Please help, I'm a Newbee and pulling my hair out!

Beckyneedstosavecash · 30 December 2007 at 8:32AM

Hello,

I have been looking around the forums for a bit now, posting things here and there but I haven't yet properly written down how I'm feeling or the situation I'm in.
I feel like I'm in a such a mess - I have debts left right and centre, I have been refused credit when trying to transfer mycredit card balance to an interest free account, refused an overdraft facility on a new account I have opened (A&L with interest free overdraft to try and reduce interest paid), I am trying so hard to get myself in some sort of order but each time seem to fall off the wagon.
I am quite young (23), I am single so can't talk to another half about things, my parents are great but I can't talk to them about it because they have been so good to me whilst at University and since leaving whenever I have asked for money they have provided it to me with the understanding it will go back to them (see £6000 other debt).
I am constantly waking up throughout the night panicing about things (hence why I am on here so early again this morning, I woke at 6am again and didn't know where to turn), I realise I have to do something about it and then get swayed by something - for instance yesterday I bought a pair of jeans. I know its a matter of will power but I just need some help to stick to it.
I have a good job for my age, taking home about £1550 a month (after tax, NI, student loan and SAYE), I live on my own so bills are pretty tricky.

Please help I'm pulling my hair out!!

Jules · 30 December 2007 at 8:41AM

Hi Becky,
Welcome to MSE.
First things first. If you post an up to date SOA, there is a sticky at the top of the board that will help you with this, then all the good people on here can help you make savings that you never thought possible and help point you in the right direction.

Secondly, no point in losing sleep over it, it's only money. Your health is more important.

The jeans - if this purchase is annoying you, do what I have done many times, take them back and get your money back!!!!

Most of us have been where you are, so you are in good company.
Good luck and welcome.

hypno06 · 30 December 2007 at 8:55AM

Hi becky, and welcome to dfw :cool: Have a read of this post

http://forums.moneysavingexpert.com/showthread.html?t=107280

and put up a statement of affairs, try and be as honest as possible (with yourself as much as anything else) so you don't have any nasty surprises. Once this is done, we can see what we (you) are working with and can come up with some ideas.

also, visit the snowball calculator on www.whatsthecost.com put your debts and aprs in there and play around to get a debt free date.

start a spending diary from now and write down every single thing you spend. It will really focus your mind into getting rid of things you waste your money on.

Take the jeans back!! You know it makes sense, and think of the sense of relief you will get when the money is refunded to you!

Join one of the challenges on here - there are loads, from making £10 extra a day (if you did this, you would have about £300 extra at the end of the month) right through to the "pay off £20k in a year" challenge, so there will be one that will fit in with your lifestyle.

And keep posting - you have taken a big step today. Stick with DFW and watch that debt get sorted!

Karmacat · 30 December 2007 at 9:26AM

Good for you, Becky! Just posting to welcome you, and to echo what's been said above: take the jeans back, write your soa, keep a spending diary of every single penny - you'll be amazed what these three actions can lead to.

moo2moo · 30 December 2007 at 9:41AM

If you live on your own do you have space for a flat mate? It would halve the basic bills and give you a bit more income.

Beckyneedstosavecash · 30 December 2007 at 9:51AM

Hi everyone,

Thank you so much for your posts already - this is my SOA:

Rent - £485
Council tax - £175 in Dec and Jan, nothing in Feb and March and then should reduce to approx. £90 for next tax year
Internet - £10
Phone - £20 (budgeted, never normally this much, probably more like £16)
Gas - £15 (again budgeted, I haven’t had a tax bill since moving into the property)
Electricity - £20 This may be able to be reduced after a couple of months depending on usage
Gym - £28
Car Insurance - £53
Mobile - £35
Water - £25
TV Licence - £11.71 Paid Quarterly (£35.12)
Savings for parents 60th birthdays - £30
Food - £75
Petrol - £50

Total: £1032.71

Debts:
Student Loan - £5622 Approx, I haven’t received a statement recently but know it was £6000 in April. I have since paid £594 through SAYE and the apr is 4.8% (approx £25 per month), leaving the above approximate amount. Currently pay £94 / month
Credit Card - £1500.33 14.88% apr - currently pay min payment £25 / month
Nationwide OD1 - £1460 (limit £1500) 9.9% EAR - Currently do not contribute per month
Nationwide OD2 – £500 (limit £600) 9.9% EAR - Currently do not contribute per month
Nationwide 3 - £0 Currently at £0 but due to expense of Xmas I will have to use this this month. (Limit £1700) 9.9% EAR
HSBC Grad OD - £399.33 (limit £1500) £500 of which 0% (until July 2008, then jumps to 14.8%) £1000 of which already 14.8%. Currently pay £20 / month
Car Loan - £6800 0% apr. Currently pay £150 / month
Debt to family - £6000 0% apr. Currently pay £50 / month

Total: £22281.66 :eek:

Current snowball date: Jan 2014 (seems so long away, I need to get this down!!).

