Freaking out!

moomin82

Hello all,

I've just turned 27 and feel very determined to get rid of my debt asap! It's just dawned on me that I've had credit card debt since university, and having been made redundant last August I now have

£2,702.04 Credit Card debt
£1,140.80 Overdraft

Total: £3,842.84

I'm expecting my first pay cheque at the end of the month from my new job, it should be about £900. That will probably all go on my debt!

Things have been tough for the past few months as I have had a lot of trouble finding work again. I finally found a job that pays £7.50 an hour. or £14K a year. After tax is probably £10K or something rubbish like that.

I really want to clear my debt ASAP. Where should I start? I still live at home and want to move out too (I've made another post about that). I am single and lose sleep at night thinking when am I going to be able to rent, let alone buy a place! I've already packed in my gym membership and looking to cut other costs such as my lunches and phone bills etc.

I was also thinking of taking on another part time job or looking for a new job completely as I am used to earning over £25K but in this current climate I feel lucky to be earning anything!

Any advice would be much appreciated! x

Merlinexcalibur

I'm expecting my first pay cheque at the end of the month from my new job, it should be about £900. That will probably all go on my debt!

How are you going to survive, then? If you use all that on paying your debt?

I am single and lose sleep at night thinking when am

I going to be able to rent,

let alone buy a place!

Well, only you can answer that. If you were earning, as you say, over £25 k in a job that would surely have been enough to rent a place of your own? More than enough TBH.

After tax is probably £10K or something rubbish like that.

Okay, gonna say this to you but just be grateful you have managed to find another job. Be thankful, even. Because for many in the UK/the world etc that is something many would like to have. So, be thankful for what you have. Just you seem to be slightly 'blazee' about the whole work, debt and earning thing. Not criticizing you but ... Like I said, just be grateful you have something.

Oh, and just to add that I'd love to earn that. Because I am quite qualified, skilled in certain disciplines. But life just sometimes doesn't go that way for some. I could probably earn beyond that, but I make do with what I have. Like many do. Because it's all some people can do. But, then, having plenty of life experience is a far better qualification than any academic education can teach. Teaches you to value things more.

I am sure someone here will help you with the other things, however.

moomin82

Yes I have made some crappy decisions in the past. Maybe I should've moved when I was earning more, but back then, I decided to wait until my 6 month probation until I moved. I suspected they might not keep me on (it's a long story) and I was right. So I was left with no job.

Anyway I know there's no magic wand to erase my mess. But I did post here for advice not criticism. I could do that myself thank you very much.

cherry_blossom_2

i'm no expert at all but i just wanted to say good luck, if you keep chipping away at it it will start going down before you know it! is there any chance you could stay at home a bit longer just until you've paid it off as you might do it quicker then. it frustrates me to a lot of the time and i spent far too long not doing anything about it - just try and keep positive

sorry ive not been a fat lot of help but i didnt feel the other poster was very helpful and just wanted to say i'm sure loads of other people will be able to give you good advice and we'll all get there in the end - fingers crossed :-)

TurnaroundSue

Hi and welcome. Post your full SOA (www.makesenseofcards.com) and we will be able to see how we can reduce your monthly outgoings. It might also be worth looking at www.whatsthecost.com to make sure you are paying off the right debts in the right order.

Don't get disheartened, this is a brilliant site to visit for advice, support and help and there are many more people with a load of wealth and experience who will be able to help you. Well done for posting, and don't go away - it will truly help you.

moomin82

Thanks for the reply. Will post my SOA shortly. I'm very determined to turn it around now that I am earning. I want to clear as much as I possibly can every month. :j

Doomcow

Merlinexcalibur wrote: »

Well, only you can answer that. If you were earning, as you say, over £25 k in a job that would surely have been enough to rent a place of your own? More than enough TBH.

Okay, gonna say this to you but just be grateful you have managed to find another job. Be thankful, even. Because for many in the UK/the world etc that is something many would like to have. So, be thankful for what you have. Just you seem to be slightly 'blazee' about the whole work, debt and earning thing. Not criticizing you but ... Like I said, just be grateful you have something.

Oh, and just to add that I'd love to earn that. Because I am quite qualified, skilled in certain disciplines. But life just sometimes doesn't go that way for some. I could probably earn beyond that, but I make do with what I have. Like many do. Because it's all some people can do. But, then, having plenty of life experience is a far better qualification than any academic education can teach. Teaches you to value things more.

sorry but i totally agree. earning 10k after tax is better than earning nothing which is what a helluva lot of people are earning now (if the papers are to be believed).

when i got my flat with my OH, we were both earning about this and managed based out mortgage and everything on only have one wage, so at that, you should be able to afford something about £400 - £450 a month mortgage wise.

as for clearing your debts, relax. if you are staying at home, come to some arrangement with your parents and aim to pay off your entire debt within, say a 6month period - take sandwiches for work, use public transport or drive sensibly to cut fuel consumption.

cut your mobile phone bills - go to a PAYG possibly, limit yourself to a tenner a month. and do you really need to go out every weekend (if you do?)?

simple things make life a whole lot more frugal, but a whole lot more debt free.

cappuchinokid

Don't be disheartened. It can be difficult starting a new job knowing exactly how much you will be bringing in. We have self employment income as well which makes it a bit more tricky but the key is to know or be able to predict the incomings and outgoings each month. We have lots of spreadsheets so can predict as the bookings come in and we are able to work it out a few months in advance.

This site http://listentotaxman.com/ is a useful tool if you are employed.

As you have been out of work for some of the tax year you will probably get a tax rebate which is good. The downside is when starting a new job they may start you on emergency tax code which can take a few months to sort out, this is what normally happens to me. £14k a year translates to £955 a month take home on PAYE so check you have the right tax code on the first payslip and if you are on emergency tax contact payroll to get them to sort it out asap.

Things may be a bit tight for the next couple of months but it will get better.

LydiaJ

moomin82 wrote: »

...I've already packed in my gym membership and looking to cut other costs ... I feel lucky to be earning anything!

Merlin & Doomcow - what you both say is true, but I think it would be fairer if you gave the OP credit for these bits of his/her post. He/she is trying to move in the direction of sorting stuff out.

The fact is that anyone who gets a new job paying about half what their old job paid is going to find that the new salary feels rubbish. Adjusting to a pay cut is painful, wherever you start from or finish at, and even if your finishing point is more affluent than someone else's whole life.

moomin82 - being responsible with money will get easier as you get used to it, and a more intentional mindset about finances will soon become second nature. The people on here will help you to see where you can cut back on spending. Your plan to hang onto your current job while keeping an eye out for better paid possibilities is very sensible.

Also, don't beat yourself up for not having moved out of your parents' house while you were on probation at your old job. If you had, you'd now be stuck with much higher outgoings, and it would be harder to clear your debt. If they're happy to house you, then stay where you are while you get your finances sorted, and then you will have a much wider range of options open to you.

Good luck,
Lydia

jopwo_87

If i was you, I'd entirely clear my debt before moving out.
You are fortunate enough to be in a situation (based on what you've told us already) that your not paying much/anything to your parents for staying there so the longer you hold out and get throwing money at your debts, the quicker you can move out and the oh so sweeter it will feel.

moomin82

Thank you all for the advice. Much appreciated.

I pay £350 to my parents every month and will use the rest to blitz the debt as soon as possible. I will aim to clear it completely within 6 months.

It makes you sound a bore to decline social invitations, lunches, dinners etc but this has is the year to sort things out! Lots of home cooking and packed lunches planned, and entertaining at home lol!