Recent graduate, no 'real job', how to budget as well as become debt free?

lemonlemon_2

Basically I need serious advice on how to build my way out of my debt on such low earnings. I will start by briefly going over the debt I am in and my mandatory monthly outgoings.

I owe £500 on my capital one credit card, (extremely high interest rate and have been stuck on the minimum payment option for ages now).

I owe £350 on my natwest student credit card, (again high interest rate and minimum payment my only option).

£2000 natwest graduate account overdraft, of which I will be charged interest on as of next month.

Mandatory monthly outgoings are £31.45 phone bill, (Renewed the contract in my positive about the future just before graduating days, otherwise would have cancelled it, but contract is 24 months and ends in 2014), credit card payments which total about £30 a month also, and unavoidable train fares to and from work which range from a minimum of £60, to £110 a month.

I graduated in July 2011, in which time I have worked as a street fundraiser, (was not very good so only had the jobs for a few months), and now I work part time as a barmaid. In between being a fundraiser and a barmaid I was unemployed for 4 months, and it was during that time that I got so far into my debts, as I had rent and bills to pay. (I stayed in London at that point in hopes I'd have a higher chance of being hired somewhere).
I have moved back in with my mum since working part time as i had no more available debt and not enough earnings to pay rent etc. I am now constantly living at the end of my £2000 OD, and can see no hope of having freedom or being financially secure.

I earn about £350 a month, and am currently looking for a second job. If I find more employment I think I will be more comfortable and able to get closer out of debt. But my question is, if I don't find a second job for another 2 months or so, or even a year, how do I sort my debt out?

Which debts should I prioritise? Is the credit card debt better to get rid of first, before the overdraft, or vice versa? How on earth can I budget when my mandatory outgoings equal about half my income?

Thankyou for helping

P.S. I'm not a lazy !!!! graduate not bothering. I used to find it very easy to get a job, and all of a sudden it became impossible. Please no judgemental comments because I know how it seems, but I do have life and career goals

Bogof_Babe

I don't usually post on this board as I'm not knowledgeable enough to be much help, but I just wondered if there is any chance your mum (or dad?) could bail you out on a loan basis, so that you could pay off your debts in a lump sum and then repay the parent at a more manageable rate?

Obviously not applicable if your parents are hard up themselves, but sometimes parents put money away so that they can help their child/ren with a start in adult life. Does your mum know your situation? Do you pay her board? Maybe that could be negotiable on the understanding that you would pay her back when your finances improve.

lemonlemon_2

Bogof_Babe wrote: »

I don't usually post on this board as I'm not knowledgeable enough to be much help, but I just wondered if there is any chance your mum (or dad?) could bail you out on a loan basis, so that you could pay off your debts in a lump sum and then repay the parent at a more manageable rate?

Obviously not applicable if your parents are hard up themselves, but sometimes parents put money away so that they can help their child/ren with a start in adult life. Does your mum know your situation? Do you pay her board? Maybe that could be negotiable on the understanding that you would pay her back when your finances improve.

Unfortunately my parent isn't in a position to help me. She has kindly agreed to let me stay with her rent free as long as I cook, clean, etc etc when I am here. I lived independently for 5 years so my mum knows I am in trouble now I am having to stay with her

Sharon87

Calculate your monthly income and outgoings. Any spare money pay off the debt accruing the highest interest. If you don't know the interest rates, find out.

So if your income is £350 (what you recieve once you've paid any tax/NI) and your maximum travel is £110, phone, £31.45 and debt payments £30 that leaves about £178 left, where does this go? I assume some food and entertainment. Put as much as you can towards one of the credit cards, pay that off, and then start on the next one.

Also you could earn a little money by doing online surveys like newvistalive.com, although it takes a while to build money up, and they pay once you've reached 50 pound. Do you have any possessions to sell at a car boot on on ebay? If so hop over to the ebay board for some advice about pricing and postage.

Marteebies

Very good advice above by Sharon!

When I was experiencing problems with debt I looked for temporary jobs at the weekend on websites like reed.co.uk etc where you don't need any particular skills and get paid cash in hand.

I also attended car boot sales on a sunday to get rid off old junk

I purchased some items which I new a lot about and then sold them for a profit on ebay

Again as mentioned above I would advice you join a couple of survey websites; you could do the surveys on your phone during your daily commute!

The websites I would recommend are; mysurvey, panelopinion, valuedopinions, toluna, yougov, surveyfriends, pinecone etc

Good Thread here for more - https://forums.moneysavingexpert.com/discussion/3034918

I wish you the best of luck, I'm sure things will get better

zerog

Maybe see if you can get an interest-free graduate overdraft from Lloyds/HSBC, which can last for up to 3 years after you graduate

Wywth

lemonlemon wrote: »

I earn about £350 a month, and am currently looking for a second job. If I find more employment I think I will be more comfortable and able to get closer out of debt. But my question is, if I don't find a second job for another 2 months or so, or even a year, how do I sort my debt out?

Realistically, you haven't a hope in hell unless you somehow manage to get your outgoings to be less than your income.

That either means increasing your income, or reducing your outgoings if you want any chance of paying off the debt you have accrued.

Wywth

lemonlemon wrote: »

...train fares to and from work which range from a minimum of £60, to £110 a month.

now I work part time as a barmaid. ....

I earn about £350 a month,..

I don't think paying a grand a year (about 1/3 of your total earnings) in train fares just to be a barmaid is really sensible, do you?

Try asking at the local bars and clubs for bar work instead.

MrChandlerBing

Just keep paying the minimum until you get a better job. You aren't really in a position to do anything right now imo

lemonlemon_2

Wywth wrote: »

I don't think paying a grand a year (about 1/3 of your total earnings) in train fares just to be a barmaid is really sensible, do you?

Try asking at the local bars and clubs for bar work instead.

I got this barmaid job out of 1000s of CVs, and 300 other applicants and interviewees, and my manager told me before I got my trial how many other people she had to trial and to not get my hopes up so to speak as the competition was stiff. The reason this job is 'sensible' is because it's stable and they actually hired me!!! THIS is the kind of competition people have to battle even to get a simple bar job in a small pub. It used to be easy to get hired, but it doesn't feel easy anymore. I cannot for the life of me find any that are hiring near by.

opinions4u

Posts 4 and 5 are excellent.

I do find it odd that you choose to pay more for your phone than your debt. Sim only deals at £7.50 a month may be the way forwards.