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Where do I start?!
FightingOnInto20256
Posts: 9
Forumite
Good morning all. Newbie over here, mulling over life as we approach the new year. I'm in a lot of debt. I genuinely don't know where to start, or what to focus on, and with so much financial information and guidance out there, I thought I'd go back to basics, and get everything written down on paper (or on a website forum in this case), to see if anyone would be able to offer advice.
Here is my list of income versus outgoings:
Income from salary: £2575
Outgoings:
This comes to around £2600 so I am overspending. I have tried to shift my credit cards onto another 0%, but am being declined because of my affordability scores (rightly so, in my honest opinion).
Total Debts look like this:
Where do I start?! In a year, I've gone from having a 999 Experian Credit Score with £3000 debt, to a 324 score and £27k in debt. Yikes.
Here is my list of income versus outgoings:
Income from salary: £2575
Outgoings:
| £ 31.00 | Debt Collector |
| £ 17.00 | Car Tax |
| £ 25.00 | Online Retailer (interest charged) |
| £ 90.00 | Online Retailer (no interest charged) |
| £ 225.00 | Car Finance |
| £ 30.00 | Credit Card (0% period) |
| £ 70.00 | Credit Card (0% period) |
| £ 575.00 | Shared Ownership Mortgage |
| £ 455.00 | Shared Ownership Rent |
| £ 171.00 | Council Tax |
| £ 25.00 | Water |
| £ 200.00 | Bank Loan |
| £ 150.00 | Credit Card (just coming out of 0% period) |
| £ 29.00 | Car Insurance |
| £ 115.00 | Gas and Electric |
| £ 15.00 | TV Licence |
| £ 26.00 | Phone |
| £ 34.00 | Broadband |
| £ 20.00 | Debt Collector |
| £ 50.00 | Amazon Subscribe and Save |
| £ 13.00 | House Insurance |
| £ 8.00 | Phone |
| £ 15.00 | Spotify |
| £ 9.00 | Amazon Subscription Charge |
| £ 12.00 | NHS |
| £ 30.00 | Petrol |
| £ 150.00 | Spend / Food |
This comes to around £2600 so I am overspending. I have tried to shift my credit cards onto another 0%, but am being declined because of my affordability scores (rightly so, in my honest opinion).
Total Debts look like this:
| Debts | |
| Car Finance | £ 10,830.00 |
| Credit Card | £ 6,455.00 |
| Bank Loan | £ 2,700.00 |
| Credit Card | £ 1,711.00 |
| Credit Card Online Retailer | £ 1,350.00 £. 650.00 |
| Online Retailer | £ 3,500.00 |
| Debt Collector | £ 416.00 |
| Debt Collector | £ 308.00 |
| TOTAL DEBT: £ 27,270.00 | |
Where do I start?! In a year, I've gone from having a 999 Experian Credit Score with £3000 debt, to a 324 score and £27k in debt. Yikes.
0
Comments
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Can you do it as an SOA (link below). Format for MSE. This will make it a lot easier for people to comment and help you. There’s always a way through! There is lots of good help and advice here.
https://www.lemonfool.co.uk/financecalculators/soa.php
Hastings Direct 4775.99
La Redoute 676.21
Barclaycard 295.20
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Also when you say debt collector what do you mean? Are these loan sharks? If so you can get specialist help, others may be able to advise.
Hastings Direct 4775.99
La Redoute 676.21
Barclaycard 295.20
0 -
[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]Household Information[/b]Number of adults in household........... 1Number of children in household.........Number of cars owned.................... 1[b]Monthly Income Details[/b]Monthly income after tax................ 2575Partners monthly income after tax....... 0Benefits................................ 0Other income............................ 0[b]Total monthly income.................... 2575[/b][b]Monthly Expense Details[/b]Mortgage................................ 575Secured/HP loan repayments.............. 0Rent.................................... 455Management charge (leasehold property).. 0Council tax............................. 171Electricity............................. 60Gas..................................... 55Oil..................................... 0Water rates............................. 25Telephone (land line)................... 0Mobile phone............................ 34TV Licence.............................. 15Satellite/Cable TV...................... 0Internet Services....................... 34Groceries etc. ......................... 150Clothing................................ 0Petrol/diesel........................... 30Road tax................................ 17Car Insurance........................... 29Car maintenance (including MOT)......... 0Car parking............................. 0Other travel............................ 0Childcare/nursery....................... 0Other child related expenses............ 0Medical (prescriptions, dentist etc).... 12Pet insurance/vet bills................. 0Buildings insurance..................... 0Contents insurance...................... 13Life assurance ......................... 0Other insurance......................... 0Presents (birthday, christmas etc)...... 0Haircuts................................ 0Entertainment........................... 0Holiday................................. 0Emergency fund.......................... 0[b]Total monthly expenses.................. 1675[/b][b]Assets[/b]Cash.................................... 0House value (Gross)..................... 120000Shares and bonds........................ 0Car(s).................................. 0Other assets............................ 0[b]Total Assets............................ 120000[/b][b]Secured & HP Debts[/b]Description....................Debt......Monthly...APRMortgage...................... 89000....(575)......0[b]Total secured & HP debts...... 89000.....-.........- [/b][b]Unsecured Debts[/b]Description....................Debt......Monthly...APRBank Loan......................2700......134.......11Credit Card....................6500......70........0Credit Card....................1711......0.........26.49Debt Collector (uni)...........308.......31........0Debt Collector (uni)...........416.......20........0Online Retailer................650.......30........25Online Retailer................3600......90........0Credit Card....................1350......30........0[b]Total unsecured debts..........17235.....405.......- [/b][b]Monthly Budget Summary[/b]Total monthly income.................... 2,575Expenses (including HP & secured debts). 1,675Available for debt repayments........... 900Monthly UNsecured debt repayments....... 405[b]Amount left after debt repayments....... 495[/b][b]Personal Balance Sheet Summary[/b]Total assets (things you own)........... 120,000Total HP & Secured debt................. -89,000Total Unsecured debt.................... -17,235[b]Net Assets.............................. 13,765[/b][i]Created using the SOA calculator at www.LemonFool.co.uk.Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]0
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Thank you @itsthelittlethings - that's a great tool! See above.
