Is there more I can do??

lindoz

Hi,
I have been following the valuable advice from this site and have made some adjustments to my spending habits. I have switched my credit cards to a lifetime balance and a long 0% card. I also have given myself a budget. I have currently moved into my parents house for the winter while they are away so I have a few months of cheap rent before I have to find an alternative in the spring can I do more? advice much appreciated
INCOME:1200 month
100 - 200 variable extra income from second job per month

OUTGOINGS: Rent: 200
Overdraft: 750 owed I pay 50 off a month
Loan: 8885 I pay 187 per month at 6.5% with egg no protection.

Capital one card 0% until 01/07 2562 try to pay 100 a month
British Airways 6.9% lifetime balance 3260 pay 140 a month
Income insurance 17 month
Mobile phone 55
Bank charges for overdraft 10
Travel 30 train to college
Food 100
spending/misc/entertainment 210
50 a month saved with my mum! for emergencies I dont get sick pay from work so this will cover me until the insurance comes into effect. I also put a few pounds here and there into my terramundi this is the only way ihave been able to save in the past I have had between 500-700 before which has paid for holidays and fun stuff! but i am saving less and less. I also spend a few pounds a week on tesco saving stamps. I dont buy many clothes these days either I try to buy things cheaper too but I must admit to a few lapses here and there.
Debt at worst 04/05 18000
total debt now 15457
debt free ? aiming to have credit cards paid off in 2 years at most then concerntrate on loan

Magentasue

Looking quickly, could you:

1) Switch your current account so you don't pay for your overdraft
2)Cut right back on mobile
3) Cut back on the misc!
4) Instead of tesco stamps, interest paying account
5) Stop the income insurance - pay into interest paying account
6) Make sure you're paying off highest interest debt quickest

southernscouser

You say you try to pay £100 a month on your Capital One card! Pay tthe minimum payment on this card as your not paying any interest. Instead put the extra money towards your overdraft!

Have a look at this calculator. Very handy and informative.

http://www.whatsthecost.co.uk/snowball.aspx

lindoz

Thanks, I havent changed my current account as yet because my wages clear immediately in the account I have at the moment and as all my bills are due when my wages are paid I have kept this the same, but I will look into it. I have changed my mobile to a new tariff as I was paying 80 a month previously friends are with different providers so I needed the cross network minutes. I will search for an alternative and try to make less calls, I usually call people as I have the free minutes and they dont and then end up going over the minutes. Thanks also for the web address I will check it out. My misc has been lowered, from the past and nights out drastically reduced and less holidays and mini breaks too. I have started entering competitions as well! I do have a savings account it has 15 pounds in that has been there for about a year I will make more use of it. thanks again!

Entrepreneur_en_faillite

Magentasue wrote:

Looking quickly, could you:

1) Switch your current account so you don't pay for your overdraft
2)Cut right back on mobile
3) Cut back on the misc!
4) Instead of tesco stamps, interest paying account
5) Stop the income insurance - pay into interest paying account
6) Make sure you're paying off highest interest debt quickest

Be very careful about cancelling insurances...... They can sometimes be a complete waste of money, and other times a complete life saver.

rubytuesday

I dont think its worth saving if you have debts to pay off sure its best to get rid of these first then start saving. What do others think?

Entrepreneur_en_faillite

rubytuesday wrote:

I dont think its worth saving if you have debts to pay off sure its best to get rid of these first then start saving. What do others think?

ABSOLUTELY!

Most credit cards charge between 13 - 18%, and the best you could probably earn in interest would be 5% for instanat access.

Therefore saving whilst you have debts actually costs you money!

lindoz

Im only saving a small amount in case of emergencies! when it builds up I will use it to pay off a chunk off my highest interest card. How about buying some premium bonds would that be a good idea I know the minimum amount is 100?

Entrepreneur_en_faillite

lindoz wrote:

Im only saving a small amount in case of emergencies! when it builds up I will use it to pay off a chunk off my highest interest card. How about buying some premium bonds would that be a good idea I know the minimum amount is 100?

Well, my nan has over £50,000 in premium bonds and she averages a win of approximately £50 per year - not a particularly good rate of return, and the national lottery has even lower odds, I'm afraid that gambiling is not the answer.

Magentasue

I save while I am repaying debts and I see that it does seem silly. However that £50 a month pays for my car tax and MOT in the summer and Christmas six months later and it's there for emergencies like an unexpected car bill.

lindoz

my grandparents and parents have done quite well. I guess it's beginners luck! I should have learned my lesson by now this is the second time i've ran up debts. There is no easy way out, I'm gonna work hard and cut right back. and remember how much I hate myself for getting into the same situation, only worse. I'm grateful for all the helpful advice everone is willling to share. it's a comfort to know that you're not the only one, and a relief that there's folk out there who empathise and don't critisize.