Newbie needs debt advice!

Skinted_stodge

Hello, I am very new to this debt free business, but very keen to do it! I am hoping that there is someone out there who would like a challenge. I am struggling to come up with an effective money management plan for myself, despite good intentions and some initial steps! I find it extremely difficult to work with numbers (I have some kind of numerical dyslexia, I am almost sure!) and so am basically looking for advice on how to work out a payment plan.

My incomings are ok, but I have high outgoings and would also like to start saving! It all seems like an impossible mountain right now.

I would be more than happy to swop skills if there is anything I can offer in return, I am good with cooking on a small budget, I have a law degree and work writing and editing text for brochures...

Please feel free to message with any thoughts!

oliveoyl

Hi and welcome

Have a read here http://forums.moneysavingexpert.com/showthread.html?t=107280 and pop up your own SOA, then the good folks of MSE will go through it for you and see where you can cut back/get things cheaper. Also list your debts, the minimum payments and interest rates.

david_hellier

Hi,

As above please post your SOA and we'll all be able to help a lot more.

Skinted_stodge

Monthly Incomings:

My salary - £1,397.92

Monthly Outgoings:

Mortgage/Rent - £390

Shared house account- £75- covers gas, electricity, water, sky tv and broadband, council tax and a landline

Food - £100

Travel- £65

Health insurance- £25

Gym- £30- only from October to December, then it drops to £5
Mobile phone- £35- should be £25 but I constantly go over.



Total: £685

Debts

M&S credit card- 0% until Jan 2008- £1899- Minimum payment £62

HSBC overdraft- 1.98% per month- £1600

Money owed to parents- £400- my parents have quite a bit of debt themselves and need it back by Christmas.

Money owed to very trusting friend- £550- would like it all back at once before Christmas.

Money owed to boyfriend- £500- not urgent and can form part of our traveling savings.


Its no where near as much as some people have, but I have more debt than when I graduated and no idea about how to fix it! My parents have debts themselves and no savings, so I want to try and do that too.

Thank you- I know there are lots of people with ‘grown-up’ debts like cars and houses, but I can already tell how bad my spending habits are at this stage!

Steviex

chevalier

1) Do you have any charges you can claim back?
2) Drop the gym and run/cycle for free?
3) Stop using the mobile!!!
4) Ebay anything that isn't nailed down to raise money to pay off your parents
chev

floss2

Start a spending diary, so you can see where you "spare" money is going, it helps if you think "is it necessary? do i need it?" when about to buy something.

Oh, by the way, hello & welcome! :wave:

Skinted_stodge

Hello!

thank you everyone for your thoughts!

1) very excited about the spending diary. it fits in with my food diary, so pennies and calories are in the same book. how sad!
2) this £2 coin thing sounds interesting..
3) i live in a rather dodgy area, hence the cheap rent, so gym is the only safe place to exercise after dark for me really.
4) phone mobile use stopping very quickly!

oliveoyl

Is your mobile phone on contract? If so, who with, what do you get for your £25 a month, and when does the contract finish?

Your food is high for one person. Have a look on the old style boards for loads of really good and cheap meals. Do you buy food from sandwich bars/takeaways? If so, you could make your own and save a lot there.

How about overtime at work, or getting a weekend job?

Skinted_stodge

my phone is on contract (just renewed, eek) and i get 500 texts, 500 minutes per month. which is pretty good, i go over basically because my other half is in birmingham and im in london. but we have landling fitted in my new house really soon! does anyone know if i can reduce my tariff after renewing my contract?

my food is pretty high. im going to start budgeting properly and always taking packed lunches, not just sometimes. i do have to include extra food for when i am cooking for two, which is almost every weekend... any idea how much is enough to budget for 1 1/2 peoples food per week?

monochrome_2

depends who you're with - I'm with 3 and I've changed my tariff (always reductions...) inside the contract period about three times, at least

Skinted_stodge

Right! that's my lunchtime challege.

i would like to know more about the 'unnecessary challege' thing i have seen mentioned. what is it? i like a challenge!