HELP! i’m a student in debt and im overwhelmed!

teaselMay

Think I posted on the wrong thread, have another look at your statement, it looks as though there are large areas of spending missing - food and bills especially.

Given the value of your car I'm guessing it's as old as my van, definitely save a bit each month towards maintenance of that. Bitter experience speaking, it's been an expensive year here!

What I've found very useful, I'm embarrassed to say only this year and I'm twice as old as you OP, is to move everything out of my current account as it arrives apart from the amount to cover all bills and a restricted grocery budget. And then I've made a spread sheet and forced myself to record my balance every day, even made a graph! Embraced my inner geek. That's broken the bad cycle I'd got into of not daring look at my balance and feeling overwhelmed by it when times were hard. As a result I've managed to reduce spending on 'stuff' dramatically and started saving, it's really quite empowering discovering that it is doable.

Are all of your debts interest free at the moment?

Emmia

I think there's a few expenses missing... You've put nothing down for groceries, car parking, or car maintenance, clothes, haircuts, gifts, and entertainment (do you never go out?) for starters.

If the budget is accurate... then you've got £600+ left over each month, so if that's the case why are you nearly £4,000 in debt?

christmascookie24

I appear to have done my SOP wrong, I do apologise, being so hard work! Please see the updated version below. Please note for things like holidays birthdays etc. I have calculated what I have spent on these in the last 12 months and divided by 12 to work out a monthly average. Doing this has made me realise that I am living beyond my means in many many different areas, so please dont judge!  I was already aware of the fact I was overspending, hence me taking the plunge to acknowledge the problem and address it as I do not want to continue like this. I have a plan to not overspend but my current priority is tackling this debt.  thanks. 

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household........... 2

Number of children in household......... 0

Number of cars owned.................... 1[b]

Monthly Income Details[/b]

Monthly income after tax................ 1300

Partners monthly income after tax....... 0

Benefits................................ 0

Other income............................ 0[b]

Total monthly income.................... 1300[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 0

Secured/HP loan repayments.............. 176.4

Rent.................................... 200

Management charge (leasehold property).. 0

Council tax............................. 0

Electricity............................. 0

Gas..................................... 0

Oil..................................... 0

Water rates............................. 0

Telephone (land line)................... 0

Mobile phone............................ 78.24

TV Licence.............................. 0

Satellite/Cable TV...................... 0

Internet Services....................... 0

Groceries etc. ......................... 160

Clothing................................ 200

Petrol/diesel........................... 100

Road tax................................ 0

Car Insurance........................... 64

Car maintenance (including MOT)......... 50

Car parking............................. 20

Other travel............................ 64

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 11.45

Pet insurance/vet bills................. 0

Buildings insurance..................... 0

Contents insurance...................... 0

Life assurance ......................... 0

Other insurance......................... 0

Presents (birthday, christmas etc)...... 70

Haircuts................................ 13

Entertainment........................... 60

Holiday................................. 250

Emergency fund.......................... 0

Eating Out.............................. 120[b]

Total monthly expenses.................. 1637.09[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 0

Shares and bonds........................ 0

Car(s).................................. 4000

Other assets............................ 0[b]

Total Assets............................ 4000[/b]

[b]

Secured & HP Debts[/b]

Description....................Debt......Monthly...APR

Mortgage...................... 0........(0)........0

Hire Purchase (HP) debt ...... 6176.....(176.4)....0[b]

Total secured & HP debts...... 6176......-.........-   [/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

Klarna.........................718.87....0.........0

Student Overdraft..............2500......0.........0

Very Pay.......................600.......0.........0[b]

Total unsecured debts..........3818.87...0.........-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 1,300

Expenses (including HP & secured debts). 1,637.09

Available for debt repayments........... -337.09

Monthly UNsecured debt repayments....... 0[b]

Amount short for making debt repayments. -337.09[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 4,000

Total HP & Secured debt................. -6,176

Total Unsecured debt.................... -3,818.87[b]

Net Assets.............................. -5,994.87[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

christmascookie24

theoretica said:

First thing to do is get a better handle on where your money has been going.  I bet you spend some on food, for instance, and your car will need an MOT.  With things like car maintenance that you don't pay every month you take the annual bill and divide by 12 for the SOA and save that amount each month so you have it when needed.  It is useful to start with what you have been spending, so look at card statements for the past months.  Then you can look at the spending and work out what is unavoidable, and what you may choose to cut.  To get out of debt you will need to cut the overspending that got you into debt, and then cut spending by a bit more to pay the debt back.

