Newbie DFW! (long post, sorry!)

monochrome_2

Hi everyone!
I've been reading this board and the site for a week or so now and I feel like I'm ready to do something about my debts... instead of pretending they don't exist, which has been my tactic up to now.

I've started a bit on my own, but now I need help! Some stuff about me and then my SOA below

I owe about 4grand. I just didn't think my debts would be that high because I think of myself as someone who doesn't really buy anything - I don't have a mortgage, car, kids, or insurance. I don't have a tv, and I only buy clothes when I'm forced to (only bought one skirt this year, from a charity shop...). But then I realised that I DO buy loads of stuff, it's just that it's all things you can't see - trips to see friends, travel, meals out, clubbing, presents for people - I even got into the habit of buying lunch every day instead of bringing it Plus I got into the terrible habit of buying things on my credit card and assuming I would pay it off later - not good I know! :eek: And that's all on top of debt I accumulated (and then started paying off, and then failed!) When I and then my OH was out of work, and we had problems with rent etc...


Some stuff about my SOA:
-My outgoings seem quite low (well, not really, but I certainly never have £100 at the end of the month!). I think that's because I just spend money without thinking about it - I'm going to start keeping a record of what I actually spend where, because I'm aware one of my problems is being clueless about it all...

- Rent and bills are all together cos that's how I pay them - live in a shared house and we all have a standing order into a separate account, then DDs for bills and rent go out of there

-My mobile's been quite a money sink for a while (last month I used nearly £80 on it, ahem) but my contract ends next week so I called them and I've been moved onto a £15/month contract, and I've discovered how to monitor my use online so I don't go over

-I got the RBS CC a month ago to put my debt onto because of the 0%, but now I'm not sure what to do - I have £1675 left on there. Should I move my overdraft or my hsbc CC across? a bit of both? Can I even transfer my overdraft? very confused about this!

Thanks very much for reading, and any help you can give!

SOA

debts

HSBC graduate account (limit - £1000 @ 0% ; 15.9% above £1000) - Owe £1467


HSBC Credit Card (limit £3000, rate 15.9% APR) – Owe £871.69


RBS Credit Card (limit £3300 – 0% for 13 months, 12 months left) – Owe £1625


Total debts = £3963.69



Monthly Income



Total = £1008



Monthly Outgoings


Rent and bills - £325


Pet care - £5 (we have rats, they don’t need much!)


Pension - £40


ISA - £20 (I know MSE says not to save but I CANNOT get at this money and it's for emergencies like in case we have the same rent problem again...)



Food - £100


Mobile - £40 (av)



Travel - £120


Going out/ drinks etc - £150 ?


CC repayments - £100


Total Outgoings - £900

poorbutrich

Welcome! Well done for coming on here!

There'll be lots of people soon coming to give you advice, but the obvious thing is the going out budget which you could slash considerably without too much effort.

I'd get rid of the rats too! But that's just my phobia talking, not an MSE view!!

floss2

Have you started a spending diary? then you'll be able to see exactly where your money goes....

completelyspent

Congratulations on facing up to your debts - you are already further forward than this time last week :-)

A couple of thoughts on your debt:
If you're not sure on what you are spending on going out it is worth recording what you spend each time you do and think of cheaper options (having friends round etc).
Your mobile costs seem high-have you considered PAYG or cutting down on usage/changing contracts?

Shineyhappy

Hiya and welcome!

Congrats on posting!

I think as you said so yourself a spending diary would come in really handy.
I would also seriously cut down on your social budget, maybe invite people round instead of going out?

Make sure you have a really good nose through the entire site, you can find great deals on here and you maybe able to save your housemates money by switching utilities and doing it through Quidco means you would get cash back.

Have a look at some of the challenges on here and see if there is anything you fancy there are some great ideas on how to raise some extra cash.

Also maybe think about setting up some spreadsheets so you know what difference saving 40 pounds on a night out will do.

Best wishes!

david_hellier

Hi and welcome.

Not too bad. Just some overspending going on. According to my figures you have £79.16 per week to spend on any thing else including food, going out, pet care, etc.

I suggest you write this amount in a little note book (a spending diary) on a Monday and keep a note of what you spend/withdraw by subtracting and keeping a balance. If you do have any over, carry it forward to the next week.

Maintain the same level of cc payment with a standing order, not a DD; never the minimum payment. Stop using credit cards for any more purchases.

Good luck. The figures:

incomeweeklymonthlyself1008.00partnercbtctotal0.001008.00divide by 4.33 £ 232.62 £ 232.62 total weekly incomespendweeklymonthlyrent/mortgage325.00council tax0.00elec0.00gas0.00water0.00secured loans0.00TV licence0.00fines0.00pension40.00ISA20.00mob40.00travel140.00cc100.00total0.00665.00divide by 4.33 £ 153.46 £ 153.46 total weekly spendStart= income - spend = £ 79.16 per week

monochrome_2

Thanks everyone!

I know my social costs are... gigantic to say the least! They're an estimate though so I've got a notebook and I'm going to start keeping a spending diary. I know I've just been overspending without thinking - and I'm really angry at myself :mad: - but at least I've started to do something about it!

RAS

Hi

Would suggest moving your debt with interest to your 0% card

Current

HSBC graduate account (limit - £1000 @ 0% ; 15.9% above £1000) - Owe £1467

HSBC Credit Card (limit £3000, rate 15.9% APR) – Owe £871.69

RBS Credit Card (limit £3300 – 0% for 13 months, 12 months left) – Owe £1625

Suggested
HSBC graduate account (limit - £1000 @ 0% ; 15.9% above £1000) - reduce to £1000

HSBC Credit Card (limit £3000, rate 15.9% APR) – Pay off in total and cancale the card

RBS Credit Card (limit £3300 – 0% for 13 months, 12 months left) – Owe £1625 add £467 plus £871.69

That means that you need to really serious cut back to pay off as much of your debt as possible in the next 12 months.

The starting point will that your £100 will be paying off your debt rather than interest, but that is only £1200 over the time period. you also in theory have the other £100? I would however suggest putting whatever you can save from that £100 into the ISA for the first month, to act as a buffer.

That would leave you with another £1600 to try and find. Even if you cannot do this completely in the next year, you cold knock a big hole in it by cutting back on the going out rather than eliminating it.

Hope that helps.

thunderchump

yay rats!!!

monochrome_2

Thank you, that is a BIG help!

I am still confused about how to move my overdraft debt to the credit card though? Can anyone help with this?

monochrome_2

I love them, they help keep me sane!