Hi - Am New & Nervous!

bumblebee_3

Hello there,

I have been looking at mse for the last few weeks and wanted to finally say hello.

I am 28 years old, and finally realised a few months ago that I could not keep spending the way I was and continue sleeping at nights.

Thought I would do as suggested and note down my incoming and outgoing and current action I am taking and see if anyone can suggest anyone else I am maybe not looking at?

My salary - £885.01 (net per month)

Total - £885.01

Monthly Outgoings:

Mortgage - £327.68
Gas & Electricity - 48.00
TV License - Paid annually
Phone, TV & Internet - £40
Food - 40
TV Licence - Paid until April 2006
Car Insurance - Paid annually
Council Tax - 69.00
Credit Card - £80
Loan - 123.01 (amount after cancelling ppi)
Dell - 24.34 (for college)
College - 31.25 (until May 2006)
Building & Contents Insurance - £25.81
Petrol - £30

Total Left - £86.92

Alliance & Leicester CC – Balance £3,500 (limit £3,300) APR 16.9%

Northern Rock Loan – Balance £10,000 APR 8.9% Length of term 120 months, 114 months to go

Overdraft - £250 (limit £250) APR not sure - sorry


In the last few months I have;

Started to look for another job to increase my incoming salary.
Started to sell items on ebay to make extra money.
Tried to change cc to 0% balance but have been refused.
Tried to change loan to smaller APR and 5 year term but have been refused.
Cancel unnecessary dd's such as contact lenses, dvd rental etc.
Reduced TV package to smallest package and have freeview box to use once June 2006 comes and I can cancel telewest

I wondered if anyone could suggest anything else I can do, the most frustrating thing is that I am trying to change to lower APR and getting knocked back as my credit rating is does not seem to be good. Is there a way I can rectify this?

I am trying to feel positive about all these changes as since September have been living within my means and not borrowed any more money.

Thanks in advance.

magentadreamer

Well done on cutting things. I'm assuming you've checked all your gas/elec, car insurance/house insurance to see they're the cheapest. Was wondering would it help you at all if you could pay your TV licence by quarterly DD? And I pay my car insurance monthly - it was the cheapest I could find and Virgin do not charge you extra for doing it monthly. It might make lump sum bills a bit more easier if it was a smaller amount. I know I used to hate June for the dreaded car tax and insurance - always ended up on my credit card.

bumblebee_3

Thanks so much for replying.

Will look into TV for quarterly DD.

Have got car tax and insurance this February/March which is quite timely so at least the savings will be paying something off. Will have a look at Virgin too for the insurance as it would be good to save that £70 for a change.

Home Insurance - ends in March and have got a cheaper quote from quote me happy but looking for a better one.

Gas/Electrity - changing back to Scottish Gas saving £8 a month. In effect in two months.

Feels really good to talk about things and know that I am on the right track!

homersimpson_3

first all of don't be nervous- everyone is in same boat and is helpful- and you've done a good job on statement of affairs (incomes and outgoings). i assume you live on your own
a) if so gas and electricity way too high- who are you with?
b)Phone, TV & Internet - £40- too high. will telewest convert to cheaper deal?
c) can you get rid of car
d) paying tv licence by direct debit could be cheaper
e) what mortgage rate are you paying- look for cheapest deal
f) stop applying for loans and credit cards for a short while- too many credit searches in such a short period are damaging credit rating - read martin's article. suggests you are desperate for money & so creditors are less likely to lend you money.
f) ask bank for apr on overdraft and target spare income against debts with highest apr. remember overdrafts are repayable on demand. you're likely to be paying a very high interest rate and if you target spare cash to overdraft you could clear this in 3 months. alot of banks and building societies monitor your account each month and what they are likely to offer you depends on the points you score e.g. because you're good at managing your money (account not always overdrawn etc) you have scored x points which means we're going to offer you a credit card at a good deal etc. makes sence?
g) once overdraft paid off target a&l debt and so on

bumblebee_3

Hey Homer,

Gas/Electricity - Currently switching to Scottish Gas for both saving £8 a month was the cheapest quote I could get - will look again tho.

Telewest - Am on the cheapest deals for telewest - when TV deal end in June want to change all to a cheaper provider - am looking at cheaper providers.

Mortgage - with Northern Rock at the moment, 5.89 fixed rate which is ending April this year looking at cheaper deals but have also ask NR for a fixed rate quote for a number of years waiting to hear back.

OV APR - will find out the APR and start paying off as suggested and will stop applying for loans/credit cards in vain, it is demoralising as well.

Thanks so much for advice, sometimes it is hard to see the wood from the trees.

homersimpson_3

when telewest ends in june 2006 target what you were paying towards the debt. same goes with the amounts you will stop paying for college in may 2005. i assume you're claiming single person's discount for council tax, 25% off. what are you paying for water rates? what is dell for? will this also stop when college finishes - if so same story - target it towards the debt. your debts will be cleared in no time. if you start chipping away at the capital (amount you owe) you pay less interest and so money you were paying in interest goes towards the capital which reduces debt. the trick is to play the banks at their own game- i.e once your finances are under control and your debts are reduced they think yes she's good at managing money so they're prepared to offer you credit cards, interest free overdrafts etc. at that point you can then take advantage of it. you start stoozing - take the credit card money and put into an account when you earn interest on the bank's money, pay off minimum each month and then either transfer debt to another 0% deal or pay off debt. remember don't spend the money - it's not yours, it belongs to credit card company. you're just using it to gain the interest for yourself. likewise if you offered 0% overdraft for x months take the money put it into a high interest account and take the interest. if the bank demand it back (which they can) take it out of account and pay it off.

jcr16

do u have a spare room u could rent out ?

if your at college i'm sure there will be someone looking for accodation.

second job seems a wise move if you can get one that fits in with job and college.

good luck your doing really well all ready.

bumblebee_3

Have a one bedroom cottage so am afraid renting is out and have 25% discount on council tax.

Dell is for a laptop for college that I could not do course without, however year and half away from getting my degree (using Individual learning Account towards fees) so that will hopefully contribute towards more income. (will check out APR on laptop)

Will start paying off towards largest APR and start paying off the debt, feeling so much more positive tonight now - thanks everyone for all your advice!

Thefunkygibbons

You are doing well

Looks like trying for that better job is going to be the way to get out of this, rather than much more cutting back

jellycat40

Do you know what I think that you are doing really well. You are aware of your situation and seem to be trying all the right things. You have not borrowed anymore money which is excellant and when you have completed your college course i am assuming you will be able to command more earnings. Taking a longer term view if you don't borrow any more cash and you continue to get the best deals you can then your future is really debt free.

Why don't you try the Money Saving Old Style forums for tips on day to day saving. I have to say that they have opened my eyes to a new way of living. Some of the opinions on there are a bit extreme for my liking but it is there for advice for those who want it. I try stuff but if I can't keep up with it or if it is too intrusive for my lifestyle then I don't persist. However lots of people on the site have to manage on very low income so they do have some brill ideas. The energy saving ones are fab, and so are the cooking and shopping ones.

Good Luck
Louise

bumblebee_3

Thanks for the support - really appreciate it!

Have felt so much better since I posted last night, will check out that old style money savings board, Louise thanks for the tip!