Advice on getting on the straight and narrow

stoodie

Hi all

Before I start my story I am hoping I won't get heckled or lambasted for my foolishness, I am already fully aware and regard myself as an idiot!

I am a third year student, in my final year of the first part of my course and looking to clear my big debts and restore some self pride. As it stands at the moment, I hold a Natwest student account with my £1400 overdraft almost completely used up and a student credit card (biggest mistake of my life) with a balance of £400. Now I got this credit card last summer and used to to pay for my summer expenses and could not afford to pay it all off so had to settle for paying the minimum monthly payments and generating interest after the interest free period expired.

So now you know the kind of situation I'm in, I can explain what I'm trying to do to right my wrongs.

I have budgeted for the coming academic year, taking into account paying back the credit card, phone bill, food shopping, energy bills and rent and this all works out, as long as I cut back considerably on the non-essential expenses but I very much don't mind doing that.

Now, to pay off the credit card, I was looking at applying for the Virgin money, 0% for 16 months, credit card and transfer the balance for the initial £12 fee (2.98%). Is this advisable? With this card, I have budgeted to pay the amount in 10 months, 6 less than the interest-free limit on the card.

In addition to this I am going to try look for a part-time job of around 6 hours a week, hopefully not impeding my studies and also paying for my weekly shopping.

Are there any other money saving tips you can share with me that will help in improving my financial situation and restore my faith in myself?

Thank you very much for your time!

Oldernotwiser

Transferring to a 0% card can work, but only if you're strong minded. It's easy to just end up with both cards maxed out.

It sounds like you need to be working a bit more than 6 hours per week and also cutting down on your outgoings. If you think that 6 hours work would only pay for your weekly shopping then you need to reassess your budget. Families can live off £30 + per week, a single person should be able to manage on far less.

Impet_Limpet

Make sure you can be accepted for the card being a student. You have a sensible plan on paper.
Once you have applied for the card and transferred the balance put it somewhere safe (home/parents house) don't even find out your PIN - shred it (it will reduce the chances of temptation.)
Set up a direct debit for the minimum payment so you don't get stung by any late charges they can remove the promotional offer if you do. Pay any extra you need to via a standing order (monthly or weekly, whatever suits you best in regard to your wages).

Use online banking wisely to keep an eye on your finances and make amendment to SOs so you don't go over your student overdraft (as they will remove this if you do!)

Don't panic too much yet over the interest free student overdraft (but keep it within limits) work on the credit card first. Then if you can reduce the overdraft afterwards give it a try.

stoodie

Oldernotwiser wrote: »

Transferring to a 0% card can work, but only if you're strong minded. It's easy to just end up with both cards maxed out.

It sounds like you need to be working a bit more than 6 hours per week and also cutting down on your outgoings. If you think that 6 hours work would only pay for your weekly shopping then you need to reassess your budget. Families can live off £30 + per week, a single person should be able to manage on far less.

My thought was that once I transfer the balance, I cancel my Natwest credit card and just be working with the one card and pay that off. I have already cut the card up so it can't be used, just need to pay it off now.

With regards to the working, without it, I have already budgeted in money for shopping, the money earnt from the small amount of shifts would just add extra income and would be saved for paying off the overdraft and such.

Martine1081=24869107 wrote:

Make sure you can be accepted for the card being a student. You have a sensible plan on paper.
Once you have applied for the card and transferred the balance put it somewhere safe (home/parents house) don't even find out your PIN - shred it (it will reduce the chances of temptation.

I'll have to investigate whether I can be accepted and don't worry, the pin'll be shredded as soon as I get it!

Do you think Natwest will be ok with me moving the balance away from them?

the_missis

If i were in your shoes (i would gladly swop with you!) i would pay off the credit card with your 1st installment. That would allow me to feel debt free and then you can work on your budgeting even better. It isnt that much money really, even if you are skint till xmas. Im paying off one of my big debts as soon as i get my money, that way i dont have the bill coming in every month, even if you get a cc with interest free. x

fiddiwebb

Families can live off £30 + per week, a single person should be able to manage on far less.

A family living of £30 a week, really?

Lokolo

fiddiwebb wrote: »

Families can live off £30 + per week, a single person should be able to manage on far less.

A family living of £30 a week, really?

Its possible, go over to old moneysaving sections and debt free wannabe. Theres lots of receipes and ideas to live off less.

Oldernotwiser

fiddiwebb wrote: »

Families can live off £30 + per week, a single person should be able to manage on far less.

A family living of £30 a week, really?

Only for food!

You need to look on the DFW and Oldstyle Boards for ideas.

fiddiwebb

Wow, an average family say two adults and two children having breakfast, lunch, dinner & supper for seven days for only £30, not bad.

So that roughly works out at just over £4.28 a day for four people for seven days!