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I need your help!
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Airplanepics
Posts: 187 Forumite
Hello!
I need your help.... I can't save money to save my life!
Currently, I owe £10,000 to my Grandparents (interest free...should be paying off £250 monthly..) for my new car. I've paid off £3000 of this, so have £7000 to go.
On top of this, I have £2100 on a credit card - was £1000, but I was stupid this week, long story, which annoys me so I won't go into details! Waiting for a bank transfer to go through, which will pay £500 of that off.
Aso have a 1 years interest free credit from PC World for my new computer, this runs out in December, cost me £1000. I planned to put £100 a month away to cover the cost later on in the year....I have £200 way so far.
I also have another savings account for holidays, but as soon as I put it in, I have to withdraw it as I need the money in my bank account.
I currently take home £1200 ish a month, sometimes a bit more. I do 60 miles a day to get to work and back, so Diesel is a pretty big spender of some of my money, although my car has a good Fuel consumption.
So, what's the best way to start getting myself out of debt? I'm only 20, and don't want this to burden on me for years to come. I need to start acting now, as it's really worrying me.
Regards,
S
I need your help.... I can't save money to save my life!
Currently, I owe £10,000 to my Grandparents (interest free...should be paying off £250 monthly..) for my new car. I've paid off £3000 of this, so have £7000 to go.
On top of this, I have £2100 on a credit card - was £1000, but I was stupid this week, long story, which annoys me so I won't go into details! Waiting for a bank transfer to go through, which will pay £500 of that off.
Aso have a 1 years interest free credit from PC World for my new computer, this runs out in December, cost me £1000. I planned to put £100 a month away to cover the cost later on in the year....I have £200 way so far.
I also have another savings account for holidays, but as soon as I put it in, I have to withdraw it as I need the money in my bank account.
I currently take home £1200 ish a month, sometimes a bit more. I do 60 miles a day to get to work and back, so Diesel is a pretty big spender of some of my money, although my car has a good Fuel consumption.
So, what's the best way to start getting myself out of debt? I'm only 20, and don't want this to burden on me for years to come. I need to start acting now, as it's really worrying me.
Regards,
S
0
Comments
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On the plus side you are only 20 and can sort things out and budget properly in the future, it's taken some of us considerably longer to get to this point!
Read the sticky third from the top (for new comers) for more info on working things out and stop panicking - you can do it!Mortgage OP 2025 £6200/7000Mortgage OP 2024 £7700/7000
Mortgage balance: £36,255
Money making challenge £0/400
”Do what others won’t early in life so you can do what others can’t later in life” (stolen from Gally Girl)0 -
Thank you for the reply! I just don't want to ruin chances later in life of getting a mortgage! I have no life savings at all......!0
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Why dont you pop up a SOA & we can maybe give you a wee hand.I am a Forum Ambassador and I support the Forum Team on Mortgage Free Wannabe & Local Money Saving Scotland & Disability Money Matters. If you need any help on those boards, do let me know.Please note that Ambassadors are not moderators. Any post you spot in breach of the Forum Rules should be reported via the report button , or by emailing forumteam@moneysavingexpert.com. All views are my own & not the official line of Money Saving Expert.
Lou~ Debt free Wanabe No 55 DF 03/14.**Credit card debt free 30/06/10~** MFW. Finally mortgage free O2/ 2021****
"A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
***Fall down seven times,stand up eight*** ~~Japanese proverb. ***Keep plodding*** Out of debt, out of danger. ***Be the difference.***
One debt remaining. Home improvement loan.0 -
Ok, Here Goes....
Salary = £1200 (Ish, usually more if I recieve Overtime, this is basic pay)
Out Goings:
House Keeping £150
Car Insurance £70
Diesel £40 a week roughly (£160)
Phone Bill £40
Loan back to Grandparents £250
£200 into savings account.
Credit Card Repayment - Whatever I can afford.
Then I'll usually just spend the rest on whatever, usually food at work though. Or Maybe the odd fluster at the Casino If I went (I know, naughty!
)
Maybe this is where I'm going wrong?
In case it helps, the average take home pay has been around the £1300 mark.
Hope this helps
S.0 -
Hey Airplane, you have a PM LennyThis is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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Thank you Lenny, not received it yet - but will keep checking.0
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ok........car insurance is high, but it is probably because of your age. Hopefully it will come down a bit when you reach 21. Have a look at confused.com or moneysupermarket.com to see if you can reduce it and then go through Quidco.
Ebay anything you have - CD's, any old console games you don't play?
Food at work - take packed lunch or snacks from home. You'll save a fortune. Yes, I'm afraid the casino is stopping you becoming debt free - time for it to go, I'm afraid
The savings you have - if the APR on the credit card is higher than the interest rate on your savings, you will stay in debt longer. Use the savings you have to pay off your credit cards quicker and then start to make savings. If you have something catastrophic go wrong you can use the credit card but the 'safety blanket ' of the savings isn't worth having until you are debt free.
Can you swap your phone tariff? Or go PAYG if you are out of contract? Give your network operator a ring to see what they can do.
I think with some tightening of the belt you could be out of debt incredibly quickly. How much do you have in your savings account?
Ignore posters who throw comments around - you'll find the DFW community helpful and the occasional troll just wants to make trouble.
"Stay Wonky":D
:j:jBecome Mrs Pepe 9 October 2012 :j:j0 -
Sorry, I sent the PM after I posted.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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your car insurance may come down if you take the pass plus and have an additional driver on your insurance.Blackadder: Am I jumping the gun, Baldrick, or are the words 'I have a cunning plan' marching with ill-deserved confidence in the direction of this conversation?
Still lurking around with a hope of some salvation:cool:0 -
Keren,
Thank you very much for your advice, it's greatly appreciated.
I forgot to mention in my SOA, I actually have 2 Phone contracts, Phones4U managed to swing me into a new contract a few months ago. I have 6 months to run on one of them.
They even game me £100 to pay the old contrat off, but I spent it!
Luckily, the Credit Cards are interest free, and are so until June I believe, thinking about it I believe the Egg Credit Card is Interest Free until March next year.
I've started to take food into work now and have already noticed the savings! Plus it's healthier!
As for eBay, I had a clear out a few months back, but maybe time again to have a sort through the drawers and see what I can find!
Unfortunately Car Insurance is high, was £1500 last year! Hopefully, fingers crossed it'll come down come July.
Simon.0
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