A Little Advice Needed

My debts are not astronomical, but having dropped out of Uni in January, and starting my first full time job a few weeks ago i'm now looking at taking the first steps to debt-free living (well, after one more thing) and building a decent credit history.

Currently I have an interest free overdraft from the Royal Bank of Scotland which is sitting at -£1380.

I have a RBoS credit card which is currently at -£295 (limit £800, I normally pay off the majority or all of the balance each month - never missed a min payment at least)

Was accepted yesterday for an Egg credit card (£1250 limit, interest free on balance transfers and purchases till Dec 2005)

My job currently pays ~£200 a week after tax & N.I

The last thing that will increase my debt in 6 weeks time is a new car (£2000 gift from my mum, £2500 interest free loan from a relative to be paid back at £200 per month and £500-£1000 from myself)

So any advice on how to start managing it and also building up a better credit history would be appreciated.

Comments

  • Stevenj214
    Stevenj214 Posts: 221 Forumite
    Oh yeh, I also have a Lloyds TSB current account, currently sitting at +£70 which also has £100 overdraft facility available

    Outgoings from the Lloyds account:

    Mobile, £25 per month
    Car Insurance, £65 per month
  • Hi Steven,

    I'm not alot of help with the best way to go about what you're hoping to do, but one bit of advice I can give you is to work out what you'll need to pay each month to get debt free, stick to it and do not get into any further debt unless you have absolutely no option and it is an emergency! (and even then try not to)
    The most common advice is to work out which debt you're getting charged the most interest on and clear that as a priority - it would appear your o/draft or cc are the most important to get rid of.
    If you post your outgoings, apr's on your debts etc, there are loads of people that will point you in the right direction in no time.

    Y&R x
    Quit smoking 18/08/07
  • Willsnarf1983
    Willsnarf1983 Posts: 1,928 Forumite
    do u really need this car that ur getting thats gonna cain ur insurance, why not plan, pay of ur debts, save a bit and then buy it, or if ur parents are willing still have their £2k and lob it in a high interest savings account??

    Will
    SShhhhhhhhhhhhhhhhhhhhhhh
  • Stevenj214
    Stevenj214 Posts: 221 Forumite
    do u really need this car that ur getting thats gonna cain ur insurance, why not plan, pay of ur debts, save a bit and then buy it, or if ur parents are willing still have their £2k and lob it in a high interest savings account??

    Will

    I need the car in as much as I have been driving for 2 years so rely on the car a lot, it also cuts journey time to and from work from 1hr 20mins to just 20mins. Tbh, it's not an essential but it's important enough that I would forgoe nights out to be able to afford it.

    My last 2 cars have been pretty old and liable to break down at innoppotune moments so the car i'm looking at is a 51 plate with warranty etc. so even though it is an expense it will be a regular manageable expense.

    I sound a bit like i'm talking myself into it but it is a definite :) lol
  • Stevenj214
    Stevenj214 Posts: 221 Forumite
    The most common advice is to work out which debt you're getting charged the most interest on and clear that as a priority - it would appear your o/draft or cc are the most important to get rid of.
    If you post your outgoings, apr's on your debts etc, there are loads of people that will point you in the right direction in no time.

    Y&R x

    RBoS CC is the highest at 18.9% apr (calling tomorrow to see about getting that down) but it will be paid off in the next couple of weeks.

    Egg CC is 0% till Dec then 14.9%

    Lloyds TSB overdraft i'm not sure what the apr is (i only use it in emergencies)

    RBoS overdraft is 0% apr for the forseeable future

    Outgoings:

    Rent: £30 p/w
    Council Tax: ~£25 p/w
    Car insurance: £65 p/m (won't change with the new car)
    Mobile: £25 p/m
    Broadband: £8.50 p/m

    That's about all I can think of...?
  • Willsnarf1983
    Willsnarf1983 Posts: 1,928 Forumite
    ok but what i am saying is then use the money ur mum is giving u to get a cheaper budget car that should be as reliable, ona lower insurance and it stops u going into debt with a family friend as well........just an idea

    Will
    SShhhhhhhhhhhhhhhhhhhhhhh
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