How long until your mobile is at the end of the contract?  Is there a cheaper university gym you can switch to?

Hello! Thankyou for your response. I have just posted my updated SOA as it appears I missed a lot of info out on my previous one, so apologies for the confusion. Great idea with the annual bill for MOT's etc. Would you say it is wise to try and save for this whilst paying off my debt or aim to pay off my debt before I start saving? 

The SOA has definitely made me realise where my bad habits stem from and that I have been living beyond my means. My student loan that comes in in january will pay off my klarna balance, very pay balance and £500 of my overdraft, which is a good start. My mobile contract does not end for another 2 years and I will look at gyms in my area. I actually commute to university currently so can look if there are any gyms that are cheaper than the one I am currently going to. 

Thanks for your help 

christmascookie24

teaselMay said:

Think I posted on the wrong thread, have another look at your statement, it looks as though there are large areas of spending missing - food and bills especially.

Given the value of your car I'm guessing it's as old as my van, definitely save a bit each month towards maintenance of that. Bitter experience speaking, it's been an expensive year here!

What I've found very useful, I'm embarrassed to say only this year and I'm twice as old as you OP, is to move everything out of my current account as it arrives apart from the amount to cover all bills and a restricted grocery budget. And then I've made a spread sheet and forced myself to record my balance every day, even made a graph! Embraced my inner geek. That's broken the bad cycle I'd got into of not daring look at my balance and feeling overwhelmed by it when times were hard. As a result I've managed to reduce spending on 'stuff' dramatically and started saving, it's really quite empowering discovering that it is doable.

Are all of your debts interest free at the moment?

Hi, thanks so much for your response, yes I realised by all the comments I had missed a lot of info off! Please see my updated SOA, its most definitely helped me realise where I am overspending - yikes! The spreadsheet is a really good idea, I am going to do this - is it just a basic one you do or is there anything else that is important that I should include other than the normal income / expense etc.? 

Yes, all of my debts are interest free at the moment. My student loan / bursary next month should pay off my very pay, klarna and £500 of my overdraft, so that is a good start? 

thanks again for being so kind and helpful

christmascookie24

Emmia said:

I think there's a few expenses missing... You've put nothing down for groceries, car parking, or car maintenance, clothes, haircuts, gifts, and entertainment (do you never go out?) for starters.

If the budget is accurate... then you've got £600+ left over each month, so if that's the case why are you nearly £4,000 in debt?

Hello, apologies, I have just posted my updated SOA, sorry for the confusion. 

I am in debt because I have been living beyond my means in numerous different areas, not here to make excuses! But I recognise that there is an issue and I want to tackle it and change it. I am aware I need to focus on my spending habits and I am currently doing so, but I am just wanting to know ways to tackle my debt and budget my money better. My student loan / bursary / salary next month should pay off my very pay, klarna and £500 of my overdraft from what I have worked out. thanks for your help.

enthusiasticsaver

Do you not make monthly payments to Very and Klarna? You need to get a handle on your budget as you are living beyond your means. Can you cancel the holiday? 

Emmia

christmascookie24 said:

Emmia said:

I think there's a few expenses missing... You've put nothing down for groceries, car parking, or car maintenance, clothes, haircuts, gifts, and entertainment (do you never go out?) for starters.

If the budget is accurate... then you've got £600+ left over each month, so if that's the case why are you nearly £4,000 in debt?

Hello, apologies, I have just posted my updated SOA, sorry for the confusion. 

