New debt free wannabe

Rav3n

Hello everyone,

I've been visiting MSE for a while now but I've never really posted on the forum before.

So a little introduction; I'm 21, I work in Marketing and I live with my father.

I started racking up one of my credit cards. One of the most expensive things I put on there was my car (I paid cash for some, and part-ex d my old one so some of it went on the card) I'm not even sure what the rest of it is, probably just random junk I didn't need. I transferred the balance to an interest free card. That was about £1800 and I paid it off and got to about £1300 pretty quickly. Somehow I ended up spending about £500 on my other credit card, so I transfered that to my interest free card and it's back at £1800 now.

My bank recently started doing an 18 month interest free card and I applied for it with the intention of using it for car insurance when it was due (I recently saw I was paying nearly 30% interest on my insurance!) Due to some much needed car repairs, I now have nearly £300 on that one.

I've cut up two credit cards, I'm now only left with my 18 month interest free card. I was thinking of cutting that one up and just getting a replacement when it was time to use it later in the year, but I can't seem to bring myself to cut my last card up!

I'm now determined to get rid of this debt and soon! My father will soon be moving in with his fianc!e and I will be left paying rent and other bills on the house and I'd rather not have this debt.

I know it's all interest free (at the moment) and my level of debt is not bad compared to some. I work at a debt management company so I know this is nothing, but I hate owing this debt. It feels like a black cloud over me.

I took the job I'm at now earning only 12K a year which was a fair bit less then I used to earn, but I recently got a raise to 14K. I should see that in my pay check tomorrow. I'm also told I will get a rise to 15k in January.

I've also sent off some old mobile phones sell, and I'm in the process of moving my bank account to Halifax who will give me £100 just for switching. Not a bad idea, especially after this RBS/Natwest fiasco.

Well, thank you for listening to me babble on. I'll be documenting my progress on here in the hopes that it will encourage me not to spend anymore.

Peace

Rav3n

reallyAnnoyed_2

Hi Raven.

hmm so you already have debts and in near future will also have house rent to worry about?

You did the right thing by taking the 1st step. I suggest you post your SOA here, so members can point to areas you can concentrate to make some savings.

Best of luck.

HeadAboveWater

Well done on your first step!

You're young to be having debts already BUT I can relate completely! I did exactly the same thing. I had good intentions but they never worked out!

Best thing you can do is chop up your cards so avoid the temptation of using them again. And post your SOA so we can have a look

Good luck

amyloofoo

Congratulations on taking hold of your finances. I agree that it might be a good idea to post a SOA so other members can help with future budgeting. I know it must seem a bit daunting right now, but you're doing the right thing in tackling your debts before they become completely unmanageable. There's a few good threads on here that might be able to help / support you in saving, reducing your debts and upping your income. Good luck :j

fantastiyk

Good for you. Taking charge of it all now will give you a good financial foundation for the rest of your life, and you'll gain valuable budgeting skills along the way.

foxgloves

You're starting this young enough to be able to get on top of it before it becomes a long standing problem. Those credit cards will have taught you a valuable lesson (one that I didn't really learn until I was way older than you)......that when you spend on a credit card or overdraft or loan, basically, it doesn't matter how cleverly the banks promote these as helpful 'services', you are spending someone else's money, not your own, so the time will come when it has to be paid back. By the time people realise that, it's often too late, as they've spent the intervening years spending on more cards, more loans, etc. Although I was lucky enough always to be in work, I spent most of my 20s & 30s putting my card into cashpoints & HOPING I'd be able to get some money out & standing in queues to pay for my shopping with fingers crossed that my cards wouldn't be refused. We becamse debt-free last year, but how I wish I'd done it 20 years earlier, so it's well done from me for deciding to tackle it at age 21. An SOA might be helpful, as it sounds like you will soon be responsible for running the household & you may be able to reduce your bills. Good luck with it all.

glasgowsaver2011

Do not cut your cards up.

Contact the card issuers and close your accounts that way you cannot use them again.

you just still keep making the minimum payments (or more) every month

Rav3n

Thanks for the support everyone, I will post my SOA soon. I really need to monitor how much I spend as I haven't been keeping track of certain things; like how much I spend on petrol for example.

mum2one

1st thing Id suggest is get a old notebook and use it as a spending diary, everything goesin whether its 50p for a packet of chewing gum or £50 for pertol, that do 2things, have your figures ready for an SOA, and also your be able to have a rough idea of where the money is slipping hrough. xx

princess_pea

That's great advice from Mum2one. I have a notebook that I write my monthly budget in - all incomes and outgoings - so I know what I have'spare' every month. I then make a note of EVERYTHING I spend, so I don't go overdrawn. I'd panic if I didn't know how much was in my account! Anything left over goes on reducing my debt. Give it a try!

Rav3n

I know how you feel princess_pea. Luckily I can check my bank balance on my phone; I don't know what I'd so without it!

Thanks for the advice mum2one, I'll be sure to invest in a notebook.