Where does all the money go?!?! £1,000 PCM...24 months to go!!

YoungBusinessman

I've taken out £2,000 to use towards court costs in September, one less thing to worry about. So I'm now at £2,200ish in my current account with £3,400ish due in on Friday and about £2,100 set costs due out in July "should" find myself ending July at about £3,500+. I find this dangerously low, august will be one overtime filled frugal month!!! Any frugal tips bearing in mind iv just turned 23 and don't want all my pals to forget who I am!! Has anyone here got a higher set debt repayment over £1,000? It seems such a waste it actually makes me feel so down!!

gothrockchic1

Hi YB. You're doing great. My friends and I don't go apart from the occasional karaoke session. Instead we go round each other houses playing games or just socialising in general. It's costs all £20-30 in drink and petrol for two people. It's BBQ season too

Teacher2

You seem to have had a wake up call at an age where it will do you good. At 22 you can recover from this and live your life differently in future.

I can see a saving of £200 per month easily. For the duration, until you pay back your fine, cut out entertainment, clothing and presents. Tell your friends and family what is going on (or, if it is a secret, say you have a debt you need to pay back) and have a 'no presents' arrangement for birthdays and Christmas. They don't buy you one and you don't buy them one. You could also:-
-Have only one day a week/month socialising. Take cash and stop when it has run out.
-Take pre-made sandwiches/lunch to work.
-Buy NO drinks out of the house. They cost a fortune. Take water/drinks in a bottle.
-Avoid places which will tempt you to spend money: shops, pubs, clubs etc.
-Overpay your debt as much as you can to reduce it as quickly as possible.
-You still have a massive surplus at the end of the month. Consider using it to overpay and 'dump the debt'.
-Ditto your savings.
-Find a true friend whom you can call/talk to when you are depressed or want to give up and have a splurge. Ensure it's someone who will persuade you to keep going, not someone who will encourage you to indulge yourself.

The most important thing is to realise that life isn't a picnic. You are not going to feel too good in the short term but you will feel a massive sense of achievement when you finally pay off this debt and you realise that your bad habits are gone for good.

Finally, if you do have a 'wobble', don't worry. It won't have ruined everything, get back on the bike and keep peddling. One piece of cake won't ruin a diet if you get back to it. Good luck.

YoungBusinessman

Wow, fantastic post, thanks so much teacher...living upto your name there!! I am actually 23 now the socialising definitely needs cut down, as for presents as bad as it sounds I already have that arrangement in place with most of my friends and family(don't buy me as I don't plan to get them) as bad as it sounds it's actually better as most presents people give/recieve are not as useful/appreciated as they think!!

I am going to give the packed lunches a go as it does cost a small fortune at local baker 3 times a day!!

It doesn't feel good right now I agree but since putting put his tread and having the open support and the pms iv received, I'm so glad I posted this here. Iv been browsing all the debt free boards, some great challenges!! I am so excited/looking forward to keep working hard to pay this down as much As I can then eventually, pay it off!!!

Can't thank use enough, hopefully this will be a lesson learned and It can be the start of my financial future becoming secure.

PasturesNew

You've a huge amount coming in ..... you'll breeze through it.

Olivia-Louise_2

Look forward to following

*Subscribes*

gothrockchic1

How are you getting YB? Any news?

YoungBusinessman

The money situation has gotten quite a lot worse...not going into details but iv definitely hit rock bottom now!! Going to try and enjoy this weekend as I'm down for 12 hour days as of Monday!! Frugal living for the next few years I think!!!

gothrockchic1

I'm sorry to hear that

patman99

YB have read your entire thread. That interest rate is eye-watering. Think if I was in your shoes, I'd be looking to obtain a lower-rate loan over, say, 5 years in order to pay-off your Court order.
You would be in a better financial position as your fixed monthly loan costs would be much less than £1,000 and there is nothing stopping you building-up a savings pot to the point where you could pay-off the outstanding balance at some point in the future.

If you think your job is at risk (but have not been officially informed of this), then look at taking-out a PPI policy. That way, should you find yourself out of work, the insurance will pay your loan for a year.