Author Topic: My debts  (Read 8061 times)

sjp17

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My debts
« on: Aug 25, 2010, 09:35:46 PM »
Hello , Just like to know if anyone can advise on my debts. Ive recently tried to sort them out but maybe ive missed something , ive listed them below highest first
 
Mortgage - £44648.23 , 18 yrs to go , just got 2yr deal at £270 a month with RBS
Rbs Platinum Visa - £4390.49 , 0% until june 2011 , pay a £100 a month
Rbs Personal Loan - £3211.75 , £168.30 per month , finishes march 2012
Nat West Visa Credit Card - £2488.67 , 0% until july 2012 , Pay £50 a month
Dfs Sofa Finance - £1795 , 0% For 4 years pay 39.91 a month
Rbs Overdraft - £1500 , pay about £20-£25 a month interest , always at -£1500
Santander Overdraft -£1500 , 0% interest for a year , Pay wages into here
My brother - £650 , personal debt , going to start paying £50 a month from sept
Barclaycard - £600 , 0% interest ten months to go , pay £60 a month
Local Building Firm - £400 , Materials for house paying £100 a month
Vodafone debt - £300 , Ran this up on holiday , pay £50 a month
 
Then ive got these things to pay every month
 
Car insurance £22
House Insurance £17.50
Tv licence £ 12.99
Bike Insurance £17.65
Phone and broadband £50
Sky Tv £32
Electric £45
Oil heating £0 Have an empty tank at the moment 1000 ltrs will cost me £550
Lottery £1 a week :)
Tea Club at work £1.50 a week
Work lottery syndicate £1 a week
 
Then there is food , toiletries , household items and fuel for my knackered 11 year old car which has bad brakes and a burst exhaust and an mot due in October !
 
Council tax is taken from my wages , along with pension contribution and payment to union
 
Normal Month no overtime i clear £1850
No guarantee of overtime but do get it occasionally
 
My nest egg £2040 in my bill payment account , i need to keep this account at this level as im applying for a visa for my girlfriend who is foreign and i need to show these funds to the embassy
 
I think i can be debt free bar the mortgage and sofa loan in 2 years at the current rate im paying for things , if i snowball these debts !
 
 
 

Steven Jackson

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Re: My debts
« Reply #1 on: Aug 26, 2010, 12:59:26 PM »
Hi sjp17
 
It looks like you have unsecured debts of about £17000 which are you are paying for at c£650 a month. I assume you are single and living alone? If so given the living expenses you have highlighted plus your mortgage, I would have thought you need to spend around £1000 to live.  If you bring in £1850 a month this would leave you with £850 a month to pay your debts if you live to a strict budget.
 
As such, on the face of it, it seems like to can afford to continue making the monthly payments. If this is the case, I would continue to do this and up the payments on the ones charging the most interest if you can.
 
An alternative solution would be to consider taking a consolidation loan which would reduce the monthly payment down.
 
A debt management solution such as a debt management plan should be a last resort if you really can not afford to make the payments as it will affect your credit rating and make it more difficult to remortgage in a couple of years when your current mortgage deal comes to an end.
 
 
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sjp17

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Re: My debts
« Reply #2 on: Aug 26, 2010, 01:17:10 PM »
Yes i live alone at the moment, im definetly not getting a consolidation loan i think if i snowball them , it should get rid of the smaller ones quite quickly if you look at the four small ones im paying £260 a month for them , once they are gone i can stick that money on the next debt thats costing me the most , if its the loan that would be a total reypayment of 430 say i make it up to 500 , that could be paid off quite quickly , then put that 500 on the next credit card , so a bit of short term pain is going to benifit me a lot in the future , my brother says he can wait for his money so i dont need to worry about that one , anyway the jammy sod has 30k in the bank and hes earning only 18k a year , im also not too bothered about the sofa loan cause that has no interest , the main concern is the cards and overdrafts , and i suppose the loan , i so have about 60000 in equity on my house but ive never borrowed on my mortgage and i think its best not to.

Steven Jackson

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Re: My debts
« Reply #3 on: Aug 26, 2010, 01:28:45 PM »
It sounds as though you are thinking along the right lines sjp17. Absolutely no need to consolidate if you can afford to make the payments and over pay on some. I would always recommend paying off as much as you can against the accounts which are charging the most interest. Pay of everything else at the minimum monthly payments unless they are small and you feel it would be easier to manage fewer creditors.
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sjp17

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Re: My debts
« Reply #4 on: Aug 26, 2010, 07:43:48 PM »
Yes and i cant wait till the day i wake up with no debts , then im going to focus on paying my mortgage off by paying some of the money i was spending on debts ! ive calculated i could have this paid for by the time im 37 , no debts no mortgage  ;D  , im planning to buy another property in the future or maybe 2 , i want to be retired in my early fifties lying on a beach somewhere drinking an ice cold beer,  :D

Steven Jackson

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Re: My debts
« Reply #5 on: Aug 27, 2010, 11:32:42 AM »
That sounds like an excellent plan to me sjp17. It just shows you that with sound financial planning and budgeting, freedom from debt and financial independence is certainly possible.
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sjp17

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Re: My debts
« Reply #6 on: Sep 18, 2010, 03:16:40 PM »
I seem to have been going threw a crisis worrying about these debts, its strange it never used to bother me but my god it does now , its like a feeling of being trapped !
 
