Today i Put up my White Flag - Please Help! (Debt Free Wannabe)

MINI-Cooper-S · 2 January 2007 at 1:59AM

Hi Guys,
I do believe you call this my “light bulb moment”

Well It happened today…. After my buying a £130 HiFi then realising I was broke now until the 25th of Jan.
I have been in denial about my financial issues now for about 8 months.
But today I decided to come clean to my Girlfriend about my finance.
I have used the forum before and I thought it was time to speak to you guys

A bit of an insight into me:
I am 20 years old and I am an IT Manager for a Medium sized company.
I am still living at home with my parents – but I am looking to get my own place in about 18 months.
I drive an Unreliable 3 year old Renault Megane which is my biggest expense.
I cover about 25,000 Miles a year in this car hence the amount of diesel: Home -> Work -> Home -> Girlfriends -> Home etc
I also work 24hr on call so work visits are quite often

I am at the point where I am spending more than I am earning.
Working with technology I have a thing about having the most up to date kit.
Now my credit cards are full and I am in quite a bit of debt for my age!

I am really struggling to made ends meet now and I know most people out there will say it’s my own fault, I know it is.

I am now waving the white flag, I really really do need some help guys, and I don’t know where to go!

I have had a look around the forum and I have put the following together for you.
I know a lot of people will pick out at certain things, most of them as you my probably guess are stupid on the moment things that to me seem a good deal at the time to get the latest PDA phones etc etc.

I just so regret it now.
Please help me MSE People, where do I go from here?

Monthly Incomings:

My salary - £1321.42

Total - £1321.42

Rent - £140
Phone (BT - Land Line) - £18.00
Mobile (O2 - Contract) - £48.00
Mobile (T-Mobile WnW) - £50.00
Mobile (Orange TXT’s) - £20.00
Food - £150.00
Odds & Sod’s – £40.00
Car Insurance - £93.00
Diesel - £200.00
Nights Out - £30.00
Car Valet - £20.00
Savings - £130.00 (Currently Paying off £400 debt to Parents)
Bank A/C Fee - £12.50

Car Loan - £211.85
Jessops Camera Finance – £80
Lloyds TSB Advance Card - £100
Bank Of Scotland Card - £30

Total: £ 1373.35

Lloyds TSB Advance Credit Card – Balance £2,950.37 (Limit £3,000) APR 11.3%

Bank Of Scotland Credit Card – Balance £1432.92 (Limit £1,700) APR 12.94%

Jessops Store Finance – Loan Amount £800 APR 0% for 12 Months, 6 Months Left

Cahoot Loan (New Car) – Loan Amount £7,000 APR 5.6% Length of term 36 months, 23 months to go.

Overdraft - £0 (limit £50) APR 20% (Although Frequently Used)

I had £3000 in savings, but I have just had to spend £3400 in car repairs.
That used all my £3000 Savings and my Parents Lent me £400

I have got into the habit of buying toys and rubbish on my credit card so the balance never gets any lower.

I have been as honest as I can with my list above, I really don’t think there is anything else to add to it. There may be the odd thing here and there but they will usually be big and go on my credit card (STUPID! I KNOW!!)

It is really a stressful problem now that I am constantly worried about.

Thanks in advance for any help!

Thanks

Chris

roswell · 2 January 2007 at 2:17AM

first things first take that reciept for the Hi-fi and take it back to the shop, theres £130 till the end of the month.
3 phones ,,,,,, no rocket science needed here
Mobile (O2 - Contract) - £48.00
Mobile (T-Mobile WnW) - £50.00
Mobile (Orange TXT’s) - £20.00

as you have spent all your credit on electrical goods i think its time you cashed out and sold what you dont NEED (not dont want) if its not paying its rent sell it.

I would be very worried if i had a 3 year old car that wasnt reliable .....

moozie_2 · 2 January 2007 at 2:18AM

Hello Chris and welcome!

You are at the right place for advice and support. I know only too well how daunting the beginning is but you can turn this around. Just take a few deep breaths and choose the advice that suits you best

MINI-Cooper-S wrote:

Hi Guys,
I do believe you call this my “light bulb moment”

Well It happened today…. After my buying a £130 HiFi then realising I was broke now until the 25th of Jan. Can it go back? You really cannot afford it at the moment.

