Paying off £37065 unsecured debt by July 2027 while continuing to travel this amazing world

Moneywhizz · 10 October 2024 at 9:18AM

Since you have decided not to cut back on travelling while you pay off your debt, you need to use all the tricks you can to cut down the interest you are paying. It is such a waste of your money that could be used for even more trips! There are a few things that could maybe help. As you have been advised mortgage overpayments could be put to your highest interest debt. The seems to be Very so getting that paid off as soon as possible should be your first target. After that you should probably tackle your overdraft as they are usually very high interest and can be called in at any time. You have said that you are happy for it to tick over but really you are just throwing money away every month. You could also check if you are eligible for a lower interest rate loan to pay off your overdraft and possibly even some of your credit card debt. Have you managed to give up vaping for both the financial and health benefits? An SOA might help people here to give you more tips and ways to get rid of your debt quicker without giving up the things that are most important to you.

Nintud · 10 October 2024 at 5:05PM

Very will get all of my Vinted revenue and ‘spare’ money until it’s paid. I think I can have that gone by February.

My minimum cc payments in pay day will be £519. That includes getting Santander below its limit. I also need to find £500 to pay my apartment maintenance charge (if I pay off the remaining bill for the year) or £300 if I pay up to November. I always forget this annual fee and really must start a savings pot for it.

This will be my last month of such a huge cc minimum payment. I am avoiding spending on them.

Would it be wise to reduce my credit card limits as I pay say £500 off, or would that mean I’m constantly close to the (new) limit and that would have a negative impact on my credit rating?

I want to reduce the spending temptation, but I also need to improve my credit score for my remortgage in April.

MFWannabe · 10 October 2024 at 7:55PM

Nintud said:

Very will get all of my Vinted revenue and ‘spare’ money until it’s paid. I think I can have that gone by February.

My minimum cc payments in pay day will be £519. That includes getting Santander below its limit. I also need to find £500 to pay my apartment maintenance charge (if I pay off the remaining bill for the year) or £300 if I pay up to November. I always forget this annual fee and really must start a savings pot for it.

This will be my last month of such a huge cc minimum payment. I am avoiding spending on them.

Would it be wise to reduce my credit card limits as I pay say £500 off, or would that mean I’m constantly close to the (new) limit and that would have a negative impact on my credit rating?

I want to reduce the spending temptation, but I also need to improve my credit score for my remortgage in April.

I wouldn’t reduce the limits on your credit cards because it always look bad being so close
to using all the credit
You’re worrying a lot about the mortgage; you don’t have to if you stay with the same lender as you won’t need a credit check if you just move onto another deal with them
You really need to focus on getting your debts down and throwing everything at them
If you did an soa we would be able to provide more tailored advice

Nintud · 11 October 2024 at 3:04AM

MFWannabe said:

Nintud said:

Very will get all of my Vinted revenue and ‘spare’ money until it’s paid. I think I can have that gone by February.

My minimum cc payments in pay day will be £519. That includes getting Santander below its limit. I also need to find £500 to pay my apartment maintenance charge (if I pay off the remaining bill for the year) or £300 if I pay up to November. I always forget this annual fee and really must start a savings pot for it.

This will be my last month of such a huge cc minimum payment. I am avoiding spending on them.

Would it be wise to reduce my credit card limits as I pay say £500 off, or would that mean I’m constantly close to the (new) limit and that would have a negative impact on my credit rating?

I want to reduce the spending temptation, but I also need to improve my credit score for my remortgage in April.

I wouldn’t reduce the limits on your credit cards because it always look bad being so close
to using all the credit
You’re worrying a lot about the mortgage; you don’t have to if you stay with the same lender as you won’t need a credit check if you just move onto another deal with them
You really need to focus on getting your debts down and throwing everything at them
If you did an soa we would be able to provide more tailored advice

I’ve finally finished my SOA. I’m horrified by the interest rates!

