Graduate debt

Ingela

hi everyone, I'm new to posting but have been lurking for a while picking up everyone's good ideas!

I don't have a huge deal of debt compared to a lot of people, but to say i'm only 21, it feels like a lot! i finished uni last june, and currently have £2k overdraft, £1200 on a credit card (5.9% for the life of the balance) and approx £500 on a computer finance (0% until May, then ridiculous hike). In January i took an extreme step and moved in with my boyfriends parents. As such im paying just £40 a week rent and no bills with the exception of £40 a month on my contract phone (which i cant reduce until May).

Last month i paid £400 off my credit card and when i get paid on thurs, i intend on paying off approx £550.

I'm basically wondering if thats a reasonable amount to be aiming for every month, as at the minute i have minimal outgoings. I have two jobs and am currently earning approx £800 pm at one and roughly £400 pm at the other.

I don't drive and pay roughly £10 a week towards my boyfriends petrol.

So what do people think? should i be aiming for paying off more whilst im in such a cheap living situation?

thanks.

in_debt_again_but_dealing_with_it

Posting an soa is a good start then all the good people on here can offer their advice. It certainly seems a good time to repay as much as you can!

onedayiwill

So you're earning £1200 a month.
You're SOA consists of:

£160 pm rent
£40 pm mobile
£40 petrol

Total £240.
You intend to pay off £550 to your debt each month.
Total outgoing = £790...

So what are you going to do with the other £410 per month?

Obviously, you want to go out and have fun ,and buy some things ...
But £410 per month is a lot of pocket money!

If it were me.. I'd put a lot more towards my debt and get it out the way before my living expenses rise again in future!

CLAPTON

without seeing your detailed SOA its impossible to say but you have a wonderful opportunity to pay off the debt asap AND start some savings.
I'm sure you will want to move out with OH into a flat one day and being able to do it without debt will be a real help

Ingela

Monthly Incomings:

My salary – 1,200
(Can only be approx as I work in a pub so its dependent on what shifts I work)

Total - £1,200

Monthly Outgoings:

Mortgage/Rent - £180
Council Tax - £0 (OH parents pay)
Gas - Ditto
Electric - Ditto
TV License - Ditto
Sky Freeview
Phone - £40.00
Food - £100 (OH’s parents feed me most days, this is mainly lunch)
Car Insurance - £0
Petrol - £40
Life Insurance £0
Computer: £16.75

Total: £376.75

looking at it like this, it is difficult to see where my money is going!

onedayiwill

Two words - "Spending Diary"

CLAPTON

start a spending diary and write down everything you spend..maybe suggest your OH does this too..if you are both trying to pay off debt/start saving it will be much easier.

lunches at 100 is huge ..think food from home.

things maybe left out
socialising, haircuts, clothes, magazines/newpapers, girly make up type things, weekends away/holidays, xmas, presents

Idiophreak

I have similar income (a little more), am 24 and pay back around £700-900 per month. I drive, so have about £100 petrol/month and pay a litte more rent (200).

I generally, then, have around 100-200/month to spend.

And I'm not going to lie, it's not that much fun having no money ever.

Personally, I'd try and find a balance point where you can both pay as much debt as possible and enjoy life at the same time.

There's no point in saving for the future at the total expense of the present.

Ingela

Thanks guys, i dont really want to start taking lunches from home as then the OH's parents really would be paying for everything!
This month i would have been able to do more expect ive paid for take that tickets for me and the OH and a hotel in London. He's currently earning less than me so is going to pay me back slowly.
In answer to involving him in having a spending diary etc, i think this would infuriate me as he smokes and spends a fortune on this whilst i obviously have no bad habits!

CLAPTON

well... it an ideal time to address the smoking issue, its very expensive etc etc and the sooner he quits the better moneywise and health wise.

And a shared view on money is pretty essential to a successful long term relationship.. just read the stoies on this board about how hard it is if both people aren't committed to money saving in a similar way.

Jonesya

Ingela wrote: »

Thanks guys, i dont really want to start taking lunches from home as then the OH's parents really would be paying for everything!

Well you could go to the shops and buy the bits to make them or throw in some extra money toward the food shopping.

£100/month on lunches is over £1500 of gross income per year - that's a fortune!