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

youngandreckless

Hi S_a_r_a,

I understand your logic as I have applied much of the same reasoning to things I have bought etc in the past. The truth is though, you haven't really achieved your dream as the car isn't really yours - I'm assuming if you hit hard times and couldn't pay you could lose the car and effectively all the money you have paid so far anyway?
I have put myself on a self imposed ban on anything that is out of my league financially - clothes from designers shops, designer make up and toiletries etc - basically anything that doesn't match my salary. Suprisingly this is really working to my advantage. I am so desperate to go and have a shopping blow out on MAC, Benefit and all the other brands I can't afford, that I'm not spending a penny I don't have to until my o/draft (transferred to 0%) is gone. Then I can save a bit of cash and spend it on whatever I like. I suppose my point is, if you get rid of the car and put that money to your debts, you'll have real motivation to clear them - ie getting the car of your dreams and knowing that this time you've really earned it. If you're anything like me, you've probably got a fair idea of exactly what car you want next and there will always be another car to turn your head - next time you can have it and know its all yours!
The forum isn't here to judge, but we all want to show you that however mad it makes you, sometimes you just have to bite the bullet and make sacrifices to really lose the debt once and for all. I've had so many false starts, but at the end of the day, if you don't get on top of it debt has a nasty habit of just getting bigger....
You're obviously cutting back and its a good start to sort the credit cards out as the interest will keep you in debt for years potentially! I suppose it comes down to how quickly you want the debt gone and if you keep the car and can live with the fact you'll be in debt for longer, then its your decision and we'll respect it.
Good luck!
Y&R x

jellycat40

Here, here Y&R, if she wants to keep her car then who are we to tell her otherwise. Advice is only for those who want it and maybe at the end of the day it is more important to her to have a nice car than have the debts cleared sooner.

I can sympathise with you SARA and I wish you a merry christmas and a happy new year.

Louise :santa2:

---lee---

I must say, I agree with all the posts about the car. I love my Subaru but I decided a couple of months ago that it’s going in the new year, like 13000, I’m sick of filling it up with Optimax and getting around 230 miles per £45 fillup. I’m waiting until Feb so that I can get a decent price for it.

Other than my mortgage, I have no debts and I earn a good salary but I would not dream of spending 17K on a car!

PS. Forgot to say, I used to think this car was my one little luxury, but I've realised that paying of my mortgage years earlier will be a much better luxury and that's where the money I waste on my car will be going. Once I've cleared my mortgage, I'll rethink, but to be honest I no longer think it's important.

southernscouser

Hi S_a_r_a :hello:

Changing the subject of cars, can you give us some more details regarding your debts. Can you tell us, credit card companies, balances, APR's, credit limits, minimum payments and what your paying now. Also your Car finance details, time to run, APR etc?

MooseRich

Your car is a difficult thing. What car is it? And you say an economical 1.8? Not many 1.8's are good for economy. I 'downsized' my car from a 1.2 Clio to a 1.9TDi Skoda Fabia. It's quick enough and runs very cheaply. I've added some comforts too, I have parking sensors and cruise control. It's got aircon and CD player. I'm 23 as well and I'll bet you could get cheaper insurance with a sensible (yet nippy) car. Also, did you buy brand new? If so, I hope you realise it won't be worth all that much now. I will never buy a brand new car again.

No-one is saying don't have fun (I've been reading the boards for a few weeks but only just registered), but you can have your fun cheaper.

tomstickland

I agree, it's sarah's choice as to what she does, please don't think that board members are judging. The aim is to reduce the cost of the debt.

Anyways.. it wasn't til I put it in writing that I realised I was 29.5k in debt!!! It

I've just run a quick spreadsheet to show the rate of debt reduction.
If you start with £29500 and pay back £600 per month and the average interest rate is 10% pa then it will take you 62 months (5 years, 2 months) and you will pay back a total of £37,000.
If you start with £19,500 of debt then it will take you 37 weeks (3 years, 1 month) and you will pay back a total of £22,000. ie: you would pay back £15000 less, but you started with £10K less, so it will save you £5000 and get there 2 years ealier.