Nintud · 11 October 2024 at 3:16AM

Household Information[/b]

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

Number of children in household......... 2

Number of cars owned.................... 1[b]

Monthly Income Details[/b]

Monthly income after tax................ 3675

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

Benefits................................ 170

Other income............................ 389[b]

Total monthly income.................... 4234[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 749

Secured/HP loan repayments.............. 347

Rent.................................... 0

Management charge (leasehold property).. 135

Council tax............................. 125

Electricity............................. 58.5

Gas..................................... 58.5

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

Water rates............................. 50

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

Mobile phone............................ 78

TV Licence.............................. 15

Satellite/Cable TV...................... 18

Internet Services....................... 40

Groceries etc. ......................... 350

Clothing................................ 100

Petrol/diesel........................... 65

Road tax................................ 2.5

Car Insurance........................... 165

Car maintenance (including MOT)......... 25

Car parking............................. 5

Other travel............................ 150

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

Other child related expenses............ 150

Medical (prescriptions, dentist etc).... 35

Pet insurance/vet bills................. 20

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

Contents insurance...................... 10

Life assurance ......................... 35

Other insurance......................... 16

Presents (birthday, christmas etc)...... 175

Haircuts................................ 10

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

Holiday................................. 175

Emergency fund.......................... 5

TU, Bins, Misc.......................... 75[b]

Total monthly expenses.................. 3242.5[/b]

[b]

Assets[/b]

Cash.................................... 10

House value (Gross)..................... 172000

Shares and bonds........................ 525

Car(s).................................. 8500

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

Total Assets............................ 181035[/b]

[b]

Secured & HP Debts[/b]

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

Mortgage...................... 108572...(749)......4.5

Hire Purchase (HP) debt ...... 5562.....(347)......0[b]

Total secured & HP debts...... 114134....-.........- [/b]

[b]Unsecured Debts[/b]

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

Very...........................943.......168.......42.9

MBNA cc........................13953.....124.......23.76

Santander cc...................10638.....203.......21.66

Omni Loan......................5200......261.......11.5

Nationwide cc..................189.......5.........39.9

Santander OD...................2900......50........39.94

Nationwide cc..................465.......25........16.9[b]

Total unsecured debts..........34288.....836.......- [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 4,234

Expenses (including HP & secured debts). 3,242.5

Available for debt repayments........... 991.5

Monthly UNsecured debt repayments....... 836[b]

Amount left after debt repayments....... 155.5[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 181,035

Total HP & Secured debt................. -114,134

Total Unsecured debt.................... -34,288[b]

Net Assets.............................. 32,613[/b]

Nintud · 11 October 2024 at 3:31AM

I had included my car loan as an unsecured debt in my first calculation (in the thread title) and hadn’t included my overdrafts, hence the different unsecured debt totals in the thread title and the SOA.

On the positive side, I have sold a dress on Vinted today, so once that is paid that will be £9 towards getting the Santander cc under its limit.

MFWannabe · 11 October 2024 at 5:51AM

Nintud said:

MFWannabe said:

Nintud said:

Very will get all of my Vinted revenue and ‘spare’ money until it’s paid. I think I can have that gone by February.

My minimum cc payments in pay day will be £519. That includes getting Santander below its limit. I also need to find £500 to pay my apartment maintenance charge (if I pay off the remaining bill for the year) or £300 if I pay up to November. I always forget this annual fee and really must start a savings pot for it.

This will be my last month of such a huge cc minimum payment. I am avoiding spending on them.

Would it be wise to reduce my credit card limits as I pay say £500 off, or would that mean I’m constantly close to the (new) limit and that would have a negative impact on my credit rating?

I want to reduce the spending temptation, but I also need to improve my credit score for my remortgage in April.

I wouldn’t reduce the limits on your credit cards because it always look bad being so close
to using all the credit
You’re worrying a lot about the mortgage; you don’t have to if you stay with the same lender as you won’t need a credit check if you just move onto another deal with them
You really need to focus on getting your debts down and throwing everything at them
If you did an soa we would be able to provide more tailored advice

I’ve finally finished my SOA. I’m horrified by the interest rates!

Well done, now you can see the real picture and put some focus in the payments

MFWannabe · 11 October 2024 at 6:03AM

Nintud said:

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1[b]