The debt collector items are what I owe universities from study. I've been paying them off for around 10 years now, and am slowly getting there!1 -
Apologies, I didn't add my car finance to the above sheet, that debt stands at £10830, with a £225 a month payment, 5% interest0
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Your SOA is showing that your debt payments are manageable (although I suspect some of the figures are wrong - 0 entertainment, haircuts, gifts for a start - never go to the cinema, get a takeaway, buy a present?).FightingOnInto20256 said:Thank you @itsthelittlethings - that's a great tool! See above.
The debt collector items are what I owe universities from study. I've been paying them off for around 10 years now, and am slowly getting there!Really what you need to do is back back over a couple of months bank statements with a fine toothed comb and do an SOA based on what you actually spend. You haven’t ended up with that level of debt with that kind of spending - if you’re still struggling your SOA is also not accurate. Get an accurate SOA based on what you actually spend. It may show a negative budget or no surplus, that’s fine. It gives you somewhere to work from to set a realistic budget, cutting down on some areas where you can make changes.
Also it’s recommended that you start saving towards an emergency fund for when the boiler breaks, you have car issues etc etc.Are you paying the minimum payments on all debts or a you in any kind of arrangement with creditors?Hastings Direct 4775.99
La Redoute 676.21
Barclaycard 295.20
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Ok with your car payment things are a bit tighter. You do need an accurate SOA though.
Hastings Direct 4775.99
La Redoute 676.21
Barclaycard 295.20
0 -
You're absolutely right @itsthelittlethings. I've just gone through it all again:[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]Household Information[/b]Number of adults in household........... 1Number of children in household.........Number of cars owned.................... 1[b]Monthly Income Details[/b]Monthly income after tax................ 2575Partners monthly income after tax....... 0Benefits................................ 0Other income............................ 0[b]Total monthly income.................... 2575[/b][b]Monthly Expense Details[/b]Mortgage................................ 575Secured/HP loan repayments.............. 0Rent.................................... 455Management charge (leasehold property).. 0Council tax............................. 171Electricity............................. 60Gas..................................... 55Oil..................................... 0Water rates............................. 25Telephone (land line)................... 0Mobile phone............................ 34TV Licence.............................. 15Satellite/Cable TV...................... 0Internet Services....................... 34Groceries etc. ......................... 150Clothing................................ 50Petrol/diesel........................... 30Road tax................................ 17Car Insurance........................... 29Car maintenance (including MOT)......... 30Car parking............................. 0Other travel............................ 10Childcare/nursery....................... 0Other child related expenses............ 0Medical (prescriptions, dentist etc).... 12Pet insurance/vet bills................. 0Buildings insurance..................... 11Contents insurance...................... 13Life assurance ......................... 0Other insurance......................... 0Presents (birthday, christmas etc)...... 25Haircuts................................ 0Entertainment........................... 100Holiday................................. 0Emergency fund.......................... 10[b]Total monthly expenses.................. 1911[/b][b]Assets[/b]Cash.................................... 0House value (Gross)..................... 120000Shares and bonds........................ 0Car(s).................................. 0Other assets............................ 0[b]Total Assets............................ 120000[/b][b]Secured & HP Debts[/b]Description....................Debt......Monthly...APRMortgage...................... 89000....(575)......0[b]Total secured & HP debts...... 89000.....-.........- [/b][b]Unsecured Debts[/b]Description....................Debt......Monthly...APRBank Loan......................2700......150.......11Credit Card....................6500......70........0Credit Card....................1711......100.......26.49Car Finance....................10830.....225.......5Debt Collector (uni)...........308.......31........0Debt Collector (uni)...........416.......20........0Online Retailer................650.......30........25Online Retailer................3600......90........0Credit Card....................1350......30........0[b]Total unsecured debts..........28065.....746.......- [/b][b]Monthly Budget Summary[/b]Total monthly income.................... 2,575Expenses (including HP & secured debts). 1,911Available for debt repayments........... 664Monthly UNsecured debt repayments....... 746[b]Amount short for making debt repayments. -82[/b][b]Personal Balance Sheet Summary[/b]Total assets (things you own)........... 120,000Total HP & Secured debt................. -89,000Total Unsecured debt.................... -28,065[b]Net Assets.............................. 2,935[/b][i]Created using the SOA calculator at www.LemonFool.co.uk.Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]1
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ok, next time you do a SOA, the car finance goes in as a secured debt (unless its just a bank loan you bought the car with.)
That is now looking tight, very tight. The cards at 0% interest, when do the 0% terms end?
Have you had a car on finance before this one? If you have, have you heard of car commission refunds?0 -
Hi @manyways. Thank you for coming back to me. Ok, noted, and I'll update that in my SOA now. The car finance was taken out with the dealer.
For the credit card with £6500 remaining, the 0% ends July 2026, £1711 ended this month, and £1350 0% ends November 2026.
I have had a car on finance before this one, and did apply to the refund scheme, waiting months before I heard I wasn't entitled to anything.
Thank you.0
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