Demotivation, tight month, then a massive bill / payment :(

learning_to_drive

Posted a topic about budgeting in the past, hopefully this is the proper start now of what is to come!

Hi guys, my fiscal situation is one of sorrow really, not anywhere near as bad as some with dependents for example, but I am getting to the end of my tether with my situation at the minute.

After this month being another tight month (allowing myself only one night out) and budgeting for everything, paying for everything in cash etc. I am currently sat at £-200 for the month (limit is £500) in the spirit of taking one step at a time I aimed to pull back from the £-500 limit and just keep pulling it back until the holy month where I wouldn't even go into my overdraft.

Admittedly a lot of my problems stem from me earning a lot of money (well a decent wage for someone of 19) and spending stupidly. Getting mobile contracts (x2), Laptop, nights out and other things going further and further into the overdraft. Additionally my 2nd holiday to Magaluf in July where I couldn't overly afford to go, but committed to it way before I realised this, then left after 3 days due to a mixture of missing my girlfriend and being skint. I want to get more money in my pocket, and get to grips with the debt!!!

Then I passed my test and secured a car on finance, a Corsa, easily affordable because I was on £15,500k for trainee manager, however, it all went a bit wrong. I became depressed, ill with stress and anxiety and then went onto anti depressants (I'm only 20).

So had to step down from management as it was seriously affecting my health, worrying times, so then went back to my previous store but was effectively forced to step down to normal shelf filler level (from £6.15 as a s/visor) to £5.55 an hour, and only 24 hours a week. Admittedly I have done more 32, 38, 39, and 28 this week so my pay will be diminished by not that much in theory.

However, once that happened, I dealt out of Corsa and got a Ford Ka (£140 a month) and £120 insurance, which is a frightening sum of money per month. Maybe thinking about a loan to cover all my debts just so I have to pay one sum a month to clear that.

Happily, my car came to fruition (Im literally 2 mins away from work, promotion I was 13 miles each way) and I now have a job working for First Direct :j

£13,800 a year, changes after training and sign off etc, so that's a huge weight off my mind, so I have more money.

My major issue is my motivation, I'm motivated, I love posting and reading on here, it's just that when I do really well, be it earning tonnes more cash (worked my 6th day at another store for 1.5 overtime) or having a tight tight month, I have a large bill to pay, (higher mobile for example) or first car payment comes along (cant change to payday because need 3 days notice).

It's a mixture of me being naive, poor financial management, and a lot of things really.

Any help, advice, and other posts will be welcome, I don't need anyone questioning why I did this that or the other, I know I'm in a bit of a pickle, I've admitted my errors, I need help sorting them out!! :rotfl:

Gemmzie

First thing I'd advise is a good SOA - see the sticky at the top of the board.

Budget per week or per month and stick to it.

How much do you need the car? It seems like an awfully large amount of money. How long have you been driving? Do you have any NCD?

Also, I'm about your age and I can relate to how you feel. I left a well paid job due to poor health also, and there are ways to improve things Don't give up! We are are only young.

PigginSkint

Hello there! Firstly here's a hug because I think you need it! :grouphug: You've done the right thing coming on here - you'll get loads of help! And more importantly it will make you feel better! I know it has made me feel better.

Anyway, down to the practical stuff. There are loads of small differences you can make that together will make a big difference. It would help if you can post your SOA then others will have more of an idea exactly where you can save money. If you do that I can trawl my memory banks and give you what advice I can - such as it is!

Keep your chin up - it will get better!

learning_to_drive

I have posted before, but I'm getting tired of doing so much, then only for a big bill or in this case the car payment not being able to be changed for payday, so leaving me potentially maxing out my overdraft.

SOA (think this is right)

Current Accounts

First Direct - £500 limit - Currently £-250 - Usually maxed O/D

HSB - £100 limit - Currently £-93 - Has been for a while....

CREDIT CARDS:

Mint - £920 - 15.9% APR - £50 a month till end of balance

HP AGREEMENTS

Black Horse - £4495 - 20% APR :mad:- £140 a month

HFC - £549.00 - 29.9% APR - £33.95 a month

MOBILE PHONES

Orange - £35 a month basic - Contract til July '07 - £50 with bundles etc

Carphone Warehouse - £35 a month - Contract till Jan '07

INTERNET

Blueyonder - £25 a month - Very happy with speed, no issues,

Sports Insurance

CICA - £10 a month - Not overly sure what benefits I get, to be fair, probably will cancel!

