Aiming to clear debt in 3 months

tommo85_2

First off, I know I don't have the same problems as many people on here, as my debt isn't that much, but I still want to clear it within 3 months and get back into the black, and I'm just after some advice.
I'm 20, still living at home and am lucky enough to not pay any keep (just yet). In my first couple of years of earning I went a bit overboard, so I want to sort it in as little time as possible.
I work on set contracts, which is annoying, as I can't really make any long term plans. My current job is set for 3 months. After that, chances are I'll find work but I can't presume that I will, so I'm aiming to make my bills as little as possible should I have to go on the dole or something.

Income-around £210/week-say £800/month

Outgoings:
Course Loan: £70/month
Credit Card: Currently at £645, about £25/month minimum
Catalogue: Stands at £180, no APR, £40/month
Laptop loan: £15.85/month
Contact Lenses: £15/month
Mobile: About £13/month

That's what I know comes out of my account at the beginning of the month, but then theres other things. I spend about £2 a day on travel and £3 on food. So theres another £25/week. (never noticed that).
I like a drink on a Friday and Saturday, but seeing as my local is £1 a pint I only ever get through about £25 on the weekend, which doesn't seem too bad. I don't usually bother with clubs/bars in town as it isn't really for me.

So thats about £380 total outgoings. I'm also overdrawn most of the time by about £600. This isn't too much of a problem but I'd prefer to be in the black.
I'm aiming to put at least £25 of my weekly wage into my credit card, and obviously not spend anything on it. I know that wont clear it within 3 months but it will at least get the monthly minimum down so it doesn't cripple me if I'm on the dole.
The £70 monthly loan can't really be helped. It has about another year so I'll have to cope with that.
The laptop was on a deal where if I paid for it within 9 months it'd cost about £500. Stupidly I didn't so now its going to cost about £700. £15 a month isn't too bad but I don't know if its worth adding to just yet.
Catalogue was £400 a few months back so I'm doing well with getting that down. I think once it gets down to about £100 I'll just pay it off, so that'll be gone at the end of the 3 months.
Mobile phone was a 'threaten to cancel' job so it isn't a bad deal. I don't go over the free text/calls limit and I renewed in August, so I'm happy with that.
I just realised (this morning) that I was paying over the odds for contact lenses and plan to cancel later today. Tesco do them for £16 every 3 months, so that will save me money. My question is though, are there any legal complications when it comes to buying them on the net? (ie. do you need to send in a copy of your prescription?)

Other than that, my monthly spend of £100 for misc use is probably ok, but any advice on how to get that down would be welcome. I walk home from work most days and try to walk in, but you know how it is in the morning.

Sorry for the long post, I just want to know what I need to tackle first, or whether its worth trying to pay off some of the loans etc. rather than keep them at the monthly minimum.

frosty

Hi tommo85,
if you could take a packed lunch to work that would save you £180.00 a month.
What about a travel card,buses and trains usually have them,even if it only saves you a few pounds it soon mounts up.
Mobile- switch to pay as you go.
Maybe you could stay in at weekends or just go out 1 night a week and just have a couple of beers.

Conor_3

Hi Tommo. Congrats on wanting to get it sorted before it's got mad and whilst you're still at home where, if push comes to shove, you can bang all of your income into paying it off.

If you stopped boozing, there's another £100 a month.

You also need to take a good long look at what the £100 for misc use is being used for, it may surprise you how much of it is spending you don't actually need to do.

If you can get £180 spare this month, pay off the catalogue as that's the highest payment. You can then use the extra £40 you now have to hammer off the credit card.

Apart from the excellent suggestions from Frosty, it looks like you're pretty much on the way.

As an aside, it may be worth opening an online savings account and trying to stick a little in there every month, even if it's only £25-£50. It'll help pay the bills when you're a bit short on work.

bank_of_slate

Hi tommo,
that's a long post!
I wonder if you are trying to justify your weekly spending to us or yourself?
I hope that you have cut up the credit card.
Can you buy a monthly travel card and budget for it?
Also make a graph of payments that you have to make to clear each debt, cross them off as you make them or list them on your signature, it's great to see payments being crossed off as they go down.
Keep posting too, you'll get lots of support from everyone on here!
...Linda xx

fairylights_2

Hello!

According to your list, your debt payments only come to £180 a month, which isn't too bad, considering how low your living costs are. Your outgoings are not too bad, although if it's only £1 a pint how much do you drink at the weekends?!?!?! (note to self, must get a babysitter and go out every once in a while!)

It should be easy for you to get back to debt-free ness, just it'll take some planning. What are the APRs on your debts? Be sure to pay off the highest one first, then move on to the next debt. Call up the people you have loans with and ask how much it will be to pay off in full - then give yourself a target to have that money saved to pay it off.

Whethere you really need £380 a month going out, I'm not sure. My maths says you have £420 spare, which gives you LOADS to snowball and clear those debts. Fine, keep your mobile since it's on a good deal, and your contact because you need them - just write down what you spend and then realise where your cash is going. Also, pay your debts off the minute the money's in the bank, then you don't get tempted to spend it on other things.

Just thoughts, not sure if that'll help?

tommo85_2

Thanks for the replies. To be honest half the reason I posted was just to see how much I get through each month. I've never really seen it written down. The credit card is with Capital One, and to be honest I'm not sure how much they're charging me. I originally only got it so I could book a hotel but you know how it is. I only really spent on it over Christmas.
Looking at it, I should have money to spend after each month but for some reason I don't. I suppose its little things like the odd DVD that add up.
I'm selling some gear on eBay that I will throw straight on the credit card. As soon as that is clear I'll look at the others. I'm not sure whether trying to pay off the laptop is worth it, as I wouldn't pay any extra if I kept to the usual £15 a month.
I'm ready to cancel my lenses, but I don't know how easy it will be to get new ones. I know I should have a packed lunch, but to be honest I never get round to it and nothing comes close to the usual temptations from working in the city centre.

annmatkat

i get my lenses from tesco without any problems. They need the details of your optician so they can check that you have had an eye test within the last 12 months and to confirm the prescription. That's all! I am really pleased with them.

Kevicho

First i would keep a diary of what you are spending because you dont seem too clear on where the money is going, even put down how much you withdraw from the bank before you get inebriated

Do you have excel?

If so it would be useful to put down EXACTLY what you spend each month down and compare against your earnings, that way you would have exact figures you could work with with regards what you can pay off

Also list excatly what you owe to people and find out the interest rates you are paying

If you find that these are over the top try a 0% balance transfer and transfer whatever is bloated one that card to reduce payments

Also instead of going out, why dont you get some cans in and stop in with some friends, you could take it in turns, theres not much more in a pub to be honest than in the house, plus it has benefits stopping in

*just a note of warning* i was pretty much were you are when i was your age, infact in a better position, however my debts spiralled (as below) so in a way its good you are thinking about this now and hopefully my sig will give you a bit of motivation

No1Alicat

Kevicho, there are lots of "to be honests" and "I never get around to its" in your posts!!! If you are as committed to sorting this out as you say you are, then you DO need to get around to it! 3 months of sarnies to work and nights in is nothing compared to the way some people on here need to live. (Not wishing to undermine your situation, but you kow what I mean) It's an easy slide further into debt and you are doing the right thing by tackling it now.
What you say you hope to achieve is perfectly manageable - just be a bit tougher with yourself about getting around to it ;-)
Alison