Debt free advise required!

poorbutrich

NFFC_2006 wrote:

Thanks David for the information. It's my birthday today and over the next 12 months I am going to try my hardest to try and halve the debt. QUOTE]

Happy birthday! Are you likely to get any money from friends and family, which you could then throw at the debts?

immoral_angeluk

Could you get any cheaper deals on your pet, house or car insurance? For example could you just get the basic level of pet cover for the time being?

Also do you really need your health insurance? Surely the NHS would do for the time being and cutting that out would save you £23 a month?

Sky you don't really need, if you cancel you can use your sky box as a freeview bow so you won't lose out completely. Pubs show big football matches and it wou;d help your social life too (As long as you don't go overboard on the beer!)

Mobile phone - Could you cut that down by dropping your tariff and just using it less?

Petrol - Could you use public transport to get to work, weekly passes tend to work out cheaper... and you don't have petrol, parking and wear and tear costs to worry about!

Also about the car, pick up a haynes manual and learn how to do basic things yourself that you'd normally take to a garage, such as oil changes..

immoral_angeluk

Oh and happy birthday!

david_hellier

Hi and Happy Birthday!

You asked about planning and budgeting. I find it easier to monitor spending weekly, even if paid monthly. The main problem is overspending. Even with computers and modern bank accounts, the only real way to do it is to work out a budget and stick to it. Allow yourself (and your partner) an equal fixed amount to spend each week. Do not be tempted to take all the money out at once, but write it down and subtract it as you spend it or withdraw it.

Stop using credit cards as they only have one function; to reduce your spending power. Far better to spend your money on your life than on feeding the banks with more easy money to lend to poor unsuspecting customers.

If you earn more then re-budget and try and pay off the most expensive loans first, saving you the most interest. Most of all, always talk to each other about money regularly. Sit down at a certain time each week to go through the budget together. Not talking about money will lead to problems later in a relationship.

Good luck!

anniestar

Happy birthday and welcome.