Newbie wanting to become Debt Free

yorkshire-lad

Hey guys,
first of all i want to say what a large bunch of friendly and helpful people you have on here:beer:

i have been a long time lurker and not much posting.
i am 21 years of age and got around £13k of debt over my head which i want shut of it.
i have finally seen the light and i admit i was stupid spending money i didnt have,but we live and learn and i have definatley learnt!

i had been losing sleep and was feeling down over my debts, but i have actualy sat down worked my way through them and realised i was just worrying about nothing really,as i am in control of my debts and not struggling when i sit down and think about it.

i think one of the main reasons why i had the lightbulb moment is that i eventualy do want to get married,move out and have a comfortable life. This is the time i need to start SAVING:T

well anyway, il stop my rambling and give you the list of debts and things.
Figures as at 16/04/09

AA Loan [STRIKE]£5300[/STRIKE] Actual figure £4883.10, 30months remaing

Carlyle Car Finance [STRIKE]£5400[/STRIKE] Actual Figure £4366 , 28 months remaining

AA Credit Card £2497 (limit is £2500), i have always made my minium payment but then spent that again, so i was in a viscious cycle,its now in a million pieces:j.

HSBC Personal Loan £1577 left to pay, 20 months remaining

Auntie £350, to be settled by Sept 09

Coop Bank OD £290, paying at £40 a month to clear it down

i get paid £1085 after tax every month, i also pay car insurance,pay rent to parents, and a contract phone.

after everything is paid out i have around, id say £300, which covers petrol,going out,ya know the usual stuff;)

after talking to a trustful work colleague i felt so much better about dealing with my debts.

ATM im starting to put a budget plan together and set myself a weekly amount to spend,and hopefully try and get more paid off each month on the CC.

i have been digging out old books,cds to sell on ebay too,to try and earn abit of extra cash:T

well i do apologise for the long winded thread but im soo happy now,it does feel like a massive weight has been lifted off my shoulders.

thanks
Ryan

Lensman_2

Well done for getting started Ryan. Although you have a long journey ahead, you have just done the most important bit.

There are some useful links in the getting started clicky. You should do your statement of affairs (SOA) and include APRs.
Also have a go at the snowball calculator. Try adding £15 to your current minimum payment on the card - and keep up that amount as the debt drops. I bet 25 years becomes 3 or 4...

Help for First Time Posters & SOA Calculator - clicky

yorkshire-lad

thanks for that lensman, even tho i do have a fair way to go, i do feel loads better for actualy tackling them instead of just sticking my head in the sand like i used to.

i have phoned up and asked for aprs on the loans and they are sending everything out by post,so i will get a SOA when they arrive

doodledo_2

Hi Ryan and welcome to the forum

It may be worth popping up a SOA now without your APRs so the lovely peeps on here can offer you some advice on ways to maybe reduce your outgoings.

Its really good that you are tackling this now at your age and whilst living at your parents house as its a darn site harder when you get older and have your own place.

Keep posting and good luck

yorkshire-lad

thanks doodledo.

ok heres a SOA, give or take a few pence, dont have exact figures

My salary - £1085.00

Monthly Outgoings:

Rent - £80
Phone - £40.00
Car Insurance - £112.00
Petrol - £120
AA Loan - £179
Carlyle Finance - £159
HSBC Loan - £78
AA CC - £50 (min payment)
Coop OD - £40 (starting from 1st May)

Total: £858.00
Remainder: £227

i am stuck in a contract on my phone till next year and my car insurance was the cheapest i could get it for at last renewal. i always take packed lunch to work,and i dont have to pay for parking either.
and its very rare that i go out drinking or whatever, i did used to enjoy going out for meals but im living the single life now so i dont really spend anything.

Hippychick

It is well worth starting a spending diary and writing down everything you spend, believe me the odd coffee, magazine etc adds up.

If you have £227 odd left over you could easily cut whatever you spend that on back and throw them at your debts each month. If you feel bad about your Auntie perhaps see if she will accept £50 a month or so, that way she will be paid and the guilt will go?

Good luck with everything, you are in a fortunate position in that your other outgoings are quite low.

fairydiamond

Just wanted to wish you luck. I am glad you have realised you need to stop overspending and get yourself organised. All the best!

yorkshire-lad

thanks for the support guys and girls it is very much appreciated!

Bank holiday monday saving is washing car at home and not going to pay £8 at a car wash

foolishqueen

Welcome Yorkshire-lad. You will get loads of good advice on here, I only posted about my situation yesterday, and already I feel much better

My car could do with a wash as well - for some reason the gf is allergic to cleaning cars

yorkshire-lad

well for those following my thread, i have recieved a letter from Carlyle finance regarding settlement figure and its only £4300:D, i must have thought that i borrowed more:doh:so my debt is like £1000less than what i first thought and i havent spent a penny lol.

happy happy happy:beer:

Tixy

Hey good news Yorkshire lad :T

When I started really looking at my debts a few months ago I discovered one was £1000 more than I thought :mad: