Any Advice Apreciated

myteeduck

Hi

Im hoping someone can help me.

I have an outstanding debt of approximately £444 which is on an interest free credit card.

I purchased an Apple Macbook and took out the classes to use it and extra insurance back in June last year when I had money. Im currently paying the minimum payment and throwing extra money at it.

In January, my parents bought a house for me to live in, which I pay the mortgage and all of the bills. (I live alone).

As I had this debt before I moved in, I explained to my parents I didnt want to move until it was clear, but the house came up, they loved it and told me that they were buying it before they lost it. They were aware of the situation before offers, completion and knew my fears but said it would be ok and they would help me as it was too nice a flat to lose. They help by buying most of my food, but this only works out at about £15 a week as they buy from Aldi (which I love and will continue to buy from).

Currently I have about £150 spare each month which, if you can work out, is what I need to spend most of this on the card in order to clear it in time to keep it interest free. The remainder of the money goes on birthday presents, hamster stuff (about £5) and savings, plus just had my best friend get married (I was a bridesmaid) so had to buy some stuff for that.

However as Im using my last remaining £100 on the credit card, I have nothing left. However I'm only 26, living alone, so my social life is what has had to give, in order to pay the debt.

I sit in the house every night alone, and on the odd occasions have some friends round which is good as I dont need to spend anything.

What i'm really asking is how do people make extra money? I dont want to carry on the way im living for the next 4-5 months. I also want to regain control of my food shopping as my parents are currently subsidising me as they know about my situation, but even they have now been hit by changes to pay etc so can't continue for much longer.

If anyone has any advice, I would be extremely grateful.

Thanks in Advance
Myteeduck

PS - my signature needs updating - I no longer have anything in my pots - the £9.97 went on a wedding lunch last week which I couldn't back out of.

joedenise

Welcome to the boards. I think the first thing you need to do is post up an SOA (see sticky at top of thread - it's on the makesenseofcards website).

There may be other areas where you can cut down in order to free up some money to help pay off the cc quicker.

Also check out the Up your Income forum, there are ideas on there for getting more money. Other ways of making savings are seeing if you can win things you need/want, use money off coupons etc.

I'm sure others will be along shortly with more ideas.

Denise

Tixy

Hi

Agree with denise that its often easier to reduce some outgoings than to increase income - so either posting up s statement of affairs or taking a very careful look at all your outgoings is definitely the first step (eg have you checked all your utility bills/mobile/boardband etc are on the lowest tariff, are you claiming the 25% discount for council tax etc).

Next step can you increase your regular earned income - are you able to work more hours or do overtime at your current job? have you asked you employer?

Could you get a second job to fit around your main job? something that gets you out the house and earns you money - e.g. working in a bar can feel like a sort of socialising.

Anythings you could sell to raise some money? old clothes / old mobiles etc?

Aside from that try looking at the Up Your income Board, or the make £10 a day challenge has some ideas you could look at. *~*~* APRIL Make £10 a Day challenge! * All welcome*~*~*

glasgowsaver2011

Dont fret about paying the debt in the interest free period.

the interest will not be that much...

Spend a few months longer and live a bit

rugbychick81

Hi

I was in a similar situation not so long back. I worked in bars/local college to earn extra money. Eventually my earnings caught up with my outgoings and life is now much easier.

It can and, with the right attitude, will get easier. In 3 years time you will be steps ahead of your friends who will only just be getting on the property ladder.

Maybe start up a 'Come Dine with Me' series of dinner parties with your friends. At least you will still get a social life whilst everything else balances out.

