loan repayments so looks lower than what it is. I will be cancelling my phone contract once its up and spreading out haircuts to save there. 

My debt started because of holidays then when I first moved into my flat paying for furniture etc then the interest has just added up. I cant really change my living situation regarding the high percentage of my wage going towards rent/bills/travel. I live in a very expensive area, my rent's a bargain considering. 

Yes I can get a 0% deal for the highest interest card so will be avoiding a DMP, I'm just going to need to use the lowest interest card for a bit the rest of the year but my overtime will more than cover it. So I'll be more on track in January