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  • FIRST POST
    • saver772
    • By saver772 29th Feb 16, 10:42 PM
    • 5Posts
    • 2Thanks
    saver772
    Debt free
    • #1
    • 29th Feb 16, 10:42 PM
    Debt free 29th Feb 16 at 10:42 PM
    Hi guys,

    I've myself into debt. I moved out of my parents home aged 20 (I'm now 24) i rented a flat with a friend and lead a lavish lifestyle. I went 2k into my overdraft and haven't been out of it properly since. Last year i took out a credit card which I maxed out too 1,200.

    I've had enough, I want to buy a house but I cant think about saving for a deposit until I clear this, now the plan is to pay off £500 a month until it is all cleared. I've started already I got paid on Friday and have whacked.£500 straight off my credit card. I am refusing to touch this until it is paid off, it should be paid off by May.

    I started a new job and took an initial pay cut i currently take home about 1300 per month but that will go up every month as I build my commission up slowly.

    Is there any advice or tips you can share to help me clear this mess.
Page 1
    • david756
    • By david756 1st Mar 16, 8:27 AM
    • 31 Posts
    • 26 Thanks
    david756
    • #2
    • 1st Mar 16, 8:27 AM
    • #2
    • 1st Mar 16, 8:27 AM
    Still paying interest?
    Call them and explain the "situation" and ask if they can freeze interest.
    • Mahsroh
    • By Mahsroh 1st Mar 16, 8:57 AM
    • 86 Posts
    • 61 Thanks
    Mahsroh
    • #3
    • 1st Mar 16, 8:57 AM
    • #3
    • 1st Mar 16, 8:57 AM
    Hi,

    I feel your pain, but by the sounds of it we're talking about a debt of £3,200? That is very manageable so please don't be too disheartened. You're in the right place for good advice!

    What are your current financial commitments? £500 per months seems a lot with a take home pay of £1300. Are you still renting or living back with your parents now?
    • andyfromotley
    • By andyfromotley 1st Mar 16, 2:19 PM
    • 2,014 Posts
    • 2,964 Thanks
    andyfromotley
    • #4
    • 1st Mar 16, 2:19 PM
    • #4
    • 1st Mar 16, 2:19 PM
    Hi saver,

    welcome to the forum, no problem you'll have yourself debtfree in a flash. The first thing to do is to fill this in
    http://www.stoozing.com/calculator/soa.php

    we can then give you proper advice.

    In general look to see if we can move as much of that debt onto 0% credit cards. You can shift your OD onto a 0% too via a money transfer card, this will make a huge difference to your repayments. use the eligibility checker on here for an idea if this is an option.
    £1000 Emergency fund No90 £1000/1000
    LBM 28/1/15 total debt - £23,410 24/3/16 total debt - £7,298
    !
  • National Debtline
    • #5
    • 1st Mar 16, 3:09 PM
    • #5
    • 1st Mar 16, 3:09 PM
    Hi saver


    If you're serious about not touching that credit card again you could do worse than cut it up. That would at least prevent any lapses.


    As andyfromotley rightly states, working out a budget is key, whether you're paying off debts or trying to put by as much as possible each month.


    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • saver772
    • By saver772 2nd Oct 17, 7:48 PM
    • 5 Posts
    • 2 Thanks
    saver772
    • #6
    • 2nd Oct 17, 7:48 PM
    • #6
    • 2nd Oct 17, 7:48 PM
    Hi all

    I eventually cleared the debt and now have since saved 15 grand ��
    • EssexHebridean
    • By EssexHebridean 3rd Oct 17, 11:19 AM
    • 8,013 Posts
    • 41,466 Thanks
    EssexHebridean
    • #7
    • 3rd Oct 17, 11:19 AM
    • #7
    • 3rd Oct 17, 11:19 AM
    Well updated - thanks for letting us know and well done on your achievements!

    The trick now is to remember the lessons you've learned on personal finance and take that forwards for the rest of your life - congratulations - you're now someone who is "good with money"
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£544.67 (17/10/17)
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