Monthly Incomings:

My salary - £1321.42

Total - £1321.42

Rent - £140 Would your parents accept less for a few months perhaps?
Phone (BT - Land Line) - £18.00
Mobile (O2 - Contract) - £48.00 Why do you need 3 contracts? Can you reduce the cost/cancel them?
Mobile (T-Mobile WnW) - £50.00
Mobile (Orange TXT’s) - £20.00
Food - £150.00 This is way too high for one person? Can you parents provide you with some food? Packed lunches are the best way for us DFWs and meal planning is key too.
Odds & Sod’s – £40.00 A spending diary will help you identify what these are as you can't have vague entries in a SOA.
Car Insurance - £93.00 This is very high! Is it simply because of your age?
Diesel - £200.00 For diesel, this is exceptionally high! Can you reduce it at all?
Nights Out - £30.00
Car Valet - £20.00 I think this can go all together for the time being. Sorry but you can't afford it.
Savings - £130.00 (Currently Paying off £400 debt to Parents) After your parents are repayed, you should direct all cash to debt repayment and save later. May sound risky but any savings APR will not be that much better than your debt APRs.
Bank A/C Fee - £12.50 Cancel this. Not only you can't afford it but the 'benefits' are not worth it.

Car Loan - £211.85
Jessops Camera Finance – £80
Lloyds TSB Advance Card - £100
Bank Of Scotland Card - £30

Total: £ 1373.35 Once you make some changes, you will be within your current income. I think you really should look at increasing or supplementing your income. Either try to get a better paid job or a weekend/evening job. Also, look into ebay/amazong/mystery shopping for added income.

Lloyds TSB Advance Credit Card – Balance £2,950.37 (Limit £3,000) APR 11.3%

Bank Of Scotland Credit Card – Balance £1432.92 (Limit £1,700) APR 12.94% This is the card you should pay the most off every month.

Jessops Store Finance – Loan Amount £800 APR 0% for 12 Months, 6 Months Left

Cahoot Loan (New Car) – Loan Amount £7,000 APR 5.6% Length of term 36 months, 23 months to go.

Overdraft - £0 (limit £50) APR 20% (Although Frequently Used)

I had £3000 in savings, but I have just had to spend £3400 in car repairs.
That used all my £3000 Savings and my Parents Lent me £400 This is a very expensive car! Worth selling for a smaller one with less hassle/expenditure?

I have got into the habit of buying toys and rubbish on my credit card so the balance never gets any lower. Cut up and throw the cards away asap. This will only get worse unless you take decisive action. You do not need the cards and you must start living within your means and without credit - at least until you are able to manage it better.

I have been as honest as I can with my list above, I really don’t think there is anything else to add to it. There may be the odd thing here and there but they will usually be big and go on my credit card (STUPID! I KNOW!!) Most of us have been there and done that. No one will judge you here You have faced your debts, which is the hardest thing. Now take the right action for you to improve your situation before it gets to a very sticky end.

Good luck and keep posting

You can do this!

Smashing · 2 January 2007 at 2:27AM

I just got pipped to the post by moozie- she said everything I wanted to, and more. :T
Your car is a huge drain on finances - on 24 call-out you may need to convenience, but could you consider public transport for some journeys? Can your gf come to you rather than you always going to her?

And I know boys like their toys, but 3 phones?

Also another vote for taking the hifi back - you simply cannot afford it right now.

KIM · 2 January 2007 at 2:35AM

Small input from me, but what T-Mobile w'n'w are you on? is it an old actual w'n'w plan, or flext w'n'w, relax w'n'w.

If its one of the older w'n'w plans, you can get a better plan. Let me know the details of the tarif and i will help you out with that...

KIM · 2 January 2007 at 2:36AM

Smashing wrote:

Also another vote for taking the hifi back - you simply cannot afford it right now.

Good shout! :money:

MINI-Cooper-S · 2 January 2007 at 2:51AM

Thanks for the fast replies!

You are right about the phone contracts and I know they would be the first to be pointed out. I know as well there is no way to get out of a contract till the end either.

With regards to my car, this had been a major issue for me; 13 months ago I took out a £7000 loan to buy the car. So far in the past 12 months I have spent at least £5000 in keeping this thing on the road!
There is now another thing going on it (power steering is on its last legs) and I have already been quoted £600 to sort that out.
The car is a 52 place Renault Megane Sport Hatch 1.9 DCi.
It is also the 1.9 Turbo that hits my insurance, which BTW is going up by £250 this year. I called the insurance company and they seem to think this is due to inflation!
I can’t get anywhere else that is cheaper either.

My girlfriend cannot drive yet, (her test is next month). Although she is going to be going to university soon, (possibly Glasgow or Edinburgh) which could mean even more miles for me in visits!

I much the miles and pay the price in diesel.
My job is swings and roundabouts, one week I can get 0 out of hour call outs, the next I could get 3 a night.

I have been out the past 3 days looking for a new car. But the best part ex offer I have had on mine is £3500. And considering all of the work I have just had done has cost me that much, it seems like I am giving a garage a free car!

My Girlfriends parents think it may be a good idea if I just cut my losses with the car and get another one.

I am really not sure what to do!

