Newbie Here Advice Needed

2cool4school

Hi All,

I was really after some help regarding my finances. I have a credit card with £1000 on it. (Currently paying £26 p/m), on top of that I am 3 years through a 5 year loan which I took from HSBC. ( About 5-6k left, currently paying £255 per month). The past 3 years have been very eventful in that I tried (& failed) to start a business, as well as being made redundant. All this has impacted on my ability to pay off these loans and even though the amounts may seem trivial they do stress me out as even though i'm back in full time employment. (For my own sanity), i'm not a high earner. I was thinking of the following possibilities:

1) Taking a second job. This could potentially give me an extra £400 per month which would be ace as I will have enough cash to cover both things. However I don't want to do this if the tax is stupidly high, making my second income negligable.

2) Write to the bank?? What can they do to help? The only response i get is looking at re-financing my loan for a further 5 years and 3 months payment holiday? I really don't want to do this.

3) Asking my current employer for a raise? (Bearing in mind i've only been there since June).


What would you guys do? I would really appreciate some guidance please. I just wanna be debt free ASAP and start building some savings.:beer:

andthatmakesone

Not sure about all of your points, but re point 1 you would pay basic rate tax on your second job (20%) as all of your tax code benefit will be linked to your first job (that's the £6000-ish you can earn before paying tax)

If the gross wage was £400 then the take home pay should be £320.

chesky369

a) is your best bet - you will obviously have to pay tax on your additional earnings but it will only be like an increase of salary, you won't pay at a higher rate.
b) doubt very much if your bank will sort out your problems
c) what makes you think you deserve a raise in salary - have you contributed so much to the company that they will agree? I'm surprised you're not still within a probationary period and could be let go easily. Might make your boss think twice about keeping you.

2cool4school

Thanks,

Point C is definitely out of the question. Won't be doing that as I am still in my probationary period.

I think a second job will be the only answer if I can clear £320 after tax i'll be sorted.

Goodbye weekends Time to man up and face the situation. Wish me luck