Any advice please?

Dignified_Blunderer

Hi everyone

I've been a total idiot with my finances for ages now and am waking up to the fact that I just have to sort them out. Ive been ignoring the problem (phone calls from banks, letters etc) for too long and using other accounts etc.

From a guess I would sumarise things as Barclays overdraft of about 3k, Barclays Graduate Loan 6k, Student Loan 8k, and Natwest Debt (long time ago) about £500.

I also have another "clean" credit account with A&L that I use for wages etc. I earn around £1200 a month after tax (am in Sales so it varies) and pay £460 a month in rent which includes all bills. I know if I organise myself I should be able to pay quite significant amounts per month but dont really know where to start. Am also wondering if its best to get a loan and pay off everything together.

I think the best is get everything down from all the various people and whats the most pressing debts - perhaps get a loan for them and set up payments for the others.

Has anyone got any tips to help get started in sorting this mess out?

Thanks very much in advance.

katyw

Hi DB

Firstly congratulations on having your lightbulb moment.:beer: You're amoungst good friends here, and lots of people will be along shortly with lots of good advice.

The first thing to do would be to post a statement of affairs (see the sticky on the first page of the DFW forum). We can then see where we can help. It hurts a little while you are filling it in, but you'll feel a hell of a lot better once it's done.

I wouldn't advise getting another loan though, as people on here will tell you you're only increasing your debt rather than paying it off.

x

SunderlandBlackCat

Dignified_Blunderer wrote: »

Hi everyone

I've been a total idiot with my finances for ages now and am waking up to the fact that I just have to sort them out. Ive been ignoring the problem (phone calls from banks, letters etc) for too long and using other accounts etc.

From a guess I would sumarise things as Barclays overdraft of about 3k, Barclays Graduate Loan 6k, Student Loan 8k, and Natwest Debt (long time ago) about £500.

I also have another "clean" credit account with A&L that I use for wages etc. I earn around £1200 a month after tax (am in Sales so it varies) and pay £460 a month in rent which includes all bills. I know if I organise myself I should be able to pay quite significant amounts per month but dont really know where to start. Am also wondering if its best to get a loan and pay off everything together.

I think the best is get everything down from all the various people and whats the most pressing debts - perhaps get a loan for them and set up payments for the others.

Has anyone got any tips to help get started in sorting this mess out?

Thanks very much in advance.

Hi there & welcome.

Before you consider taking out another loan (even to pay off other debts) try putting your current debts into here http://www.whatsthecost.com/snowball.aspx

It will show you the quickest way to tackle your current debts without taking out any new debts & paying the minimum in interest.

thepinkladez_2

congratulations for having your lbm and for taking the first very brave step in the right direction:T.

Once you have a statement of affairs you can sort a realistic budget which you can stick to and inturn a realistic amoount that you can pay each of your creditors.

I also wouldn't advise taking out more debt to clear what all ready exsists as this tends to cause even more debt.

Can i suggest you maybe give CCCS or Payplan a call these are both debt charities and can provide you with free advice and help.

MrsTinks

Being as you have ignored your debts for a while then I am guessing your credit record isn't great and therefor any loan you'll be able to get won't be at a half decent APR let alone a good one...
Post up a SOA and let's have a look at how best to tackle it

Dignified_Blunderer

Thanks to everyone for the advice.

I'm going to go through the letters I have to try and find out as much as I can about the state of things. Then I guess its a case of contacting all the companies to find out how much exactly and what interest I am paying. Then I should be able to get a state of affairs up and go from there. Will call Payplan etc to see if they have any other advice.

Its great to finally be thinking about all this in the right way though.

Thanks again everyone. I will be back tomorrow to let you know how I am getting on.

katyw

Just try and have a good sleep. You've done the hard bit by realising you have to sort your debt out......it gets easier from here, and dare I say it quite addictive!