I have spent the last hour putting this together (sorry it's a bit all over the place I have copied and pasted it from Excel) and getting it all down in black and qhite already is a scary thing to do - how have I got to this stage already in my life?!?

I know I should take the jeans back but I have stupidly already worn them so am not able to now - I have learnt the hard way this time (and will probably resent the jeans each time I wear them now!) but I know I can't go spending money like that again.

Unfortauntely I live in a 1 bed house at the moment so no space for a housemate.

I have found a little notebook which I am going to use for my spending diary.

Please help!
Thanks,
Becky

hypno06 · 30 December 2007 at 9:53AM

Hi again becky - can you put down the monthly amounts you pay to each of the debts as well? You can edit your post above to save you doing a new one!

Got to take the kids race training now, but plenty of people will be along in the course of the morning, and I will catch up when I get back.

In_Search_Of_Me · 30 December 2007 at 10:02AM

Beckyneedstosavecash wrote: »

Hi everyone,

Thank you so much for your posts already - this is my SOA:

Rent - £485 would you consider moving into a shared house?
Council tax - £175 in Dec and Jan, nothing in Feb and March and then should reduce to approx. £90 for next tax yeardo you get single persons discount & can this be spread over 12 months?
Internet - £10
Phone - £20 (budgeted, never normally this much, probably more like £16)
Gas - £15 (again budgeted, I haven’t had a tax bill since moving into the property)
Electricity - £20 This may be able to be reduced after a couple of months depending on usage
Gym - £28 I would get rid of this...
Car Insurance - £53expensive - can you get cheaper or even better get rid of the car - it would save a bomb!
Mobile - £35an you get cheaper or even better go PAYG & use ONLY in dire emergencies - I have had 20 on my phone for 3 months
Water - £25 this is quite high - are you metered? Start using a hippo water saving device!
TV Licence - £11.71 Paid Quarterly (£35.12)
Savings for parents 60th birthdays - £30expensive when you havent got the money - what is it for?
Food - £75old style board - people live in nowt but have to say I've never managed it myself!!
Petrol - £50

Total: £1032.71

Debts:
Student Loan - £5622 Approx, I haven’t received a statement recently but know it was £6000 in April. I have since paid £594 through SAYE and the apr is 4.8% (approx £25 per month), leaving the above approximate amount.
Credit Card - £1500.33 14.88% apr
Nationwide OD1 - £1460 (limit £1500) 9.9% EAR
Nationwide OD2 – £500 (limit £600) 9.9% EAR
Nationwide 3 - £0 Currently at £0 but due to expense of Xmas I will have to use this this month. (Limit £1700) 9.9% EAR
HSBC Grad OD - £399.33 (limit £1500) £500 of which 0% (until July 2008, then jumps to 14.8%) £1000 of which already 14.8%
Car Loan - £6800 0% apr
Debt to family - £6000 0% apr

Total: £22281.66 :eek:

Current snowball date: Jan 2014 (seems so long away, I need to get this down!!). mines Nov 14 if its an consolation!!

will post comments in next post!

In_Search_Of_Me · 30 December 2007 at 10:08AM

Firstly welcome, youre in good company as pretty much all of us here are in debt - some were but stayed around cos they like it so much! You could save quite a bt of money by gtting rid of the car - car load and costs of MOT, servicing etc (which you've not included

would go. Alsoa flat share may be worth thinking about as would swapping to PAYG for the phone. While you say you spend 75 on food I would guess that this is an optmistic estimate at this stage. Start your spending diary & prepare to be shocked! Possibly the best thing o do is start asking the "need/want" question and most of all STOP spending! Look at WHY you are spending & see what you can flog on ebay...I would also tellyour parents what a mess you're in & best riends etc - you will need support on what is going to be a long road ahead. Its hard but most will support you - not necc financially but emotionally & practically - my mum sends me tesco cards with money on occasionally which is lovely! Get to know the site, save money & start paying off rather than spending!

