SUPPORT NEEDED: New DFW!

Jimsan

Hello All.

I have been reading through all the forums and am thoroughly addicted to the site and owe it to myself to become debt free but lack the self willingness and support to do it. Honesty is the best policy:j

Some Info about me.

Age: 21
Job: Graduate Planner
Wage: £17.5k
Living at Home with Parents
Working 10 miles away from home
Recently graduated with 2:1 in Purchasing and Supply Chain Management

DEBTS:mad::

Student Loan: £12000 (Currently not started repaying but it will be around £3.26 a week)
Natwest Credit Card: £199 (not using it but paying £11 a month back)
Student Overdraft: £1200 overdrawn
Egg Card: £2850 (used to pay my overdraft but I stupidly went back in it!)

Monthly Ex.:
Rent: £20
Car Payments: £226 (until October 2009)
Phone Bill: £45
Diesel Fuel: £80
Lunch (work): £20 (sandwiches with fruit)
Football: £44 (Playing)
Odds and Sods:£50
Car Insurance: £44
Natwest card payment: £11
Egg repayment: £48
Total: £588

Income:
Salary: £1143.14

Money I should have: £555.14

MONEY I REALLY HAVE: £0:mad:

I know that from the above I should be managed the debt effectively but I aint. Im a terrible impulsive buyer and i gamble but I never drink or smoke and can never understand where it all goes.

I took the Egg card because i was fed up of being paid and it all going into my overdraft and never looking like getting out of it but i stupidly used it on wasteful things.

There is however a reason I have decided to open up today.

I gambled much more than I would normally today and lost £1000 in an online casino. :eek::eek::eek::eek::eek::eek:

My heart sunk and I have not felt so low for sometime. I worry every second of everyday; it makes me hate work so much, and I rarely see my mates for fear of spending more and more money.

So now is the time to do sometime and by noting what I spend everyday I hope I and others will get joy out of becoming Debt free. But I need the help of others to do this.

Any advice on where to start. I will provide details where I can of what I spend, etc,etc. i have tried to sort my debt and failed (see Egg incident above).

I hope i can help others to help themselves.

So here goes....:T



Jim.
xxx

silkglade

Hi hun and welcome, you have taken the most important and hardest step.

Just think you are now starting on a new journey to a better life. I will not say it is always easy though.

RIGHT.... 1st and most important thing for you to do is start a spending diary... write EVERYTHING IN IT.

why is your phone bill so expensive???

also another idea is to NEVER take cards out with you. work out a WEEKLY BUDGET amd USE CASH ONLY. Go to the cash machine ONCE a week to draw that amount out. then once it is gone, it's gone do not get tempted to go back. (get your mum or someone you trust to look after them until your motivated enough to do it alone, and make sure it's someone that will say NO if you ask them for it)

This really helps you to take FULL control of your money.

Will have a little think and give you some more ideas

Jimsan

Hi.

Thanks

i feel so daft to be asking for help at my age:rolleyes:

i will be starting my spending diary tomorrow and making note of my exact account info everyday along with any spending I have done.

I have gotten rid of my credit cards to my nan who i live with and she will probably slap me if i ask for them back! lol.

I have £30 in my back pocket and need to pay £11 to footy this week but am determined to make it last till at least the end of the month.

With reference to taking money out every week, ho much should I be looking at. i was thinking £20 (£11 for football, £5 for food, and a bit spare)

Also I am on flext with T-mobile for £35 and then there's VAT on top plus the odd calls i need to make to pay my bills.

i cant change my contract at the moment and it is due for renewal in February but I always end up breaking my phone so getting an upgrade would be good since I would have a spare (the one i use now)

Cheers

Jim

silkglade

NO, you shouldn't feel daft asking for help... Your SMART enough to do it NOW before things get too bad.

Well done you :T

Right then

If I was you, which obviously I am not, but my advice is:

1st get the speinding Diary up and running. Be completely honest as the only person you are cheating is you.

2nd Make up a reasonable budget, one that you can stick to easily.

Your weekly budget needs to be your lunches, odds and sods and football all in together.... SO on your current workings out that is £28.50 a week.

I would make it either £30 or £40 a week, it needs to be realistic and once you have managed to stay within that you will be feeling alot happier.

The other thing I WOULD DO is to take lunch with you each day to work. then saving you extra money each week.

You will find it addictive to see how much you can save each week (either towards the next week, or for something special, like going out with your girlfriend or your mates)

Lets face it you don't want to be totally depressed for the next however long it takes you to get Debt Free.

