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Worrying

181 Posts
Evening everyone,
I'm not so much "in trouble" to start, but please hear me out.
I've been skimming over the MSE forums for a while, having posted earlier on in the year but losing touch. I gained a valuable bit of knowledge in what all this finance and money lark is about, but like i say, i lost touch and ended up very much worse off....
Long story short, I've had an ultimatum - Not from a partner or family as such, but from myself. I need to change my lifestyle and that's what i've been doing for the past few months.
I can't stop worrying about the future. I haven't done any numbers just yet as this post is more a search of comfort that "everything's going to be ok", but in Jan I'd hit a whole new scary world with debt and the like... The balances below are an estimate (without looking at the papers) to the nearest £10, and from the date of being active, not necessarily what I owe at this point in time:
Barclays Partner Finance: £1,976
24 monthly payments of £81.53
Active March 2014, payments began April 2014
Loan from Dad: £3,500
24 monthly payments of £150.00
Active January 2014, payments began February 2014
Hitachi Personal Finance: £3,400
24 monthly payments of £167
Active November 2014, payments begin December 2014
Those are the main unsecured debts that I have.
Other debts/ongoing costs:
Car Insurance: £108.67 (22yr old, 4yrs NCB, car valued at £300.... go figure....)
Car Tax: £20.18
Gym Membership: £29.00
Phone Contract: £Varies - £15-£20 in my experience so far
Subscription to Experian: £14.99
All above costs are what I pay a month.
Now I can manage, I am paid £1071 after tax/NI contributions, leaving me with approx £400 (to the nearest £100). The trouble is, I am struggling to cope with the fact I have approx £9,000 of unsecured debt (from active date)... And I want it gone, So I guess "debt free wannabe" is for me.
So the £400 I'm left with after servicing the unsecured debts I use (per month):
Petrol: £100
Groceries: £150
I don't treat myself to any luxuries as I can't afford them, else I have to skimp on the necessities mentioned above. As long as I have fuel in my car, and food in the fridge, I'm OK. But this leaves me with around £150 to myself for the rest of the month, for such things as tobacco (I smoke), beers (I like a tinny or two in the evening) etc etc.
I have £1,194.54 saved in my Halifax ISA.
I want this debt gone as soon as possible, so I'm just wondering what the best approach would be... I don't want this debt for the next two years as, with the way things are going at work, I probably might not have a job there much longer. I consider myself very new to this big big world of money, and I am just after a few pointers and some general comments to pool up some outside opinions and suggestions.
Thanks for reading :beer:
I'm not so much "in trouble" to start, but please hear me out.
I've been skimming over the MSE forums for a while, having posted earlier on in the year but losing touch. I gained a valuable bit of knowledge in what all this finance and money lark is about, but like i say, i lost touch and ended up very much worse off....
Long story short, I've had an ultimatum - Not from a partner or family as such, but from myself. I need to change my lifestyle and that's what i've been doing for the past few months.
I can't stop worrying about the future. I haven't done any numbers just yet as this post is more a search of comfort that "everything's going to be ok", but in Jan I'd hit a whole new scary world with debt and the like... The balances below are an estimate (without looking at the papers) to the nearest £10, and from the date of being active, not necessarily what I owe at this point in time:
Barclays Partner Finance: £1,976
24 monthly payments of £81.53
Active March 2014, payments began April 2014
Loan from Dad: £3,500
24 monthly payments of £150.00
Active January 2014, payments began February 2014
Hitachi Personal Finance: £3,400
24 monthly payments of £167
Active November 2014, payments begin December 2014
Those are the main unsecured debts that I have.
Other debts/ongoing costs:
Car Insurance: £108.67 (22yr old, 4yrs NCB, car valued at £300.... go figure....)
Car Tax: £20.18
Gym Membership: £29.00
Phone Contract: £Varies - £15-£20 in my experience so far
Subscription to Experian: £14.99
All above costs are what I pay a month.
