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First post and debt diary.

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Hi all

Well, I was feeling bad about my debts but i've come across this site and can see that many others are in the same boat. So here goes!

Thankfully i'm still at home with parents and they let me live rent free.

Monthly Incomings:

My salary - £1200

Monthly Outgoings:

Phone - £45
Food - £48 (lunch at work)
Car Insurance - £95
Petrol - £280
gym and related - £90
Smokes - £40

Total: £598

Egg CC – Balance £1809 (limit £2100) 0% balance transfer due to end soon. I pay £40 a month on this

MBNA CC - Balance £1498.20 (Limit £1500) 24.9% APR, I pay £75 a month
MBNA CC - Balance £2640.00 (Limit £2600) 39.9% APR, I pay £150 a month
Barclaycard CC - Balance £4500 (Limit £4500) 24.9% APR, I pay £150 a month

Loan - £242 a month, 18 months to run

Overdraft - £433. Limit £500, with Alliance and Leciester

So, on average I'm £55 a month over my wages. Other things like small bits and pieces like car tax, odds and sods mean I'm really about £200 a month down. This often has to go on the credit cards.

Now, the past few months have been tough, my car is essential and its needed bits and pieces of maintence that have run to almost £1000 excluding labour which thankfully I did myself. I still have to find £101 next month to tax it for 6 months.

I looked at getting a loan to consolidate everything into a manageable monthly payment and more importantly get a lower APR on my debts. No one will touch me though as I've had a few months of paying everything a little late and a couple of bounced direct debits. Help?!

I also have a little money coming through in a few months and had toyed with buying a small motorbike for commuting which should cut my fuel bills greatly. I reckoned that although the money would be better immediately against my debt it a bike could save me £100 a month in the long term.

What to do?? Thanks for reading

PS, I still feel bad about my debts as its ruining possible career changes as I would be a possible liability.

Comments

  • cady
    cady Posts: 668 Forumite
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    hi and welcome to the site!!
    you have come to the right place and have started the ball rolling by looking at all of your debts so well done !!
    a few things seem high like gym and related, this is very high could you maybe cut this out and start jogging instead?? could you also take your own luch to work??? by cutting these 2 things out you will save £138!!!
    You can make the savings and pay off your debts by making a few changes but it depends on if your willing to cut back.

    Good luck
  • isgman
    isgman Posts: 490 Forumite
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    Welcome you have made the 1st step, which is always the hardest, as well as the two cut-backs Cady has said,, have you tried to cut down on the Smoking, if you are only paying £40 per month you don't smoke that much, may be worth trying to stop,, thats another £40 saved,, your Petrol seems High, do you have a long way to go to work ? Public Transport ?
    It will work out in the end so please don't get to down, keep posting here it's always good to "talk",, Good Luck
    :beer: Keep your Chin up.. it can only get better :beer:
    :confused: I'm one of those people who was born to have money, :confused:
    :confused: but I just don't have any!:confused:
  • Kandipandi
    Kandipandi Posts: 1,656 Forumite
    Options
    Hi

    Well done for posting :T - you are in an ideal position to get yourself back on track whilst not having any household bills and rent etc.

    Your priority must be to get the highest interest CC's paid off asap. Every spare pound you have must go to them, its amazing how much an extra £20 a month can make to reducing your repayment length!
    I have made notes below hope you find them helpful, keep posting and let us know how you get on. I would not recommend consolidation it is never an answer only reduces your monthly payments but you pay for it over the long term and some! But thats just my personal opinion.

    Knowdough wrote: »
    Hi all

    Well, I was feeling bad about my debts but i've come across this site and can see that many others are in the same boat. So here goes!

    Thankfully i'm still at home with parents and they let me live rent free.

    Monthly Incomings:

    My salary - £1200

    Monthly Outgoings:

    Phone - £45 - can you reduce this
    Food - £48 (lunch at work) - take your own lunch in (food from parents fridge =free)
    Car Insurance - £95
    Petrol - £280
    gym and related - £90 - cancel this until you can afford it again
    Smokes - £40 - try to get rid of this hard i know i just did it!

    Total: £598

    Egg CC – Balance £1809 (limit £2100) 0% balance transfer due to end soon. I pay £40 a month on this

    MBNA CC - Balance £1498.20 (Limit £1500) 24.9% APR, I pay £75 a month
    MBNA CC - Balance £2640.00 (Limit £2600) 39.9% APR, I pay £150 a month - get rid of this first
    Barclaycard CC - Balance £4500 (Limit £4500) 24.9% APR, I pay £150 a month
    Have a look at the snowball calculator eg: This is my rough estimate only:
    on your 39.9% card paying £150 a month will be paid in Apr 2010 paying £2148 interest upping this to £200 a month will be paid in May 2009 paying £1334 interest (my rough figures) - try to save in other areas to clear these as a priority
    Loan - £242 a month, 18 months to run

    Overdraft - £433. Limit £500, with Alliance and Leciester

    So, on average I'm £55 a month over my wages. Other things like small bits and pieces like car tax, odds and sods mean I'm really about £200 a month down. This often has to go on the credit cards.

    Now, the past few months have been tough, my car is essential and its needed bits and pieces of maintence that have run to almost £1000 excluding labour which thankfully I did myself. I still have to find £101 next month to tax it for 6 months.

    With what you have shown on here almost £300 on car expenses can you not use pub transport cheaper that this or like you say sell car and buy cheaper one or motorbike (maybe pushbike and quit the gym!)
    I looked at getting a loan to consolidate everything into a manageable monthly payment and more importantly get a lower APR on my debts. No one will touch me though as I've had a few months of paying everything a little late and a couple of bounced direct debits. Help?!

    I also have a little money coming through in a few months and had toyed with buying a small motorbike for commuting which should cut my fuel bills greatly. I reckoned that although the money would be better immediately against my debt it a bike could save me £100 a month in the long term.

    What to do?? Thanks for reading

    PS, I still feel bad about my debts as its ruining possible career changes as I would be a possible liability.

    Please dont take these comments as critisism trying to see ways you can help yourself that you may not be able to see yourself. You may want to contact CCCS if you cant manage to do this - they are a charity who will help you get onto a debt management plan and they will deal with your creditors and agree monthly payments that you can afford. It will take longer to pay off these debts this way but you may find it the best option for you. Godd luck sorting this out. :beer:
    You can stand there and agonize........
    Till your agony's your heaviest load. (Emily Saliers)
  • Knowdough
    Options
    Thanks peeps for the reply.

    The £90 gym fees are £30 for fitness first and £60 a month for martial arts training. This is my one release from stress so I wouldn't want to cut that out.

    Oh and I enjoy smoking too much to stop, I have it cut back from £140 a month which must be good though. I smoke rollies now so a couple of bags of baccy does a few weeks

    My 2 'problems' is the monthy fuel bill and the CC APR rates. My credit score is shot so I can't even get a cheaper card now to juggle with. I do a lot of miles, public transport unfortunately isn't an option as i'm in the country. My car is old too and only does around 30mpg with very careful driving. Its not worth much but goes like a clock so I don't need to worry about it falling apart or a replacement until I sort myself out. Surely better in the long run than taking on another debt with a newer car.

    Reluctantly as well I'm going to fire alot of stuff on Ebay. Basically lots of CD's, Playstation games etc. My girlfirend and I found we had double of a few things so a general clearout should raise a few quid.
  • rchrisp
    rchrisp Posts: 191 Forumite
    Options
    you should be able to get your mobile bill down, speak to your network and see how it can be reduced.
    Payment a day challenge:

    Capital One Credit Card - £7.55/£1306.56

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