Where do I even start .... beginning of my journey

debftfreedream · 31 August 2018 at 8:36PM

So let me break it down where I'm at, im struggling to even know how to get out of this hole but here goes.

£5000 overdrawn
£4300 loan (i pay £300 a month ends oct 2019)

£6500 Virgin cc (i pay £150 a month and £95 interest a month)

£4500 M+S CC (i pay £130 a month)
£3500 lloyds cc (i pay £75 a month)
£2000 Barclaycard (i pay £50 a month)
£1800 RBS cc (i pay £50 a month)
£1400 Halifax cc (i pay £45 a month and £34 a month interest)

ive outlined the debts and the big interests i have.
My dad is going to lend me some money but unsure of amount yet. My main worry is where to put it. Do i jus put it in my account so im not so badly overdrawn and so i can actuually make my minimum payments or if he gives me a substantial amount should i just hit the debt with what he gives me.
If so, should i hit the loan first as thats the biggest outgoing or should i pay off the smaller cards?

Any help appreciated!!!!!!!

pidge04 · 31 August 2018 at 11:37PM

Hello and welcome.

Perhaps start with a SOA?

Good luck.

savetosave · 31 August 2018 at 11:37PM

You need to look at the interest rates to make a decision, also how much your overdraft is costing you.
Have you done a soft search to see if you are eligible for any 0% balance transfers?
Pop up a statement of affairs on here and you will get lots of good advice.
Good luck x

debftfreedream · 2 September 2018 at 10:19AM

Thanks for replies. I'm paying the minimum per month on debts as i dont have enough left over for anymore. Therefore a SOA isnt really accurate as i know where all my money goes (mortgage and bills).
As my family member is lending me some money, my main concern is paying it to the right place to help make a difference in my life so thats really where i need the advice please is where would you put the money. (Let's guess it will be about £3k i'm given)
(if you can also point me in the right direction to up my income that would be great too!!! - complete newbie here)

Overdraft is £5000

getting charaged about £5 a day

Loan at £4080 at 14%

i repay £300 a month

Credit cards
£1,229 26%

(Halifax repay £45 a month)
22.90%

(Barclaycard
£2,505 17.43%

(RBS repay £60 a month)
£3,366 21.94%

(lloyds repay £65 a month)
£4,528 18%

( m+s repy £120 a month)
£6,233 19%

( Virgin repay £150 a month)

I feel like a sinking ship right now .........................

a_silver_lining · 2 September 2018 at 10:34AM

debftfreedream wrote: »

Overdraft is £5000
getting charaged about £5 a day More people will come with advice, but I'd
think this is where you should pay the 3k to as this is £150 interest per month. This should drop you to £2 per day, or £60 interest per month. This £90 per month saving could then start paying off the 2k overdraft. Or you could see if you could balance transfer the 2k to a cheaper loan to save more interest?

Loan at £4080 at 14%
i repay £300 a month

Credit cards
£1,229 26%
(Halifax repay £45 a month) The £90 per month interest saved from paying the overdraft could then be paid off the over draft, or here if you wanted to then tackle a credit card.
22.90%
(Barclaycard
£2,505 17.43%
(RBS repay £60 a month)
£3,366 21.94%
(lloyds repay £65 a month)
£4,528 18%
( m+s repy £120 a month)
£6,233 19%
( Virgin repay £150 a month)

I feel like a sinking ship right now .........................

I haven't been much help, but I imagine you will need to look to get some of this interest stopped to enable you to repay, so possibly a repayment plan through someone like Stepchange?

You're paying almost £900 per month to debt and if this is going on interest only it's getting lost.

a_silver_lining · 2 September 2018 at 10:37AM

Just to add. At £900 repaid each month, without interest I calculate you should be able to repay the debt after 2.5 years. This is a really good, relatively short timeframe

Take a look at DMP's, they're often talked about on the main debt free forum.

debftfreedream · 2 September 2018 at 11:17AM

Thanks so much for the advice definitely a good way of thinking of it.
In my mind I've just been thinking pay a chunk towards the loan as that's my one biggest outgoing at £300 a month but it's so good to get other perspectives, as I can see that will just put me back to square one in terms of overdraft and other repayments.
Thank you

Debtnomoreplease · 2 September 2018 at 6:09PM

Evening, well first of all I'd like to say well done for having your LBM and getting your debt first.

I agree with getting getting rid of the overdraft first, as they can recall this at anytime. It will bring you interest and you could use what you save to repay the rest of your overdraft. It's something that needs to be gone as soon as possible and it's a large sum, si personally I'd focus on that. I had a £2500 overdraft and it kept me awake at night as I was told on this site (so very greatful I was told) it could be recalled at anytime-this really 100% focused and made me throw every single penny at it. I'm not at all saying this to scare you, I just know I was so glad people told me about it on here and I smashed it down far quicker than I would of done if i didn't know.

People with much more knowledge than me will be along soon.

Keep the end goal in site, do what ever extra work you can to earn extra money-every single penny counts.

Good luck and keep checking in on here so we can support you

Take care

Willing2Learn · 2 September 2018 at 6:15PM

debftfreedream wrote: »

ive outlined the debts and the big interests i have.
My dad is going to lend me some money but unsure of amount yet. My main worry is where to put it. Do i jus put it in my account so im not so badly overdrawn and so i can actuually make my minimum payments or if he gives me a substantial amount should i just hit the debt with what he gives me.
If so, should i hit the loan first as thats the biggest outgoing or should i pay off the smaller cards?

Hi,

If it were me, I would pay down the overdraft first because that is the only debt that is repayable on demand, without notice.

As for you snowballing the loan and credit cards, there are two schools of thought:

Pay off the smaller debts in ascending order. This method gives a psychological boost as the debts disappear quicker at the beginning.
Pay off the debts with the highest APR first, paying the minimum amount to servicing the remaining debts. This is the MSE way and saves the most money.

Good luck on your journey!!

Why not post up your SOA? It can really help having everything laid out like that. Do you keep a spending diary?

debftfreedream · 3 September 2018 at 5:51PM

Overdraft is now £2k after borrowing money.

I’m a bit twitchy thinking I should pay something off but I think best to sit tight.

BabyStepper · 3 September 2018 at 6:06PM

Do pay something off, contact the bank and reduce your overdraft facility to £2000. You said your dad loaned you the £3k, you still have the same amount of debt as before but have transferred some to an interest free loan from your dad. This is slightly better but you need to make use of this help and you still need a plan to figure it all out.

You need an soa, the good people on here will help you save money on all your bills, effectively increasing the amount you have to pay towards your debt. You also need to shift as much of your debt as you can to 0% interest or certainly lower than it is now.

Best of luck. We're rooting for you.

Where do I even start .... beginning of my journey

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