Where do we start with our debt??? Help Please

optical_2

Hello, I have been trawling the site and after much deliberation and a day spent with my head in our finances, wondered if anyone could advise us about what to do wit our debt. SOA as follows ...

Monthly Incomings:

My salary - £1500
Partners salary - £1300
Benefits - 0

Total - £2,800

Monthly Outgoings:

Mortgage/Rent - £800
Council Tax - £135
Gas - £45
Electric - £40
TV License - £11
Sky £0
Phone - £50
Food - £350
Car Insurance - £62
Petrol - £200
Life Insurance £40

Total: £ 1733


Egg CC – Balance £3500 = £60 month @ 12.9%

Halifax Loan £13,000 = £203 month @ 7.9%

Lloyds Overdraft £2400 = £12 month @ 11% + £25 account charge

Halifax Overdraft £1700 = £12 month @ 13% ish

Barclays Overdraft £1800 = £17 month @ 11.9%

Halifax Credit Card £1800 = pay £40 month @ 0% until June 2008

LLoyds TSB Credit Card £2900 = £60 month @ 0%

Car Loan VW Solutions Finance £121 month @ 5.9%

Student Loan £120 month

Halifax Credit Card £800 @ 13.9% pay by direct debit £40 month

Think that about covers the whole sorry mess....

All advice appreciated, we got married in September and our marriage is already under pressure due to our debts.

MANY THANX XXX

Keeping_Positive

From this it looks like you have £422 spare each month. If this is right I would

1)cut down food bill with the oldstyle board and any other bills with tips you find/get from here.

2)Work out a monthly budget

3)Use the snowball calculator to work out what to pay off first. http://www.whatsthecost.com/snowball.aspx

4)start a spending diary to see where your money goes.

There are loads of other more experienced people than me that may be along in a bit but I have learnt loads from just reading the forum and martins articles.

CHEAP_AS_CHIPS_4

:hello: hi optical

welcome aboard,

just posting to say welcome, i am sure someone will be along shortly with some fab advice, i know they did for me

could you try to balance transfer the egg cc to you 0% rate

and check out quidco for some quotes on all your insurances and utilities

you could prop reduce your food bill (is there only 2 of you?) check out the oldstyle forum for some great ideas, i did and nearly halved my shopping £270 per month for 5 people

hope that helps, and like i said earlier i am sure someone will be along soon with some fab advice

optical_2

Yeah thanks guys, when you look at it as us having £400 month each spare i seems loads, however, it seems to go nowhere. We both smoke so thats another £400 a month down (yeah I know GIVE IT UP). Feel better already for having got my head out of the sand. Just want my hubby to get some sleep. Awake all noight worrying poor dab XX

RAS

Have edited up the SOA to take account of your other spends.

optical wrote: »

Monthly Incomings:

My salary - £1500
Partners salary - £1300
Benefits - 0

Total - £2,800

Monthly Outgoings:

SPENDS

Mortgage/Rent - £800
Council Tax - £135 - if you pay this over 10 months, could you ask them to pay over 12 next year. Also, this year, you will shortly have two no pay months, so yuse the money to best effect to clear some of the debt.
Gas - £45 - check this is the best deal and use www.quidco.com to get a cashback if possible
Electric - £40 ditto
TV License - £11
Sky £0
Phone - £50 - this is high - can you reduce it
Food - £350 - for two this is very high. Aim to cut it in half at least. Head over to the Money Saving Old Style Board for help. In the short-term do a store cupboard challege and aim to spend virtually nothing this month.
Car Insurance - £62 - this is high. Use the compariion sites and then quidco.
Petrol - £200 - if you are spending this much, how much is work mileage for which you should be able to get expenses? Otherwise, you should be able to cut it
Life Insurance £40 - compare and change via quidco.

MOT? 1 car new so no MOT required until Jan 08, 2nd car recently purchased so costs yet to be discovered ... due Summer 08
Car Tax? £20 per month
Car repairs 1 @ £20 month, 2nd car ???
Going out £170 permonth
Clothes £20 a month
Presents? £45 a month
Holidays?£125 per month
Stuff for the house? Nil
Smokes £400 per month

Total: £ 2513 - based on known expenditure


Egg CC – Balance £3500 = £60 month @ 12.9%

Halifax Loan £13,000 = £203 month @ 7.9%

Lloyds Overdraft £2400 = £12 month @ 11% + £25 account charge

Halifax Overdraft £1700 = £12 month @ 13% ish

Barclays Overdraft £1800 = £17 month @ 11.9%

Halifax Credit Card £1800 = pay £40 month @ 0% until June 2008

LLoyds TSB Credit Card £2900 = £60 month @ 0%

Car Loan VW Solutions Finance £121 month @ 5.9%

Student Loan £120 month

Halifax Credit Card £800 @ 13.9% pay by direct debit £40 month

grand total £3223 = £423 negative each month plus the odd weekends

tealady

If there is only 2 of you then gas and electric seem high. Check you are on the cheapest tarifs and use a cash back website to switch if not. Turn things off (never leave on standby) when practicable.
Petrol look at petrolprices.com to find cheapest locally.
And yes smoking, I gave up last year for the umpteenth time and I saved a fortune. Try the chemists or your doctors for prescription nicotine replacement if you are serious about giving up.

optical_2

Hi there, we have both been plagued by debt since university. I left with £20000 debt in 2000, still owe £11000 to student loans. Husband only has £300 left to pay of his loans.
Re outrageous debt, Long story but we ended up £10,000 down when we moved house, this ten has grown and grown. We borrowed £13,000 to consolidate (£10,000 house debt and a further £3000 to pay off overdrafts) However, car packed in and had to use the £3000 to buy a car. We both commute 45 mins to work each day and use our cars for work. We do claim mileage but this is included in the figures shown for salaries. Both 0% deals end in June 08.
Phone - £50 - this is high - can you reduce it - includes broadband, we live rurally and this i the only provider of phone and net unfortnately.
Food - £350 - for two this is very high. Fair point... goodbye Sainsburys....hello Aldi
Car Insurance - £62 - this is high. This is for two cars, we need both unfortunately.
MOT? 1 car new so no MOT required until Jan 08, 2nd car recently purchased so costs yet to be discovered ... due Summer 08
Car Tax? 2 x £120 a year
Car repairs? 1 under maintianance plan @ £20 month, 2nd car ???
Going out? Hardly go out these days but have the odd weekend away e.g New Year with friends which cos us about £400. Weekends at home usually get wine and a take away, rough cost £20 each
Clothes? Only buy sale items, roughly £20 a month
Presents? ?? No idea how much we spend on gifts, no budget but roughly £500 a year
Holidays? £1500 a year maybe
Stuff for the house? Nil

Many Thanks again, XX

Keeping_Positive

As long as you are aware there is a problem and spend some time dealing with it youll be fine. The budget planner on here is good. It can be quite sobering because it makes you think of costs such as clothes, birthdays and shows how much you have left or are short in a month.

Good Luck

optical_2

thanks everyone for your support xx

RAS

Hi

Can you edit up the SOA in you first post with all the extra information and do the sums?

Then go over to the snowball and see the impact of each of the extra spends on you capacity to clear this debt. At the moment, I do not think that you have any, so you need to find some.

optical_2

Yeah have done the maths and whilst it would seem we have £400 each a onth remaining, when you take out all the other bits theres nothing left! Deffo no capacity to save & keep paying debts off at this rate. Reluctant to consolidate again .... or remortage we have equity??? Will update SOA tomorrow ... enough of the debt for the moment ... SLEEP !!!! XX