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Time to get this sorted!
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Bob35
Posts: 5 Forumite
Hi Everyone
I've been burying my head in the sand for a while but it's time to get my finances in better order as I've just turned 35 and need to start paying debts down so i can save and get on the property ladder. I understand that realistically this will take some time. I've been reading several threads on this forum and it's inspired me to make a change to my situation. I've always been reckless with money with but over the last 12 months, my unsecured debt has increased significantly (from 35k to 60k) due to problem gambling and consolidating debt with loans and balance transfers but then spending again. I have now registered with Gamban/ Gamstop and will no longer be spending money on gambling.
I live with a friend in a rental property so the rent and bills in the SOA may look a little strange/ low. Household bills (water/ electrcity) etc are in my friend's name (and included within the rent I pay). Sky and internet are in my name. I also have a company car so don't need to budget for MOT/ Insurance etc. My personal fuel usage is also deducted via a fuel card so my monthly income has already factored that in.
I am due to get my annual bonus from work in February or March and although i don't know the exact figure yet, historically it has been around 8500 which should give me an extra 5k/5.5k to pay down on some debts. I would appreciate any advice on where to start. Would it be better to pay overdrafts first or start with the credit cards. The Natwest 0% 10k BT balance expires in July 2026.
Any help would be appreciated. I'm determined to get this sorted and hopefully can avoid any impact to credit score (don't currently have any missed payments/ defaults etc).
I've been burying my head in the sand for a while but it's time to get my finances in better order as I've just turned 35 and need to start paying debts down so i can save and get on the property ladder. I understand that realistically this will take some time. I've been reading several threads on this forum and it's inspired me to make a change to my situation. I've always been reckless with money with but over the last 12 months, my unsecured debt has increased significantly (from 35k to 60k) due to problem gambling and consolidating debt with loans and balance transfers but then spending again. I have now registered with Gamban/ Gamstop and will no longer be spending money on gambling.
I live with a friend in a rental property so the rent and bills in the SOA may look a little strange/ low. Household bills (water/ electrcity) etc are in my friend's name (and included within the rent I pay). Sky and internet are in my name. I also have a company car so don't need to budget for MOT/ Insurance etc. My personal fuel usage is also deducted via a fuel card so my monthly income has already factored that in.
I am due to get my annual bonus from work in February or March and although i don't know the exact figure yet, historically it has been around 8500 which should give me an extra 5k/5.5k to pay down on some debts. I would appreciate any advice on where to start. Would it be better to pay overdrafts first or start with the credit cards. The Natwest 0% 10k BT balance expires in July 2026.
Any help would be appreciated. I'm determined to get this sorted and hopefully can avoid any impact to credit score (don't currently have any missed payments/ defaults etc).
[font=courier new][b]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[b]
Monthly Income Details[/b]
Monthly income after tax................ 3950
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0[b]
Total monthly income.................... 3950[/b][b]
Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 400
Management charge (leasehold property).. 0
Council tax............................. 30
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 72
TV Licence.............................. 0
Satellite/Cable TV...................... 34
Internet Services....................... 25
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 39
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 30
Entertainment........................... 200
Holiday................................. 0
Emergency fund.......................... 0
Spotify................................. 15.99
Monzo Premium........................... 15[b]
Total monthly expenses.................. 1060.99[/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
Natwest Credit Card............10000.....100.......0
MBNA Credit Card...............5500......270.......33.88
Lloyds Credit Card.............2000......90........33.9
Asda Credit Card ..............1794......43........34.09
Very BNPL......................1400......5.........0
Very...........................3470......270.......51.9
Monzo Overdraft................2000......43.33.....39
Natwest Overdraft .............500.......13.87.....39.49
Natwest Loan...................6500......280.......29.6
Sainburys Loan.................20500.....560.......13
Paypal Credit .................4000......150.......25.9
Sainsburys CreditCard..........1650......50........24.86
Halifax Credit Card............1300......32........26
Monzo Flex ....................3000......250.......0[b]
Total unsecured debts..........63614.....2157.2....- [/b]
[b]
Monthly Budget Summary[/b]
Total monthly income.................... 3,950
Expenses (including HP & secured debts). 1,060.99
Available for debt repayments........... 2,889.01
Monthly UNsecured debt repayments....... 2,157.2[b]
Amount left after debt repayments....... 731.81[/b]
[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -63,614[b]
Net Assets.............................. -63,614[/b]
[i]Created using the SOA calculator at www.LemonFool.co.uk.
Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
0
Comments
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My initial thinking was to tackle the overdrafts first and then maybe some of the big hitters in terms of monthly payments - Monzo Flex, MBNA Credit Card etc but would welcome your expertise! Wow, it's really shocking looking at all the numbers laid out like that. Annoyed with myself but can only look forward now.0
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get rid of very and nat west overdraft and then go for the monzo overdraft. that will clear 3 of the highest interest ones and free up approx £340 a month. when does very bnpl need to be addressed?
Mortgage at 01.01.14 £119,481.83:eek: today £0 Emergency fund £5.5/5.5k & £200/200 cash.:jWeight 24/02/19 14st 7lb now 12st determined to stop defining myself by my mistakes. Progress not perfection.:T100%through my 1% mortgage challenge. 100% through my pb challenge.1 -
Thank you for replying. That makes sense. £340 is due in February and then the rest is pretty much split equally in August, October and November0
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Hey Bob35,
Well done for facing it all and getting it all down in black and white. It's not easy!
I'm not far ahead of you in dealing with my debt. From what I heard/read some people pay off small debts first so it feels like you're getting somewhere (helpful if you're feeling overwhelmed by the number of debts you have), others pay the highest interest debt off first, which is helpful if you want to clear debt sooner and pay less interest.
I did a bit of both. I had two debts of about 100 and 150 so I paid those off so I could stop thinking about them, and now I am tackling the bulk of my debt by paying minimum payments on most of them but paying extra off the highest interest debts (my two overdrafts).
Hope that helps!Debts 04/01/25 02/08/25
Tesco CC £6,509.97 £6,030 (now NatWest2)
NatWest CC £7,612.74 £7,080
Lloyds CC £6,112.60 £5,075
1st Direct CC £176.03 £19.92
CC total £20,411.34 £18,204.92TSB OD £500 £0
1st Direct OD £600 £250 (0%)
Car loan £4,000 £4,000
1st Direct Loan £10,684.44 £9,246.15
Total £36,195.78 £31,451.07
EF £400.561 -
Hi you need to find out the APRs for the ones that are missing and then plug them all into the snowball calculator which will work out the best order to go for. Good luck, now you are focused this will go down. V x1
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Also worth looking at the credit card eligibility checker to see if you can get any offers on balance transfer cards, which will help with those high APRs. V x1
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Month1 I’d pay off NatWest Overdraft, then I’d start smashing Very next, that APR is horrendous 😱I think you need to see some being paid off so you feel like you’re getting somewhereMFW 2025 #50: £1139.75/£600007/03/25: Mortgage: £67,000.00
12/06/25: Mortgage: £65,000.00
18/01/25: Mortgage: £68,500.14
27/12/24: Mortgage: £69,278.38
27/12/24: Debt: £0 🥳😁
27/12/24: Savings: £12,000
07/03/25: Savings: £16,5001 -
Thanks Everyone - i think you are right - the Very has to go quickly - or at least the non-BNPL balance1
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