Olivia's office...

cupcakeprincess

Well it isn't really an office...but hey!

I've been reading MSE forums for years but never really posted or knew the best way to get stuck in. I'm at a good point in life at the moment (I'll explain in a sec) and 2012 is fast approaching so I thought now would be the best time to get stuck in with MSE and make some new virtual friends that can positively help me along my way

I was at university for 2 years and decided that it really wasnt for me anymore so dropped out (even though I got lots of stick for it) I stayed at home unemployed for a few months and kind of felt saddened that this is what my life has amounted to..

I'm now up and running again :T I've got a job that I'm really enjoying and pays well...I've also decided to use my head and use my talent of nail art to make me some little money on the side.

I'm in lots of debt (well for a 21year old anyway) I haven't calculated what it all amounts to yet but I HAVE filed for a credit report - hopefully that will kick start me into sorting out my finances and clearing this big cloud of debt thats hanging above my head

I'm slowly but surely curbing my spending habits :cool: and managing my money much better knowing that I have a regular income and I've stopped spending like I'm gonna die tomorrow.

Thank you to all you MSE'ers that have contributed my new lease of life and new found motivation :money:

Itsadogslife_2

Welcome to your shiny new diary - I look forward to hearing about your journey.

cupcakeprincess

Hiii all!!

Finally managed to calculate my debts...the grand total is £4392.84 :eek: I don't even know where to start

Should I use a company like PayPlan to help me get all my debts under one roof? Or should I contact each of the debt collection companies and set up direct debits with them individually?

All advice welcome...:D

cupcakeprincess

So...I've done a few workings (not really, just written stuff down)

Weekly
Wages: £235
Rent: £0
Gas: £20
Electricity: £20
Bus Pass: £17.90
Laundry: £5
Cigarettes: £6.42

Monthly
Mobile Phone top-up: £15

I have lots of money left over each week because I live at home with my mum and she doesn't ask me for much (Just that I top up the gas card and electricity key)

I have £4392.84 worth of debts that I've racked up with 6 different companies (because I'm young and silly) I want to pay these all off as soon as just so I can stop living in fear of debt collectors

mustmakealist

Hi Olivia

As you live at home and don't have to cover rent, bills etc like a lot of people on here you might benefit from keeping a spending diary and jotting down what you do spend your money on. It might help you work out how much you spend on clothes, make up, going out etc. You might be able to set a budget then and only spend that much. The rest can go towards paying off your debts

There's a snowball calculator somewhere that will help you work out which credit cards to pay off.

Good luck

immoral_angeluk

Happy new diary!

In the grand scheme of things you're in a very good position. As said above keep a spending diary to look at ways you can cut back, but think of it this way, if you could save £94ish a week, you'd be debt free in 12 months. Do you know about the snowball calculator? Snowballing is an excellent way of getting your debts sorted but keeping the cost of interest down.
http://www.whatsthecost.com/snowball.aspx

Out of interest, what do your debts consist of? This could help us suggest strategies for how to deal with them

cupcakeprincess

Thank you!!

I will start keeping a spending diary from this Friday (9/12/11) Because that's payday and will make things much clearer for me.

Do you have any idea where I can get a good template letter that I can send to debt collectors in order for me to start paying them?

cupcakeprincess

Ooh thank you for the link Immoral Angel! I'll have a look at that so I can make a start on everything - debt free in 12months you say? :eek: I really will make a push to save £94 as suggested if it means I'll have all this off of my back come 2013

immoral_angeluk

cupcakeprincess wrote: »

Thank you!!

I will start keeping a spending diary from this Friday (9/12/11) Because that's payday and will make things much clearer for me.

Do you have any idea where I can get a good template letter that I can send to debt collectors in order for me to start paying them?

Definitely... here you go.

National Debtline's Mymoneysteps
https://www.mymoneysteps.org/public/Welcome.aspx?ReturnUrl=%2fDefault.aspx

National Debtline's template letters (section 5)
http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#6

immoral_angeluk

cupcakeprincess wrote: »

Ooh thank you for the link Immoral Angel! I'll have a look at that so I can make a start on everything - debt free in 12months you say? :eek: I really will make a push to save £94 as suggested if it means I'll have all this off of my back come 2013

If you can be creative and find more ways to cut back/make money then it could be even sooner. The key is keeping yourself motivated and set yourself little targets that are achievable.

Like...
Target 1: Pay £100 off x catalogue by x date..

Small realistic targets will keep you more motivated than big targets which take a while to achieve, as even little progress makes a big change

Have a look at the up your income board and Martin's money makeover guide too

cupcakeprincess

Thank you for those links to template letters (I just sneakily printed them off at work) I'll get to writing and posting them in the morning.

I think my realistic target will firstly to keep a spending diary for the next 30 days (and hopefully just fall into thehabit of watching my money better) - I know it doesnt sound big, but I'd rather take baby steps than try and leap into something and fail miserably

Do you think it's worth getting help from a company like CapQuest or PayPlan? I'd prefer if my debts were all wit one company so I can keep up with it all. If that isn't a good thing to do I'll pay all the debt collectors individually