I want to be debt free!

Andyjp1

Hi guys, newbie here, been looking at these forums for a while so i thought id post my money debt problems see if anyone has any ideas.

Full time job
Monthly net pay= 1100
Part time job
Weekly net pay= 120
Average monthly earnings = 1580
Monthly outgoings.
100=Board/rent
100= Natwest Loan
20= Mbna card
45= Mobile phone
15=Sky tv
8.99= dvd online rental
Bus Pass=32

total= 321

Ok, I like to go out and have a drink with my mates a lot and also spend around a fiver a day on lunch at work..

I also like to play on the bandits in the pub a bit, its my week spot and i need to stop..

My debts
Natwest loan= 2800
Mbna card=450

total debt= 3250..

I know its not a lot, but im fed up of not having money to myself and it always going on loans and creditcards, its really getting me down.

I want to pay it off asap and start saving for a house
Im 22, coming on 23 and dont want to be stuck at home the rest of my life.

Any ideas/help anyone!

Squirrel29

Andyjp1 wrote: »

Hi guys, newbie here, been looking at these forums for a while so i thought id post my money debt problems see if anyone has any ideas.

Full time job
Monthly net pay= 1100
Part time job
Weekly net pay= 120
Average monthly earnings = 1580
Monthly outgoings.
100=Board/rent
100= Natwest Loan
20= Mbna card
45= Mobile phone
15=Sky tv
8.99= dvd online rental
Bus Pass=32

total= 321

Ok, I like to go out and have a drink with my mates a lot and also spend around a fiver a day on lunch at work..

I also like to play on the bandits in the pub a bit, its my week spot and i need to stop..

My debts
Natwest loan= 2800
Mbna card=450

total debt= 3250..

I know its not a lot, but im fed up of not having money to myself and it always going on loans and creditcards, its really getting me down.

I want to pay it off asap and start saving for a house
Im 22, coming on 23 and dont want to be stuck at home the rest of my life.

Any ideas/help anyone!

Hi, welcome to board, you have answered it yourself really - cut down on the going out for a while, stop paying the bandits (you will never come out on top) and take packed lunch, you could probably get away with just spending a fiver a week on lunches by taking sandwiches. It isn't forever, just get your debts paid off then your cash is your own. Make the most of paying such low rent (wistfully remembering the pre-mortgage days :think:)

redpoison

basiclly it depends on what you want to do..

Are you paying these debts agreed payment? or are you just paying what you can afford?

if you write them a letter explaining that you have having diffuclty in paying the debts and offer them a smaller payment they can not refuse BUT it will go against you on your credit file (which you can obtain from experian.co.uk).. and since you are saving for a house i would just pay them off as agreed.. thats my advice i am sure someone else can offer you better..

Andyjp1

Its the agreed payments, im sure i could scrape to 50 a month on the creditcard..
The minimum payment covers the interest i think

Karmacat

What rate of interest are you paying on your credit card. If you can be organised about it, it would probably help if you could get a 0% credit card, balance transfer your debt onto it, and then cancel the previous card. Your money goes to repaying the capital, and not to paying interest. But you have to keep switching cards - just a couple of months at the high rate of interest you'll be on when it ends is enough to destroy the benefit. If you're not sure you can be that disciplined, go for a LoB (Life of Balance) card, where you'll get a nice low rate for however long it takes you to pay off. But with both these types of cards, you *mustn't* spend anything else on them, or again, the effect is destroyed. Read Martin's article.

As to being fed up not having enough money, join the club - uh, literally, since you're on these boards! You're working hard, with 2 jobs, but you don't really have the money to pay for drink *and* bandits *and* a fiver for lunch every day. Even with such low rent, you can't do it. So you're right, you need to cut down - think of the work you're doing, and then spending it on fruit machines etc. Is there anything else you can do in your lunchtime sometimes?

Andyjp1

I could start taking packed lunches....

im not totally sure on the interest... i just let the direct debit pay it off every month.

madmoney_2

Hi Andy, the best thing you could do is give up the fruit machines, I used to gamble aswell and altho i thought i was spending around 100 - 200 a month i was actually spending 400!!!!!

Just keep in mind how many hours you have worked for that 20 quid you just slotted in the fruit machine.

Think of it this way, instead of putting the tenner in the machine, keep it in your hand and set fire to it with a lighter. You wouldnt would you? Dont waste your money on these machines, you are never gonna get rich this way!!!!

Hope this helps hun xxx

gallygirl

Andy, feed your details into here - if that doesn't stop you wasting money nothing will!!!!

http://www.moneysavingexpert.com/protect/demotivator/

Good luck!!!

liuhut

Hi Andy, I read your SOA with interest as my Brother is in a similar position to you but with debts of about £10k. He has lived back at home for 3 years and is supposed to be saving for a house but seems to be going in the opposite direction.
You seem like a really hard worker, doing the two jobs and your p/t job easily covers your outgoing on your list. If you had a really tight three months you could save your f/t wages and pay off your debts.
A really good thing to do would be to start a spening diary and write EVERYTHING in it, have a look at it each week and it really does show the areas that can be cut back on.
I wished that I would have saved more when I lived at home..... good luck with it....one more thing, set up a standing order and pay more into the one with the highest interest...probably MBNZ, I bet you dont even notice its gone!!

Kevicho

Hi Andy, a few Hints and Tips here

Andyjp1 wrote: »

Hi guys, newbie here, been looking at these forums for a while so i thought id post my money debt problems see if anyone has any ideas.

Full time job
Average monthly earnings = 1580

Monthly outgoings.
100=Board/rent
45= Mobile phone - can you use this less or downgrade to a more modest tariff?
15=Sky tv - i remember when i bought this years ago to stop me going out, didnt work! If you get your moneys worth here great, if not, stick to normal telly
8.99= dvd online rental - try dvd tarting(theres an article on the site), works out cheaper, almost a tenner a month savings here
Bus Pass=32
Living expenses 200 - this is how much you spend on essentials (in a fashion, less if you discount everything but the rent)

Monthly Debt repayment
100= Natwest Loan
20= Mbna card

total= 321

Ok, I like to go out and have a drink with my mates a lot and also spend around a fiver a day on lunch at work..

Ouch, works out to at least a hundred and fifty a month on lunches, thats 1800 pounds a year!
Im sure when you look at that it will shock into at least thinking, new car/house deposit savings or lunches?
Packed lunches from whats in the fridge will cost you next to nothing

I also like to play on the bandits in the pub a bit, its my week spot and I need to stop..

I feel your pain here, I too WASTE money on those damned things, which I am working at stopping, I play them for two reasons, boredom and the flashy lights, if your like me just dont sit facing them lol

My debts
Natwest loan= 2800
Mbna card=450

total debt= 3250..

I know its not a lot, but im fed up of not having money to myself and it always going on loans and creditcards, its really getting me down.

Debt is still debt, and its all relative, the one thing it does do is stop people living their lives how they want it.

I want to pay it off asap and start saving for a house
Im 22, coming on 23 and dont want to be stuck at home the rest of my life.

In theory it could take 3 1/2 months to pay off that debt, if you really cut back on going out, which is just in time for christmas

Any ideas/help anyone!

Just like to say good luck, On paper it looks easy to clear your debt, but it will take willpower, and avoidance of flashing lights to help you through this.

Welcome to the board

MissKJ

Welcome, the important habits you nurture now will set you up for LIFE.