CAR INSURANCE

Tesco - £112 a month - 3rd party, first year insurance

OTHERS

Father's Credit Card - £400 - 9.9% with Natwest - Deposit for Car Insurance - Pay Minimum payment or more where possible.

Argos - £70 - Steering Lock - £10 a month

Next Catalogue - £60.88 - £20 a month till end of balance

Board - £50 (month) - Disgrace really, should be paying more, want to but can't because of the other debts.

Football Subs - £2 a week - £8 a month

Ebay - Fees - As and when -


Those are the basic outgoings, my mobiles upset me greatly, I have a deal with 02 (free PAYG sims) if I topped up £30 a month, I'd get a 1000 free messages, could use the £30 on calls and have done with that. Thoughts?

My credit rating is ok, have tried in the past for credit cards at 0% and failed so unsure whether I will be able to now.

I need help with budgeting, priorities, is it worth getting a loan so that I can pay off the car?

Obviously petrol is in there too, but it's not on my direct debit lists, should it be?

richardvc

Come on fella, pick yourself up.

You have been brave enough to post everything on here for the wolves to come and pick you to pieces !!! If that isn't motivation enough I don't know what is !!

No real advice but a sincere 'good luck' call - you've done the hard bit, now sit back and wait for the experts to come along and help you sort it all out.

We are all in the same boat and need to encourage eachother.

learning_to_drive

Thanks, I know, I'm not down (I've been there, its scary, anxiety) I believe that that low time with work and everything has made me stronger.

I want to get myself better, I just need a proper plan to follow, I'm tired of seeing all my hard work go with a big payment, big bill or something else undoing all my hard graft.

My new job will make things easier, before at Sainsburys, I have been paid every 4 fridays, so it's hard to budget.

With First Direct, It's 20th of every month, or, if that's a weekend, it's the Friday before.

I intend to move all my direct debits to the 22nd of the month, so that they all come out of my account at the same time.

Imelda

hi learning to drive,

Have you worked out what you will be bringing in monthly? Take a look at the website: http://www.listentotaxman.com/index.php?calc=1&year=2004&isstudent=1&age=0&add=0&taxcode=465L&period=1&ingr=33250&Submit=Calculate
(sorry not good at putting in links)
And then make a list of all your essential outgoings, then from whatever is left, give yourself a certain amount of "you money".
You have 2 bank accounts, I do too, I use one for all my bills, I transfer enough into there to cover them so I know how much I have left over to spend/ save/ put towards debt repayment, it doesn't matter then when in the month they go out as I have covered them from pay day.
The mobiles, are these on the lowest tariffs? Have you contacted the network to see if they will lower it/ offer you a deal? PAYG is a good idea as you will only be able to spend what you can afford.
There are always problems when changing over jobs, different pay days etc, do you know when your first pay day from FD will be? Could you keep working a few shifts at Sainsbury's? It would help a lot to make a dent in your debt.
I have added your debt up to £6,837.88 and that is assuming that you do not go even more overdrawn.
Sorry, my reply isn't very coherent, at work and people keep interrupting me!
I will keep an eye on this thread though....

Gemmzie

A full SOA should have everything. So yes, petrol, car tax, insurance etc. Plus all of your incomings each month - so you can see the difference be it plus or minus

Also noticed that you are missing a landline - as you have the internet, you must be paying for line rental also?

Why two mobiles?

angelavdavis

Hiya! Welcome!!

I can tell from your posting that you are feeling low, but things are impossible to turn around. You are working and so have the ability to pay the debts off.

My Comments Below

learning_to_drive wrote:

SOA (think this is right)

Current Accounts

First Direct - £500 limit - Currently £-250 - Usually maxed O/D

HSB - £100 limit - Currently £-93 - Has been for a while....

CREDIT CARDS:

Mint - £920 - 15.9% APR - £50 a month till end of balance >>Have you cut this card up? Keep the bits as you might need to refer to the card information at a later date, but cut it up to stop you using it!

HP AGREEMENTS >>Do the terms allow you to overpay these at all??

Black Horse - £4495 - 20% APR :mad:- £140 a month >>See below

HFC - £549.00 - 29.9% APR - £33.95 a month >>Any chance of phoning them, explaining that due to ill-health you have had to take a pay cut and seeing if they will lower the interest rate? At worst, they can say no.

