Newbie Debt-Free Wannabe

SinSTAR360

Hi All,

I've been reading through a few threads on this forum this morning and everyone seems to be providing solid advise and being very helpful! It's warming to see!

Anyways, I'm 24 and have been struggling with debt since I started earning a wage at 19.

Currently I'm about £12,000 in debt, due to silly spending, living above my means and unforunate circumstances.

Debts:
Natwest OD £408.45 Vanquis CC £459.54 BarclayCard CC £1,426.21 Lloyds TSB
OD £1,688.91 HSBC CC £1,871.45 Virgin CC £2,526.07

I'm looking to pay off the credit cards and overdrafts (there is a loan in the list above, as well as a car loan which I haven't added as I'm simply not sure on what is left to pay).

I've also got myself in to a spot of bother with my current account; slipped into an unplanned overdraft and now facing the wrath of charges every month.

I went to my mum for advise, she has taken my debit cards off of me and given me cash allowances to teach me how to budget and only spend what I can afford (or less ).

So, finally on the road to recovery. Hopefully will save enough money this month to claw my way out of my unplanned overdraft and back into the black.

Thought I'd post my progress on here as everyone seems very nice and are offering very good advise!

Wishing you all the best,

SinSTAR

foxgloves

At least you are trying to change your behaviour while you are young. I also started spending beyond my means at age 19 & didn't become debt-free until I was in my early 40s. Since then, I've got my spending & my partner's under control & it feels way better than living how we used to. It's important to learn the difference between a 'want' & a 'need'......this doesn't have to mean never, ever having a treat. Also, the advice my Mum used to give me (that I always ignored!) "You can't spend what you haven't got" is true.......using credit cards, loans & overdrafts to have stuff you can't afford just comes back to haunt us in the end as debts rise & paying them off becomes more difficult. Learn how to budget. It's not silly, boring & old-fashioned.....well, OK, it is a bit boring, but it's the difference between being in control or getting saddled with the sort of unnecessary debt that can only hold you back in the end. Good luck with it. Also, if you've spent a lot of money, you may well have a lot of spare stuff around you could sell on ebay? This will give you some money for extra debt repayments.

pencakes26

Hi sinSTAR,

Just thought I'd drop by as we seem to be in a similar situation - Im 26 and about £12k of debt

The best bit of advice I got was to put all your debts into a snowball calculator - this works out which of your debts you should pay off first and help you save a load in interest.

The people on this site are really helpful and there are lots of hints & tips on how to budget. One of the best things I did was read people's posts about how they went from mountains of debt to being completely debt free in the space of a few years. Inspiring stuff and makes you realise that you can do it too.

Its good that you've got your mum's help, but try and sort your own budget out so you know exactly what's going on in your finances and you can learn long term money skills

Good luck!

Barbeduk

Wish someone had taken the cards off me! Now you just have cash to spend it might be worth keeping a spending diary so you can see where it all goes. Also, can you think of anywhere else you can cut back?

Good luck, much better to do it in your 20s than in your 40s like me!

SinSTAR360

Yeah I'm planning to start a spending diary, spent a little time this morning setting up the IXpensit App I bought from the Apple App store for my iPhone about a year ago while on a spending rampage (ironic?).

There's also ways I've seen to cut back on expenditure - I often buy food and drink at lunch time and on the weekends when out and about which I'll need to curb.

I've also switched from pre-made cigarettes to rolling my own which saves a fair bit - slowly cutting down on these as well and looking to have given up completely very soon which will save even more money.

I've also started to drive my car more economically too, keeping the revs low and braking sooner to keep the cost of petrol to a minimum.

I don't know if this has helped any one either, but a friend of mine suggested creating a new 'zero balance' on my bank account. This means keeping some money left over in my bank account at the end of the month, then when the next lot of wages go in, call that amount zero and not go below it?

pencakes26

Hi Sinstar, how you getting on?

SinSTAR360

Hi Pencakes,

Yes very well, thanks for asking! My mum has now given my debit card back to me, also my wages have gone in so my account is now no longer in an unplanned overdraft.

Being very careful with my spending! Worked out how much I have to get me through the month without delving back into the unplanned overdraft which will put my in really good standing to start paying off some of my debt next month!

Gigging at the weekend so will have to avoid temptation (used to buy cokes, shandy's etc to drink while on-stage - will be sticking to water this weekend!).

How are things with you?

SinSTAR

SinSTAR360

Well, we're in the last quarter of the month and I'm amazed that I still have money in my bank account (and not even overdrawn!).

I'm especially pleased as I started off this month with less than I have any other month that I can remember. It just shows what careful spending and watching the pennies can do!

I'm really happy and feeling very positive about my progress.

My goal now is to keep some money aside from what I have left this month, and carry it over to next month!

Little_Miss_Uni-Debt

Hey SinSTAR360,

Just wanted to say good luck on your journey!

I look forward to following your progress.

p.s get rid of that Vanq asap - their interest rate is pure evil

SinSTAR360

Little_Miss_Uni-Debt wrote: »

Hey SinSTAR360,

Just wanted to say good luck on your journey!

I look forward to following your progress.

p.s get rid of that Vanq asap - their interest rate is pure evil

Hi Little Miss,

Thanks! Yeah I'm planning on getting rid of that as soon as possible - I feel so stupid for opening a credit account with Vanquis but at the time I was on one of my spending sprees and it was the only card I could get with my credit rating!

I'm a reformed character now though, working very hard to cut my spending and clear this small hill of debt.

I've managed to get through this month on £120! At the start of the year I would never have ever managed this - I put a lot of it down to seeing people on this boards get by and pay their debts off with a lot less spare than I do!

This forum is definitely an inspiration - any body that I find having problems with debt in the future will be referred straight to MSE forums

Thanks,

SinSTAR

SinSTAR360

Managed to get £50 worth of bank charges refunded by HSBC - Planning on keeping this in my bank as a buffer in case of any errors or overspends (essential of course).

Really pleased with myself - I still have money towards the end of the month!