I've seen the light

dudleyboy

Knowledge_is_Power wrote:

Thanks for all the advice. I am implementing it all immediately. Tell me, how do you cut down your spending?

I understand that I really don't know how to manage money. I've never been taught, but I do know I can learn and I am more than willing, so if you have any advice etc... then I'm listening.

To be a little more specific, I'm single, live in a shared house and my rent is all inclusive. I have no children.

I really don't know what a good figure for an everage monthly spend is?

How much is a typical mobile telephone bill? I was hoping to shave a good £150 off my bill, is that reasonable. My mobile is my only telephone. I have no house phone.

Hi, you've had some excellent advice so far.. and as clapton says, you'll need to post a full SOA to receive targeted help. There really is no such thing as "general spending" - it all goes on something.

Based upon the info so far, you sound like you're in a similar position to how I was when I had my LB moment...

Read Martin's Credit Card article on 0% interest, no fee, Balance Transfers (BT) and get shot of that Barclaycard! 19.5% APR? Ditch it immediately! That's going to bleed you dry and undo all your good work elsewhere. Also read the cheap Loans articles as you may decide that will suit you better than credit card tarting.

When you get your existing OD and CC cleared, reduce the limits so that you can only spend a certain, managable amount on them. In the CC's case, work out how much you can afford to repay every month to it... and then make THAT your limit. Pay in full each month and you can earn cash back, pay no interest and will always have a satisfying zero balance every month so your spending is always under control.

You earn a good salary... enough to clear your debt and put money into savings... so put away £250 pcm to an ISA alone and you'll have fulfilled your £3k annual savings allowance - that is, if your debt gets shifted to 0% cards... otherwise, just keep hammering away at the debt.

Mobile phone - do you use this for work or is this just social calls, etc? Find out what network and tarrifs your mates are on... consider moving to the same network as it's cheaper to call each other... otherwise encourage them to move on to yours .... I also used to have no landline and only my mobile.. but even then my bill was just £40 pcm (100 mins cross-network, anytime).... look at your last few bills... what are you actually spending money on? If it's text messaging then consider bundles or using a fee service like

http://www.cbfsms.com/ - or just call them because it could work out cheaper. if it's calling other mobiles/landlines then check the best deal for cross-network calls - if it's for video messaging or WAP services then stop using them! This and MMS is the single biggest money-making con of the last five years. we don't need it... at least... not yet and not at those prices.
You've come to the right place to get advice. Congrats for posting and best of luck. :T

oops_a_daisy

Hi Knowledge is Power - the only thing that I would add to the above is to download the budget planner at the top of this page and fill it in. It is quite comprehensive and includes some things that you may not have thought of. You can then really plan exactly how much extra money that you can throw at those debts.:)

Knowledge_is_Power_2

Thanks all for your posts. I've been away with work for the last few days but I will post a full detailed SOA within the next few days.

You have all come up with some really great ideas and are being very encouraging which is great.

Already I've noticed that just by counting every pound I spend I've cut my spending hugely.

I will update you all and let you know how I go in my first full penny pinching month next month.

Soon to come, SOA.

Regards

KIP

kathfisch

Knowledge_is_Power wrote:

Already I've noticed that just by counting every pound I spend I've cut my spending hugely.

You're on the right track! A spending diary makes you think about each purchase just that bit more, because you've got to own up to it an put it down on paper!

Let us know how the diary goes and we'll be happy to look at your SOA whenever you post it.

Kath