Keep your chin up. It will get better!

myteeduck

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1047
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1047
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 236.4
Rent.................................... 350 (Paid to Parents as they pay mortgage)
Management charge (leasehold property).. 0
Council tax............................. 56 (includes single person)
Electricity............................. 30 (not estimated - said was correct at last check)
Gas..................................... 40 (as above)
Oil..................................... 0
Water rates............................. 25.7 (on a metre, hoping for money back next year)
Telephone (land line)................... 13 (in a contract with broadband and tv)
Mobile phone............................ 25 (best plan from Orange said on best - can upgrade in july or ditch in September)
TV Licence.............................. 24 (only one more month then 12.12)
Satellite/Cable TV...................... 20 (with phone and broadband)
Internet Services....................... 5 (with tv and phone)
Groceries etc. ......................... 0 (not currently paying as mum is - see above posts)
Clothing................................ 0 (no money for clothes, havent had in a long time, make do and mend!)
Petrol/diesel........................... 80 (ive tried cutting down, but its one full tank and a top up)
Road tax................................ 10 (not currently paying as got the money for it - this will be for 2013)
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10 (not currently putting away, but need to)
Haircuts................................ 0 (neighbour does my hair for free)
Entertainment........................... 0
Holiday................................. 0 (not had one in 2 years, dont see myself having one for a few more)
Emergency fund.......................... 0
Total monthly expenses.................. 925.1

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 10000
Other assets............................ 0
Total Assets............................ 10000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 15000....(236.4)....0
Total secured & HP debts...... 15000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
tesco..........................444.......25........0
Total unsecured debts..........444.......25........-

Monthly Budget Summary
Total monthly income.................... 1,047
Expenses (including HP & secured debts). 925.1
Available for debt repayments........... 121.9
Monthly UNsecured debt repayments....... 25
Amount left after debt repayments....... 96.9
Personal Balance Sheet Summary
Total assets (things you own)........... 10,000
Total HP & Secured debt................. -15,000
Total Unsecured debt.................... -444
Net Assets.............................. -5,444
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

I tried swopping the car for a cheaper, but was told id be no better off as it wasn't worth what I owed. They said id have to wait 1 more year before i'd see a change in my payments.

Hope this helps
x

Tixy

How long is the tesco card on interest free for?
How much are you currently paying a month towards the debt? £100?

Do you know what APR the card goes to once the 0% period finishes?

How big is your property? if its more than 1 bedroom have you considered having looking for a lodger to help out with the costs?

Standingtall

If you get the chance try and get bar or nightclub work. Not only do you get paid but it can be a social life in itself. I know it probably is not as easy to get these jobs as when I was young but if you can then they are the perfect solution.

rising_from_the_ashes

Is the Council Tax over 12 months or 10?

If the latter, switch to over 12 months and that will be a bit less to pay (which could go towards the car expenses)

Do you / your DM&DF have buildings & contents insurance in place? If not, please get this sorted ASAP ....

I agree with StandingTall and Tixy - you either need to get a 2nd job or rent a room out (if available).

Unfortunately your rent & car payments are taking well over 1/2 your income and it's not feasible (long term) to sustain this & pay all your own bills without some extra income coming into the house.

myteeduck

Hi all,

Thank you for you replies so far.
The council tax is spread over 12 months, otherwise I worked it to be over £65 pm.
I have a one bedroom flat, so a lodger wont be of use unless they sleep in a cupboard!

As for buildings and contents, I forgot to say my £350 rent includes £25 charge to the council, to pay for maintenance of outside, gardens, drainage etc and the buildings insurance is part of this. I purchased my contents insurance outright when I moved in for £50 so only need look at this towards the end of the year, but I should be sorted by then.

The card is interest free until Im guessing September, and will be about 29% apr when the interest free finishes. (I dont have the details to hand).

I think im going to be forced to get a second job, luckily I live within walking distance of the local town centre so I have a chance of finding something.

Thank you for your help, but looks like if I cant find a second job at least I know i've only got to struggle for 4 more months!

Tixy

If its interest free until September and then 29%.

If you dropped your payments to £60 a month then by September you'd only have a balance of say £205 left, interest in the first month would be less than £5 and if you carried on paying off £60 a month then by the time it was fully paid you'd only be looking at around £10 interest in total.

So whilst it would be nice to clear it before the end of September if you can't find more income then you could still consider dropping the payment down a bit. If you were only paying £60 then that would mean you had a suplus of just over £60/month on top of the spending from the statement of affairs. Which would give you enough to pay towards your own food, or to have the odd treat.

If you want to check out how much interest you'll pay based on differently monthly repayments use the snowball calculator - http://www.whatsthecost.com/snowball.aspx