Monthly Income Details[/b]
Monthly income after tax................ 3675
Partners monthly income after tax....... 0
Benefits................................ 170
Other income............................ 389[b]
Total monthly income.................... 4234[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 749
Secured/HP loan repayments.............. 347
Rent.................................... 0
Management charge (leasehold property).. 135
Council tax............................. 125
Electricity............................. 58.5 - Is this your bill payments or direct debit amounts?
Gas..................................... 58.5 - As above
Oil..................................... 0
Water rates............................. 50
Telephone (land line)................... 0
Mobile phone............................ 78 - Wow this is huge, are you in contract? If not look at sim only for way less than this
TV Licence.............................. 15
Satellite/Cable TV...................... 18 - Do you really need this?
Internet Services....................... 40 - Are you in contract? If not then shop around for cheaper deal
Groceries etc. ......................... 350 - You should be able to trim some off this, do you write a list? Meal plan?
Clothing................................ 100 - This is high, could you cut in half?
Petrol/diesel........................... 65
Road tax................................ 2.5
Car Insurance........................... 165 - Wow this is huge! Can this be cut? When are you due renewal?
Car maintenance (including MOT)......... 25
Car parking............................. 5
Other travel............................ 150
Childcare/nursery....................... 0
Other child related expenses............ 150. - What is this for?
Medical (prescriptions, dentist etc).... 35
Pet insurance/vet bills................. 20
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 35
Other insurance......................... 16. - What is this for?
Presents (birthday, christmas etc)...... 175 - This is way too much, cut at least by half
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 175 - Important to you so not touching this
Emergency fund.......................... 5 - You seriously need t8 increase this by cutting back elsewhere. You need to build some emergency fund to stop your reliance on credit. £50?
TU, Bins, Misc.......................... 75[b] - What is this for?
Total monthly expenses.................. 3242.5[/b]
[b]

Assets[/b]
Cash.................................... 10
House value (Gross)..................... 172000
Shares and bonds........................ 525
Car(s).................................. 8500
Other assets............................ 0[b]
Total Assets............................ 181035[/b]
[b]

Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 108572...(749)......4.5
Hire Purchase (HP) debt ...... 5562.....(347)......0[b]
Total secured & HP debts...... 114134....-.........- [/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
Very...........................943.......168.......42.9
MBNA cc........................13953.....124.......23.76
Santander cc...................10638.....203.......21.66
Omni Loan......................5200......261.......11.5
Nationwide cc..................189.......5.........39.9
Santander OD...................2900......50........39.94
Nationwide cc..................465.......25........16.9[b]
Total unsecured debts..........34288.....836.......- [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 4,234
Expenses (including HP & secured debts). 3,242.5
Available for debt repayments........... 991.5
Monthly UNsecured debt repayments....... 836[b]
Amount left after debt repayments....... 155.5[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 181,035
Total HP & Secured debt................. -114,134
Total Unsecured debt.................... -34,288[b]
Net Assets.............................. 32,613[/b]

Morning
I’ve made some comments above in your soa, there are definitely some cutbacks to be made
You need to build an emergency fund of say £500 to stop your reliance on credit
Stop the overpayments to the mortgage as the interest rate on that is 4.5% anyway and you can move onto another deal with current lender when that comes up for renewal.

Your focus needs to be cutting these debts. I would pay off the Nationwide cc at 39% in month 1 so one less card, then focus on Very and then Santander od with those eye watering interest rates 😱

Nintud · 11 October 2024 at 7:44PM

MFWannabe said:

Nintud said:

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1[b]

Monthly Income Details[/b]
Monthly income after tax................ 3675
Partners monthly income after tax....... 0
Benefits................................ 170
Other income............................ 389[b]
Total monthly income.................... 4234[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 749
Secured/HP loan repayments.............. 347
Rent.................................... 0
Management charge (leasehold property).. 135
Council tax............................. 125
Electricity............................. 58.5 - Is this your bill payments or direct debit amounts?
Gas..................................... 58.5 - As above
Oil..................................... 0
Water rates............................. 50
Telephone (land line)................... 0
Mobile phone............................ 78 - Wow this is huge, are you in contract? If not look at sim only for way less than this
TV Licence.............................. 15
Satellite/Cable TV...................... 18 - Do you really need this?
Internet Services....................... 40 - Are you in contract? If not then shop around for cheaper deal
Groceries etc. ......................... 350 - You should be able to trim some off this, do you write a list? Meal plan?
Clothing................................ 100 - This is high, could you cut in half?
Petrol/diesel........................... 65
Road tax................................ 2.5
Car Insurance........................... 165 - Wow this is huge! Can this be cut? When are you due renewal?
Car maintenance (including MOT)......... 25
Car parking............................. 5
Other travel............................ 150
Childcare/nursery....................... 0
Other child related expenses............ 150. - What is this for?
Medical (prescriptions, dentist etc).... 35
Pet insurance/vet bills................. 20
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 35
Other insurance......................... 16. - What is this for?
Presents (birthday, christmas etc)...... 175 - This is way too much, cut at least by half
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 175 - Important to you so not touching this
Emergency fund.......................... 5 - You seriously need t8 increase this by cutting back elsewhere. You need to build some emergency fund to stop your reliance on credit. £50?
TU, Bins, Misc.......................... 75[b] - What is this for?
Total monthly expenses.................. 3242.5[/b]
[b]

