Debt free

saver772

Hi guys,

I've myself into debt. I moved out of my parents home aged 20 (I'm now 24) i rented a flat with a friend and lead a lavish lifestyle. I went 2k into my overdraft and haven't been out of it properly since. Last year i took out a credit card which I maxed out too 1,200.

I've had enough, I want to buy a house but I cant think about saving for a deposit until I clear this, now the plan is to pay off £500 a month until it is all cleared. I've started already I got paid on Friday and have whacked.£500 straight off my credit card. I am refusing to touch this until it is paid off, it should be paid off by May.

I started a new job and took an initial pay cut i currently take home about 1300 per month but that will go up every month as I build my commission up slowly.

Is there any advice or tips you can share to help me clear this mess.

david756

Still paying interest?
Call them and explain the "situation" and ask if they can freeze interest.

Mahsroh

Hi,

I feel your pain, but by the sounds of it we're talking about a debt of £3,200? That is very manageable so please don't be too disheartened. You're in the right place for good advice!

What are your current financial commitments? £500 per months seems a lot with a take home pay of £1300. Are you still renting or living back with your parents now?

andyfromotley

Hi saver,

welcome to the forum, no problem you'll have yourself debtfree in a flash. The first thing to do is to fill this in
http://www.stoozing.com/calculator/soa.php

we can then give you proper advice.

In general look to see if we can move as much of that debt onto 0% credit cards. You can shift your OD onto a 0% too via a money transfer card, this will make a huge difference to your repayments. use the eligibility checker on here for an idea if this is an option.

National_Debtline

Hi saver


If you're serious about not touching that credit card again you could do worse than cut it up. That would at least prevent any lapses.


As andyfromotley rightly states, working out a budget is key, whether you're paying off debts or trying to put by as much as possible each month.


Dennis
@natdebtline

saver772

Hi all

I eventually cleared the debt and now have since saved 15 grand ��

EssexHebridean

Well updated - thanks for letting us know and well done on your achievements!

The trick now is to remember the lessons you've learned on personal finance and take that forwards for the rest of your life - congratulations - you're now someone who is "good with money" :T