Here is a quick update from last month
 
Mortgage - £44366.25, 18 yrs to go , just got 2yr deal at £270 a month with RBS
Rbs Platinum Visa - £4292.49 , 0% until june 2011 , pay a £100 a month
Rbs Personal Loan - £3073.05 , £168.30 per month , finishes march 2012
Nat West Visa Credit Card - £2350 , 0% until july 2012 , Pay £50 a month
Dfs Sofa Finance - £1755.09 , 0% For 4 years pay 39.91 a month
Rbs Overdraft - £1500 , pay about £20-£25 a month interest , always at -£1500
Santander Overdraft -£1500 , 0% interest for a year , Pay wages into here
My brother - £600 , personal debt , going to start paying £50 a month from sept
Barclaycard - £540 , 0% interest ten months to go , pay £60 a month
Local Building Firm - £200 , Materials for house paying £100 a month
Vodafone debt - £250 , Ran this up on holiday , pay £50 a month
 
At the end of this month Im goin to get rid of the £200 building firm debt , also clear the vodafone debt of £250 , ive also made an agreement to pay my brother back at £25 a month , the rest will go to the Barclaycard which i plan to finish paying at the end of November if i pay £180 a month

AshleyPark

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Re: My debts
« Reply #7 on: Sep 20, 2010, 03:24:01 PM »
Hi Sjp17
 
You seem to have the right idea with prioritising your debts that are costing the most. It may seem a long way off but it will be worth it in the long run!
 
Lee
Ashley Park Debt Solutions Ltd
 http://www.ashleypa

Steven Jackson

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Re: My debts
« Reply #8 on: Sep 20, 2010, 04:44:19 PM »
Hi there sjp17
 
You do have quite a list there but as you mentioned before, you are currently in a position to pay them all and even over pay on some to get them sorted. If this is still the situation, then all you need to do is make sure you budget properly and you are going to be fine.
 
However, if your finances have changed and you think you are going to struggle with your payments, that is the time to consider alternative debt management options. Which camp do you think you fall into?
 
 
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sjp17

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Re: My debts
« Reply #9 on: Sep 22, 2010, 07:06:48 PM »
Hi , thanks for the incouragement , its just simply stress im suffering from about these debts , i know a lot of its my fault , but i do feel ive been misguided by the system and financially shafted  :-[  by the banks at every opportunity , im changing my mortgage from rbs to hsbc , i never actually took out the two year deal , ive managed to get a five year deal at 3.95% , im goin to be paying £393 a month and have taken six years off the term , so 12 years to go , im cutting all ties with rbs eventually and for one reason Fred Goodwin  >:(  !

Steven Jackson

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Re: My debts
« Reply #10 on: Sep 22, 2010, 07:58:38 PM »
Hi sjp17
 
It looks like you have done well on the mortgage front. Keep focused on the end game which is getting debt free and try not to get too stressed with it all. If you keep making the payments and overpayments that you are planning you will make a lot of progress. Good luck with it :)
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sjp17

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Re: My debts
« Reply #11 on: Jan 05, 2011, 09:20:28 PM »
Another update , slowly but surely the debts are coming down
 
 
Mortgage - £44503, 12 yrs to go , 5yr deal at £393 a month with HSBC
Rbs Platinum Visa - £3899.49 , 0% until june 2011 , pay a £100 a month
Rbs Personal Loan - £2345.14 , £168.30 per month , finishes march 2012
Nat West Visa Credit Card - £2084.23 , 0% until july 2012 , Pay £50 a month
Dfs Sofa Finance - £1630.09 , 0% For 4 years pay 39.91 a month
Rbs Overdraft - £1445 , pay £25 a month slowly reducing balance after interest
Santander Overdraft -£1425 , pay £25 a month , they messed up no charge for interest
My brother - £580 , personal debt , Now paying £10 a month
Barclaycard - £0 , This Debt is clear card cancelled :)
Local Building Firm - £0 This Debt is clear removed all credit from account
Vodafone debt - £0, This Debt is clear pay as you go sim now , lebarra mobile
 
 ;D

James Falla

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Re: My debts
« Reply #12 on: Jan 07, 2011, 04:20:17 PM »
Well done sjp17
 
Keep on going as you are and you are going to have everything paid off in 18 months or so. Keep focused and you will get there.
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solvemybadcredit

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Re: My debts
« Reply #13 on: Jan 08, 2011, 10:39:31 PM »
Great news, you are truly giving people motivation that debt can be solved. You have made a great progress!
I would only say once you have sorted out the biggest ones, try to avoid products like high interest accounts and try to clear the 0% credit card before the interest kicks in. Or at least if you can afford increase your repayments time to time.


Let us know of your progress.


Laura
I help people sort out bad debt.
http://www.solvem

totalrelaxation

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Re: My debts
« Reply #14 on: Jan 09, 2011, 09:54:15 PM »
You need to produce a common financial statement which summarises all you expenditure and debs. Send a copy to each of your creditors along with a monthly repayment offer.