Newbee... and of course in debt!!!

jobbingmusician

If you have money left at the end of the month then I am happy to say that...

I WAS WRONG :):)

So now things are looking up - if you've been making repayments on your existing cards you are probably in a good position to apply for a 0% card and transfer your balances to that - then you'll actually start making inroads into the amount(s) you owe rather than spending loads paying off the interest!! :rudolf:

And people here will have loads more good ideas.... :xmassign:

Tim_L

It's wrong to suggest that a runabout wouldn't be reliable enough - my car, which cost about a third of yours has been running reliably for 8 years, and I do a lot of miles too. My insurance is about £250 a year, and I don't have any finance costs.

You're really deluding yourself, and this is the problem that's at the root of your debt. It's called special pleading: the idea that somehow although the rest of your spending has to follow particular rules, the one item that could turn your life round is somehow special and different because it's your pride and joy, because it's at the root of your social life (which in itself is an odd thing to say), because you do a lot of miles and
you can't do with a perfectly reliable replacement at lower cost... in fact none of these are true.

Actually your car is costing you about half of your annual income. You can't afford it - driving this car is putting you on a take home pay that makes it impossible to service your debt, and your 'lifestyle' is completely built on sand. The car is also depreciating like lightning - you lost about 4K the day you drove it out of the showroom. And if this is really the cornerstone of your life, then you are on a treadmill, because in a year or two you will need another one just the same.

Where actually what you're saying is that you view your car as being more important than anything else you might want to do with your life later - a house, family, retirement planning, whatever. Ten or fifteen years hence you will realise you are wrong at which point it is likely to be too late to do anything about it.

As I say, most of the rest of your spending is sensible. You claim to have had a lightbulb moment. The solution to your problems is blindingly obvious, but it's really up to you whether you choose to actually switch the lightbulb on and see the truth. If not, then you're wasting your time posting here, really.

K9cuddles

Thanks... well I paid an additional £300 this month £150 swallowed upwith bank charges (my own bloodly fault I hate A&L!!!) the other was the extra payment on my Barclay card, which would of been better on a higher APR credit card but I didn't know that at the time!

My Mint is 0% .. but I've bumped it up... I've just applied for HSBC for a bank transfer, but I've got alot of CC already, so won't be surpised if they politely say no, 10 days to find out, if that's the case I'll start shuffling, I'm quiet organised and just brought an 06 diary so no excuses to miss anything!

Willsnarf1983

if u were really here to get rid of ur debt u wud get rid of that car, then u wud have another £200 minimum to throw at ur debts.

U are only 23, unless u die early u have 50 years ish to get the cars of ur dreams but i don't think ur willing to listen so actually not much pt in me writing this!




Will

K9cuddles

Tim.. I'm not sure any under 25 year old could get insured on anything for £250!!!! I couldn't beat £800 on a 1.1 1999 reg and I got rid of that at 5 years old and within 2 months need new rad, clutch and cv joints and I looked after that car!! The car isn't the root of my social life but it plays abit part, I'm a car enthusiast - cars isn't just about driving, I've met loads of people and friends, the community do all kindas of stuff car and non-car related, obvisouly if I had never had my cars i would of never met those people!

I agree what your saying tho, as I've said before when you see it all in black and white it makes so much sense!!

But in "my" world I reckon I'll can keep the car (which won't be getting replaced for a while didnt' buy a 5 door for nothing!!!) and move out! What I pay in rent and car some people just pay in rent (in my area) so I see it I've got a car and a roof over my head for the same money. My retirement is sorted, but I work for a life assurance company so it would be!

But you've given me food for thought.. and that's what I wanted.

K9cuddles

Willsnarf1983 wrote:

if u were really here to get rid of ur debt u wud get rid of that car, then u wud have another £200 minimum to throw at ur debts.

U are only 23, unless u die early u have 50 years ish to get the cars of ur dreams but i don't think ur willing to listen so actually not much pt in me writing this!




Will

Will the car is catch 22...i'll work out in more debt if I sold it now then keep it, hence i'm saying it's a no go area!!! And then I have the additional price of getting another car etc.. etc.. so it's really not an option not just cause I like it and wanna be stubborn, but financially I'll be worse off!

I'm not at breaking point, I didn't realise you had to be to sign up, I just wanted some input, which some of you have given and I'm very thankful of that. Okay my plan won't pay the debt off as fast, but it will pay it off and let me live comfortable at the same time.

Tim_L

One other thing, which is related to your living with your parents. Your rent is very low, and your food bill (less than a tenner a week) bears no relation to the actual cost of eating. There's also no council tax in your sums.

Were you ever to move out, you would find rent doubling, food bills probably 2 or 3 times as much and something like £60-100 of council tax to find. Your parents are shielding you from financial reality by only charging nominal sums, and subsidising your lifestyle. Without their support, you would be absolutely up to your neck in trouble.

You are already only paying minimum amounts on your credit cards. Your effective income is about £6K a year, after the car costs and tax. You are paying more in bank charges and overdraft than you actually pay for food and rent combined. It is not a sustainable situation, and if you continue to demand a particular short term lifestyle, you may find this is at the cost of actually having a life.

Please don't take offence at the strength of these comments (and others in the thread). It's just that I think you may still be somewhat in denial about the situation you're in, and you need somehow to shake yourself out into some clear headed thinking: What are your goals in life? What happens if (through illness or something else) your parents couldn't support you any more? If you want to escape the situation of living at home, can you actually see a way to do it?

K9cuddles

Tim.. yes I don't pay any council tax and only gas/elec occasionally.. but I do buy all my own food so that wouldn't change. I totally agree with you I couldn't afford to move out, but I don't need to at the moment!! But hence why i'm trying to sort that out for when I have too!!!

I've only been paying minium on cards as I hadn't realised how much that was costing me in the long run, so that will be changing!! I'm not offended .. well only slightly.. you have given me sound advice, but there's some parts of my life that I can't change and I'm just trying to work round them for now!! So maybe it was only a power saver bulb that went off??!!!!

Willsnarf1983

S_a_r_a wrote:

Will the car is catch 22...i'll work out in more debt if I sold it now then keep it, hence i'm saying it's a no go area!!! And then I have the additional price of getting another car etc.. etc.. so it's really not an option not just cause I like it and wanna be stubborn, but financially I'll be worse off!

I'm not at breaking point, I didn't realise you had to be to sign up, I just wanted some input, which some of you have given and I'm very thankful of that. Okay my plan won't pay the debt off as fast, but it will pay it off and let me live comfortable at the same time.

You sell it now it will have depreciated alot less than in say a years time, and for now u'll have that extra to pay back asap, maynot be straight away but may meean that u can snowball earlier.

I didn't mean to put it quite so bluntly and yes its entirely down to ur choice but 17k seems to be quite an extravagance and one that ties u down for a while. It also seems to be nearly 1 years wages for u!

And if u want that debt thats good but if ur trying to get rid of that extra debt ontop then i would suggest maybe another job for a year? it may mean working alot harder for abit but it will clear the debt and may give u that extra bit of responsibility with money. (not saying ur irrispsonsible(sp) btw, but if i cud get another job (which my job won't allow) i wud and i know that working that bit harder wud definartly make me appreciated my money that little bit more)

good luck

Will

Willsnarf1983

i have to say i wish i cud put it as elequently as TIM_L

i also wish i could spell better! lol :snow_laug

Will