Lazy & in Debt - motivation needed!

ms_london · 20 April 2006 at 11:38AM

lazy&indebt wrote:

Hello!

I have been receiving the MSE email for a while now and usually take a lot of advice from it but I really lack motivation and that is why I thought I'd come and post on here.

My total debt is around £6k plus I have a car on HP with about £7.5k left to pay (wish I'd never gotten the thing!) my problem is I know how to save the cash - it's just doing it! I live about 1 mile away from work and can't motivate myself to walk it rather than drive it. I can never be bothered to make myself a lunch for work so I ending up buying one because it's easier. I think of something I want and I tend to just go and buy it there and then whilst thinking to myself 'you're only young once' and then regretting it later! (one of the reasons I owe money on cards I suppose) and I just cannot physically save any money at all! it's like I have to 'treat' myself with every spare penny I have!

I thought maybe I could get some motivation from you lot because you seem like a really nice bunch whenever I do come and read the posts!

Thanks Lots

Hi lazy!!

I used to be like you, but now I enjoy seeing my savings rise - knowing that if I suddenly lost my job or disaster struck I would have some £££ to see my through & also no debts to worry about.

It is true that you "only live once" and "life is too short" (this is what I used to think too) but you still need to repay the money you have borrowed - so it is definately a case of "live now, pay for it later".

I felt restricted when I was in debt & felt as though I couldnt do the things I wanted to do (go travelling for example - which I am doing in Aug!!) - or move out of London (needed the London wages!!) or even take more than 1 holiday a year (I was lucky to get the 1 holiday to be honest!!).

Now, if that was me and £495 a month just disapeared I would feel discusted with myself - afterall, there are only so many clothes, shoes & bits & bobs you can use/wear. How about saving just £100 out of that? It shouldnt be hard!! I spend £50 a week and sometimes that just goes on bits & bobs, and I still think "what a waste".

You CAN do it!! :0) xx

ms_london · 20 April 2006 at 11:40AM

lazy&indebt wrote:

Spare cash to me is how much I have left after all my minimum payments. I understand I can throw all my 'spare cash' at my credit cards but then what? I can only pay a certain amount of my loan and a certain amount off of my car. They dress up getting a car on HP cause they don't class it as a debt - I am buying the car of peugeot bit by bit so I don't actually own it.

Does anyone know whether it's possible to end a hire purchase agreement? i.e. give the car back?

Check the T&C of your HP agreement.

Can you definately not overpay on your loan? If you cant, you can always save the money in a spare bank account & then pay the loan off when the time is ready. There are ways around it - think of all the interest you'll be saving!!

Call your loan co & HP co and see what they say, there might be ways around it/a chance to overpay without facing penalties.

xx

lazy&indebt · 20 April 2006 at 11:41AM

WOW! You've done really well!
I am disgusted with myself. Think I will start keeping a spend diary. I think alot went on takeaways at the beginning of the month!! What a waste

Annie_Fanny · 20 April 2006 at 11:53AM

lazy&indebt wrote:

Spare cash to me is how much I have left after all my minimum payments. I understand I can throw all my 'spare cash' at my credit cards but then what? I can only pay a certain amount of my loan and a certain amount off of my car. They dress up getting a car on HP cause they don't class it as a debt - I am buying the car of peugeot bit by bit so I don't actually own it.

Eh?? You have spare cash but you CHOOSE to make minimum payments and therefore linger in debt?

'Spare cash to me is how much I have left after all my minimum payments. I understand I can throw all my 'spare cash' at my credit cards but then what?' You do not have spare cash - you are in debt! How much do you owe on this credit card? How much does the APR revert to in May? What do you mean 'and then what?' Once you have hammered the credit card down to ZERO you then investigate whether you can overpay on your loan and car payments. If you can, you do that - if you can't you get yourself a high interest savings account or ISA and get yourself a nice little nest egg. Easy peasy lemon squeezy!

I'd get a wriggle on if I were you! Think I am grumpy today - sorry to bang on! But the advice will work I promise you!

ms_london · 20 April 2006 at 11:53AM

lazy&indebt wrote:

WOW! You've done really well!
I am disgusted with myself. Think I will start keeping a spend diary. I think alot went on takeaways at the beginning of the month!! What a waste

I didnt mean that you should be discusted with yourself. I have turned into a bit of a scrooge - see what MSE does to you? :0)

It is about striking a balance though.

For example, wouldnt you rather enjoy a nice holiday (saving £100 a month) than it just disapear on bits & bobs? (just an example)..

I think so long as you budget it's all ok. I know that I can afford the £50 a week, so if I do spend it on cr*p, then its up to me - I do feel bad when I do it, but its money for me to spend how I like. I know that my bills are being paid and I am saving £X a month towards travelling, so that is all that matters.

We all have to start somewhere.

xx

lazy&indebt · 20 April 2006 at 11:59AM

My card reverts to 15.9% in May but I have an egg credit card with nothing on it at the moment and they will give me 0% on a BT in may (with it beeing a year since I took it out) for 5 months.

Wish I'd never gotten that damn car!!