Also I would pay off the NAT WEST credit card in one month, it is easily reachable and it is then ONE less bill each month

Jimsan

i was thinking about doing the lunch thing as it made sense. i really want to get a house of at least realising the prospect of it in around a years time. Thus consolidation into a loan doesn't make sense. i always vowed that the only direct debit coming from my bank account ever should be my mortgage.
unfortunately things arent that way at the mo but that is my aim.

I get paid Monday so the natwest credit card is up first along with a £100 off the Egg card to kick start things.

i think that by keeping the diary i should cut back naturally.

ta for the help.

wannabefreee

Hi Jim Ihave Just Gone Onto Flext... As Most Of My Friends Live Miles Away My Bills Were Ridiculous I Now Know Where My Money Is Going In This Regard

Have You Asked Them For The Free Evening And Weekend Calls To Any Uk Landline And Mobile Network? This Would Just Maximise Your Free Minutes They Alot You 10000 Free Evening And Weekend Calls This Is On Top Of The Free Minutes


You Are Going To Make It..!!!

Phil_H_3

Hi,
I was in debt at 21 and am still at 28, but thats my own fault for not thinking about money. So your doing well to see where you could be going if you carry on.

I agree with the tips above about giving your cash card to somebody to look after and only spending what you have in your pocket. My wife gives me her card now and again and it works well if your strict with it.

You say you spend £80 on fuel, diesel... How old is your car? I ask as I am just about to convert my to run on Vegetable oil, it'll cost around £200 but Oil is 50p per/lt from a cash and carry, and the laws changed with regards to tax...you can use 2500lts and not pay tax, thats 22000miles a yr at 40 mpg. so if your cars not to new you'll have no troubles with Veg oil and save £40 a month.

If you get to grips with reducing your spending at the end of each month what evers loeft in your bank pay off your cards, and maybe save a little bit back and treat yourself.


Cheers
Phil

Gemmzie

Hi, there's a few of us young un's on here so don't worry about that.

I'd suggest contacting all the casino you use and asking them to block your accounts for good. Also contact https://www.gamcare.org.uk - they are really good for advise.

Now the overdraft, is this 0% still? If not and you've just graduated, switch it to an account that is 0%.

Student loan, this is a new type loan? Taken out of your salary over £15k? If so, forget it - it's low low interest and you can just keep paying it out of your wages.

So that leaves Egg and NatWest CC's - what are the APRs on the cards? Knock down the smaller one first or if they are about the same, clear the NatWest one first - it'll give you a great boost.

HTH

silkglade

Your welcome, there is always someone around to help.

I would really concentrate on getting the overdraft down asap too... Then you will feel it is all YOUR money that your putting to good use rather than the banks, and obviously you wont be getting charged interest on your account every month too:D

taxi73

Well done on having your LB moment at such a young age!!!!you sound determined so I'm sure you are going to manage it...you are already thinking sensibly by getting rid of one of the debts and taking lunches to work.£40 seems a reasonable amount of spends p/w then if you don't spend it all you can save it and have a nice night out with your girlfriend...good luck

Jimsan

Thanks guys.

The idea of the EGG card was to get it so that my overdraft was clear and when i got paid i was in the green on that account.

i will ring T-mobile tomorrow and see what i can wrangle from them. my phone is in good nick so if i can drop it a tenner that may add up as i've just worked out i use no where near the allowance they give me.

As for the car it is a week old, lol. My dad works for ford so i got a real good deal on a new fiesta diesel which i believe maybe able to run on biodiesel. but to be honest i got it as i needed piece of mind. My old car was an x reg which did 102000 miles since I used to work 35 miles away and commute 70 miles a day. it was due MOT, tax and service in a months time and almost certainly would have failed its MOT. One garage offered me £500 px on it but then I shopped around got a good deal on my new car with a £1200 part ex so managed to get a 1.6 diesel fiesta on a 57 plate for £8000. its piece of mind and only £35 a year tax! im thinking of running biodiesel if i can locate it locally and dont have to travel out of my way to get it. im currently driving the car and averaging 65mpg which is a good return. Trying to get it as high as possible tho!!!:rotfl:

i too think that if i overcompensate with £40 i will be ok. i have an old whisky bottle which is HUGE which i chuck all my spare change in. I will be keeping this in my diary too. hopefully it will equate to something in a years time.

The overdraft is 0% and the student loan is pointless paying off early as the only interest on it is in line with inflation so it is practically interest free and should be the last of my worries.

what are your views on the egg card?

As for the gambling thing; i cant believe i was so stupid. I am too scared to even go near anything like that. I openly admitted it to my girlfriend and felt so ashamed. Worst still is she works for Ladbrokes so knows all about the industry.

Cheers for the help guys:T