Newbie in debt and worried

CHRIS79

I actually subscribe already to some mags, on a quarterly basis. Just need to decide if I will actually miss not having them

This is harder than I thought. I want to move out, and be debt free, apart from maybe the car loan, as thats a given for a lot of people to have a loan isnt it?

This weekend is clear out time!

Thanks all

Chris

euronorris

If you want to be debt free, then you need to be free of all debt! Including the car loan.

But, I understand that this can all seem very overwhelming at first (believe me, I've suffered my own sleepless nights over it!). So, perhaps you should set two goals. One to clear all other debt by a certain date, and another to clear the car loan.

It's important for you to address the habits and behaviour that led to the debt in the first place. Otherwise, you will more than likely get into debt again very quickly.

And, as for moving out. I know how tempting it is, believe me, but please do not do it until you can comfortably afford it financially. I made the mistake of doing it too soon and am now paying the price! Don't get me wrong, moving country has been great for my career and love life etc but it has hit my pocket HARD! And continues to do so.

Even before I left the UK, I rented a flat for 6 months and was continually surprised at the one off costs that seem to appear each month.

I would suggest reviewing your finances in a couple of months time, to see if you are coping comfortably and have curbed the overspending. Then you will be able to tell whether you can move out or not.

And, no matter what anyone else says to you - there is nothing wrong with staying at home whilst you get your finances sorted!

The magazines - do you actually read them all from cover to cover, or do you just skip through some of them? I'm very picky with my magazines now and don't buy half of the ones I used to. Mainly cos I cannot bear to look at 50 pages of fashion! I want to read something! lol

CHRIS79

Ive been fortunate enough to receive car allowances from previous jobs, but no longer. I do anticipate promotion or a job change within a year, and as I need a reliable car for work, travelling to and from construction sites, i cant justify selling it for something cheap...........yet!

The magazines, I think i buy for habit. Ideally i should flick thru them in the shop before buying, but i dont. Thats one habit i WILL change, as £40 on magazines monthly is ludicrous.

I dont mind being at home with parents, but as I had bought a house, only to be made redundant in March, and therefore had to pull out the same week contracts were being exchanged, makes me rather angry, but Im lucky to have great parents.

Noone else knows about my debts tho, Ive always kept them quiet.

euronorris

Yeah, I bet! It must've been quite upsetting to be so close and then have it all fall through on you like that.

But, there is a silver lining to every cloud and if you worked really really hard at it, you could clear these debts very quickly and then find another house, which will probably have dropped in price, and buy it with no other debts to worry about! That would be great.

You are lucky with your parents, as am I. It's a good idea to keep that at the forefront of your mind though as many others are not as fortunate.

Are you afraid of how people will react if you tell them of your debts?

Friends and family always knew that I had a loan and a CC, but they had no idea how bad it was. I was ashamed, I still am really. But, after a few teary, sleepless nights I admitted all to my OH and he was wonderful. He's been where I am now and understands how easily it can happen, as do most people.

If it's getting you down, perhaps it would be a good idea to tell a friend or your parents maybe. It's up to you, but you may find that you feel a lot better just for getting it off your chest.

CHRIS79

Ashamed is what I feel. For quite a while I earned more than my parents, paid rent, but a pittance to what I earned. They always commented on how much stuff I used to get delivered, and th epost lady says I am the worst in the vilage for parcels! That should have sparked my brain into gear, but it didnt. Cause my debts are a loan, and I have no credit card debt, i used to feel i was in control, but clearly, i whould have been overpaying, or saving up to pay off debts, not for house deposit, which i lost al ot of on legal fees.

Life goes on. Ive been with my girlfriend only 3 months, she has her own house, mortgaged and isnt great with money but isnt in debt, apart from couple hundred £ overdraft

Nargleblast

Another suggestion - when you have a DVD clearout, keep a few really good ones, the ones you could happily watch again and again. Then. get some mates who are in a similar position to you debtwise ( and you will be surprised how many people you know are strapped for cash at the moment) and agree a fortnightly or monthly DVD club night. Meet round someone's house, watch a couple of DVDs together - should have quite a good selection between you - have a few beers or glasses of wine and snacks with it (all carefully sourced from discount supermarkets of course) and there you have a good night's entertainment which has not cost anybody too much. Result - entertainment budget slashed, extra cash in the kitty to pay off the debt.

CHRIS79

Another great idea, cheers. Far as I know my mates are all not in debt, apart from mortgages. They all drive old cars too, apart from one, but he has Daddy to thanks for his brand new BMW Cabriolet! (not jealous)

euronorris

OK, I'm about to head off home but will be online again then.

Nargle - FAB idea. Now, I just need to get some DVD's over from the UK, and make some more friends here! lol

CHRIS79

I can sell u lots of dvds lol!

Just realised I spend quite a bit on National Lottery, but win sod all.

Im off home too, chat later maybe
Chris

euronorris

Ohh the lottery. There's a false economy, but, you gotta be in it to win it. So, if you don't want to give it up entirely, I would suggest setting a budget for it. Buy the tickets at the start of each month and then leave it.

I suspect that more of your friends are in debt than you realise, but like you, they are ashamed to admit it, or possibly don't 'view' it as debt etc.

Perhaps, if you suggest something cheap and they ask why, you could just say that the redundancy obviously had an effect on your finances and you are keen to clear your debt, not increase it. You don't have to mention how much it is etc, but you will probably see a few of your friends pipe up and say 'yeah, I really need to clear my CC too' or something similar.

It's a taboo subject for many, so it isn't often talked about between friends. We're often too proud and yet, most of us are in the same boat and would benefit from talking to each other about it.

But I understand that you haven't been with you GF very long yet, and so may not want to open up as much. She may even have more debt that she's not admitting to. You just don't know.

In the end, it is all your choice, but you know, a problem shared is a problem halved

Either way, continue to chat on here for ideas and support etc. I and many others have found it invaluable! And everyone is really lovely with great tips to help you out etc.