Working hard to pay my debt off, but is there a better way?

morg_monster

Your situation sounds a bit like mine. In debt to parents to the tune of £2000 after coming back from travelling (I did save up before - but all those once in a lifetime experiences really rack up!), then I bought my mum's car off her for £1500. Paid dad off for the car last year when I was doing my MSc, during which my cc crept up to about £1000. Luckily dad let me add my credit card debt to the amount I owed him (I am paying interest to him - just makes it a bit easier). Now I pay him £250 a month back for this loan.

Attempted to move out but after 6 months and a wierd flatmate I'm back in the nest until July, paying £250 a month rent, although I am commuting to the tune of £250 a month (phew) into london it works out cheaper because I can be a total hermit for a few months, rarely go out, and get all the food I want at home!

TBH it doesn't sound like there's a whole lot you can do. Moving closer to work would drop the petrol sum but add a rent sum - but seeing as you do pay rent to your parents already, you still might gain a bit of cash this way? Is your work in/near a town where you might find a short term lease on a flat or room? Plus you probably wouldn't want to sell the car, so you'd still have some outgoings related to it (and probably be pootling back and forth for football and friends still).

I would just sit tight, make cutbacks where you can on things like the lunches, and wait and see what happens when your parents sell the house. Like somebody already said, that could be a few months. Then re-evaluate, maybe you'll know more about the future of your job by then. I wouldn't worry too much, your debt isn't unmanageable and at least you are paying it off month by month. Getting the cash from your parents is very attractive. If they can definitely afford it and it isn't an awful hassle, I would find it very hard to say no. Its a great ideal to do everything yourself but in this day and age it isn't always possible, with us 'kids' (hm) finding it harder and harder to get on the property ladder we're years behind where our parents were (financially/property wise) at our age. Waiting to save up yourself will take you a little while. If you get a small place the deposit won't be huge and then you can move up the ladder. I could not say no to my parents if they offered me cash for a deposit.

Maybe you could offer to consider the cash as a loan - then you can get the house, and all those benefits with having your own property, and then pay them back.

talltomthepom

surfcat - thanks for the link. I'll check it out tonight.

ms_london - The whole moving out to NZ thing depends on me getting enough points together to be even considered to be allowed to live and work there. I didn't go to Uni and i'm in an area of business that NZ has an abundunce of - Marketing! As for the money - one step at a time. I'm going to clear my debts first and then re-evaluate.

I think I might have typed before I thought about what I was writing with that comment about 'people have to rely on parents'.

No way am I over the travel thing! However one thing NZ did for me is made me realise that there is so much to expore within the UK. I really want to do South America next but not until I'm in a comfortable situation financially. Besides, there is no rush. I'm 23 years old and I'm kinda hoping the world will keep turning for a few more years yet!

ms_london

morg_monster wrote:

Its a great ideal to do everything yourself but in this day and age it isn't always possible, with us 'kids' (hm) finding it harder and harder to get on the property ladder we're years behind where our parents were (financially/property wise) at our age. Waiting to save up yourself will take you a little while. If you get a small place the deposit won't be huge and then you can move up the ladder. I could not say no to my parents if they offered me cash for a deposit.Maybe you could offer to consider the cash as a loan - then you can get the house, and all those benefits with having your own property, and then pay them back.

Good advice morg_monster.

So its harder for us "kids" to get on the property ladder. TRUE. But we are also earning more money than our parents were - they were just more focused & didnt have debt or the choices we have now ((I know which I would prefer though!!)). Maybe I should go cry into my cornflakes because it will be hard for me to get on the property ladder (when I want to), or perhaps I'll work that little bit harder to be independent and manage it myself!! Perhaps thats just me - but I want to know that I can do these things on my own!!

If I come back from travelling with debt, my parents would be "That's nice dear" and let me get on with it - I think if you owed money to the bank, or these credit cards that charge you 18% then there might be a bit more urgency in wanting to be debt free??

Re London. It's cheaper for me to live in London than it is to live closer to my parents (or with my parents) and commute. So the cost effective option might not always be the obvious one - you have to be open to change!!

Rant over ;0)xx

ms_london

talltomthepom wrote:

No way am I over the travel thing! However one thing NZ did for me is made me realise that there is so much to expore within the UK. I really want to do South America next but not until I'm in a comfortable situation financially. Besides, there is no rush. I'm 23 years old and I'm kinda hoping the world will keep turning for a few more years yet!

I know what you mean. I wish that I'd used my time more wisely (i.e. not get into debt) and explore the UK/Europe a bit more, perhaps gone travelling when I was younger - although the UK/Europe will be here when I get back!!
Wish I was 23!! I know I wont want to come back :0)

xx

morg_monster

I think it is different if your parents can't afford to help you out, or don't want to (for whatever reason). It is bad to see them - and I don't - as a get out clause, which I know some people do. In fact my parents have always refused to lend me money when in their opinion I have been wasteful with my cash. However, my parents are very fortunate and my dad has a very good salary. If they are happy to lend me money (which they are), and they can afford it (which they can), and I am sensible with my money (which I am now) I personally don't see a problem with accepting help from them. I have never got a pure gift of money from them (except birthdays!), it is always a loan and usually dad adds interest!

Actually I earn less (in real terms) than my parents did when they were my age. Due to having to study for an extra couple of years to do my job (and the year working & travelling) at nearly 25 I am only just 6 months in my first proper job. Some of my peers are already 4 years up on pensions, student loan paying off, and savings. If I wanted to buy a property in London that would be a joke, even if I saved every spare penny it would still be years before I could afford something. So until I get enough of a career behind me to move jobs out of london I have to carry on renting, but when I move, I would gracefully accept help from mum and dad if I needed it.

I appreciate your circumstances are quite different from mine and majorly big respect to you for paying off your debt and saving loads totally on your own. But plenty of people do accept help offered from their parents without (in their view) compromising their integrity, and some well off parents do actually WANT to help their kids out even when the kids are indifferent or doing OK for money, be it helping with houses, weddings, or other plans.

Imelda

hello again,

I think there is so much pressure nowadays for us to buy rather than rent, my grandparents never bought their house and died leaving just enough cash to cover their funerals- they had a whale of a time! In their latter years they travelled the world and experienced so much.
Anyway, Tom, it seems that you have pretty much decided to go to NZ and I don't blame you. Maybe it would be better for you to save up cash rather than a property (esp buying with friends- it can be risky if you don't all have the same long term plans) which can tie you down. And as for the points thing- what sort of marketing do you do? Do you work for an international company? Could you train part time for one of the more desirable professions? I don't know if it's the same in NZ but in Oz I know you can get in if you own a certain amount of government bonds, maybe your parents could help out in that way? (and they would get the interest earnt on them too)