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  • FIRST POST
    • inma1
    • By inma1 13th Jun 19, 5:20 PM
    • 1Posts
    • 0Thanks
    inma1
    7.5k debt with SOA
    • #1
    • 13th Jun 19, 5:20 PM
    7.5k debt with SOA 13th Jun 19 at 5:20 PM
    Hi All,

    (25 years old)

    I guess this is a familiar story, took out one credit card to pay for one small trip, and with the increased limit I've slowly ended up working up a debt of 7.5k, it's becoming a burden and while I know I can afford the repayments, the high interest is concerning.

    I've ended up paying for a few trips and I know what I've done is not smart and now is the time to do something about this, before it gets out of control.

    Just looking for some advice and a way forward here, I can't access any 0% deals due to one unpaid bill (shared house / other tenants not paying their share) which was recorded against my credit file. (this was while at university)

    I know the Aqua card is probably the one I should work on first, I've spoken with them and they can't reduce or freeze the interest. Whereas Barclaycard offered a lower rate of 22%

    The overdraft fees are 25p per day taken from my account each month, so no growing balance there of interest.

    With the credit cards I will definitely be planning on paying a big chunk over the minimum repayment, as I know that's a cycle which won't end.

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household.........
    Number of cars owned....................

    Monthly Income Details

    Monthly income after tax................ 1550
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1550


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 425
    Management charge (leasehold property).. 0
    Council tax............................. 0
    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 90
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 100
    Clothing................................ 20
    Petrol/diesel........................... 0
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 5
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 20
    Entertainment........................... 180
    Holiday................................. 300 (To clarify with this one, this is only until the end of September, and then will be around 0, I have a couple of things booked already)
    Emergency fund.......................... 0
    Total monthly expenses.................. 1140



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................ 0


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Aqua Credit Card...............4611......106.......35
    Barclaycard....................1900......40....... .22
    Student Overdraft .............1000......0.........0
    Total unsecured debts..........7511......146.......-



    Monthly Budget Summary

    Total monthly income.................... 1,550
    Expenses (including HP & secured debts). 1,140
    Available for debt repayments........... 410
    Monthly UNsecured debt repayments....... 146
    Amount left after debt repayments....... 264


    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -7,511
    Net Assets.............................. -7,511



    Reproduced on Moneysavingexpert with permission, using other browser.[/i]


    All advice in advance appreciated

    Thanks,
    Last edited by inma1; 13-06-2019 at 5:32 PM.
Page 1
    • Willing2Learn
    • By Willing2Learn 13th Jun 19, 5:31 PM
    • 4,383 Posts
    • 3,925 Thanks
    Willing2Learn
    • #2
    • 13th Jun 19, 5:31 PM
    • #2
    • 13th Jun 19, 5:31 PM
    You have your budget back-to-front. You are spending money on your mobile phone, holiday and entertainment categories instead of paying down your debts (combined total of 550/month). If you focussed on paying your debts for just 14 months then you could clear all your debts (including the overdraft). You would then have an extra 146/month in your budget to go out and have some fun! (The 146 is money saved in interest payments).

    Does that make sense?

    Edit: And welcome to the forum
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • elsien
    • By elsien 13th Jun 19, 5:42 PM
    • 19,862 Posts
    • 50,437 Thanks
    elsien
    • #3
    • 13th Jun 19, 5:42 PM
    • #3
    • 13th Jun 19, 5:42 PM
    So the relevant question is, do you have the 264 left at the end of the month that your SOA says you do?
    No travel, you don't go to the dentist or ever need prescriptions?
    180 a month is a lot for entertainment when you're trying to clear a debt - what does that cover?
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
    • JayRitchie
    • By JayRitchie 13th Jun 19, 7:17 PM
    • 284 Posts
    • 290 Thanks
    JayRitchie
    • #4
    • 13th Jun 19, 7:17 PM
    • #4
    • 13th Jun 19, 7:17 PM
    Hi OP

    Well done for catching this problem in time! If you start tacking it now you can clear the debt.

    Quick questions: the 'groceries etc' cost of 100/m looks low - is this real/ realistic? When does the phone contract end?

    As you've noted the interest rates are killing you. The monthly payments are basically just interest. You really need to focus on bringing down the aqua balance as soon as possible - say over a year - or it will cost you so much in life - money, opportunities, chance to save, thoughts of a mortgage.
  • archived user
    • #5
    • 14th Jun 19, 10:35 AM
    • #5
    • 14th Jun 19, 10:35 AM
    Expensive holiday in my opinion considering your income - it's over a third of your income. How long you been paying that?
    • wjr4
    • By wjr4 14th Jun 19, 11:51 AM
    • 600 Posts
    • 426 Thanks
    wjr4
    • #6
    • 14th Jun 19, 11:51 AM
    • #6
    • 14th Jun 19, 11:51 AM
    When does your mobile phone contract finish?
    • Soundgirlrocks
    • By Soundgirlrocks 14th Jun 19, 12:35 PM
    • 672 Posts
    • 1,028 Thanks
    Soundgirlrocks
    • #7
    • 14th Jun 19, 12:35 PM
    • #7
    • 14th Jun 19, 12:35 PM
    You have nothing down for any travel, is that right?
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