Manageable amount of debt

RAS

Hi

On the basis of this, I assume that your friend is paying the other half of the £5K debt each month?

You do realise that if he defaults, it is your credit record that gets trashed?

Also what is happening about the other money he owes you?

Think it might good idea to let him know now that the financila situation is worrying you. Then you can start pushing him to pay up soon.

You are driving but it appears that you own this car outright?

And Gemmzie is right - hit credit card2 - hard.

tyllwyd

It looks like things are OK - but you have got debts not savings, so that 'spare' £400 pounds is going somewhere each month, so a spending diary is definitely a good idea. Make sure you have done an actual budget not an 'ideal' budget to start with - if you are spending more than £200 a month on entertainment, say, you need to recognise that before you can cut it down to an appropriate level.

But it's good - you've woken up to the fact that your debts are creeping up at an early point, so it shouldn't be too painful getting things back on track.

krisppp

I feel like you guys have given me such good advice already... I'm really keen to learn more about this and to try to contribute in the future!

My friend's paying the other half of the £5000 loan.

I know that if my mate defaults it's my credit record - and that's the reason why I've refused to get into any more debt with him (like having an overdraft on our joint account for the flat - he's also my flatmate). Trouble is he's quite hard up at the moment and I guess I'm having trouble talking to him about it - that's why I feel like a lemon.

Maybe that was a bit of an 'ideal' budget - though I did try to overestimate When I get back from my holiday next month, I'll try to record everything I spend.

I think I'm spending quite a bit on ready meals/takeaway/eating out because i can't find time to cook properly - so maybe I should try to cut that down.

I never really realised how hard it would be to keep myself on track without someone looking over me!

TurnaroundSue

You could try showing your mate this site and maybe he might be grateful in trying to get help for how he can control his spending/budget.

I think you could more than half your groceries budget and in the meantime you really need to cut back on your entertainment budget. If you stay in and really watch every penny you spend you could clear your cc debts in a few months and then throw everything at the loan - also if your mate does come on board with his spending then maybe this could be repaid sooner than you think.

You are in the right place and there are lots of excellent peeps on here who can help and support you. The good thing is that you are young, with an excellent salary and realising the importance of budgeting/spending. I wish I had done this when I was 21:D

Good luck and well done for posting and asking for advice:T

PS When is your car insurance due for renewal? Remember to use the cashback sites like quidco etc when renewing or changing any of your utilities etc

fudgecat

Hi Krisppp,
Looking at you SOA it might be more realistic to put £5000.00 of unsecured debt on your list, as this is the realistic legal state of the debt you have incurred on behalf of you and your friend. Effectively the amount your friend repays should be considered as extra income (but not for tax purposes) and therefore subject to being stopped if difficulties arise for him.
Do you have an agreement drawn up netween you? I am sure you trust your friend, but legal agreements are for unforseen evenualities.
You do not have any savings, and ideally you should have enough money saved to cover all normal outgoing for at least three months.
Your level of debt is not currently excessive, but I think you should look carefully at how much you have taken on and the timescale of the debts. If much of it has been taken on recently it could signal a red warning light. The fact that you are facing up to this, means that with purposeful action to save and reduce outgoings (phone and groceries are obvious areas) you should be back in the amber/green before too long. Good luck with it.

urg123

HI Krispp

I really didn't want to read and run.

I just wanted to let you know about my experiences. For me it was University - I had a great time and was like you an impulse buyer. My best friend and I did loan each other money and it worked out. We are still best friends.

I want to tell you was that I think it is great that you have noticed that you are not comfortable about the debt that you are in now! I was always easily impressed that I could get so much credit and used it! STUPID!!!! I am now dealing with my debt and can't wait to only have my mortgage as my only debt - until then I have to put over £1000 per month to reduce my debt. Just think what I could have done with all that money - I am having to make do.

Here are a few suggestions to help you on your way - start off with realistic targets - don't go to extremes (i.e. don't think that you can manage on a £50 food budget!) you'll lose faith and motivation really quickly.

• Join the No Spend Day and Grocery Challenges. Start off with reducing your food budget by £50.
• Pack lunches for work
• Stop those coffees, mags, snacks!
• What can you sell on ebay and amazon?
• Have a look at the Old-Style board on this site - it is brilliant.
• Plan your meals for the next week - maybe do this with your flatmate as it will help him too. Buy the ingredients you need and enjoy nights in. cook for each other. If you are organised you both can arrange to cook every other night and have one night off when you can get a take-away as a treat.
• Cut your ents budget - have nights in with friends and take turns to entertain.

Good luck

URG x

loopymadlover

hi there good luck with getting debt free !

my food budget is £150 for me and my man we eat well - i cook mostly from scratch but use lots of tinned veg etc !:j i only shop online so i cant overspend as last time i overspent by £40 hope it all works out for you

krisppp

Hey guys,

Just wanted to say another big thank youfor all your advice so far.

I made my first packed lunch today, and am defintely going to try to reduce my grocery bill. I've even signed up for some mystery shopper things - hopefully I'll be able to keep it up!

I'm also going to try walking to work... I only live 2 miles away - so it's a bit of a wast using the car so much!

Thank you!!!

C

Verbatim

You've really bitten the bullet haven't you? Well done on what you've achieved so far.

If you have a joint account with your flat mate his credit rating will affect yours and vice-versa, I believe. I think you'll be seen as financially associated if that's the correct expression. It can be extremely hard to get out of joint accounts / close them if one party doesn't want to. They can be a big problem. If Person A pays in and person B draws out and both A & B are jointly and severally liable but A has a job and money and B doesn't the bank will go after A for the entire amount owed because it'll be easier and quicker to get their money back.

Hope it all works out for you.