I have an attic and a room stuffed full of stuff I could sell, I just think it is really time consuming and also I don’t believe would be worth that much.
But if it takes my technology to have to start going, then I think it may be time…

My W’n’W Plan I believe is Relax 25 and the Faster Internet service which also allows me to use my phone as a dial-up broadband modem on my laptop.
I did get this contract to help cut the miles down in my car, as most of the time I am on the move and have no internet connection. Meaning I have to drive to places to give support. This now means I can just give remote support off my laptop wherever I am.

I have tried looking for an evening job (I would love one to be honest) but there is nowhere that are prepared to deal with my 24hr on call for my current employer.

I am IT Manager there at the min, so promotion is really a no-go.
I am on a pay review in April, but I am really not expecting much out of that.

My food expense is so high because I have got into the habit of going out to subway for lunch every day at work. As it has started to have more than just a financial affect on me and they are going to stop them in return for packed lunch.

Today, I cut up both of my credit cards and my girlfriend put them in a picture frame on my wall, as a reminder that I have taken the first step.
I personally would have just binned them! lol

I am going to get myself a diary tomorrow (from work, so not cost!! :-))
How should I lay it out? Just a straight forward, I spent a pound so I log a pound?

If anyone could advise on a possible evening job for me, or anything that would earn me a bit of extra money, please do!

Sorry for the long reply, I just thought I would give everyone’s responses a general reply.

I am already feeling so much better for this!

Thanks Again!

Chris

KIM · 2 January 2007 at 3:04AM

re the Tmobile plan, you're on the newest, and cheapest version, so that seems fine. Do you actually use all 3 mobile lines?

Could you.....
1) get Bt landline down to £11 minimum, basic package, and not make outgoing calls AT ALL
2) Keep orange phone for text only
3) keep tmobile on w'n'w relax 25 for internet/call use
4) change plan/limit usage on O2 line. - what do you use that one for?

5) compare car insurance prices? Are you tied to them? try tescos/direct line - always seem cheapest in comparison to others...

roswell · 2 January 2007 at 3:04AM

Can you not get a company phone for support work ?

id really get to selling stuff, and your working in an environment where it shouldnt be hard to offload it for a decent price (work colleuges).

as for the car Id be tempted to contact trading standereds as im pretty sure a 3 year old car shouldnt give you bills like that, Maybe someone else has some better advice.

personnaly id get rid fo the car, 25 000 in a diesel a year isnt to much to expect from it assuming it gets regular services / oil changes.

I wouldnt be driving to glasgow go by train its a lot less stressfull.

MINI-Cooper-S · 2 January 2007 at 3:21AM

My O2 line is mostly used for calls, i not get 1000 txts and 500 anytime any network mins on that one.

I am just waiting for the 12 months to be up now on the orange phone, i no longer need it and it was going to cost too much to cancel.

I didnt really want the BT line, but work sorted me out with broadband for my home, i just needed to supply the BT line for the ADSL.
I couldnt use my parents line as they already had ADSL on it and i couldnt use theres as i needed a secure connection into work.

With regards to car insurance, i struggle to even get quotes of most pleaces 1) because i am under 21 and 2) because of the magical T after the 1.9 on my car.

I must make a correction by the way, my car is 4 years old. the 3 was a typo before.

I have been onto trading standards about my car, but they say there is nothing i can do about it.

so far in the past 12 months it has had:
1) New turbo
2) New ECU
3) New Clutch (Master + Slave) + Flywheel
4) Some work to steering
5) 4 New front tyres over 12 months (£150 each a time)
6) New electrical wiring in engine bay
7) New keys as old ones just stopped working
8) New breaks + Pads all round
9) x2 services
10) New Fuel injection relays
+ other petty stuff

Now Needs:
1) New steering rack (Clunking noise + strange steering at times) Quote: £600
2) New wiring for airbag system (Airbag warning lights are on) Quote: £800

My £7000 car 13 months ago has now cost me in excess of £12000 (i could of had a new one for that price!!)

I still have a fair few thousand left to pay off on the car, and it is more than anywhere will give me part ex for it. Catch 22

I dont know what to do about it.

Thanks

Chris

deb_buffy · 2 January 2007 at 8:00AM

I would get rid of the car. I had the same thing happen with a 06 Clio after 5 months i started gettings large bills which weren'y covered by warranty. I know its bad the low price you get for trading in the car, but if you do, you car insurance will be cheaper and you will save on all the silly bills. I traded mine in for a 53 semi auto fiesta and haven't looked back. I found that the little dealerships gave me more money for a trade in and if you say well you had an offer of £.... and you would prefer to go with them as you like their stock they usually will put their offer up a little. hope this is helpful.

Today i Put up my White Flag - Please Help! (Debt Free Wannabe)

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