Advice please!

Toyan1988_2

Not sure if this is in the right section as it involves budgeting but here goes

To cut it short

Im 22,
Monthly income of £1100 a month

Got into debt through being young and stupid, never had any sense of saving or managing money etc

I have a debt of £4000 to various small companies.

I have 3 bank accounts, current account, online bonus saver and a flex saver, all with HSBC.

At the moment I have £300 saved up as since I started reading this website and decided to get my fiancees in order, ive not spent a penny of what I make unless i really really need to, like phone bill, my MMA gym membership, bus fair, milk for my son etc.

Meaning that at the moment I have no social life, I dont buy new clothes, dvd's general things that I want etc

What im asking is, rather then putting every penny I make towards my debts, is it wise to decrease my monthly payments to my debts so that I can still have a life? or do i get them paid off as soon as possible?

365days

That really is up to you. Have you tried the snowballer www.whatsthecost.com have a play around and it might help you make up your mind. One thing for sure though is that your debts are costing you more than your savings are earning.

Shoe_Gal

I have a lot more debt than you, so it will take longer to pay - I insist on having a life whilst I do

Hannah_10

Think of it this way; if you flog a donkey onwards relentlessly it'll be dead in around 3-4 days from exhaustion, if you look after it it'll live till it's 30 and work till it's mid 20's. The moral? You get a lot more work out of something if you're nice to it, rest it at night and feed it properly! You obviously don't feel like you can keep up debt repayments at this rate- so don't. Make them realistic so that you can sustain them in the long term. After all no ones got everlasting socks!

One thing strikes me as a bit unusual though, why are you saving up to pay your debts rather than making small payments now? The normal way to do things is to pay them off peicemeal so they are getting something (and therefore don't take you to court).

Oh and if I may enquire, what do you mean by small companies?

pennypusher

Hi, why don't you post up your Statement of Affairs so that people can help and advise you?

toyan1988

Hannah -

I am a part time events promoter and got into debt through bad budgeting when I was younger - ei spending profits from a show even tho I have another show coming up that has had bad ticket sales, etc, stupid i know!

What i should have explained: One of the debts, of £700 - This debt was due a few weeks ago but no matter how much i get in touch, in all honesty the guy just hasnt got round to getting back to me yet, but at anytime, probbly in the next 2 weeks hes gonna ask for it and im gonna have to pay it all off in one go, hence not touching what i earn, so it feels like im working for nothing!

Hannah_10

You do not have tp pay it all in one go. After all that could well be totally impossible. That creditors demand payment in full does not mean they have a right to it. I understand the need to try to salvage your reputation if you can, but right now you got down here being emotional you're best bet for a come back is rational. How about a SOA?