Assets[/b]
Cash.................................... 10
House value (Gross)..................... 172000
Shares and bonds........................ 525
Car(s).................................. 8500
Other assets............................ 0[b]
Total Assets............................ 181035[/b]
[b]

Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 108572...(749)......4.5
Hire Purchase (HP) debt ...... 5562.....(347)......0[b]
Total secured & HP debts...... 114134....-.........- [/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
Very...........................943.......168.......42.9
MBNA cc........................13953.....124.......23.76
Santander cc...................10638.....203.......21.66
Omni Loan......................5200......261.......11.5
Nationwide cc..................189.......5.........39.9
Santander OD...................2900......50........39.94
Nationwide cc..................465.......25........16.9[b]
Total unsecured debts..........34288.....836.......- [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 4,234
Expenses (including HP & secured debts). 3,242.5
Available for debt repayments........... 991.5
Monthly UNsecured debt repayments....... 836[b]
Amount left after debt repayments....... 155.5[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 181,035
Total HP & Secured debt................. -114,134
Total Unsecured debt.................... -34,288[b]
Net Assets.............................. 32,613[/b]

Morning
I’ve made some comments above in your soa, there are definitely some cutbacks to be made
You need to build an emergency fund of say £500 to stop your reliance on credit
Stop the overpayments to the mortgage as the interest rate on that is 4.5% anyway and you can move onto another deal with current lender when that comes up for renewal.
Your focus needs to be cutting these debts. I would pay off the Nationwide cc at 39% in month 1 so one less card, then focus on Very and then Santander od with those eye watering interest rates 😱

Thank you for taking the time to go through my SOA. I’ll expand on the figures a bit more.

Gas & electricity are on DD. As I live in an apartment with no line drying facility, I use my tumble dryer a lot. Too compensate for this, I work from home in the kitchen and do not use my central heating.

The £78 mobile bill is for three phones. My sons’ phones are rented from Music Magpie and Sim only, and this bill also includes a rented iPad. My bill includes unlimited data. I can go sim only from June.

The satellite bill is Netflix. Other than travel, this is my only entertainment. I have two jobs and work 44 hours per week. June and July, I take on a third job and work 72 hours per week. I’m too tired to socialise etc!

I totally agree on the emergency fund. I will try and carboot on Sundays to increase this.

Broadband includes a landline. I rarely use the phone, so this is something I could change. I need a seamless transition between providers as I mainly work from home.

The other insurance is for my white goods and vacuum cleaner. I have had two replacement dishwashers, a washing machine repair and a vacuum cleaner repair, in the last 3 years. I think this insurance is worth the fee, at least until I have an emergency fund. My vacuum cleaner I needs repairing again, so I will use the insurance for a repair or replacement on Monday.

Miscellaneous includes my trade union and political party subscriptions (both necessary for my work), wheelie bin cleaning (I cannot do this myself as I live in a third floor apartment and don’t have access to an outside tap), saving for new passports for myself and one son as both run out in May, plus a buffer for things like stamps and charging cables (which I seem to break monthly!)

clothing includes school uniform, underwear and footwear, which my sons go through at an alarming rate.

presents bill is high because I have 6 children. The oldest four have partners, and I have four grandchildren. Including my Dad and secret Santa too. I buy birthday presents for 15 people and Christmas presents for 20. Included in that is Christmas presents (generally food items) for my neighbours. One puts my bin out every week, and all of the neighbours put up with my dogs barking at least twice a day when we go out for our walks.

i have also included Easter eggs in the present costs, and rewarding my sons for good grades and good emails/calls home from school (far too rare!).

The other child related expenses include Xbox and play station subs, pocket money, and money for extra chores (son helps me with some basic tasks for my work, and I loathe sorting socks!)

car insurance is high because I added my daughter to it. She chauffeurs me to and from the airport when I travel and uses my car for most of the summer. We are car shopping for her tomorrow, so this monthly cost should decrease very soon. At least it will until I put number 3 son on the insurance!

LouisaAlmighty · 11 October 2024 at 11:15PM

It doesn't sound like you've had you LBM yet.
I really think you need to revaluate all the travel etc whilst you're in this level of debt - especially with so many children and outgoings.

Paying off £37065 unsecured debt by July 2027 while continuing to travel this amazing world

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