In a bad situation, don't know what to do

Ilona

Hi. Sorry, but I think cutting your entertainment in half is not enough. Clubbing, pubbing, holidays, eating out, are wants not needs, and not a priority. Depends how serious you are about paying down your debt.

Ilona

Karonher

libramoon175 wrote: »

On my Way - thank you.

I was also looking into a DRO. Does anyone have any experience with these? I think I would qualify, but only if they consider my payment to my parents as an expense otherwise i'd have more than £50 left over each month.

You have £250 a month left over. £200 that you are considering for entertainment and the other £50. That is way over the amount allowed. The criteria is not being able to pay the debts and only having £50 after normal household expenses are deducted.

You are also paying your debts and the £50 limit is before that is taken into account.

meg72

You might find it usefull to look into cutting your grocery budget. Theres loads of advice and support on here

https://forums.moneysavingexpert.com/discussion/5575981

mark55man

Plenty of people earning less than you have cleared debts bigger than yours. It just takes a long time and is not exciting, it needs attention.

But whilst London is very expensive, it can also be very cheap, you just have to change what you mean by entertainment - now you don't become a recluse, and the odd night out is good for the soul, but generally the only way to save money is to spend less and earn more.

I know the next month will be frightening, but really it seems you are on top of it because you are acting.

Read some of the other diaries (if you havent already) and contribute to their stories - when I was in crunch mode, I found a lot of help and fun with the friends I made on this site

It also helps to have excuses (especially as you may be expected to socialise in your new job) for why you cant go out as much, it could range from nearly true to big fat lie, such as
* saving hard for a mortgage
* I'm just rebuilding my savings after a few months off
* I'm saving for a holiday
* I'm on a diet (Dry-anuary, ...)
* or I'm worried about the future and I'm repaying a loan to get in better shape
Don't forget the basics - like avoid the ocffee shops, take your lunch in, - look on Old Style money savers, you'll learn a lot

Hope this doesnt sound like a lecture - we are all here for the same reason, just at different stages of the journey

libramoon175

Actually I don't go out at all - I go to nando's with friends once or twice a month, maximum.
That extra money - £140 to be exact, goes on dance classes. I take 5 per week at £7. I dance for a company and those classes are ones that I'm expected to take to keep up with training. I could cut it down to an essential 3, but my level would definitely suffer.

libramoon175

Mark88man, doesn't sound like a lecture at all, appreciate the tips!

fatbelly

libramoon175 wrote: »

I was also looking into a DRO. Does anyone have any experience with these? I think I would qualify, but only if they consider my payment to my parents as an expense otherwise i'd have more than £50 left over each month.

I'm an Approved Intermediary with Citizens Advice. Of all the possible strategies, a DRO is the first one we can rule out. Your debts exceed the debt limit and your surplus income exceeds the surplus income limit. Paying the loan from your parents is not a legitimate expense and neither is your 'entertainment'

I think with a bit of organisation and some support from these boards, you have enough income to pay this off within 2 years. If you need more structured help from someone who will not charge a fee, then use Stepchange or Payplan.

libramoon175

Thanks. I went on Stepchange and filled out my expenses and they came up with a debt management plan. However, they changed the amount I pay to my parents to £123. However I cannot change that. I've spoken to them already and they won't allow it (can't afford it). Do you think if I call them and explain that they could adjust their figures accordingly? Because if so, it sounds like a really good idea.

yasmin2

Can you get a 2nd part-time job to bring in a few extra pounds - baby-sitting/bar work and just use that money to throw at your debt. Can you cut back on your grocery bill/cheaper phone - I am with 3 - 15/month.

Any things that you don't use anymore that you could sell. I know it will just be small amounts but at least you're making small dents into the debt. If you pay off a couple of the smaller debts, will be quite satisfying when you write the letter closing the accounts down and then use that money towards other debts.

Good luck : )

mark55man

Now this is a lecture !!

Get those really high interest / payday loans sorted at once, even if it means you have to upset your other CC (pay them a £1) - frankly as I understand it your credit score is more impacted by having them at all than by any number of missed payments

I confess I don't know what all the options are here, perhaps someone more knowledgable could provide advice