Severe Financial Crisis

team_sainsburys

Hello,

I hope this is the right place for a little financial advice, ok, I have two current accounts, a First Direct one with £500 overdraft, this has just become my main account that I hold, all my DD are paid out and my wage goes into this account.

I have a HSBC one that i am closing asap, however this has a £100 overdraft (I am £-190 on this account). Therefore once i get paid I need to pay off this balance (plus the charge of £25)..

I am currently O/D on the FD account by £-374, however I have paid off £150 of the Holland football tour that I am going on in April so the bulk of that has been paid off. I have outgoings of £90 a month on mobile and broadband plus a minimum payment for my laptop of £33.

I work at Sainsburys whilst studying at school, in a good month with lots of overtime I will earn around £400 - £550.

Additionally, I have the following big payments to pay:

£120 for Holland tour (Parents paying £80 of it) by Feb
£330 for Magaluf (By April) next year maybe earlier
£835 for Laptop (To be paid by July for Interest free year

++ I need around £130 for Holland and spending money, and christ knows how much for Magaluf,

I have a savings account with First Direct where £25 a month goes, I intend this to be for my Holland spending money because by April I should have around £150 in there. Also I have £75 in a High Interest Savings account, I intend to withdraw that giving notice.

I have £50 to come through sales of a phone and a dvd.

So advice, should I get another job? I am still at 6th form just finishing my A levels, (i'm 19) and it's not that im in debt that much really, its more the fact that Ive still got loads of things to pay off.

Any advice at all, would be greatly appreciated..

Reaper

A couple of things strike me. The first is going into unathorised overdraft. Don't do it, particularly with banks like First Direct - they are great for people with positive balances but never exceed your overdraft limit. You say you are saving £25pm, but what is the point when you have to pay a £25 unautorised overdraft fee plus interest?! And by having 2 bank accounts in overdraft you are getting stung twice.

Any spare money you have should pay off debts first, then go into savings second.

If you need to borrow money then do so in a planned way. Decide how much you need, how you will pay it back, then look for articles on the cheapest way of doing it (see the main site for the cheapest way to borrow).

If you are not saving enough for your upcoming expenses then you need to look where you can reduce other spending. £90 for mobile & broadband sounds a bit high. Perhaps you could search around for cheaper deals.

You could go for a second job but I don't know that you could realisticly fit it in as long as you are still at school.

The good news is your debts are still small and you are thinking ahead. I'm very debt averse - I hate paying out interest to anybody so I think it is great you are planning it now.

You might like to ask on the Debts and Loans board for more advice.

EDIT: When I said your debts were small I hadn't actually added them all up and compared it to your income. I have now and they are not small after all. As you are earning you may be able to get a credit card giving 0% interest and balance transfer the money to your bank account. See this article. However that is just a short term measure. The main thing you need to do is make sure your spending is less than your income.

team_sainsburys

Hello,

Cheers for the reply, just a couple of points,

I pay £25 for bband and £30 with orange for phone, sorry it that wasnt made clear.

The FD account has a £500 o/draft so thats currently ok, its the HSBC account that is £200 o/d (with an overdraft of £100) so thats the one i need to clear.

Thanks very much for replying and thanks for the link too

deemy2004

Hello,

Additionally, I have the following big payments to pay:

£120 for Holland tour (Parents paying £80 of it) by Feb
£330 for Magaluf (By April) next year maybe earlier
£835 for Laptop (To be paid by July for Interest free year

++ I need around £130 for Holland and spending money, and christ knows how much for Magaluf,
Any advice at all, would be greatly appreciated..

You work for sainsburies and youve not applied for their 0% for 12 months spending credit card ?

That should do nicely for your due expenditures ;D

AndyR_3

When I used to work for Sainsburys there was always loads of overtime available in December - could you do some extra hours over Christmas to earn a bit more money?

I don't know if things are still the same, but I always worked a late shift (my store opened til midnight during December), because there was a premium paid for working after 10pm. There was also a premium for working Sundays and a small premium for working Saturdays. Try to get shifts that are going to attract premium payments, if such shifts still exist.

team_sainsburys

Indeed,

1) wasnt aware of the credit card, Im loathe to get one really, but I might have to have a look at that one.

2) Indeed, rather than moping about the lack of money i have actually being pro active and dealt with the situation

Week 1 (this week) 37.5 hours
Week 2 29.5
Week 3(Xmas week) Nights
Week 4 (after xmas) 33 hrs

Plus i did 9/5 hrs yest and doin 7 next sunday, that should set me up nicely for the new year,

yes i am still at school so the bulk of my hours are being done after school, hard times, but i need to sort this situation.

deemy2004

Sainsburies CC also gives a small cashback

westernpromise

2) Indeed, rather than moping about the lack of money i have actually being pro active and dealt with the situation

Check back on the Loans and Debts boards - there are some more replies to your message over there.

jonesMUFCforever

I think people on here have been quite lenient with you. To me you sound a spoiled brat who wants everything today and does not want to wait to save for it. Banks will love you as they will make a fortune out of you in years to come.
(Before you get on your high horse I have been through this with my stepdaughter who was spending more than she earned per month on mobile phone calls!)
Do you really have to go Holland or Magaluf??If you have no money don't go!Simple way of saving money you don't have. You state that you are in school so concentrate on your studies first and foremost because you will have plenty of time for living after school / Uni. You could head for a burnout , failing your exams and unable to work due to stress/fatigue - then what will you do?
(Ok daft question get mum and dad to bail you out I suppose. )
Eric

team_sainsburys

In a word yes I do, study on school without any element of enjoyment ?

Work hard - play harder, it is possible to get on with life by combining the three, and school is not that big a thing, just a top up course to get me BBC to get me into a good Uni.

Spoilt Brat ? I don't see that personally, I am completely self sufficient (take away house, etc) and I pay for my own laptop debt, broadband, mobile bill, going out etc etc. Simple fact is, I am working hard so i can go on holiday and enjoy myself with my mates.

My parents wouldnt be able to afford to bail me out to be quite honest

Walletwatch

Hey,

"Spoilt brat" might sound harsh, but considering that inspite of being indebted to a decent amount (am not talking about the amount itself, which may be miniscule, am talking abt the debt as a proportion of your inflows), you are actually not even giving serious thought to forgoing some of these things like trips to Holland, etc. (given your state, these do seem to be luxuries that you could do without, and improve your finances)

Someone has asked you to try the Sainsbury credit card, but given that self-denial is not an option you seem to consider, you might just be the target market these banks are looking for. Do watch out on that front...