Debt free....but now racked up a new £8K debt.

ms_london

ebonylight wrote: »

So. I was really good. I did everything by the book. I paid off my loan. I paid off my credit card. I even saved enough money to buy my car outright.

Then I split with my boyfriend, moved out of our house, lost my job (which lead to three months of unemployment - hence the major debt) and had a car crash all in the same month. (no sympathy please!! read on people!)

I have racked up £8,000 new debt and have no savings left, so I need help and encouragement to get me paying off the debt and starting to get back on top.

Hey.

Just thought I would say hi, as your post struck a chord with me.

Well done for returning to MSE. And glad that you are feeling happier and more positive!

I was in debt of £19,000 and managed to become debt free in 2005, then I saved my butt off and saved £10,000 and went travelling for 2 years. I got back in Sep and although I came back with money, unfortunately, struggled to find a job, and only found one in December. THEN i had to fork out a months deposit, rent in advance for a new house in London (cheaper than commuting), then had to wait a month for payday, coupled with Christmas, and a trip away over NYE (which was booked almost a year ago), I am also back in debt. And it SUCKS. Now the 'redundancy' word has been mentioned at work and quite frankly I wish I'd never come back. Anyway thats my story...

You are right, living in London IS expensive, although there are also lots of cheap & free things to do - Time Out - is great for stuff like that. But also a lot of temptation on the doorstep.

Are your debts on reasonable APR's or scattered all over the place? Are you hoping to clear it as soon as possible, or just take your time?

Any motivation you find, please pass my way. I feel disapointed and once again in this black hole - it goes to show that you cant control what life has to throw at you and these things happen. A plus that I only have myself to support and no family to house or feed, I couldnt even begin to manage the stress that would bring and really sympathise with all the families out there struggling at this time of 'recession'.

A plus for me is that my debt is on 0% at the moment, but I cant help wanting to clear it as soon as possible, but will have to accept it may have to be slow & steady this time, especially with the uncertainty of my job.

Anywhoo - look forward to following your story, sorry to go on about ME!

xx

Forris

Hi, just a few thoughts.

Electric & gas seem high for 1 person. Is this on key meter? If so, can it be changed?

You have nothing listed for telephone/internet - is this correct? Your mobile is high so I assume you use this for all calls instead os a home phone? As already suggested, its worth giving your provider a call to try to reduce this.

Clothes and Groceries are the areas where you should be able to make the biggest savings, as they both seem inordinately high. Do you have a lot of takeaways and ready meals. A quick look at the 'Old Style' forum will give you loads of ideas.

Good luck!

ebonylight

unixgirluk wrote: »

Hope you don't think my comments cheeky. I lived in London for a few years so I know how you feel.

Not at all, thanks for your suggestions!! I knew for a while I needed to start "being good" but my biggest problem is I have expensive taste and as my mum puts it, I like "nice things"...even when I can't afford to buy them!

ebonylight

Forris wrote: »

Hi, just a few thoughts.

Electric & gas seem high for 1 person. Is this on key meter? If so, can it be changed?

You have nothing listed for telephone/internet - is this correct? Your mobile is high so I assume you use this for all calls instead os a home phone? As already suggested, its worth giving your provider a call to try to reduce this.

Clothes and Groceries are the areas where you should be able to make the biggest savings, as they both seem inordinately high. Do you have a lot of takeaways and ready meals. A quick look at the 'Old Style' forum will give you loads of ideas.

Good luck!

the bills were an estimate as when I first moved in my housemate was dealingwith them and just added up the total of what I owed. Plus I was home all day for three months with the heating constantly on which didn't help, I'll admit. (I wore a really big fleece but the lounge was still freezing as it is a very old building!!)

My internet, luckily, is free as i got a really good Orange contract a couple of years ago which included free home broadband which I since converted into a dongle.

clothes would seem like the best cutback but as mentioned above, I am used to spending a lot of money on fashion and I know I'm a spoilt little madam but it's my weakest area.

I have now left my debit and credit cards at home and only draw out £10 a day to use - out of which I am buying odd bits of groceries as and when I need them as i was finding, doing a monthly shop, I was wasting a lot of food as it went off too fast. Buying bits and bobs is actually better for me.

I will take the Time Out advice (thanks to whoever said that, can't remember right now) as really London is new to me and I don't know where to go or what to do - especially on a budget!!

Thanks everyone!

ebonylight

ms_london wrote: »

Hey.

Just thought I would say hi, as your post struck a chord with me.

Well done for returning to MSE. And glad that you are feeling happier and more positive!

You are right, living in London IS expensive, although there are also lots of cheap & free things to do - Time Out - is great for stuff like that. But also a lot of temptation on the doorstep.

Are your debts on reasonable APR's or scattered all over the place? Are you hoping to clear it as soon as possible, or just take your time?

Hi thanks for your story - you're right quite similar to mine (although I never managed to go travelling!!)

my debts are spread about but I don't see the point in consoldating them as they are in places I want to keep open as options. I know that sounds a bit weird but before i went into the red, the black options were the best and I want to get back to that.

This is also probably a bit wierd - and I know I'll get shouted at - but I see interest payments as a sort of punishment for being in debt and don't really mind paying them (although I did change credit card as it was too high a while ago)

And thanks for your time out suggestion - as mentioned above.