I'm really trying!!!

lou_martin

Hello all

I've got total debt of around £17,000 which I am SLOWLY getting rid of but just wondered if anyone can give me any more hints and tips to make it go quicker...

The debt is made up of £8,000 on 2 credit cards (one at 0% for 9 months and other (majority) on 5.9% for life of balance). Northern Rock Loan is £4,000 (inc. PPI which i deeply regret taking out but at the time didn't know much about) repayment £120 a month over 5 years, am about 18 months into it. Other loan from my boyfriend to buy a car which is 0% interest (of course!) and have got about £3,000 left to pay him back, i usually pay him £150 a month.

I earn £14560 before tax and then work a couple of nights a week doing nail extensions (as i'm qualified) but on average that's only £70 extra a month (tax free tut tut), i've also persuaded my friend to let me look after his garden for £150 a month while he's away in the summer and i'm always selling stuff on ebay, doing bootfairs etc.

I never go out and do food shopping online (to stop my wandering eye!), usually costs me £40 a week for 2 adults.

I spend £30 a month for TV, phone, and internet. £50 on petrol, £25 for mobile phone. I guess I do probably waste the odd tenner here and there but I never end up with any money left at end of month and it's SO depressing sometimes!!

Anyone got any suggestions? (apart from keep paying the bills!). I know all about BTs etc but at the moment i've just been turned down for a Credit Card and Consolidation loan even though my credit history isn't that bad (a lot of debt but i've never missed a payment etc etc). I wanted a low rate and wouldn't accept it with PPI on again but this meant the rate shot up and i wasn't having it!!! :mad:

Any ideas gratefully received!

Thanks

rchddap1

I know its depressing, but you will get there eventually. It sounds to me like you have your head well screwed on as regards your debts. One of my suggestions would be to butter up the boyfriend and see if you can persuade him to lower the monthly payments. You can then fire this straight at the loan initially or one of the credit cards.

Shopping online doesn't necessarily give you the best bargains for grocery shopping. Why don't you pop into Old Style as there are loads of tips flying around there. Personally I spend £25 per week for 2 people, but there are those that pay a lot less than I do.

If you're not sure where those extra £10 here and there are going keep a spending diary. Write down everything that you spend. That way you can review it a bit later and work out where you can cut down further.

Good luck and stay positive.

Reaper

lou_martin wrote:

I guess I do probably waste the odd tenner here and there

I think that sums up your problem. You need to know exactly where your money goes. Once you do a detailed budget you will be surprised at how much of your income is wasted.

Start by reading this article. Once you know where your money is going you can start to alter your spending to reduce your outgoings. It need not mean cutting back on anything significant. For example you can save a lot of money by switching gas and electricity suppliers and you can get almost free phone calls from 18866.com

First though get a detailed list (accounting for every penny) of your income and expenditure. You might find it quite surprising.

lou_martin

Many thanks for the advice, I have started a spending diary and will sit down later and do a budget. I have also signed up for the cheaper phonecalls so hopefully soon i will have a few pounds extra a month to put towards the debt.

Once again, thank you.

jen_jen_2

its really easy to spend the odd tenner and i was (ok still am) crap at keeping a spending diary so what i do is take all the money out for that kind of stuff - for me meals at work, clothes, pub and when its gone its gone. leave the cards at home and just have the cash you cant buy it if there is no cash and it makes you think "do i really need it" if you have to go back the next day you usually dont.

fluffymuffin

I agree with rchddap1, I would talk to your boyfriend - how financially stable is he - can he afford to lower your repayments for a while to let you get ahead a bit - sounds like you are planning on being together for the significant future (or at least are stable enough a relationship for him to lend you £3k) so the less interest you pay, the sooner you get out of debt and the better it will be for the both of you in the long run.

Apart from that just keep at it - your part time work, gardening, car boot etc is great - does all this extra cash go to your debts?

I cannot recommend keeping a spending diary enough - I did this and was amazed - say you take out tenner for something - you only spend £6 on what you really need. Bet you find that if you write it down you spend the remaining £4 on useless stuff you could do without. It might not be a lot but if you make sure all that which you dont spend goes on your debt it will make a difference.

Best of luck - keep us informed of how your doing - I am paying off debt too and getting there thanks to this website but always good to have support of people in the same situation!

lou_martin

thanks guys

have done my budget and kept my spending diary going... so far so good!

am working up to asking my OH about the loan repayments, i know it makes sense and yes he is financially stable (i am very jealous!) but i am wary of him thinking i am taking the p*ss as i don't pay rent to him or anything. I think he would understand and it's the only way i'm really gonna make headway so i shall bite the bullet and ask him. I know he won't say no i just don't want him to think i'm taking him for a ride (if that makes sense)?!

But at the end of the day the sooner i am debt free in other areas then then sooner i will be able to pay him back and make more of a contribution to the household so I'll try and sell it to him like that!! :A

Thanks for the support, I have been really impressed with this website and all it's fab hints and tips and useful advice from other like-minded people :T

meanmachine_2

Yes I was wondering about rent, since you didn't mention it.

Is your boyfriend taking care of this? In which case I wouldn't do anything about the car loan. In his shoes I would think you were starting to take the mickey.

Money can wreck relationships and he probably sees this loan repayment as some kind of recompense for supporting you.

Hope that makes sense. If he's careful with his money, he'll be careful about not just to give away £3000 (on top of rent!)

lou_martin

Hi Meanmachine,

I would agree except when i first moved in he refused my rent money i offered and has always said he doesn't want me to pay him (which is why i pay for our food and phone bill/tv/internet etc). Also the original loan he gave me was for £5,500 to replace my clapped out old banger so i've already paid him back £2,500 so he knows i am good for the money and that he'll get it all back eventually. Plus it's too late now because i've sent him an email on the subject setting out all the points i've mentioned so i guess it's make or break!

You're right about the fact money can wreck a relationship, we've fallen out before over my spending habits (and his somethimes) but we've always picked ourselves back up and got on with things, and he is really aware i am trying to straighten myself out, but that takes time unfortunately and doesn't happen overnight.

He is careful with his money, but he's also generous; he's always lending money out to family and friends (not that i see that as an excuse for him to fork out for me too though!). But the fact that he earns five times as much as i do means he can basically do what he likes with it whereas i'm on an extremely tight budget in every area and have to try to get the right balance to pay the debts off. I am in no doubt this has been all my own doing, i glady hold my hands up to that, but i am trying to get out of a bad situation that otherwise will have me still paying it all off in ten years time! :eek:

meanmachine_2

He earns five times what you get?!!

Wow, sounds like a keeper...

Not that money's everything.

The happiest time of my life was when I was an impoverished student. The most miserable times coincided with my highest salary. Funny that.

You know the situation more intimately than me, obviously.

For all I know he probably likes paying the rent for you. (Men are quite victorian sometimes when it comes to salary).

lou_martin

yeah i think it might be a male pride thing but silly thing is maybe if i'd have had to pay rent to him i would have had responsibilities to think about and not frittered all my money away....

I guess time will tell...