Debt Diet Tips Please

takingcontrol_3

Hello,

Today for the first time I have actually sat down, looked at my bills and properly realised what a sorry mess I am in. I just don't know what to do, I have tears in my eyes as I write this - I just can't see an end.

I'm 27 yrs old, just about to move in with my very kind and generous boyfriend (he knows I have a pretty serious amount of debt) and I am so so worried that I'm going to mess everything up because I am in so much debt it I won't be able to contribute to our life together in the same way he can. I haven't slept soundly for months. I feel tired, guilty and sad.

My debt totals 19,891.31. I spent quite a bit of that on rubbish , living a life beyond my means and an even larger chunk on just living when I was made redundent back in Dec 06 and took nearly a year to find a perm job with a decent wage.

I've read through these posts since nov last year but carried on in my happy state of denial until now (it was warm and comfy there - I'm really starting to miss it!!) I would really appriciate any advice anyone can give me, I just don't know where to start. I'm about to post my SOA's below, and its taking a few deep breaths to get the guts up to write it down for someone else to see..... here we go;


As at 22 Feb 2008Monthly PaymentsTesco Loan £ 4,393.50 £ 151.50 2yrs 4mnths remainingHSBC Loan £ 8,605.80 £ 191.24 3yrs 8mnths remainingMBNA Credit Card £ 4,847.01 £ 120.00 Around £95 interest a month!!at this rate 8yrs remainingIntrest Free Loan £ 1,500.00 £ 150.00 Loan from boyfriend £ 545.00 Store Card 1 £ 125.00 £ 5.00 Store Card 2 £ 45.00 £ 5.00 Total Debts £ 19,891.31 £ 622.74 Living Expences Car Insurance £ 42.42 Pet Insurance £ 6.69 Phone £ 16.00 Rent & Bills £ 250.00 Food Shopping £ 150.00 Petrol £ 45.00 £ 510.11 Debt Payments £ 622.74 Living Expences £ 510.11 Total £ 1,132.85 Total Incoming £ 1,032.00 Total Outgoing-£ 1,132.85 Over every month-£ 100.85 (I bank with HSBC and get charged 25 a day every day I am over my 100 overdraft, even if it is by 85p so this could really quickly spiral into another massive debt)


I've made no funds available for MOT's, Tax, Dentists, Birthdays, Clothing, going out.... so if anything extra needs to be paid for in the month I really am in trouble!!

If anyone has any advice they can give me I'd really love to hear from you.
I have been accepted for a interest free credit card so plan to switch over my MBNA card to Barclays today, but thats as much as I could think of myself. My bills and rent is what I will be contributing to my boyfriend when I move in with him in a few weeks. I feel really strongly that I should contribute something towards the running of the house, I pay around 340 a month now living in a shared house so 250 will be a huge saving for me.

Thanks for taking the time to read through, I'm really looking forward to hearing what someone else's take is on this.

Thanks again,

TTxxxxxxx

Cleosmum

takingcontrol wrote: »

As at 22 Feb 2008Monthly Payments
Tesco Loan £ 4,393.50 £ 151.50 2yrs 4mnths remaining
HSBC Loan £ 8,605.80 £ 191.24 3yrs 8mnths remaining
MBNA Credit Card £ 4,847.01 £ 120.00 Around £95 interest a month!!at this rate 8yrs remaining
Intrest Free Loan £ 1,500.00 £ 150.00
Loan from boyfriend £ 545.00
Store Card 1 £ 125.00 £ 5.00
Store Card 2 £ 45.00 £ 5.00
Total Debts £ 19,891.31 £ 622.74

Living Expences
Car Insurance £ 42.42
Pet Insurance £ 6.69
Phone £ 16.00
Rent & Bills £ 250.00
Food Shopping £ 150.00
Petrol £ 45.00 £ 510.11
Debt Payments £ 622.74
Living Expences £ 510.11
Total £ 1,132.85
Total Incoming £ 1,032.00
Total Outgoing-£ 1,132.85 Over every month-£ 100.85

Are you paying minimum payments on all the debts?