Beckyneedstosavecash · 30 December 2007 at 10:34AM

Thanks InSearchofMe - this is really motivating, I have made a few more notes below:

Originally Posted by Beckyneedstosavecash

Hi everyone,

Thank you so much for your posts already - this is my SOA:

Rent - £485 would you consider moving into a shared house? I only moved into this one in October with a minimum 6 month rental period, I think I will have to reassess when I am able to.
Council tax - £175 in Dec and Jan, nothing in Feb and March and then should reduce to approx. £90 for next tax yeardo you get single persons discount & can this be spread over 12 months? This will even out in the next tax year it is high at the moment because I had to cover 4 months worth of tax in 2 months!
Internet - £10
Phone - £20 (budgeted, never normally this much, probably more like £16)
Gas - £15 (again budgeted, I haven’t had a tax bill since moving into the property)
Electricity - £20 This may be able to be reduced after a couple of months depending on usage
Gym - £28 I would get rid of this...I'm going to do exactly that when I'm I go out this morning!
Car Insurance - £53expensive - can you get cheaper or even better get rid of the car - it would save a bomb! Unfortunately i need a car for work and it needs to be reliable as I use it a fair amount. This is renewed in April and by then I will have some no claims discount so it should reduce.
Mobile - £35an you get cheaper or even better go PAYG & use ONLY in dire emergencies - I have had 20 on my phone for 3 months I am tied into a contract with Vodafone until Sept '08 but I have just rung them and reduced my calling plan to £25 a month instead of £35.
Water - £25 this is quite high - are you metered? Start using a hippo water saving device! I am currently just paying a set price, I am going to ring the water company this morning and see if I can change it as I know there is a water fitted in the house. What is a hippo water saver?
TV Licence - £11.71 Paid Quarterly (£35.12)
Savings for parents 60th birthdays - £30expensive when you havent got the money - what is it for? My sisters and I are saving for them to go on a round the world trip - it is a committment I made to my sisters and would like to keep.
Food - £75old style board - people live in nowt but have to say I've never managed it myself!! What is the old style board?
Petrol - £50

Total: £1032.71

Debts:
Student Loan - £5622 Approx, I haven’t received a statement recently but know it was £6000 in April. I have since paid £594 through SAYE and the apr is 4.8% (approx £25 per month), leaving the above approximate amount.
Credit Card - £1500.33 14.88% apr
Nationwide OD1 - £1460 (limit £1500) 9.9% EAR
Nationwide OD2 – £500 (limit £600) 9.9% EAR
Nationwide 3 - £0 Currently at £0 but due to expense of Xmas I will have to use this this month. (Limit £1700) 9.9% EAR
HSBC Grad OD - £399.33 (limit £1500) £500 of which 0% (until July 2008, then jumps to 14.8%) £1000 of which already 14.8%
Car Loan - £6800 0% apr
Debt to family - £6000 0% apr

Total: £22281.66 :eek:

Current snowball date: Jan 2014 (seems so long away, I need to get this down!!). mines Nov 14 if its an consolation!!

I need to talk to my parents but I need to find the right moment - this is all very scary at the moment.

In_Search_Of_Me · 30 December 2007 at 10:53AM

http://forums.moneysavingexpert.com/forumdisplay.html?f=33
old style....

pigsback...
http://forums.moneysavingexpert.com/showthread.html?t=532144&highlight=water+saving+hippo

free water device
http://www.reducereuserecycle.co.uk/greenfreebies/free_water_saving_devices.php

Why not join the grocery challege
http://forums.moneysavingexpert.com/showthread.html?p=7521965&posted=1#post7521965

Pigsback is fab & a great way to get vouchers etc WITHOUT spending! I know its very scary for you (& millions of others if that makes you feel any better) at the moment. Money saving required a change in lifestyle. SOmetimes you'll slip up but we all do. What is important is getting back on the wagon when you do. I would tell your mum & dad. My mum has been an absolute godsend and we are 100% closer since I had my lightbulb moment, as have the vast majority of my friends & collegues. I've turned into a money saving guru at work & the shame I felt initially at my stupidity had turned into being wise(r!!) with my money & how I spend it! I have an allotment which I love and spend tme with likeminded people and I have FUN something I never did when I was out spending ooodles! Well done on taking action re gym etc....

Please help, I'm a Newbee and pulling my hair out!

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