Addicted to credit cards

thegolfingdog

Hi Guys

ive looked through the various budget planners, and self help packages, but im struggling big time to manage my debts, and its all my own stupid fault.

Im 25

I have 2 credit cards with limits of 5.3k and 3.5k each. The interest free rates on these credit cards both end in Jan 09

My current credit card debt is £5362

After tax i clear £1000 per month

I have definite outgoings of £150 rent for parents, £50 for mobile phone, and minimum payments of £120 in total over the 2 credit cards = total definite outgoings is £320.


I dont have the will power to stop spending on my credit cards and im seriously worried about this mounting debt. I would love to have this clear within the next 12-18 months, but i just dont know where to start or how to manage my cashflow. Im sorry for heaping my problems on you guys, but can anyone help me with advice or tips?

Kind Regards

~Beanie~

If you don't have the willpower to stop spending on your cards then you should cut them up. You will never clear this debt whilst you are continuing to spend on the cards!

You should be able to clear these quite quickly as you do seem to have quite a bit left of your salary to pay them with. You need to be paying more than the miniumum, in fact as much as you can spare.

After your outgoings of £320 are taken into account, you should have £680 per month left. Where does this go?

saffronflowers

hi TGD - welcome

Well one simple way to stop spending on your cards is to simply cut them up! I know it sounds a bit simplistic but if you dont have them then you cant spend on them.

You need to really analyse what you are spending the rest of the mondy on as there is £680 going somewhere, why not keep a spending diary and write everything and I mean everything down and then you can have an idea of where it all goes.

I would suggest that you do a SOA - Stametment of Affairs - which lists all income and expenditure. I note that your mobile is very high per month, can you gut this down?

You all so need to put you debts into an interest rate calculator (forgotten its name at the mo but will post when I remember) and it will show how long it will take you to pay on minimum repayments and how quickly you can pay them off if you up the payments you make.

Goood luck

Sfx

Sooler

Cut the cards up - get rid of your mobile - live on £50 a week - pay at least £650 a month - debt free in 8 months.

Cinny91

I agree with Saffron. Cut the cards up and keep note of what you spend, after afew weeks or even days you'll see where all your money is tootling off to! Also can you get your phone abit cheaper? Guessing it's on contract? You can normally downgrade quite easily.

trancebabe

CUT THEM UP.... CUT THEM UP... CUT THEM UP... CUT THEM UP...

sorry if I'm getting boring here but

CUT THEM UP !!!

trancebabe

Welcome to the boards by the way !!
:0)

Rainbow_Butterfly

At the moment you have enough spare money that you can easily afford to pay them off and still have a good quality of life in the meantime.

Take a lesson from the hundreds of people on the DFW and Bankruptcy boards. Go and have a look through the diaries that people post on here.

Stop this now before its too late.

I was 18 when I got my first CC, and 25 when I went bankrupt. Its just not worth it for all the heartache you will have later on.

x

Piquant_2

Hi and welcome to the board

I'm afraid I'm with the others cut the cards up!!! and keep a spending diary. With your surplus income you could be out of debt quite quickly. You don't need to learn the hard way about unmanageable debt!!

Piq

thegolfingdog

Thanks guys

ill certainly look into changing my mobile contract, 50 is a bit too high for my liking

i know i should have cut up my cards by now, its my own stupid fault, i guess i just kept them as some form of "security" if im ever too far into my overdraft

i appreciate everyones help and honesty

saffronflowers

TGD - go and cut them up NOW!!!!! and then post a picture! They re not security they will be the undoing of all security you have in the future! Your situation is not dire, yes it will be a bit of a slog to sort it, but just think how superior you can feel when all your mates are up to their eyeballs in debt and you have a great life cos you have learnt to budget and save!!!!

Oh sorry but honesty is rife around here, so is not looking things through rose tinted glssses!!

SFx