icantbearsed t1_iy3er9r wrote
The way I see it you have 10 years left on that RBS1 loan with the 26% APR. That’s the one that’s gonna hurt you the most. I’d look to spend some time switching that if at all able (although that may not be possible until Dec’23).
After that the Britney loan will be done in 4 months so that gives you £50 back. I’d check to see which of your credit cards is charging the highest rate and pay it off that one.
Your outgoings - we all need our little luxuries in life but you really need to challenge yourself on them. You are spending £45 a month on a phone. Is that entirely necessary, you can get a cheap 2nd hand phone for £100 and a pay as you go sim form£10-15 a month. That would save you £360 per year.
YouTube premium, Spotify, Xbox account - is £38 good value when you look at the debt(£456 per year)? Again we all have different interests and we need some pleasures in life, can you drop 1-2 of them?
All the above (phone, Britney, media accounts) is £133 (£1596 per year), you could choose to redeploy that to paying off the debts.
You are taking the right steps to understanding the overall problem by listing and accounting for all of your outgoings. There is no quick win but discipline now has to be your mantra.
Saying all that I not a financial expert, just an average Joe, so I’d suggest checking out your local Citizens Advice bureau as the best plan!
I wish you all the luck
StarlordsTrees OP t1_iy3gmbe wrote
The RBS1 is actually a 5 year loan. They wouldn't extend to 10 year, but maybe that is for the best. You are right, I would be best to target that and re-finance when the black mark is lifted.
I an unfortunately in a phone contract, however it is only a 2 year and I will now be keeping the phone as long as it lasts on a sim only. I think that is better than upgrading, then I can use the money I save and put it in to high interest accounts.
I will cut everything but Spotify, (as much as I hate the Youtube ads, it must be done!)
I really appreciate the help here. Opening my wyes to how bad this really is.
icantbearsed t1_iy3ixj8 wrote
I wouldn’t say we are opening your eyes to how “bad it is”. You had already accepted you’d got yourself into a sticky place by listing the debts and seeking advice.
But you’ve now taken some positive steps to begin the process of recovering the situation but unfortunately it there is no quick solutions and it is going to be a grind.
Keep your chin up, although the debts don’t leave you much pocket money each month, your income is still on parr with your debt repayments so it could be a lot worse!
Create some sort of chart, use excel if you have the skills if not an A4 chart on the wall is a positive reminder of how far your progressed across a year. When the numbers seem dauntingly big, being able to see each total drop or each debt paid off can help you keep focused.
You’ve got this, we all screw up, it’s how you deal with it that matters!
StarlordsTrees OP t1_iy3ki20 wrote
What an insanely lovely comment. Thank you so much for your kind words.
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