Wafffle.

inkedelephant

Heya! Hows it going! I am totally new to this as I have been in major denial about my financial situation. I told a friend about and she said I was worrying about nothing, but I feel I want to get things undercontrol.

Basically, for the last three years I have been doing a PhD, which I get funded for, but I am not out of time so I don't get funded. So for the last three months I've been living off my overdraft. I have an overdraft of £1800 in one account and another overdraft of 1200 in another (which isn't touched), now to make some money to live I am running a project and should start to get paid again soon. My worry is, whilst I've been short of cash I am very good at living like this and extremely conscientious, however once I get paid, I'll start spending again. I cannot afford to do that and want to start to pay off my overdraft and not be in debt anymore. I am cautious about getting a personal loan as I am working freelance and I don't know how long after march I'll be getting paid. I know this place is really supportive but I just need to not be so careless. My friends are all in high payed jobs and I find it difficult to keep up .
I am paying interest on the overdrafts. I just don;t know. I know I am worrying about nothing but I don't want to be in teh position where I cannot pay my rent. I don't know why I'm writing this and I don't know the point, I guess its just a point of writing it down and having others read it.
Basically, i'll be getting paid into my account with 1800 overdraft and my pay will cover some of it but if i keep spending down low then from december I should be able to start putting in money to start paying off the 1200 one. Does this sound realistic? I don't know anything about this stuff. I just need to be organised. I can defoo say the last couple months I've learnt the valye of money but I always have these dips. Every one and half year, it takes for me to live on nothign to make me realise the value of money again, but I can;t do this anymore. I am 25, I want a property in teh future.
Am I a drama queen?

Ames

Hi and welcome to the boards. I'm a bit confused, you said you get funding then that you don't get funding?

Getting a loan's really not a good idea, I got one when my only income was benefits and student loan and it was the worst thing I ever did.

How about putting up your statement of affairs (SOA) and then people can help and advise better. There's a link here - http://www.makesenseofcards.com/soacalc.html .

I'm sure someone better than me will be along soon.

savingholmes

The good news is that £3K of debt should be achievable to pay off. It would help to see your SOA with all your income, outgoings, assets and liabilities (debts) and then we can see where you may be able to cut back to make more money available for debt repayment. Where it is unrealistic we can also comment on that...

I did that when I joined and saved loads....

HTH

inkedelephant

Ah sorry, yeh I meant that I got funded for three years 12k a year (saved NOTHING - the stupid bint that I am!) but not I've gone over my time (which is normal), I don't really get paid and have to do extra academic work. I'll fill out a statement of affairs in a second. Thanks in advance. I'll fill out the statement of affairs, to the way I have been living since I became poor. Shall I do one for how I lived as if I had more money than the queen?

Ames

There's not really much point in doing one how you used to be, we could all do that but it'd be wishful thinking as much as anything. Just how it is now would be great.

inkedelephant

What bit of the SOA do I put my overdrafts? I know NOTHING about finance. I just work, spend, work, spend then ooooops nothing there.

inkedelephant

Heya here is my SOA. I am really sorry if I am really bad, I just need to know
the best way to sort out my overdraft. This place looks very supportive.

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1300
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1300

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 270
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 15
Gas..................................... 20
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 0
Mobile phone............................ 0
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 6
Groceries etc. ......................... 64
Clothing................................ 15
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 40
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 550

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 100
Total Assets............................ 100

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Overdraft 1 ...................1800......0.........0
Overdraft 2....................1200......0.........0
Total unsecured debts..........3000......0.........-

Monthly Budget Summary
Total monthly income.................... 1,300
Expenses (including secured debts)....... 550
Available for debt repayments........... 750
Monthly UNsecured debt repayments....... 0
Surplus(deficit if negative)............ 750

Personal Balance Sheet Summary
Total assets (things you own)........... 100
Total Secured debt...................... -0
Total Unsecured debt.................... -3,000
Net Assets.............................. -2,900

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

======== Enter any other useful information below ========

I have a student loan of 9k which I am not thinking about until I have a 'proper' job.

inkedelephant

Many thanks for your support in advance :-)

Pippilongstocking

Hiya
bit confused - it doesnt take much - is the income you have posted your income now from project work? the 1300?

