Need some words of wisdom!

Hello,

Fairly new on here but really could do with some words of wisdom/advice. I am 21 and have been in debt since I was 19. I am !!!! with money (excuse my language). My parents never really taught me how to budget or finance and since I was 16 I have pretty much been left to it. I know my overspending is entirely my fault but I would appreciate some advice from someone who has got out of debt or are currently getting out of debt. Any tips or tricks are welcomed.

My monthly income is £1200 but this will soon be going down to around £1000.

My monthly outgoings are:

House keeping- £100.00
Loan- £223.62
Phone- £70.00 (ridiculously high I know but still have another year contracted)
Credit card 1- £28.00 (monthly payment)
Credit card 2- £66.00 (minimum payment)
Car Insurance- £72.00
Laptop repayment- £71.62
Petrol- £100.00

Is there any ways I could make extra money or reduce my payments?

Thanks in advance

Comments

  • RhiBi
    RhiBi Posts: 695
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    Well done for admitting the problem and getting it sorted early on!!! Many people (myself included) go for years and years adding to debt before they realise the situation they're in.

    How much do you owe on the credit cards and what is the interest rate on them?

    Is it possible to reduce your phone tariff or are you locked in to that price? It might be worth a phone call, you've nothing to lose!

    Good luck xx
    Virtual Sealed Pot No.07
  • Hi @RhiBI,

    Thanks for the reply. I owe roughly £3000 on each credit card and they are both on 0% at the moment but not much longer.

    I called Vodafone and they reduced my monthly cost by £6 but that is all they could do.

    Am wanting to get sorted as soon as possible as I have been with my boyfriend for 3 years nearly and there is talk of me moving in some time next year but in my current situation I would not be able to afford the rent!
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,445
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    Your income is low. Do you work part time?

    At the amount you should have £470 spare each month after paying the outgoings above. Where is that going?
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
  • No I work full time but am on minimum wage.

    I am really not sure where my money goes if I am honest.
  • beanielou
    beanielou Posts: 89,805
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    You would maybe find it good to keep a spending diary?
    Get a wee notebook & keep a note of your spending.
    I am a Forum Ambassador and I support the Forum Team on Mortgage Free Wannabe & Local Money Saving Scotland & Disability Money Matters. If you need any help on those boards, do let me know.Please note that Ambassadors are not moderators. Any post you spot in breach of the Forum Rules should be reported via the report button , or by emailing forumteam@moneysavingexpert.com. All views are my own & not the official line of Money Saving Expert.

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  • fatrab
    fatrab Posts: 1,231 Forumite
    edited 4 April 2018 at 3:31PM
    There's also Spending Tracker app, that's what I use now. You'll be surprised how much you fritter away and this will be the area you need to cut back on.

    How much longer do you have to pay on the loan and the laptop? £72 seems a lot for the laptop, I'm guessing it's a fairly decent one? Could you sell it, cut your losses, pay off the debt and start again with a cheaper one?

    What about picking up some part time work to boost your income, would that be a possibility?

    You'll also need to get those credit cards under control, find out when the 0% deals end and let us know. You'll need to put some sort of strategy in place soon if they end imminently.

    Best of luck :)
    You can have results or excuses, but not both.
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  • Toni'sfriend
    Toni'sfriend Posts: 4,012
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    You would maybe find it good to keep a spending diary?
    Get a wee notebook & keep a note of your spending.
    I started doing this last month. I didn't think I overspent but it's a revelation. I spent half of what I normally would on food just because it made me think "do I really need this?"
    I could be wrong but I suspect at your age you are spending money on things like clothes, make up, going out, etc. Once you find out where the money is going you'll be able to cut down.
    And well done on the weight loss. That's a brilliant achievement.
    Have adventures. laugh a lot and always be kind.
  • stinabean
    stinabean Posts: 175
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    Welcome!

    Dependent on the phone you have, any chance of selling it to pay off the contract and start again with a new cheaper one? Might be a thought for maybe a few months time when your total owed is less?

    With the credit cards would be useful to know when your 0% ends for both. May be able to put at least one on a new 0% deal and concentrate on one at a time?
    Pushing through to Jan 2020 to start saving and debt busting!

    £8k loan
    £0 savings
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