Starting over...

cobragirl

I posted over a year ago and had lots of advice from various people...thankyou. However, I have had a disastrous year and am now approx £6K MORE in debt than I was then. I'm not going to bore everyone with the details, but I really want a baby (I'm getting on a bit and it has to be soon) so have to seriously tackle my problem first or I'll be on the breadline for the rest of my life.
I'm not going to post my whole SOA just yet as there are a few switches I want to make first (phone, gas etc) but my debts will be on show for all of you and hopefully make me ashamed enough to want to update them monthly!
I've also started to pay off my student loan although I don't earn enough to have to pay it. I figured it's just accumulating interest and I might as well get it out of the way. Does anyone disagree?

Student loan 3786.56
Barclaycard 1277.24
A+L card 224.35
MBNA card 5868.09
HSBC card 3902.00
Virgin card 129.87 (will pay in full and cancel this month)
Halifax card 4278.12
HSBC overdraft 850.00
total 20,316.23

This is the highest my debt has ever been. I am calling all companies to find out APRs and try to get some interest reduce, MBNA did this for me once before so it's worth a try.
I know I have more info to post, but the first step for me is just to get it on here.
Ouch.

floss2

:grouphug:

Not sure about your student loan...thought that the general opinion was that as it's quite a low rate, it's better to leave it until you have to pay it, and to do so at their rates? How much are you paying them, and could that be better used being snowballed towards clearing the A & L card?

cobragirl

You're probably right. I think it's more of a psychological thing, it feels like I'm paying more off. I think the interest is about £10 a month but I've been paying it for 5 years!
This is my rough SOA before switching bits and bobs
Mortgage £910 Just switched, best rate available for me.
Council Tax was 109 last year, waiting for updated amount
Gas 39.50 Going to switch to dual fuel
Elec 25.00
Phone 41.00
Cable/BB 62.98 (both in contract, can't get out)
Life ins 5.99
Petrol 60.00 Can't go much slower!!!!
Student loan 85.29
Shopping, tv licence and going out taken care of by OH.

My income is roughly 1300 a month, no benefits but surveys and bits which go into my HSBC overdraft.
Any suggestions welcomed!!
x

CCCS_Alan

Hi Cobragirl

If you keep creating more debt you do need to destroy your cards and return to your provider to get rid of the temptation to spend on them. This would hopefully stop your debt increasing any further.

Look to change your bank account away from your creditors to make sure your money is safe so they can’t touch it. Use the following link Basic Bank Accounts, and in the Basic bank accounts section click on publications it will provide you with a list of accounts and what benefits the account offers.
Be sure that the account has no connection to any of your existing creditors though. From this account you would set up your priority payments such as mortgage, counc tax, utilities etc. You can then pay your unsecured creditors from your new account either by a SO or over the counter with a payment slip. This keeps you in control of what your creditors receive.

To help your situation would the money your OH spends on going out be better used within the household budget to possibly free you up some more money to pay off your creditors quicker?

I cannot advise you fully on your financial situation via this forum, but we do have an online advice facility called Debt Remedy where you can complete a financial statement and be provided with advice on the best way to deal with your situation.

Good luck and keep us updated

CCCS_Alan

Trying_to_be_good

Step 1 - Definitely stop paying the student loan and put that money towards the highest interest debt.

efallai

cobragirl wrote: »

You're probably right. I think it's more of a psychological thing, it feels like I'm paying more off. I think the interest is about £10 a month but I've been paying it for 5 years!
This is my rough SOA before switching bits and bobs
Mortgage £910 Just switched, best rate available for me.
Council Tax was 109 last year, waiting for updated amount
Gas 39.50 Going to switch to dual fuel
Elec 25.00
Phone 41.00
Cable/BB 62.98 (both in contract, can't get out)
Life ins 5.99
Petrol 60.00 Can't go much slower!!!!
Student loan 85.29
Shopping, tv licence and going out taken care of by OH.

My income is roughly 1300 a month, no benefits but surveys and bits which go into my HSBC overdraft.
Any suggestions welcomed!!
x

Your salary looks as if it is over the threshold for paying back your student loan. As soon as your salary is over £15k they start deducting. I'd estimate you are on about £20k with a 1300 income per month so I don't think that you can stop it. The info is here: http://www.slc.co.uk/about%20student%20finance/index.html

cobragirl

Thanks guys. I will get in touch with Student Loans and see if I can defer again but I may end up paying for the year as I was supposed to apply for deferment a few months ago. Effalai...I'm lucky enough (old enough!) to have applied in the old system so I can earn a considerable amount more before I have to pay it back. Jammy dodger eh?!

I'm going to see how I can improve long term outgoings by finding out about cavity wall insulation and a new boiler as my house is old and cold hence the high energy bills. I've used the links on this site to see if I can get a grant, just need to call them now. I know it's more expense initially, but my OH will probably fork out for that.

As for going out, it is a rare treat and usually consists of a 2 course Chinese or Indian with one beer each and comes to about £30. It's been 4 weeks now since we last went out. I understand that some of you will think we should cut it out completely but we've cut down and I need a break from the washing up!!!


x

Gemmzie

Trying_to_be_good wrote: »

Step 1 - Definitely stop paying the student loan and put that money towards the highest interest debt.

Agree with the above 100%, chucking another £85 off your debt per month will make a massive difference then sort the student loan.

cobragirl

Student Loans Co is sending me a deferment form so probably one more payment and then I'll put the money towards the HSBC card as that has the highest rate. I've also just paid my Virgin card off so when I receive my next bill with a 0.00 balance I'll call and cancel it. Woo-hoo! It's not much, but it's a start.

I've just checked some old emails and have clicked on a nectar card one that gives me double points on fuel until the end of the month. It's not cash, but it means I can have a treat or get a nice prezzie for my mum and dad's 30th anniversary this year.

cobragirl

I've not been an especially efficient DFW so far in my quest, but today I switched my gas to my elec supplier so will get dual fuel discount now. I'm also changing from Econ7 as I don't need it so the savings will build up eventually.

My Ciao and Quidco accounts are pretty dismal, but £22.72 is better than nothing towards my HSBC overdraft. Should cover a month's interest anyway.

I think I'll go to my mum and dad's today so I don't have to switch the heating on!! My house is so cold!

Mum_of_3_3

Hi Cobragirl!

No advice about paying off the debt, I just want to say that if you can hold off having children until you are debt-free then I really would.

Having our children is what has put us into debt as my oh doesn't earn enough to support us when I'm not working and with the cost of childcare it really wasn't worth me going back to work (I have since changed my job slightly so that I can work from home and earn twice as much as I used to :j just wish I worked that one out after daughter #1 :rolleyes: )

I understand the need for a baby, but they really, really are a financial drain on a couple. With hindsight I wish we had saved money before we had our first as then we would've had something to 'eat into' whilst I was a stay-at-home-Mum.

Good luck with getting debt-free :beer:

M_o_3