Should i live like a monk for a bit to clear debt?

eggyf7

Hi

I am in about 4.5k worth of debt to 3 credit cards and my overdraft.

2 of the credit cards i have the interest frozen and 1 of them i have a set amount im paying for a year. The other card is my lowest amount of 750 but im getting hammered each month on interest and charges because i am over my credit limit. I know this has to be my priority with all spare cash needing to be put towards it.

I am also in debt to my sister to the tune of 8k but she has agreed she is bottom of the list and wants me to get rid of my CCs first.

Does it just take a few months of knuckling down - no nights out or treats? I also assume i shouldnt be trying to save up any money while in debt?

simeyb

Living like a monk for a while will certainly show you perhaps where you would agree you might have been wasting money in the past. We've all (well me certainly) been there and to think back (a year to go now on a 8 year DMP), what I used to buy that I didn't need or even really want, it was madness.

Hopefully after getting back on top of your finances, you will carry on living within your means as this should be your early wake-up call. I am sure others will post on here and if you want any detailed pointers, pop your SOA on here and people will be more than happy to share their experiences and advise on where you can make savings. Good luck!

elsien

I think you need the odd treat or night out to keep motivated - just make sure you find something cheap, have a budget and stick to it. So for me if I go to the cinema I go on Tuesdays when it's less than half price, taking the cheap drinks and choccy from poundland.
Trying to save money while in debt can be counterproductive if the interest on the debt is higher than the interest on the savings. However putting a bit aside for an emergency fund means that you don't hammer the credit cards if you do get an unexpected expense. You need to look at your individual circumstances to decide what is best for you.
Do you know why you've been overspending? Try doing an SOA for yourself even if you don't post it on here. If it looks like you should have more each month and you don't, you need to start working out where it's going.
That way when your debts are cleared you won't fall back into the old spending patterns.

spudsofa

I can testify that living like a monk will be good for you. Once you have the mindset and once you have cleared all your debt, you will find that you will continue to be frugal with your money.

I paid off 36k of debt in 4 years at almost 1k per money. I lived off £200 a month, food and board already paid for, you learn very quickly that going out is the fastest way to blow your budget. I cut out going out and developed hobbies which costed very little or no money. Reading, free online gaming and getting involved in online communities. You don't need to miss out on fun, just change how the term "fun" means to you.

W

quantic

We took this path, originally we set out to pay back insecure debt (2 cc's and an overdraft), ended up 18 months later both cars paid for, all insecure debt settled and 10k in a savings pot. Its not for everyone mind. You really got to have some serious discipline.

Other than the obvious financial benefits, it really does make you realise (after time) that most of the stuff you where wasting your money on doesn't make you any happier anyways.

NinjaSavingKat

Yes. Live like a monk. 4.5K is relatively low in MSE speak. Thank your lucky stars your sister is so nice. But why should she wait for £8k while you enjoy life? Cut back, and get down to debt busting!!!
Your in the right place, we all want you to succeed and I believe you will.

Good Luck!

DigForVictory

Remember, monks brewed their own beer.

All you are looking at is a bit of temporary relative poverty, without chastity or obedience required.

I'm certain you willl find a heavenly host of brothers & sisters seeking the same spiritual discipline & financial consolation on this site!

[Deleted User]

Can't see how celibacy will help you clear your debts?

its_maths_not_magic

If it were me, I'd be trying to pay off the sister as soon as possible, once my other debts were cleared. She was nice enough to get you out of trouble and even if she doesn't need the money, Im sure it would be better for her to have it somewhere getting interest for her.

Mara_uk7

Bedsit_Bob wrote: »

Can't see how celibacy will help you clear your debts?

Wasnt that what spurred you on to get yours cleared so fast Bob ?

LannieDuck

Live like a monk... but within your own limits.

You need to find a level that you can stick to. If that means a beer once a week, or a take-away once a month then so be it, as long as you've cut back on everything else.

Why not try cutting back to the bare minimum while you clear off the 750, and see which parts you're finding tough. Then you could ease up on those a little while you clear the rest.