MOBILE PHONES

Orange - £35 a month basic - Contract til July '07 - £50 with bundles etc

Carphone Warehouse - £35 a month - Contract till Jan '07

>>I didn't understand about the mobiles - why do you have two? Can't you see if you can lower the Carphone Warehouse tariff for the interim? If not, is there a trustful friend or family member who might be able to take on the phone and contract in the short term? (someone who will pay the bill!!!!) Do you still have the other handset? You might be able to sell this on eBay or using mobipay. Put the income toward the HP payments or the Mint card!

INTERNET

Blueyonder - £25 a month - Very happy with speed, no issues, >>You can shop around and switch and only pay £15 per month - I am with Nildram - 8Mb, never have any problems and only pay that! There are plenty of much cheaper providers out there!!!!

Sports Insurance

CICA - £10 a month - Not overly sure what benefits I get, to be fair, probably will cancel! >>You are paid sick leave at work aren't you?

CAR INSURANCE

Tesco - £112 a month - 3rd party, first year insurance

OTHERS

Father's Credit Card - £400 - 9.9% with Natwest - Deposit for Car Insurance - Pay Minimum payment or more where possible. >>Although pretty low, Could Dad see if he can move this onto a 0% to lessen the impact even more?

Argos - £70 - Steering Lock - £10 a month >>see below

Next Catalogue - £60.88 - £20 a month till end of balance >>Is this interest free or is interest chargeable? If interest here is higher than Argos, pay this one off first with the £20 you save from switching internet provider and cancelling sports insurance, either way, concentrate on Argos and Next and clear these as they are piddly and it will motivate you paying these off. Then use the £20 per month to pay off extra on the HP loans.

Board - £50 (month) - Disgrace really, should be paying more, want to but can't because of the other debts. >>Absolutely, but that is what parents are for, and you have the rest of your life to make it up to them, so concentrate on the debtors first!!!

Football Subs - £2 a week - £8 a month

Ebay - Fees - As and when - >>What do you do with Income?? This should be paying off your HP loan, Mint card and then Dad's card (as HP is a higher interest rate). Anything else to sell?? You need to be strict with yourself and not squander any income from eBay.

Those are the basic outgoings, my mobiles upset me greatly, I have a deal with 02 (free PAYG sims) if I topped up £30 a month, I'd get a 1000 free messages, could use the £30 on calls and have done with that. Thoughts?

My credit rating is ok, have tried in the past for credit cards at 0% and failed so unsure whether I will be able to now. >>I don't think they like giving 0% CCs to under 20 year olds. If you have been refused, you will have to find another way.

I need help with budgeting, priorities, is it worth getting a loan so that I can pay off the car?
>>Do you take sandwiches into work? I found I saved loads every month by making my own lunch instead of spending in the canteen or shops.

Obviously petrol is in there too, but it's not on my direct debit lists, should it be?

>>How much do you spend on petrol/going out?

>>What is your monthly income?

Welshlassie

Hi and well done for posting first step to getting yourself sorted.
How much do you actually bring home each month?? Will need to know this in order to find out how much you have left to throw at your debts.
Do you have any savings (I know this might me a silly question but have to ask)
Did you shop around for your car insurance when you looked for it because that is absolutely huge amount to be paying.

Have a look at the snowball calculator (from a link at the top of the first page) plugging all your debts into it, it will show you when you will be debt free it you continue the way you are at the moment and what order to pay everything of in.
You are able to get Broadband soooo much cheaper have look at Martins article, you may not have any issues, but spending out more than you need to is meaning you are paying more interest than you need to and taking you longer to get out of debt.
Mobile phones - get rid of one of them and reduce your package down as low as you can go, even go PAYG if you can, you don't really need all the bundles.
You will also need to account for your petrol, clothes, birthday, christmas etc this is why the bills are stumping you when they arrive, becuase you haven;t budgeted for them - you need to.

climbgirl

In terms of the mobiles - get rid of the bundles on the Orange contract immediately! You don't need WAP, pxts, whatever else they're trying to sell. I'm with Orange and they can be quite sneaky about adding in bundles. Call them up now and get rid of them! You quite simply can't affford them.

As soon as the first contract finishes, cancel it. Running two mobiles is absurd, it really is. Get yourself on the lowest possible tariffs on both phones and stop using it as much! I know it's hard, my BF and I were sending ridiculous amounts of texts each day (we don't live in the same city) but it was costing a fortune. So we've restricted ourselves to 3 a day and that's working nicely :rotfl:

Not easy, but it can be done!