ianm41

Hi I'm just interested to know what car it is?..I mean 17K on a car when you only earn 16K a year..It must be some car for you to do that, is 17k the TOTAL cost of the car? I take it you got it on Finance, or was that the screen price?..if it's on finance other than some 0% scheme..which has inflated the screen price anyway..(you just can't win), then its going to cost you a dam sight more tham 17k just thought I'd mention that I know you obviously love cars but you need to get everything in perspective..you NEED to sort out your dept you DON'T need to drive around in a 17k car(which is worth nowhere near that now) sorry if this is not what you want to hear but at least you have had half a lightbulb moment I'm sure when you think more about it you will sort it out....Good Luck

Bermuda_John

I too can understand the idea of wanting a nice car. People look at you and think you are doing well for yourself, blokes give you the eye at the traffic lights etc etc. I too wanted a nice car ever since i was about 10, a ferrari was what i always wanted but i then decided that a decent make sports car would do me.

I left uni to a 11k job and i bought myself a brand new renault megane coupe cabriolet, not quite the sports car i would have liked but it was still something for me to be proud of at 21 years old and people would be impressed. It was fine while i was at home.

A year later i bought a house with my girlfriend, we got the maximum mortgage we could and it soon dawned on me that the money was slowly but surely decreasing. We hardly ever went out for meals or to the pub and we were still losing over 100 a month. The car with its high insurance and repayment was costing me, I soon realised that the car was the main problem.

I didnt have the bottle to admit that this car was causing us problems financially, and our relationship was being effected as a result.

I then split up with my girlfriend, was on the verge of selling the house and stood to get 30k from my part of the equity.

A few weeks later i was in a life threatening crash on a dual carriageway, someone crossed the lane and i thankfully managed to get out of a 70mph crash with my life, later to find i had displaced a vertebrae in my back ajd could have easily been paralysed. The flash car did save me as the airbags, ABS etc it ensured i was safe.

I had a dilemma, i was about to come into 30,000 and going to be living with my parents, the porshe or bmw was within reach.

Thankfully the crash brought my girlfriend and i back together and we moved back in to the house.

2 months later we decided to move abroad and here we are in Bermuda. I drive a 150cc moped and i love it. Its not until you dont have the financial burden of a car that you then realise how much it hurts you financially.

When i return to england in Jan 2007 my girlfrined and i will be buying 2 cars with a maximum value of 4k each even though we will have over 100k in the bank.

I will be 28 years old and could even go and buy my ferrari but i have grown up to realise that having a car to impress people and not for practical use is a waste of money.

Sell the car now and get a 2nd hand car, i'll be getting something like an astra or a peugeot 307 and i dont care what people think.

novice_money_saver_2

Hey Sara

You've prompted a lot of strong words with your stance on your car!

Everyone who has posted here I'm sure would like to see how you get on, whatever you ultimately do about your motor. I guess we're like parents who diapprove of a boyfriend - we wish you'd get rid, but that doesn't mean we don't care about you!

Great things can happen from small beginnings, so go for it and keep posting with your developments.

:xmassign:

skintchick

MooseRich wrote:

Your car is a difficult thing. What car is it? And you say an economical 1.8? Not many 1.8's are good for economy. I 'downsized' my car from a 1.2 Clio to a 1.9TDi Skoda Fabia. It's quick enough and runs very cheaply. I've added some comforts too, I have parking sensors and cruise control. It's got aircon and CD player. I'm 23 as well and I'll bet you could get cheaper insurance with a sensible (yet nippy) car. Also, did you buy brand new? If so, I hope you realise it won't be worth all that much now. I will never buy a brand new car again.

No-one is saying don't have fun (I've been reading the boards for a few weeks but only just registered), but you can have your fun cheaper.

Big up da Fabia!!!

I have the 1.4 petrol 16 valve 100bhp, with air con, heated electric wing mirrors, CD player, blah, blah. Love it . . . . . . .but look at my signature. STILL paying for it.

I'm 30, think I am The Stig, drive like a demon (look like an angel LOL can you tell I'm a bit merry?), insurance is around £300 (3 points, but who hasn'T?)

I'm saying no more re your car - you;ve heard it all. I will say, use your spare cash wisely. Think about the future, about buying a house (had mine since 1998 and love it) and, getting philosophical, about what endures after you die no-one will remember you for your car, honey.