Need Advice, Im a Novice

gary_pacha

Hi
Here is my situation
i have a student acc with barclays £1000 in to my overdraft, i currently have 2 years remaining interest free before i get another year interest free as a graduate account, i currently pay 40 a month to reduce the balance

I have a halifax student account, this is my current account that i use for everything i currently have an overdraft of up to 1650, which i always reach every month as i have 985 being paid from my job into this account. i have 2years remaining on this account as interset free overdraft. and then a graduate account

i have just transfered my balance of my credit card to virgin 9 months interest free (3300 is my balance)

I have currently applied for A&L premier account and have been accepted for it, i want to use this accont as my current account and just pay into the other so i can reduce my overdraft to 0, and keep doing the same with my credit card.

my outgoings at the monent before i use the A&L account.
75 to virgin
40 to barclays
213 for car
265 for rent and bills
55 mobile fone bill

incomings
985 per month after tax from work

is there anything i can do or someone can suggest, to help me get out of this problem i'm in, or am i doing the best thing.
once i start using my A&l account i want to pay a certain amount into halifax as well to reduce this overdraft and clear it off

Regards

tasha38

i dont know if i can help that much as im a bit of a novice as well. however from what ive picked up on other threads perhaps i can suggest a few things---

1. a more detailed budget plan might be more useful...you havent included money for food, cleaning goods, toiletries etc. does the car money include petrol,tax,mot etc? a detailed plan will actually highlight how much money you have spare to throw at the debts.

2. is the phone essential? could you perhaps change to a cheaper tariff or PAYG? 55 seems to be quite high. the money saved from this could go towards paying off debts.

3. is the car essential? would public transport work for you just as easily but be more cost effective?

4. do you have an OD on the A&L account? might be wise not to have one.

hope this helps

homersimpson_3

why are you always overdrawn? income - 985. outgoings -648 leaving 337. what do you do with this?
mobile phone bill way too high- get rid of it and only if absolutely necessary use pay as you go.
why do you need car? why can't you use public transport?

tasha38

p.s. forgot this one.......might be wise to pay off the credit card first, as you only have 10 months on this and the upto 3 yrs with the banks

$17mma

gary_pacha wrote:

Hi

my outgoings at the monent before i use the A&L account.
75 to virgin
40 to barclays
213 for car
265 for rent and bills
55 mobile fone bill

incomings
985 per month after tax from work

is there anything i can do or someone can suggest, to help me get out of this problem i'm in, or am i doing the best thing.

I think you need to consider loosing the car and the mobile phone, get Pay as you go if you have to then you will only use it when you really have to. By doing this you have an extra £268 to pay off your bills every month.. that will make a big difference.

System

To protect yourself for the future, I'd reconsider that A&L Premier a/c (A&L is part of the MBNA, who also issue your Virgin credit card.)

It's just best not to do your banking with someone you owe thousands to.

Try to find a bank that has absolutely NO connection to any of your debts. This should help:-

http://www.stoozing.com/cards.htm

Also, when doing that, think 9 months ahead too, and who you may be lining up for another 0% Credit Card when your Virgin offer ends.

As for your Mobile bill, if your mates like chatting on the phone, get them to call you or save it till you're near a landline!

gary_pacha

what i was thinking is, could i pay the least into halifax and barclays as these are interest free and pay the money that was paying these off with into an ISA or something that may be better.
Can Anyone suggest a plan, or bank that i should change too, or is there anyway of transfering the money off the credit card on to the 2 student accounts and just pay them off via that as there will be no interest for a few years, as i do believe i can get my overdraft increased as a student.
If anyone can suggest anything i will follow it.

What i was also thinking with my car, it worth 5500 at the least , yet there is about 4000 outstanding on the loan, so, sell the car, buy a cheaper car for around 4000, and use the 1500, to pay of debts. I need a car for work, i have tried public transport, and its actually cheaper for me to tarvel to work via the car, fuel wise. I also have someone sharing the cost of fuel.

johannamse

Sell the car. Pay off the 4k loan and buy a car for 1500. You will save loads! You will also spare up alot of money to put toward debts.

tasha38

i dont get how using a 4000 pound car is more cost effective than public transport?

skintchick

Public transport is very expensive! Plus inconvenient, dirty and unsafe.

But I really came on to say please post a detailed budget with everything on it - including Christmas, birthdays, holidays, etc., so we can help you on that side of things.

tasha38

o.k let me re-phrase.....there are cheaper cars out there....as johannamse said.