Credit card

I'm 20 years old and have just moved into a flat with my cousin who owns the flat. I will be pay rent. I have finished college but haven't worked on a regular basis since then. I have just started a part time job 4 days a week in a coffee shop which I enjoy. I earn £800 per month. My wages are only enough to cover my share of the rent, leaving a little at the end of each month for food and transport to work. I can pay my monthly rent but I fear that I'll find myself with little or no money at the end of the month until I get paid again. I have the same bank account my parents opened for me as a child. It is a current account with a debit card. I only have £100 of savings, which I hope not to use but I may have to if my wages don't stretch for the whole month. I've heard that credit cards are a good way to manage money and I wonder getting a credit card would be useful for when money is tight. I haven't previously had a credit card and so I don't have a good credit history. I dont have any debts although I worry that I may spiral into debt if I don't have enough to pay off a credit card if I decide to get one. What are peoples views? You can be brutally honest - should I try and find a better paying job? What about budgeting for future aspirations? Right now I am living pay day to pay day. What kind of financial planning should I do and should I open a new bank account? If so what kind? Please help 😁


  • If your outgoings will regularly exceed your income, using a credit card for that does risk putting you into a debt spiral. Have you put together a budget so you know what your essentials are - rent, bills, food etc, to know whether or not your income will cover this? 
  • As a long shot, can you negotiate a better rent deal with your cousin as he owns the flat? Then when your income improves perhaps with extra shifts, different job, or second job you can pay more.
    Just a thought. 

    Grocery challenge Feb £107/£100-epic fail due to cake and biscuits
  • Budgeting is your goal.

    Credit cards are only good if you can clear in full each month.  They don't make up for having insufficient money - it's just a different way of spending the money you have.

  • Does anyone know the best way of paying off a HP agreement with a credit card please?
  • Speaking from experience, credit cards aren't good for this type of situation. I got one when I started uni for emergencies. My banger of a car needed 4 new tyres and I used my credit card to pay, it would have taken me a few months to clear the balance but I continued to treat myself using the credit card because I didn't have any spare money after bills and all my friends had full time jobs so wanted to go out, go shopping etc.
    My debt was never more than 3.5k but it was a cycle that lasted 10years. Do yourself a favour and don't bother! Take on some extra shifts or find a better paid job 
    Debt Free as of December 2020 👏

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