Fresh start

will369

Hi guys,

I hope I can spare some of your time today as I need some advice and motivation so help sort my debt out.

A little bit about myself…

I am 24 years old, I live with my parents.

I work full time for an electric company, I get paid £320 a week.

Summer last year I moved out of a flat I was living in moved back to my parents house. The rule was for me to put £160 a week into a savings account so I can put a deposit down for a house.

Over 4 years I wanted to save £25,000.

It started well. I saved £1000, then I started to dip into it. Buying designer clothes, expensive nights out.

18 months later I have saved £0 and got myself into £6000 debt!!! Gambling, expensive gadgets etc!!

I have stopped all of that now! And need to save save save!!!

In 3 years I need to have £25,000. Else I would of let myself down and my parents.

I don’t want to tell them about it.

Do you suggest I put as much as I can into paying the debt off, then concentrate on the savings and make up for what I have wasted?

Basically I am £7000 short in my savings, plus £6000 in debt!!

Thanks guys


Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1400
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent (savings, this isnt actual rent).................................... 693
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 50
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 108
Clothing................................ 0
Petrol/diesel........................... 43
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Bank charges............................ 8
Pension................................. 10
Total monthly expenses.................. 932

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Old phone contract.............600.......130.......0
Barclays Credit card...........1800......50........18.9
Loan...........................3700......156.3.....24.9
Total unsecured debts..........6100......336.3.....-

Monthly Budget Summary
Total monthly income.................... 1,400
Expenses (including HP & secured debts). 932
Available for debt repayments........... 468
Monthly UNsecured debt repayments....... 336.3
Amount left after debt repayments....... 131.7
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -6,100
Net Assets.............................. -6,100

Toomuchdebt

So over half your wages go on rent? And then you're expected to pay £400 into saving? That's a huge chunk of money. Is that the rent for the entire house or just your share?
Also your pension contribution is tiny. I earn £670 a month and pay 10% into a pension. I would have thought now would be the best time to pay a decent amount in while you're not trying to run your own household etc.

will369

Toomuchdebt wrote: »

So over half your wages go on rent? And then you're expected to pay £400 into saving? That's a huge chunk of money. Is that the rent for the entire house or just your share?
Also your pension contribution is tiny. I earn £670 a month and pay 10% into a pension. I would have thought now would be the best time to pay a decent amount in while you're not trying to run your own household etc.

I don’t pay any rent what so ever at my parents!

I was meant to be putting £160 a week into a savings account for a mortgage


last thing on my mind is my pension when I am in debt

ShakeItOff

I am really confused. This is the second (if not third) thread you have started on the same topic.

I think you've had some really good advice on the other, so I'm not sure what the purpose of a third thread is?

People have made some really good suggestions, including keeping a spending diary, re-chanelling your house deposit savings to your debt (debt interest being more expensive than the benefit of savings interest), and suggested shavings to your SOA.

Is there something that hasn't been addressed in the other version?

Toomuchdebt

will369 wrote: »

I don’t pay any rent what so ever at my parents!

I was meant to be putting £160 a week into a savings account for a mortgage


last thing on my mind is my pension when I am in debt

Ah I see-it said rent so I assumed that's what you were paying. In your case I would pay 50 a week to the savings until the debt is gone, up your pension to at least 30(you'll be glad of this when you're older) and throw everything else at the debt while allowing for some modest treats along the way so you don't get fed up. Once your debt is gone start saving as much as you can.

Ilona

Will, forget about your savings and pay off your debt. When that is gone you will have a lot more money to build up your savings. Who's rule was it that you had to save so much anyway, something your parents imposed on you, or your own decision? You are 24, man up and tell them about your situation. Stop going out, stop spending, and you will have it sorted in a short period of time if you put your mind to it. And don't start any more threads on the same topic. You have had good advice already.
Ilona

MEM62

will369 wrote: »

I don’t pay any rent what so ever at my parents!

I was meant to be putting £160 a week into a savings account for a mortgage
Because you didn't your are now playing catch up and with the amount of time you have left your are not going to be able to make it unless you have a dramatic change in your income or a lottery win.

last thing on my mind is my pension when I am in debt
I shouldn't be. Think of your current situation. You should have been saving for your mortgage but you have been putting it off until its too late and now you are panicking. The same applies to your pension - only the consequence of leaving this too late could be an old age living in poverty

I think you will struggle to meet your original target and it is time to come clean with your parents. Their reaction may not be a bad as you think, although they will be disappointed. Clear your debts first. The only way to improve your financial situation is to cut your outgoings or increase your income. You have no major outgoings so perhaps you can look for some ways to earn some extra money.