How depressing to spend the most part of your salary on debt!!

reallybroke

Hello

As you can tell from my name, I am really broke! I have just looked at my credit report and my rating is poor. I have missed a couple of payments due to moving house but nothing serious. I am sending of proof of my new address so it can show that I am on the electoral roll. I feel down as I don’t seem to be able to go out and seem to spend almost all my money paying off debt. I don’t want to live as I am living now – I even get out of going out for friends birthdays etc as it means spending money. I feel quite sad…………..

Anyway I have finally gathered the courage to post my debts…………so here goes

Income: £1800
Rent £400
Gym £45
Phone £20

Debts: Company : APR: Balance: (Limit) : Min Payment

Alliance and Leicester 0%(ends May) : £3640(4000) : £5
Capital One: 3.9% : £6230(7000) : £187
Halifax: 9% : £2800(8000) : £57
Natwest Loan 7% payment £800
Student Loan £3176 £150
Overdraft £500 0% ends in July


I don’t know if I’ll be able to move the A&L to 0% when it runs out as my credit score is showing up as poor. It will be 15.9% then. I don’t seem to be able to get out of the Gym membership which is annual. I used to give myself a £50 allowance a week but have been trying to try £20 which is very difficult. From next week I think I will allow myself at least £30 a week.

I have listed many books on amazon and looking to sell other things on Ebay.

Any advice would be appreciated as I would like to have a life again!!! All I seem to think about is my debt and the type of life I am now living. I would like to move to move to a more spacious place and stop wishing for the days to pass till payday just so my date is that much lower!!

LookingAhead

First & foremost: well done for posting! :beer:

Keep checking back on your thread because people will soon start to ask questions about all your outgoings i.e. food, utilities, council tax etc and will drill down to find you some savings.

This forum (and others such as Old Style) offer great advice on how to save money and bring your debt down quicker. Support is here in adundance and you will soon realise you are not the only one - and that's a comfort!

I joined at the end of February and I am starting to put things in place to bring my debt down a little quicker - but even if I don't manage to shave tonnes off (I am yet to post an SOA myself - not brave enough yet!) I can honestly say I have begun to approach my debts in a different way. I used to dread the days when my credit card payments would come out and when my loan repayment would come out...but since joining here and starting up a spend diary/a spreadsheet of the balances of my debts ...I can't wait! I just think "good - another £100 of this or that" and "hooray that's another month out of the way for the loan!" and my new frame of mind really helps.

I never used to squirrel money away, I used to think it was a waste of time and I would keep all change in my purse, but now I love saving the 20ps and £2 coins because it:

a) If I have saved £10 in £2 coins and I need £6 for something...it saves me going to the speedbank for a £10 note which is £4 more than I need and sends me another £4 into my overdraft (the excess £4 I would just fritter away too!)

b) It gives me a focus to save for something small (the 20p coins).that I would normally think "I can't afford that" i.e I want a bottle of the really nice Cherry Blossom Dove shower cream but it is £3 or something and I can't justify putting that in the grocery basket....but I don't miss 20p here or 20p there...I now have enough to go & buy it guilt free!

I would never have done that before - I would just feel miserable that I "can't have anything". The little treats sometimes really help lift your spirits.

Really explore this site for little tips & advice and you will soon start to turn around. You will get a mental 'lift'. You did the right thing by posting....check back soon for more constructive advice - especially once you post an SOA! If you stay on board, you will soon feel in control of your debts rather than them being in control of you.

Rikki

How depressing to spend the most part of your salary on debt!!

Unfortunately thats what happens to us when we spend the money before we earn it.

forsya

Hello reallybroke

Looks like you are taking positive steps. You are earning a good wage, so with focus and determination you will be able to pay these off debts, and yes it is difficult spending what we earn on debts, but just think when you have paid it all off, you can do what you like with your money, save it up for better things!

Shame about the gym membership? When did you join, is the year nearly up? Hopefully you can cancel that soon.

How about taking on a second job to bring in extra cash to really get rid of those debts?

Try and keep the allowance tp 30, from 50 to 20 is a big drop, so a gradual decrease is better.

The interest rates do not seem too extortionate which is good, and yes do try and jig them about if you can, like you said will depend on your credit rating.

Also, remember you can treat yourself now and then, if you pay of so much, set yourself goals and reward yourself (don't go crazy though!)

Your can DO it, is is tough, but think how great you will feel with no debt!

Keep us informed of your progress,

All the very best to you

molesworth

Yes - it can be depressing but there is a positive side too. I see part of your debt is a student loan (and maybe being a student is reponsible for some of your other debt). Your study will improve your prospects in life. Whatever your job, your salary will go up as your debts go down (you've already learnt the lesson about not borrowing any more and you will pick up all sorts of money-saving tricks on thsi site.). It's a shame you feel can't go out to celebrate friends' birthdays etc. Could you explain your situation - say you'd love to come but can you pay for your own drinks, not get involved in rounds etc? And as often suggested - could you get a part-time job? Working in the bar/ club where you might otherwise be drinking for example? Part-time work like that often feels like a social life - you just have to be careful not to get caught up in going out on the town after you finish your shift (happened to my daughter who regularly spent all the extra money she'd made). Good luck!

ms_london

Income: £1800
Rent £400
Gym £45
Phone £20

Surplus £1,335.00

Hi there Reallybroke - welcome to MSE!! Yes, it is depressing, but we are all in the same boat, so feel free to come here & moan whenever you like :0) You are obviously wanting to get out of debt & get things sorted, so well done for that - it will be worth it in the end, and the time does go so quick (that makes me sound so old!!) :0)

You seem to be on a good income which helps. Do you have any other outgoings? You pay rent, what about bills? Gas/elec/water/council tax/tv licence or are these all included? What about travel to/from work? If you have a car, what about costs for petrol/car tax/MOT/insurance? If it's public transport - how much does this cost? I know a lot of people will say "cancel the gym" - but if this is your only form of "fun" or "social life" then I would say keep it. It was the only thing that kept me sane when I was paying off my debt!!

