Help! Newbie in panic state!!

Lucy1982_2

Hi

I have been reading the website for a few months and realised that I really need to do something about my debt and financial situation :T . I popped out of the office this lunchtime and bought Martin's diet book :j , I've only read a little bit but have asked my best friend to be my Money Buddy!

Here's brief outline of my incoming and outgoings:

Income:

Pay - £1044.58 (Monthly average average)

Outgoings:

Rent: £207.50
Contacts: £10.00
RAC: £12.92
Loan 1: £242.82 (I think the interest on this is 7.8% and runs until Sept 2010, I still have £8,763.75 to pay)
Loan 2: £101.85 (I think this is about 10% and has £941.33 remaining runs until March 08))
Car Insurance: £63.40
Mobile: £25.00
Phone Insurance: £5.99
Petrol: £80.00 (I don't normally go over this)
Bed Repayments: £23.00 (this is interest free and runs until March 08)
Living allowance: £80.00.

While this leaves me with money at the end of the month I owe about £500.00 on store cards, I think that the interest is about 29.9% on both and I am £500.00 overdrawn :eek:

I would really appreciate some help and advise, while rationally I know things aren't that bad, I am starting to panic about things. I still live at home so my household costs are not that bad. My large loan was taken out just after I had graduated so I got a special rate, I do have a student loan but that goes out before I get my payslip. I would also like to have some savings in case I have car problems. I currently bank with Lloyds and as a complete money saving novice I don't really know where to start. But I'm hoping this and buying the book is a good place.

But I am going to sort this out, so all advice would be welcome.

Thanks!

petetidball

What you've put down comes to about £850 outgoings, but what about car tax, utilities, council tax etc? you need to do a full SOA (may not be easy at work) to give us a fuller picture. details of how to do one are on the sticky at the top of the thread. its afor first timers and been done by southerscouser.

oh, and welcome!!

ifstar

Is there any way you can defer your student loan?
You probably can't this year as I am sure it's probably just started (or starting) but that would help if you can stop paying that just now as you could chuck the money at your store cards.

Is there any way you can get a 0% or lifetime balance credit card and get the things off the store cards as their interest rate is high. I would also say that if you do manage this then cut up the store cards and do not carry the credit card around with you, stick it in the bottom of a drawer, this way you won't be likely to use it.

How long before you car insurance is up, you can probably get that cheaper, the article in the money diet book is very good and will help you a lot in getting a better price. I knocked £120 off my renewal price from Tesco by doing a quick online price check with confused then phoning Tesco.

Do you need your phone insurance?

You could check out a snowball calculator (can't remember the link but someone will be able to post it up). This shows you which order you should chuck money at your debts to pay them off as quickly and efficiently as possible.

beanielou

Just wanted to say Hi & welcome to MSE
look forward to seeing your full SOA

ifstar

http://www.whatsthecost.co.uk/snowball.aspx
Snow ball calculator is there.

Lucy1982_2

Thanks for all of this.

My Car insurance is due for renewal on the 1st of June. As I am now over 24 it should go down from the quotes I've been looking at I would guess to around £45ish.

I don't really need the phone insurance and I'm going to check my paperwork to make sure there isn't a minimum term, if there is this runs out in August.

I can upgrade my bank account to include phone insurance and RAC cover for £15 a month, is this actually worth it or is it another way the bank has of getting my money?

By the sound of it my SoA may have to wait until this evening!

I think I'm on the right steps though, I've cancelled my internet provider and signed up for free sky broadband, so I guess it's all baby steps

yellowmonkey

Hi.

Just like to say welcome lucy1982.

This is the place to get advice and good luck.

YM

emmy2007

hi lucy

I'm in kinda the same boat as you. I owe about £10,000 and my takehome pay is £1150. a month. Couple of things you can do to save money is things like taking lunch to work and walking to the shops instead of taking the car. The other thing that is helping me was to get a second job, i do something called AQA which fits in around my other job and let's me make a little extra money. good luck

Em

Lucy1982_2

Hi Emmy2007

Glad to hear I'm not alone, I just find it really scary. I already bring my own lunch to work, I'm dieting so it helps that too!

Good luck to us, I'm sure we can do it. I've just looked at the snowballing website and I think I'll give it a go, hopefully I'd be able to get things paid off earlier than I thought! :T

CParsons

Hi Lucy,

Good luck with sorting stuff out - it seems uphill at first!

I am sure someone else will tell you this, and you probably already know - but be careful when to change car insurance. Some firms (even reputable ones) charge horrific rates of interest when you pay monthly. I helped my mum change car insurance this year, after I found out what The AA were charging in APR!! It would have been cheaper to put it on her most expensive credit card.

Some firms do it interest free (I think budget, from memory but it may have changed now).

Just a thought anyhows!

Craig.

Kaz2904

I'm guessing that you are 24/5 so how come your car insurance is so high? Can you make it cheaper?
You allow £80 a month for your living allowance. Why not try and go cold turkey for a couple of months and slash it? Do you go out much? You could try one night going out and just drinking soft drinks- if you go to a pub and drink blackcurrant and soda it's usually 30p! Tell your friends you're on antibiotics for "womens problems" and they won't query it!
You need to get rid of the £500 on the high APR cards. I worked out that if you take home 1000 monthly then you would be left with 164.44. If you want to clear those cards with this money it will be gone in 5 or 6 months I would reckon. You then concentrate on your next debt and pay your min payment on all others still and chuck your previous payment on to the debt. Like others have said definately go to https://www.whatsthecost.co.uk it will show you the best way to snowball.
Good luck!