Not sure how I can reduce my debts as I can't reduce my outgoings!

alibob_1986

*deep breath* OK, not really sure what I am expecting from this but here goes!
Ok. I am in debt, not hugely but far more than I would like to be! I have a 3 grand bank loan which I only make the minimum [payments on a month as they are 84 punds and I literally can barely afford that let alone adding on to it. I am a student who is just going to uni in Oct after going to college for a year. I also have a loan through the jobcentre which is paid off monthly by reducing my fortnightly benefit. I can't change gas/elec suppliers as I also owe them around £500. I can't get out of my mobile contract as I still have a year left on it and you have to pay to get out (as far as I am aware). My car insurance shot up this year as I split up with my boyfriend and moved into a dodgier area (250 to 700!!! OUCH!!!) and I am already on the cheapest insurance I could get. Annnnd lastly, I took out the whole kit and caboodle of virgin media cable while I was working and then lost my job, but I haven't been with them long enough to step down my services either! Sooo.....I really don't know what to do. I want to get out of debt but I don't even know where to start. I already cut my grocery budget by switching everything to value ranges but it doesn't make much difference. I just did the budget thing on this site and am overspending by at least 100 a month but I don't buy frivolously. I never buy clothes or magazines for myself or my daughter, we never spend money eating out or any of those other things. I need to quit smoking without a doubt but that doesn't cost me much as my mother usually buys them anyway so whilst I do smoke I only spend about 20 a month on that. I am still going to quit though! I live my life like a practical hermit as it is, I don't see where I can save money.
Like I said, I'm not really sure what I am expecting by posting this, just I guess wondering if anyone knows any way I can change my suppliers without having to pay off all the bills at once or any other super tips and hints that may help?! Anything would be appreciated. Also this is the first time I have ever admitted how much debt i am in, my mum knows I owe money but she doesn't realise how much and who to I don't think. It's quite a relief to finally acknowledge it all actually even if it does make me despair

dancingfairy

Do you mean you are overspending by 100 before debt repayments or including debt repayments?
If it's including debt repayments then unless you can get some extra income in by finding a job (easier said than done I appreciate) then you will probably have to try and come to some sort of arrangement with your creditors -o.k it's not ideal and it will further damage your credit rating (I suspect it's probably not great at the moment) but that has to be preferable than getting further and further into debt each month. You might also want to consider something like a DRO which is a mini-bankruptcy if you are eligible.
Have you had a word with CCCS or National Debtline or your local CAB?
Do you think you will be able to manage financially at uni - have you checked what student loans and grants etc you will be entitled to? I don't know whether you will be a lot better off once you get to uni and get the student overdraft and loans,grants etc - it may just be a case of hanging on until then- I don't know?
Best of Luck
df

topcat9

Hi alibob,

Re. Virgin Media. If you call them and explain that you are in financial difficulties, it is quite possible that they will come up with some kind of arrangement to help you even if you are still within the agreement period. Only one of your debts I know, but every little helps!

alibob_1986

I think it may just be a case of hanging on df....my loans and grants for uni will be giving me an extra 2500 a year which although mostly more flipping loans it will ease the spending. I think I am just finally realising that I really can't keep spending. I meant with all my outgoings, loan repayments home bills groceries etc etc i am overspending by about 100 a month. Thanks topcat I will try calling again although last time they were very unhelpful!!! ALways worth a go. I got the tv services in my bedroom at xmas and think i have watched tv in my room about 6 times since, what a waste of money!

CH27

Could you sell your car?

alibob_1986

Not really. From October I will be commuting to uni so it's not an option. Something I have considered many times but not doable unfortunately. Plus I had a bit of an altercation with a post in a car park so it's a bit mashed up and it's an old one anyway so not worth selling tbh!

Pinksparkles26

If your mobile contract is a 24 month contract and you are halfway through it they will let you lower your tariff down by one. This will only be £5 but its a start. Believe me been there and done it! We all have so don't feel guilty or beat yourself up about it, we're all here to help and support each other

alibob_1986

well I looked on their website and I am currently payin 34 a month but my tariff is advertised as 37?! so the next one down is 32....I almost clicked on it but won't that sign me up for another 24 months? I would rather keep it for another year if I am only saving 2 a month and then I can move onto a completely different cheaper one.

Pinksparkles26

Alibob ring them up and explain your situation. They can do much more over the phone and most of the networks will treat you as an individual customer rather then a website which has generic answers. Many networks do things called best plan also where they assess how you have been using your tariff and it automatically creates a better tariff for you if your not using what you currently pay for. There is no guarantee but its all worth a try. Orange i always found fantastic and allowed me on many occasion to cancel my dd and ring up and pay at the end of the month when i had been paid using my debit card.

alibob_1986

done thats 8 quid cheaper a month. every penny counts and all that thanks!

alibob_1986

Wow what a productive half hour that was!!! Gone down a tariff on my mobils saving myself 8 quid a month, turned off my extra virgin box which I never watch saving 6.50 and discovered I am paying for life insurance through my car insurance costing me 12 quid. So in half an hour I have lopped 26.50 a month Now I am smiling