clearing debt vs being seduced by driving

Debt_Robot

I would love to receive a second opinion on a dilemma I am in.Any advice is deeply appreciated.

This is the current situation with my student debt as of today:

-Natwest Student Credit Card: -£339 > Originally £500, Paid off £160.

-Natwest Student overdraft: -£2,062. This is interest-free until June 2009.

I am in the red clearly. This is the all the debt I have at the moment as I did not get a student loan.

My problem is that I have become one of those people seduced by the idea of getting a car. I have a part-time job at the moment and I am hoping to find a second job as well.

I have started driving lessons and I do want to continue doing them. My question is, am I being prudent by thinking of trying to buy a car when I am that much in the red? I really want to drive but I know I am being very irresponsible.

Is there anyone on the forum who managed to buy a car whilst chipping away at there debt? Anyone?

The_One_Who

I think your first priority should be clearing the credit card. Is it interest free? Then your overdraft should maybe be cleared a bit.

If you really want a car then buy a cheap old banger. You are in no financial state to commit yourself to a new car, or even a recent second hand one. Cars are getting more and more expensive to run. Can you really afford all the tax and insurance that comes with it, never mind the petrol and maintenance costs?

timnicebutdim_2

Hi, i would try and pass your test first and clear your debt before buying a car....If you could afford to pay your debts off at say £100 per month it would take 2 years to clear. Then there would be the cost of the driving lessons at say £100 p/m (£25 per lesson*4) for 6-8 mths.

So if you could afford about £200 per month, in a years time you would have halved your debt and passed your test. Bear in mind if you get 2 jobs, you will be taxed more than if you had just 1 job.;)

Debt_Robot

@The One Who, thank you for replying. Lol, I think you put the cold truth on it and I am glad you did. I think I am being silly and trying to convince myself that I can afford costs when I know I will be stretching myself.

@timnicebutdim, thanks for answering too . that is a good point about the 2nd job. you have really put it into perspective with what you said about the £100 thing. I never looked at it like that. I clearly drastically need to rethink!!

pinkshoes

Well I guess if you bought a 10 year old car, then you're looking at about £700, then 3rd party insurance would perhaps cost you £500 (depending on your age!), £120 tax, and then yearly MOTs could cost a few hundred. Oh, and have you not noticed the cost of petrol???

I'd suggest you get yourself out of debt first before getting a car, as whatever you think it's going to cost you, double that!

Unless you NEED one (i.e. no public transport, living in middle of no where), then it really isn't worth it. Wait until you get a graduate job that pays lots!

pandora205

The trouble with cars is they can guzzle money not just on petrol but on repairs (unless they are new and I'm assuming that would be out of the question). It doesn't take a major repair to throw a budget - something like an exhaust can cost £100 for repair (not to mention general wear and tear such as tyres.)
I'd make the most of cheap student travel while you can... Much as a car would give you indepedence it is a luxury. Learning to drive is a good idea though and then you can get a car when you finish your course (assuming you've no more than a couple of years left).

Debt_Robot

@pinkshoes, you have mentioned loads of costs I did not even dream of! thank you for shedding light. i think i need to stop living in a dream world here.

@pandora, repairs is another thing i have not really thought through and cheers for mentioning that.

I think I should pack the dream in and do the sensible thing which is pay off the debt!!

pandora205

Why not start a 'sealed pot' saving your change towards a car for when you finish studying? I've been doing this towards a weekend break and have a bit tin 2/3 full since January (It is reported to hold £500) I just empty my purse every day and leave just £1.25 in coins putting the rest in the tin.

http://www.giftology.co.uk/acatalog/Cash_Can_Extra_Large.html

There's a sealed pot challenge on here if you decide to do this.

Debt_Robot

@pandora, that is a brilliant idea. i think that is probably a better way as well of trying to save for the car.

cheers!

pandora205

Here is the link for the sealed pot challenge thread on here (if you want to join us all)

http://forums.moneysavingexpert.com/showthread.html?t=605703

It can become quite addictive: I sometimes break into notes to get change to go in there!