floss2

takingcontrol wrote: »

As at 22 Feb 2008
Monthly Payments
Tesco Loan £ 4,393.50 £ 151.50 2yrs 4mnths remaining
HSBC Loan £ 8,605.80 £ 191.24 3yrs 8mnths remaining
MBNA Credit Card £ 4,847.01 £ 120.00 Around £95 interest a month!!at this rate 8yrs remaining
Intrest Free Loan £ 1,500.00 £ 150.00
Loan from boyfriend £ 545.00
Store Card 1 £ 125.00 £ 5.00
Store Card 2 £ 45.00 £ 5.00
Total Debts £ 19,891.31
Repayments £ 622.74

Living Expences
Car Insurance £ 42.42
Pet Insurance £ 6.69
Phone £ 16.00
Rent & Bills £ 250.00 is this a realistic figure based on your income & debts? How much does your boyfriend earn? What is the total of household bills?
Food Shopping £ 150.00 Is this just for you? Look on Old Style board for help with reducing this
Petrol £ 45.00
Total £ 510.11

Debt Payments £ 622.74
Living Expences £ 510.11
Total Outgoing £ 1,132.85
Total Incoming £ 1,032.00
Shortfall every month-£ 100.85
(I bank with HSBC and get charged 25 a day every day I am over my 100 overdraft, even if it is by 85p so this could really quickly spiral into another massive debt)


My bills and rent is what I will be contributing to my boyfriend when I move in with him in a few weeks. I feel really strongly that I should contribute something towards the running of the house, I pay around 340 a month now living in a shared house so 250 will be a huge saving for me.

Ok - I suggest you have a look at this http://www.cccs.co.uk/

takingcontrol_3

I'm paying the min on the c/card and on the store cards, but figured if I can pay 120 on the c/card and its 0% interest at least I will be clearing some of the debt. Do you think I should try something else?

I'm a quite scared by the thought of contacting a debt charity, have you had experience dealing with them? I'm really worried they would say the B word to me, and if at all possible I don't want to go down that route.

Thanks both for your replies... I'm really grateful

TTxx

Fen1

Sorry you are in such a stituation, but you are now facing up to it, so that's a positive step.

Have you been in contact with the CAB? They have advisors for helping debtors, and they can give personalised advice to you. Talking with someone who is knowledgable and will help form a 'game plan' with you will make you feel better in yourself and give you the incentive to change things.

Basic money cutting tips ( other people on here will now how to handle cards better than I, so I won't mention those}

1. do you need your car?
Can you get to work by public transport, or organise a lift-share. Be pro-active about looking at the options. Cars are hugely expensive, and not always as vital as people think.

2. Diet. Eat a healthy diet with fruit and veg. It will make you feel better, and is cheaper than than those bars of chocolate and coffees on the way to work. Do you pick up a coffee on the way to work? £1.20 a day x 5 working days = £6. £ 6 x 45 working weeks = £270.

Simple sums like these help you work out where any extra money is being frittered away e.g. magazines, birthday cards etc. Such things are NOT vital for you staying alive. Remember that these little things add up over a year.

3. Be honest. You are in debt. You are dealing with it. You need to tell your friends and family so they can support you. By being aware of your situation they won't expect fancy birthday presents, or expect you to go out for meals. A lot of money can be spent on friends and family, and they will feel rotten if they then find out you are putting yourself into debt just to buy them prezzies. Being honest with them is the biggest gift you can make to them.

4. Deal in cash. It's easy to spend on cards. Give yourself £10 in your purse for the week ( including groceries), and that's it. If you've spent it all by Tuesday, tough, you are going to have to go without for a whole week ( even if you go hungry). It is a brutal and effective way to learn.

Good Luck..

Cleosmum

Ive not tried anything like cccs, I would rather take charge and deal with it myself. I figure there are people in it a lot worse than I, I would rather people like cccs were freed up to help them.