Debts: Company : APR: Balance: (Limit) : Min Payment

Alliance and Leicester - 0%(ends May) 15.9% - £3640 - £4000 - £5
Capital One - 3.9% - £6230 - £7000 - £187
Halifax - 9% - £2800 - £8000 - £57
Natwest Loan - 7% payment £800
Student Loan - £3176 - £150
Overdraft £500 - 0% (ends Jul)

Your Natwest Loan, it says payment £800. Is that £800 a month or is that the total balance? If it is £800 a month, that leaves you with £535 a month to live off & service your other debts.

Assuming you allow yourself £50 a week (or £200 a month), that leaves £335 to throw at your debts. Since your minimum repayments amount to £399 - there is a slight shortfall.

Is your income figure of £1800 AFTER the student loan has been accounted for or BEFORE?? This will make a difference & if this has already been accounted for or not...

What is the APR going to be on your OD come July? Assuming you can't get any more 0% credit cards, then I would concentrate on trying to clear the A&L card first.

With regards to the OD - call your bank & ask them to reduce the balance by £X each month. That way your overdraft is gradually reducing, rather than you paying some money off & then spending it again :0)

I hope some of this helps. But most importantly - you are not alone!!

I've just finished work now (hoorah) so am off home to try and enjoy the rest of my weekend!!

Let us know what you think.

xx

BACKFRMTHEEDGE

Yes it can be depressing but----being in debt has meant i can't afford to eat so i've gone from a size 14 to a size 10....being in debt has made me appreciate things more....by the way ditch the gym and spend the money going out.....walking is FREE...

TTFN :money:

disco_diva_3

when i first started on my debt free crusade, i had plenty of days like this but as soon as you start to see the debt balances falling you turn into a bit of a smug ...

also these kinda days help you not to do it all again, believe me ive been tempted :A

suziewuzie

I don't have any difficult debts, just my mortgage and a small bank loan - I can afford the payments, but am being very careful with money as I have one child at uni, and two more teens who potentially will go. I've tried to cut back on spending on self, etc and as you say youu can get fed up. However, MSE is the place for you! I've found I got a real buzz from saving my £2 coins in the savers club, and enjoy looking at the voucher sites - got myself two free CDs through the CD wow offer posted on here. Little things like that start to mean more two you when you don't take them for granted I think. Keep visiting this site and you will get loads of support and ideas. Don't hibernate though - go for walks, make nice food etc. I've also enjoyed building up my Piggy Points and am looking forward to spending them. Lots of info on the Freebies thread. Good luck!!

suziewuzie

Just spotted all the mistakes in my post - sorry. I can spell, but obviously cannot type very well.

reallybroke

Thank you all for your encouraging words. To answer your questions:

LookingAhead - I have been trying to save £2 coins for a few days now and I must admit it feels nice to see it. I will look into trying to do this for 20ps and see if I can cope with both. I seem to swing between being rigid with myself to splashing out when I hit rock bottom and have been trying hard to maintain some consistency. Planning and giving myself treats sounds good, will have to see if I can maintain my discipline with it.

Rikki - You are right I suppose that is the price some of us pay by putting the cart before the horse, unfortunately it doesn't make it any less depressing...

Forsya – The Gym membership has another 7 months on the contract to run. A second job is something I have been avoiding but will have to start looking into. Yes I am finding £20 quite hard and may make it £30 and save the £2 and 20ps to see how it goes. Treating myself is something I will need to master the art of, I either overdo it or don’t do it at ll.

Molesworth - Thanks for trying to highlight the positive side, where I am right now it is very difficult to see the positive sometimes, I feel like I'm having a very long, steep climb. I feel guilty about the birthdays, I find it easier not going as you always have people that try to push you on and lend you money which I don't want to get into. A part time job is something I have been shying away from but will just have to do if I am to get out of this mess!!

Ms London - It feels nice to know that I am not alone, thanks for highlighting that, to answer your questions

Bills – All bills are inclusive which is why I moved here, it is starting to feel suffocating sharing a place with others but am slowly getting used to it.
Travel – I used to have a car but got rid of that a while ago. My employer pays for my travel as I need to travel quite a bit around London. I don’t mind cancelling the gym and substituting it for dance or something different and cheaper once or twice a week, unfortunately can’t do this at the mo!
Natwest loan is unfortunately £800 per month
Allowing myself £50 is partly how my overdraft developed to that point. I never used to have one before, however allowing myself £20 per week is proving to be a real struggle.
The student loan comes out of the £1800 figure and the overdraft will become 16 or 17% in July

BFTE – I do love my food so don’t know if it will help me lose weigh but well done to you. I wish I could ditch the gym!! I used to enjoy it but it is taking up a significant chunk of money which I could use for a cheaper class and reduce the debt.

Disco Diva and Suziewuzie – I hope you are right!