Getting out of my ...teeny weeny bit of debt

LondonGirl08

Heya,

so I've racked up a lot of debt in the last few years and am now on my way to sorting it out bit by bit.

The trouble is I've been unemployed right up until recently (gotta love the recession!) and have just started a new job. I'm earning good money and as I've had to move back home I'm saving a lot of money on bills, travel (£50 for a month's bus pass compared to £36 a week in London!), food etc.

So here's my SOA. The thing is even though it looks really positive in regards to my incomings > outgoings I'm still finding it hard to restrain myself.

Also I want to start learning to drive soon and get a clapped out car. I'm 23 and my dad would go on the insurance and shopping around I can get a quote for around £500 which my dad would pay half for but I really want to get settled and a bit more out of debt before I go for it.

Also, if anybody knows how to save cash when learning to drive I'd LOVE to know.

Also I've started a money book. Writing down all my expenses for the month, ticking them off and adding in the back everything I buy in a day and adding it up. I would like to pay off more of my debt but my family is saying that I should make sure I get settled in my job first before I start handing over large amounts of money.

Any advice please

Summary of Monthly Income, expense and surplus
Total monthly income: £ 1,088

Expenses (incl. HP & secured debts): £481

Available for debt repayments: £607.13

Unsecured debt repayments: £250

Surplus (shortfall if negative) £357.13

Personal Balance Sheet Summary
Assets: £20
Secured & HP Debt £

Unsecured Debt -£7800

Net Assets -£7,780

RAS

LondonGirl08 wrote: »

Also I want to start learning to drive soon and get a clapped out car. I'm 23 and my dad would go on the insurance and shopping around I can get a quote for around £500 which my dad would pay half for but I really want to get settled and a bit more out of debt before I go for it.

Be very careful with this as if you are the main driver and your dad is on the insurance, the insurance is invalid and they will not pay out. They are getting sharper on this.

LondonGirl08

RAS wrote: »

Be very careful with this as if you are the main driver and your dad is on the insurance, the insurance is invalid and they will not pay out. They are getting sharper on this.

Well that's the thing. My dad NEEDS a car at the moment. He was looking into getting a nice one but he keeps umming and ahhing. Whilst I'm learning he would be the main driver and would take me out as and when he could. He however would use the car mostly for shopping, trips etc. until I actually pass when I'd swap over to being the main driver. I'd have the car in his name and then he'd sell/give it to me once I pass. So not even being sneaky really.

LondonGirl08

Also... just to note... my new job is working in the classifieds department of a very well respected (and somehow almost completely unaffected) local newspaper. Although I've not started selling yet (though I've got tonnes of experience so should be easy-ish enough) I'll be receiving commission and possibly bonuses from this.

Would it be a good idea to put these towards my debt or stick them into a high interest account? I know that most people would advice paying off the debt as it makes savings seem a bit silly, I like the thought of working with what I have as a basic pay and being able to treat myself 6 months or so down the line... might even pay for that banger?

bargainbetty

Look at the interest rates on your debts. Some credit cards are as high as 20.9% or more. Unless you can get an account with that interest rate, you will be paying out more interest than you save.

At worst, how about splitting it - half the commission/bonus to your car fund, half to your debt?

Good luck x