Should have done this a looooooong time ago....

freebiequeen84

Right, here goes.

My name is Michelle and I am completly, and utterly, rubbish with money.

If I want something I have to buy it. I need nothing, it's always about want. And I've decided it's about time to sort myself out.

Have spent this morning trying to put an actual figure on my debt : as terrifying as it has been, I've done it.

So, here it is:

Welcome Finance : £131.33
Barclays Overdraft : £1100.00
Barclaycard: They are being slightly ridiculous and I cant get an exact figure atm. I will estimate about £800.
NatWest Overdraft : £800.00
CTP : £937.45
Catalouge: £660.00
My Super Dad: £2000.00

Total : Roughly £6428.78

I would like to think I can be debt free by June 2010. Or sooner, if myself or my friends win the lottery! :rotfl:

So, hello to you all. I feel rather exposed but it's a nice feeling!

I'm sure you are all going to be seeing a lot more of me around here!

gettingbetter

:j hello

nice to have you onboard cant offer much help but the experts will be along soon
kas xx

**Amy**

:hello:

Well done for putting it all down, thats generally the worst bit, admitting it to yourself.

Have you done an SOA (statement of affairs)? It might be worth posting one, you never know what you could save:

http://www.makesenseofcards.com/soacalc.html

Also you could try putting all of your debts in the snowball calculator to see what would be teh best way to pay them off and how long roughly it will take you:

http://www.whatsthecost.com/snowball.aspx

Well done once again and good luck.

xx

Tinkabell25

Hi, I'm also Michelle and rubbish with money!!! I blame the name....! Looking forward to your SOA. Good Luck!! Tink xx

getmore4less

Great start and this is where you take control of your financial future

On the face of it it looks ok but the key thing is how realistic is this,

The debt comes from some spends that must be missing since this shows a surplus.

I would start a spending diary and start tracking the budget very closely to get the SOA as accurate and realistic as possible.


Mobile, get a freee cash back contract.

car expences are high and you have £12k tied up in a car.
sell it and get a cheaper one £4k and more economical.
(we have clio Diesel £35 tax 60mpg was £4.5k 2.5years old)
Pay of all your debts immediately this will also free up £700pm to save.

freebiequeen84

selling my car is not an option sadly, its only 5 months old so the loss I would make would make the whole exercise completly pointless.

Am only 4 months in to my current phone contract, so can't change that for another 14.

enook77

Looks like you've got it good to me. A 12k car, your rent is £130/month and you dont pay any utility bills. I'd trade with you.

freebiequeen84

enook77 wrote: »

Looks like you've got it good to me. A 12k car, your rent is £130/month and you dont pay any utility bills. I'd trade with you.

I do have it good. I didn't do this because I'm seriously struggling. Sometimes I'm a bit strapped for cash the week before payday, but that is because of my own over-indulgence.

I just wanted to get my head out of the clouds and confront the fact that I have debts that need to be paid off. My credit rating is absymal and I need to start taking financial responsibility for myself. Airing my situation on here was merely to enable me to take a more realistic view of where I am.

frazzmunch

just wanted to say hi and congratulate you on taking financial control before you ever get into trouble....wish i had!!:rotfl: good luck

getmore4less

freebiequeen84 wrote: »

selling my car is not an option sadly, its only 5 months old so the loss I would make would make the whole exercise completly pointless.

A lot of people make this false assumption.

The loss has happend sell it or not it's too late, keeping the car does not save you those losses you just make them bigger by keeping the car, depretiation.

You currently have borrowed money to buy the car and it is not the cheapest option to run, so you have to tot up the costs of the loans and the running costs and the depretiation,

Then compare with a cheaper car, lower depretiation, lower running costs, no debt payments, cash in the bank earning interest.

Then look if you are better of in say 3 years keeping it or selling it for a cheaper one.

This is what is costs you to run this car for the next 3 years and you can decide if that is sensible, best value, whatever criteria you want it will be your choice

Don't fool yourself in thinking it is cheaper to keep the expensive car it won't be make an informed choice.

freebiequeen84

getmore4less wrote: »

A lot of people make this false assumption.

The loss has happend sell it or not it's too late, keeping the car does not save you those losses you just make them bigger by keeping the car, depretiation.

You currently have borrowed money to buy the car and it is not the cheapest option to run, so you have to tot up the costs of the loans and the running costs and the depretiation,

Then compare with a cheaper car, lower depretiation, lower running costs, no debt payments, cash in the bank earning interest.

Then look if you are better of in say 3 years keeping it or selling it for a cheaper one.

This is what is costs you to run this car for the next 3 years and you can decide if that is sensible, best value, whatever criteria you want it will be your choice

Don't fool yourself in thinking it is cheaper to keep the expensive car it won't be make an informed choice.

I don't owe any money on the car - I didn't buy it. My dad bought it for me so it cost me nothing. Considering that the only cost to me is the insurance (high....but thats mainly due to my age and the amount of time I have been driving) and petrol, I don't think it is excessive.