Now I can manage, I am paid £1071 after tax/NI contributions, leaving me with approx £400 (to the nearest £100). The trouble is, I am struggling to cope with the fact I have approx £9,000 of unsecured debt (from active date)... And I want it gone, So I guess "debt free wannabe" is for me.
So the £400 I'm left with after servicing the unsecured debts I use (per month):
Petrol: £100
Groceries: £150
I don't treat myself to any luxuries as I can't afford them, else I have to skimp on the necessities mentioned above. As long as I have fuel in my car, and food in the fridge, I'm OK. But this leaves me with around £150 to myself for the rest of the month, for such things as tobacco (I smoke), beers (I like a tinny or two in the evening) etc etc.
I have £1,194.54 saved in my Halifax ISA.
I want this debt gone as soon as possible, so I'm just wondering what the best approach would be... I don't want this debt for the next two years as, with the way things are going at work, I probably might not have a job there much longer. I consider myself very new to this big big world of money, and I am just after a few pointers and some general comments to pool up some outside opinions and suggestions.
Thanks for reading :beer:
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Replies
I would personally advise you to pay some of your debt off with your savings as having debt and savings is counterproductive.
I would pay the debt off with the most interest. do you need gym membership? walking/running is free. theres another 30 towards your debt. i would also cancel your experian membership which would give you another 15 towards your debt.
remember the more you pay towards your debt the more interest saved and so it snowballs and becomes less and less.
compare your car insurance online as well using money saving expert etc and make your getting the best deal
good luck
Also, cancel the Gym, cancel experian, that's 44 quid a month wasted while your in debt.
Is every car journey necessary? could you walk more perhaps?
Every time you start the engine it makes you poorer.
What are the APRs on the debts?
'MrMoneyMuststache' my new hero, Martin Lewis my long time hero
Poacher turned Gamekeeper
Roadkill rebel No 52 Aug £1.34p Sept 24p Oct 5p Nov 5p Sealed pot Challenge No 403 £176.66(2014) :staradmin NOV NST No 20
It's not that unusual.
Bear in mind, the premium isn't based around the loss of (or damage to) your car, but the potential damage to other people's cars (you could write off someone's brand new Veyron), and/or injury to other people.
I know what you are going through though, we have our share of debt which is totally manageable on our wage but we just want it gone! Every penny counts and there is nothing better than seeing account after account close!
Post a SOA using this: http://www.stoozing.com/calculator/soa.php
People here will advise on what you can cut down on - you'll be surprised. Good luck.
Cut out the cans of beer and the smoking.
Four things that are not essential and that you can and should do without.
At least you did mention the smoking. I have seen many, many SOA's on these forums and I don't think a single one has ever mentioned the dreaded weed in the expenditure column.
So after you have payed your ISA savings into the Barclays you'll be left with £781.46
If you combine the £150 you pay your Dad with the £81.53 and pay that into the Barclays you can clear that debt in 4 months.
Once that's payed off you'll still be left with £3500 debt to your Dad and £2732 on the Hitatchi. It's up to you which debt you add the £81 to your monthly repayments.
And as others have said, scrap the gym and the experian for the moment.
OP are you using rollies, can you just cut down. I cant see a problem to you cutting the cans out though to be honest. If you cant, buy a big bottle and make it last a few nights.
Could you dad take £100 for now so you can throw more at the interest loans.
As others have said, bin the gym and Experian and throw everything at your debts.
and we will never, ever return.
£8.47 (according to the TMA) is the average for 20 now.
£8.47 x 365 = £3091.55 a year for 20 a day.
'MrMoneyMuststache' my new hero, Martin Lewis my long time hero
Poacher turned Gamekeeper
Roadkill rebel No 52 Aug £1.34p Sept 24p Oct 5p Nov 5p Sealed pot Challenge No 403 £176.66(2014) :staradmin NOV NST No 20
You do have luxuries - especially if the food is for only one or two people. Do you need the car or is that a want too? Not saying you need to give your luxuries up, but I do think you should be grateful for them and appreciate what you are giving yourself.
Lewis Carroll