And have your re-registered as writing up - hence the no council tax or have you forgotten to put it in.

Am assuming phd is finished - but you are on a 'grace' period when you can re-register as a student til you finish write up but are unfunded?

If I am getting this right, you live in the 1800 overdraft - and the 1200 one when you say 'it isnt touched' - does that mean its in debt to 1200 and you dont pay anything to it yet?

Sometimes when you are in the woods you can't see the trees, sorry I knwo you understand but can you explain if thats ok?

Your expenses look pretty frugal at the mo - and i can see where you are at re being good when money is tight and then going bonkers with it when you have it. Looks from what you have posted you are in a good place to pay them off quite quickly.

Will look again - when I have my thinking cap on.

inkedelephant

Heya,
Sorry - because I NEVER talk about my finances, its all so difficult to explain.

* Yes the £1300 is what I am getting for the project work until march.
* I am on nominal, which means I am registered as a student and don't need to pay council tax. Phew!
*PhD is taking ages - experiments are over, its just writing to do and if unfunded.
*Yes I live in the 1800 overdraft
*1200 overdraft, basically nothing goes in and nothing goes out. Small payments go in when the bank tells me I need to pay something.

I know that when I get paid, I will just not care and forget that I am in debt. Even though I've done a budget and other things to make sure things are in place. My issue is, is that I know I can pay this off, but because I know, I am not worried. BUT i should be. When I am with other people I forget and just pay whatever and don't want people to see me as boring or poor and I just want to have fun the way that they are... but going out for a meal £25 every friday is going to do nothing for my finances. I actually have a better state of mind when I can't spend as I work more on my PhD. I am waffling now and for that I appologise.

Thanks in advance :-)

Pippilongstocking

Hey there dont worry - you make sense to me!!! (just in first year of phd, panicing about 1st year report after this post I need to sleep).......does it ever get better!!

OK - well having cruised the boards for a bit, I have to admit I havent retained much.......well some of its gone in.

If you want to repay your overdraft why not set up a dd to the 1200 other one, and treat it like an expense whilst you are being paid if you have 5 months of guaranteed work then if you put in 240 a month that will be gone at the end of your contract - if its a dd just after you get your pay, its gone and you can't do anything about it - just tell yourself you are getting less than you are!!!

Some folks here suggest that if you ask your bank (and are brave) they will reduce your od by an amount each month - so as you pay it - it shrinks and the temptation to use it is gone.

However - personally like you say contract work can be a bit tempremental. So what if you paid it off, but kept it until the 5 month contract is done, and if you need it as an emergency then its there, til the next contract comes when you can reduce it and get rid if you want to. In this day in age - to have a security blanket of an overdraft - even if you dont use it - might be something to ponder. Contract work sucks!!!

Read someone on here putting the card to do with an overdraft in the freezer in a tub of water - so its there, but technically not instantly accessible cos if you unfreeze the card you either really need it or the notion is gone by the time its thawed.

As to the one you are living in, same as above you can reduce it each month if you feel strong - I havent felt that strong and have opened an internet savings account and I dump my extra money in there when I have anything that I might splurge on, it goes into my saver - the theory is that there IS enough there now to pay off my overdraft - but its not done that yet - am a bit cautious of losing the facility (as its free - is yours?) so my OD still looks bad, and my spare money is adding up so I can pay it if I really need to. When I do bits of contract work I take it out the minute it goes into my account and dump it in my savings. oddly this dupes my brain, as I see the balance of my OD being its usual almost at the limit self, but my savings account now is about the same as my limit. When I am a bit more sorted I guess I will take the plunge and lose one of my two OD's.

Sounds like you give yourself a hard time - x if you hang around here for long, thinking about spending 25 every friday on a meal will make your hair stand on end!! Its nice as a treat, but I know what you mean, it soon adds up.

As long as you avoid charges, by keeping on top of things I think that you could easily adopt a method of paying them both off - or putting enough aside in 5 months to clear them, if you get a more sorted postition when you have finished writing up.

But then again, I do waffle on.................xx