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Newbie: Advice required on repayments and what to do next

edited 30 November -1 at 1:00AM in Debt-Free Wannabe
3 replies 748 views
jpazjpaz Forumite
1 posts
edited 30 November -1 at 1:00AM in Debt-Free Wannabe
Hi All,

First post here and im in need of some advice.
Im 26 y/o and ive accrued some debt during my student days, moving to a new city and the associated costs etc have left me owing a fair bit.

Currently have a credit card at £6500 with around 3 years 0% left
paypal finance at £750
overdraft at £1000
furniture finance at £350

I earn 30500 a year which means i can afford my repayments. The trouble is ive changed jobs and i had a month in between jobs where everything had to go on credit meaning im living in my overdraft. Not to mention my new job pays 2 weeks later than my old. So im a bit stuck as im almost maxed out on my overdraft and credit card. I still have 4 weeks before i get paid and some bills are still to come out. Ideally id like to be out of my overdraft so its there as a buffer and begin to make more than minimum payments on my credit card (i havent been able to because of my fixed £1000 overdraft) So what would your advice be for me? Do i get another money transfer card to pay off the overdraft? Im struggling to see what i can do to sort this out.

Ive built a budget planner and i think i can be debt free by xmas 2020 and still live comfortably but only if i can make bigger payments on my cards which cant happen because im living in my overdraft right now.

Thanks in advance!

Replies

  • jonnygee2jonnygee2 Forumite
    1.8K posts
    1,000 Posts Second Anniversary Name Dropper Combo Breaker
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    You aren't really in debt trouble, more cash flow trouble! You need a bailout.

    Can you sell something? Can you borrow something from a friend etc? Increase your overdraft limit? Even try talking to your new company and asking for an advance or weekly pay for the first month? negotiate a late payment with your landlord?

    Whatever you do, work it out carefully and spend as little as possible. Otherwise when you do get paid, it will all go back to paying what you just borrowed and you'll be in the start of a vicious cycle of debt.

    Ive built a budget planner and i think i can be debt free by xmas 2020 and still live comfortably but only if i can make bigger payments on my cards which cant happen because im living in my overdraft right now.

    This doesn't make sense. Either you have surplus money at the end of each month, or you are even, or you spend more than you get. On your salary you really should have a surplus, in which case you can begin to pay back your loans, most expensive first (probably your overdraft).

    Making bigger payments on your cards will not get you out of debt!
  • enthusiasticsaverenthusiasticsaver Forumite, Board Guide
    10.2K posts
    10,000 Posts Seventh Anniversary Name Dropper I've been Money Tipped!
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    Spend as little as possible over the next month. For future reference though this is why everyone needs an emergency savings account. If you are within your limit on your credit card you can use that for groceries and fuel. Negotiate a higher overdraft for essential bills until you get paid.

    On that level of debt I would start to really try and reduce it before it gets out of hand even if it means living less comfortably for a few months until the overdraft is gone and you have some savings.
    Early retired in December 2017

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected]
  • datlexdatlex Forumite
    2.1K posts
    Part of the Furniture 1,000 Posts Combo Breaker Debt-free and Proud!
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    I am sure there was a similar post to this? Have you moved to a new job with a friend?
    Sealed Pot Challenge no 37, Attempting Frugal Living. Became debt free at the end ot 2016. Used savings from becoming debt free to put a deposit on a bungalow last year now working on becoming Mortgage free by overpaying. (without overpayment MFW date is 2036)
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