In need of some monetary breathing space!

Andy010

Hi everyone,


After racking my 'brains' for a few weeks I'm still none the wiser on what to do with my problem.


I have finally flown the nest and rent my own apartment (Wow there are so many bills to pay) and now find myself barely scraping through each month.


Some of you will say, you are getting by so continue as you are, but its tough. I barely have any left over money at the end of the month to do anything, ever.


I have the following additional extras that I pay off monthly:

• MBNA Credit Card - Currently owe approx. £4k @ 0% interest till September 2019
• My Car Finance - Currently owe £3.5k and pay the fixed amount of £214pm ( May 2019 end date)
• Barclays Credit Card - Currently owe £390 @ 0% interest till September 2019

So, £40 + £214 + £10 = a monthly repayment/outgoing of £264pm.




The only way to reduce this is getting another 0% Credit card or requesting to raise my current MBNA limit by £3.5k to pay off my car and then pay the CC back at a lower monthly repayment - then do a balance transfer in September 2019?


Oh god, I'm so confused its untrue.


Any constructive help would be appreciated.


Thanks!

phil_rich1983

Or, sell the car..... If it has a bit of equity, buy a cheap run around or use the raise your looking for to buy a cheap runner. Then use your £214 car payment to pay £214 off the cc's each month.

Just an idea

National_Debtline

Hi Andy010,


I would suggest you post a SOA before you consider more credit or selling the car. You need to check the details of the car finance before doing anything, because if it is subject to a hire purchase/ conditional sale agreement you cannot sell the vehicle without prior written consent of the lender (as the car is not yours until the final payment is made).


The credit cards seem to be on a good deal at the moment, but please be aware that more credit is very unlikely to be the answer. Most of us find it difficult when we first leave home and it is normally a steep learning curve for people to manage all of the bills, but try not to panic - we are here to help. Post details of your income and outgoings and we can try and guide you further. (There is a sticky on this thread you can use for the SOA).


Laura
@natdebtline

ReadingTim

"monetary breathing space" isn't the answer, it's merely delaying the inevitable. 2/3rds of your borrowings are at 0% already, and the one that isn't really is not the issue. The actual issue is you're spending almost as much as, if not more, than you earn.

In short, you need to work out ways to spend less and earn more.

A spending diary and statement of affairs will help with the former, and a 2nd job, or better paying 1st job will help with the latter. A couple of months off the bills won't.

EssexHebridean

Hi Andy - well done for asking for help, and congratulations on moving into your own home!

The SOA (Statement of Affairs) that has already been suggested will be great for you as it will give you a proper budget to work too - when starting out on your own paying bills that's the first thing to think about. Get that all filled in - and be honest about it, don't put in figures that you "assume" are right - check the detail and get it right. For things like food spends, go back over bank or card statements (although I assume you're not spending on the cards if they are 0% cards?) and work out what you spend in an average month. Once it's done post it in here and we can take a look - and maybe point out places that you might be able to save money.

Chances are there are some things that you have put in place without thinking about it because it's the way you/your parents always did things, which might not work so well for you alone - that's often where savings can be made.

It's an exciting time moving into a home of your own, and you're right to look to get a grip of the finances as it would be horrible to ruin this time for yourself over money.

datlex

Budgeting to one degree or another does give you monetary space. It's amazing how well money lasts when you account for it before you spend it not after.