New to this..any help appreciated

Ninja777

Hi all

This is my first post and really just looking for advice on how to handle my debt better and where I'm going wrong just now.

Basically I've been in debt for the last 6 years every since I left university(suprise, suprise) but have had chances to clear my debt on several occasions..when I do I'm then immature and end up spending money I simply do not have and end back at square on.

Finances just now are:

Monthly income -£1600
Rent - £220
Car finance - £156
Loan repayment - £117
Credit card - £75
Direct debits(phone bill gym membership etc) £155
Groceries -£150

I originally took out a loan to pay off my credit card and overdraft which are £2000 credit card and £1200 overdraft. But ended up blowing that. I was left £10,000 in a will only a year ago and despite paying off £1000 onto the card a again I now only have £1500 of that money left I try to put £300 a month back into my savings as I'm that angry with myself that I've spent it on nothing basically. Even that I then have to go back to my savings each onto and spend it.

Any advice or help would be greatly appreciated.

Thanks

Andrew

chasingfreedom

Hi and welcome


Well firstly it doesn't look like too bad a picture. You are only spending half of your income on the bills you have listed. What happens to the other half? What do you spend it on? You should have over 800 a month left if you haven't missed anything out?


You could probably cut down the grocery spend if you wanted to, I only spend 150-200 for a whole family so there are savings you could make there if you planned a bit.


Personally if I was you I would get rid of the credit card and chop it up straight away. How much do you have outstanding on your loan and car finance? Could you pay the extra money to them and get rid of them any faster?


I wouldn't be saving 300 per month while I had debt either, although it is sensible to save a little for emergencies


I think if you were a bit more organised you would be fine

Ninja777

Hey

Thanks for taking the time to reply. Yeah groceries arn't bad but hopefully get better. I have just moved in with my girlfirend which coincided with her losing her job do I've been paying for groceries and bills for the last few months which obviously hasn't helped matters.

I work out after savings bills etc I should have £120 a week for groceries and anything else which I find unbelivable that I still can't seem to save or reduce my credit card bill.

My loan still has 3 years left to run and was £3500 but now down to £2600.

Likewise with my car that still has 3 years left to run.

I don't even have the card for my credit card but just can't seem to budge it.

Need to mature a bit and get more realistic than anything else tbh.

Cheers again

Andrew

honeypooh1980

Maybe try keeping a spending diary (on here even) - just try it for a week and this will show where your money goes.


I did this and spend stupid amounts on amazon and quick trips to Tesco's on they way home. I get paid Friday and am going to try withdrawing money for each week and leaving all cards at home.

chasingfreedom

Sounds like you've not had a chance to see a true picture if you've been picking up the brunt of the bills while your girlfriend is out of work. Forget the savings for a few months and pay as much as you can off your credit card and loan. If nothing else it'll reduce your monthly outgoings and take the pressure off. No point having savings (in my opinion) when you are paying interest on debt. It never hurts to have a few hundred but anything more than that I personally would pay off the debt instead.


Hope she finds work quickly so it takes the pressure off a bit and you can get yourself organised. I totally understand how money just disappears and you have nothing to show for it. I've spent most of my adult life spending too much and being in debt. It's taken me to my thirties to mature and get a grip, lol. Got there eventually though and still young enough to enjoy the money when I'm debt free. Should be able to be debt free and have a house deposit before 40 You're obviously mature enough to realise you need to sort it out.


You should try logging your spending just for a month, I mean like every pound/penny. The odd 1 or 2 quid here and there soon adds up. Might help you see where it's going.


Good luck x