Money for nothing

millionaire_in_training

I added up my credit card debts last night and almost had a heart attack. I thought I owed about £8000 BUT it is actually over £11000. Have been hanging about here for ages and have really enjoyed the threads but New years resolution is definately to reduce this. I started a spending diary yesterday and categorised my spend into essential and non essential. Hmmmm!!!!!! £25.85 essential and £25.35 non-essential. Need more training methinks

newleaf

It's a shock when the penny finally drops isn't it? Never mind, if your lightbulb has come on you are on the way to becoming free of that millstone round your neck. A spending diary is a good plan. Also you will need a plan of attack re your credit cards, can you list them together with APRs and how much you owe to each? Then you can look at the snowball and work out the best way of dealing with them. Can you shift anything to a 0% deal?
I wish you luck, I have been plodding away since May and I aim to be debt free by next Christmas - it will be my present to myself!

Mrs_Sparkle

I remember that feeling well- when I first posted on here I was in a state of shock at the full extent of my debts. Good luck with the spending diary- it's definitely a good idea- and welcome to the board!

millionaire_in_training

I have changed the cards around already and have gone for low, life of balances as I am not organised enough to do the credit card tarting. I have also used the snowball and know how to go ahead with this. My worry now is that I also have a car loan of approx £7k and £21k secured loan. Should I be counting them as debts?? I know they are but I see them as essentials. Maybe I have only had a partial lightbulb moment so far because if I have to count them also then I am in £39k of debt !!!!!!!!!!!!!!!! OMG:eek:

seven-day-weekend

Sell the car and buy a cheaper one. Money saved.

in_my_wellies

All new cars get old very quickly

seven-day-weekend

We paid £6k for our Alhambra in 2002 - by far the most expensive car we have ever bought. However, we paid cash for it, so no loan to pay and it has got to last us until at least 2012, preferably longer!.

It's fine so far - one minor repair and otherwise just general maintenance. Flew through its last MOT!

The OP could buy a really good car for £1000 and have a few thou left to throw at debts.

oscar52

slightly off thread, but my current car cost me £50 (and the one before that cost me £60 - I sold it for £40) - it only really failed on emmissions, and we got that sorted - is going fine and gets me from a to b. Much rather have a third class drive, than a first class walk in the rain.

millionaire_in_training

oh no I love my car!!!!!!
Will think about this seriously though. Can you sell a car whilst on hire purchase??

oscar52

no - as far as i know - as it is on HP - its not legally yours until the last payment is made - if its not yours, it cannot be legally sold.

but i stand to be corrected.:D

seven-day-weekend

I don't know if you can sell a car while it's on hp. Someone will come along soon who does know.

However much you love your car, you can't really afford to have the loan at the moment, so if you can get rid of it, do so. It is only four wheels.