My Debt Free Challenge

truCido

Over the last few years I have managed to make up far too much debt and I have decided it is time for me to get rid of it as I now have a baby on the way and want to sort myself out, however I need some guidance as I'm in a bit of a rut at the moment.

Monthly Incomings:

My salary - £1524 (after tax)

Monthly Outgoings:
Loan £174
CC2 £15
CC3 £75
CC4 £50
Rent £475
Water £35
Electric £25
Council Tax £99
Gas £25
TV,phone,internet £0
Tv Lic £11
Mobile £5
Car Insurance £64
Food £120
Petrol £120


Total £1293.33

Current Debt:

[strike]CC1 - £1500 outstanding - £25 per month (min payment) - 15.9%[/strike]
CC2 - £2292.85 outstanding - £75 per month (min payment) - 0% till 10/08
CC3 - £458.17 outstanding - £15 per month
CC4 - £1537.50 outstanding - £50 per month - 0% till 05/09
Loan - £1777.40 outstanding- paying £173 a month - 16% - 12 months remaining
[strike]Hire Purchase - £5200 outstanding - paying £168 per month - 36 months remaining [/strike]
[strike]Shop Finance - £1000 oustanding - paying £39 per month - 29.8% - about 33 payments remaining [/strike]

Total Debt : £6065.92

Mrs_Sparkle

Hello and welcome! And congratulations on the baby. If you want to post an SOA (see SouthernScouser's sticky at the top of the board) we'll have a look for you and see if we can help trim down your expenditure.

Robflh

Hi truCido

Click on the link below for more information on how to do a Schedule of Affairs (SOA). It is one of the most important things you can do.

http://forums.moneysavingexpert.com/showthread.html?t=107280

truCido

ah ok I'll get on ir right away, thanks!

truCido

** Moved to first post **

Robflh

Hi truCido

The good news is that you are, according to your figures, in the red every month.

If you put the credit card & loan payments as part of your outgoings, you can have the total outgoings in one place.

What you are trying to do is to reduce the amount of interest you are paying each month and to control how much you spend on things like food, petrol, phone and so on. To do that you first have to know what they are costing you at the momnent. Hence the reason for an SOA.

Please can you confirm exactly what your rent covers. Ie. gas, electric, water rates and so on.

What is the credit limit on the credit cards and when did you acquire them? Also, what is the APR for the Virgin card and the HP?

truCido

Thanks Robflh, I've just updated the above, I'm trying to find the APR for the HP right now

lunar

Hi Tru, I just wanted to say welcome to the board and to say well done for having your light bulb moment. Congratulations on the baby. why dont you take a look at the snowball calculator at www.whatsthecost.com to find out when you will be debt free. its really motivating to make overpayments when you use this site. Keep on posting and you will get loads of support on here.

truCido

Hi Lunar, thank you

Just did the snowball calc and it's says April 2011

lunar

Same as me, im aiming for june 2010 though as i want to be debt free before im 30! will have to make loads of overpayments to make that day!

truCido

Right then a little update I have just moved CC1 balance to CC2 for 9 months at 0%. So till end of September 2008.