i'm getting depressed by my debt, is there anything else i can be doing?

fariba3

Hi, I’m new here to debt free wannabees but its def something that’s been on mind for a while. I’m heavily in debt and, like many of you, am determined to get myself back on track. I’ve done a few things to reduce my spending and to make a little extra on the side but nothing seems to be enough. It’s starting to really get me down and to affect my moods and my relationships. I used to just do things and worry about them later- I love travelling. I mean, now I realise that this is what has gotten me into this mess but being at home and doing nothing because I can’t afford it is costing me personally…

Earnings £1291 net
I’ll be going up to £1400 net by next month.

Debt

Student loans £20 000
HSBC cc £500
Barclays cc £480
Creation cc £350
Halifax cc £1700
o.d. £500
debt to mum £425

Outgoings

Student loans £300/month (I’m paying a lot of interest on these and I’d like to up how much I pay but don’t know what to cut)
Electricity £70 (paying off previous balance- have tried to switch to uswitch but need to pay off balance first)
Council tax £60
Rent £300
Ccs min payment £80
Tv license £20 (paying off previous balance)
Orange £47 (it should be only £25 / month and I know I keep going over so this is def an area I should be cutting on)
Food (for two) £150-£200
Savings account £25

Leaving me with about £300 to increase debt payments somewhere and have some spending money for the month…

Here are a few things I have done so far….

- have negotiated my telephone/internet to £15.99 from £30
- have joined the library
- do mystery shops earning me approx £50 a month
- starting shopping online at Asda instead of going to nearest Sainsburys
- stopped travelling so much on weekends although when we have to go to London for my OH’s family events, we book funfares
- don’t own a car
- switched to Lloyds to get £50 intro offer
- paid off Littlewoods balance
- joined moneysaving expert!
- Started a savings account with 8% interest and £25 going in every month
- Claimed bank charges back


I want to know what my priorities should be right now. Everyone is screaming about paying into a pension ( I work for the city council and the pension plan is fairly good but so far I have opted out because it costs nearly £70 a month). And should I be starting a savings account as I’d like to plan to buy a house soon and one day (if we ever get out of debt, we’d like to get married but paying for a wedding just seems so daunting at the mo!).

Iwantahouse_2

what is the interest on your credit cards? could you balance transfer to 0%

fariba3

Hi, iwantahouse (me too!!)...

My halifax one is interest free but it is ending. i got turned down for one earlier so i didn't want to apply again too soon but the interest free period is ending soon so i'll have to by next month. Any suggestions on cards where they might overlook a few late payments?

dancingfairy

Don't panic. Firstly it sounds like you're on a fairly good wage and your debts aren't too hideous. Secondly your about to do something about it to stop it getting worse. Having £300 a month to throw at the debts sounds very good. Do make sure in your budget you allocate a small amountfor treats/going out etc- you don't need to make yourself utterly miserable over it all - that won't help you.
Try and pay the minimum for each card per month and throw the spare money at the one with the highest rate of interest first.

Also if you can get a 0% free deal for 9 months that would give you a bit more breating space.

Also can you cut down the food at all. I spend that much and I'm sure you could get it down a bit.

Don't forget taking sandwiches to work/ drinks etc all help.

Good Luck - you sound like you're on the right track. Keep going. Also don't worry too much about the student loan - It funded you through uni and presumably helped you get the job you've got now. It sounds like the debts have taken a while to build up so they will take a while to go.

CLAPTON

its best to pay the minimum on each debt except the one with the highest APR ...this one pay the maximum you can...when you have cleared that debt then pay as much as you can on the one with the next highest APR..this will minimise your interest and repay the total debt the quickest.

so can you post the APRs of your loans

also what type of student loans do you have ..are these the 'new' type or the 'old' or what.

definitely pay into a local gov pension..firstly it won't cost 70 per month as you get tax relief on it..and you will never see such a gold plated scheme again.

Queen.Bess

I agree with Clapton re: your pension. The local government scheme is one of the best around and once it goes from your monthly wage you'll realise not to miss it!

Well done on joining the library - a godsend for me! I love it at the library - books for free!!

Some short term, but cash in pocket ways of helping out: Have you had an ebay/amazon clear out? What about mobile phones - sell them on mopay, that raises a few quid. Have you joined pigsback or quidco? Pigsback is great for getting free vouchers purely for clicking! Quidco possibly means an initial spend, but somethings like free dvd trials raise good money!

Good Luck!

saverram

Hi there,
i would suggest u to pay off these cards in next 4 months and tear/hide them , so that u will nott further spend on it.

HSBC cc £500
Barclays cc £480
Creation cc £350
then start paying off u others,
first u need to get rid of high aprs.
just keep u r self some target and try to achieve, that is my best suggestion. i am planning to get rid of all my card debts before end of this year .

All the Best
Saverram

fariba3

awww thanks guys. i do feel a lot better since i've had a chance to write it all down.

I will def join the pension scheme next month then if it is so good. It's funny, i never thought my salary was that good, my friends are all making close to 30k.... i'm currently looking for a better paying job as well.

As for paying off the cc with the highest apr, i thought that i might be paying the most interest on the student loan and wanted to get that paid off asap...

I do walk to work and go home for lunch (the beauty of living and working in city centre). is it true that veggies and meat bought at the market are actually cheaper? and what about buying in bulk?

As for starting a savings account, does anyone think that's futile at the mo given all the debt i have?