Is your boyfriend prepared to take up the slack while you clear your debts? Maybe you could make a token payment to the food and bills until things are in better shape/cleared off? If you have a supportive, understanding bloke then take full advantage, and remember you are a team. If the tables were turned Im sure you would offer to take up the slack. If thats not possible, could you maybe pay for the food? Or a couple of small bills? My food bill is £200 a month for a family of 5, so Im sure you could easily do it for half that.

Why dont you pop all the figures, interest rates etc into the snowball calc and see which ones it says to pay off first (high interest ones) and also when your debt free date will be. Try it with the current min payments, and then see how things are if you were able to throw more at it. http://www.whatsthecost.com/snowball.aspx I was shocked by it. Ive been walking round in a Im-going-to-have-this-debt-forever state, and it turns out that I can easily be debt free by may 2009.

lauren_1

As at 22 Feb 2008
Monthly Payments
Tesco Loan £ 4,393.50 £ 151.50 2yrs 4mnths remaining
HSBC Loan £ 8,605.80 £ 191.24 3yrs 8mnths remaining
MBNA Credit Card £ 4,847.01 £ 120.00 Around £95 interest a month!!at this rate 8yrs remaining Can you switch to a 0% card
Intrest Free Loan £ 1,500.00 £ 150.00
Loan from boyfriend £ 545.00
Store Card 1 £ 125.00 £ 5.00
Store Card 2 £ 45.00 £ 5.00 Pay this one off and close it down on your next payment!
Total Debts £ 19,891.31
Repayments £ 622.74

Living Expences
Car Insurance £ 42.42 is this the cheapest you can get?
Pet Insurance £ 6.69 Do you really really need this?
Phone £ 16.00 Contract or PAYG? can you start using works phone for 'ugrent' calls, is every text you send essential?
Rent & Bills £ 250.00
Food Shopping £ 150.00
Petrol £ 45.00
Total £ 510.11

Debt Payments £ 622.74
Living Expences £ 510.11
Total Outgoing £ 1,132.85
Total Incoming £ 1,032.00
Shortfall every month-£ 100.85
(I bank with HSBC and get charged 25 a day every day I am over my 100 overdraft, even if it is by 85p so this could really quickly spiral into another massive debt) RECLAIM THESE NOW

floss2

takingcontrol wrote: »

I'm paying the min on the c/card and on the store cards, but figured if I can pay 120 on the c/card and its 0% interest at least I will be clearing some of the debt. Do you think I should try something else?

I'm a quite scared by the thought of contacting a debt charity, have you had experience dealing with them? I'm really worried they would say the B word to me, and if at all possible I don't want to go down that route.

TTxx

The charities are very good at trying to help without automatically saying the B word

Why not pay off the lower of the 2 store cards, followed by the second one.

takingcontrol_3

Well I think today may be my lightbulb moment!

I have had a look at cccs.co.uk, entered my details on the questionnaire and pretty much realised I'm screwed! My monthly outgoings including things I had not considered such as getting a haircut/car maintenance/medication is actually around 600 more a month than I earn. The site says it can't help me until I do something so I have a bit of spare cash each month - I guess it would have to be a second job. I don't think I can really make a big impact reducing my outgoings.

I don't think I lead an extravagant lifestyle - I used to and now it's caught up with me!! I always take lunch in to work, I don't buy papers or magazines... only spend money on food shopping and petrol. I need my car for work as have to be able to travel between sites. I very rarely go out, if I do my boyfriend knows what a state I am in so always treats me, as do family and friends.

The dealing in cash thing is great advice, I always tend to use my debit card for petrol and food shopping and its easy to over spend.

Its really motivating to get replies, I would never have looked at a debt charity off my own back, so would never have realised I could potentially spend 600 a month more than I earn instead of the 100.85 I estimated. And as rubbish as I feel now about my debts at least I have finally admitted to having them.

I do feel a bit like I'm gonna have to put my life on hold for a year or so though to get head above water. Heaps of work, no going out, missing birthdays - it's gonna be a long hard trek.... I hope I manage to stick with it.

TTxxxx

Cleosmum

Its a long journey, stick around here for advice and good company, and just keep in mind how great you will feel when you are debt free.