I am in debt because I have been living beyond my means in numerous different areas, not here to make excuses! But I recognise that there is an issue and I want to tackle it and change it. I am aware I need to focus on my spending habits and I am currently doing so, but I am just wanting to know ways to tackle my debt and budget my money better. My student loan / bursary / salary next month should pay off my very pay, klarna and £500 of my overdraft from what I have worked out. thanks for your help.

This is quite awkward, the truth is you have a £4k asset (your car) which is also costing a good slice of your monthly budget to run (do you pay no road tax?) and maintain. In your position I would think hard about whether you can actually do without your car or use it far less to cut the cost of fuel.

Do you have anything else you can sell, e.g. clothes, books? Or the ability to take on some part time work to increase your monthly income? Can you avoid going on holiday for a bit? Stop buying more clothes and rein in the gifts?

When you pay off the Very / Klarna you MUST close them and not reopen them (or take out another form of credit, like a credit card) in order to try to  force yourself to live within your means... Because at the moment, you're not.

I also notice you've put two adults in the household. But you don't live with your partner? So it should be 1? Or if you do, then what's their income / contribution?

Paying this off is going to involve some difficult choices. Is your partner aware of your financial position?

ayupmeduck

£300 a month on clothing and £70 a month on presents!

teaselMay

christmascookie24 said:

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household........... 2

Number of children in household......... 0

Number of cars owned.................... 1[b]

Monthly Income Details[/b]

Monthly income after tax................ 1300

Partners monthly income after tax....... 0

Benefits................................ 0

Other income............................ 0[b]

Total monthly income.................... 1300[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 0

Secured/HP loan repayments.............. 176.4

Rent.................................... 200

Management charge (leasehold property).. 0

Council tax............................. 0

Electricity............................. 0

Gas..................................... 0

Oil..................................... 0

Water rates............................. 0

Telephone (land line)................... 0

Mobile phone............................ 78.24

TV Licence.............................. 0

Satellite/Cable TV...................... 0

Internet Services....................... 0

Groceries etc. ......................... 160

Clothing................................ 200

Petrol/diesel........................... 100

Road tax................................ 0

Car Insurance........................... 64

Car maintenance (including MOT)......... 50

Car parking............................. 20

Other travel............................ 64

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 11.45

Pet insurance/vet bills................. 0

Buildings insurance..................... 0

Contents insurance...................... 0

Life assurance ......................... 0

Other insurance......................... 0

Presents (birthday, christmas etc)...... 70

Haircuts................................ 13

Entertainment........................... 60

Holiday................................. 250

Emergency fund.......................... 0

Eating Out.............................. 120[b]

Total monthly expenses.................. 1637.09[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 0

Shares and bonds........................ 0

Car(s).................................. 4000

Other assets............................ 0[b]

Total Assets............................ 4000[/b]

[b]

Secured & HP Debts[/b]

Description....................Debt......Monthly...APR

Mortgage...................... 0........(0)........0

Hire Purchase (HP) debt ...... 6176.....(176.4)....0[b]

Total secured & HP debts...... 6176......-.........-   [/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

Klarna.........................718.87....0.........0

Student Overdraft..............2500......0.........0

Very Pay.......................600.......0.........0[b]

Total unsecured debts..........3818.87...0.........-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 1,300

Expenses (including HP & secured debts). 1,637.09

Available for debt repayments........... -337.09

Monthly UNsecured debt repayments....... 0[b]

Amount short for making debt repayments. -337.09[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 4,000

Total HP & Secured debt................. -6,176

Total Unsecured debt.................... -3,818.87[b]

Net Assets.............................. -5,994.87[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

Is your student loan in addition to the 1300 or is that included in that?

On the positive your household costs are very low, the top things that I've turned bold usually take a fair chunk of people's income, you're making a massive saving there in the things that are usually unavoidable.

I'm sure you've seen for yourself where a big chunk of your money is going, the bottom 5 things I've highlighted are all optional and add up to £700 a month, £100 would be pretty generous on those things (all put together). The positive from that is that those things are not essential and so you can reduce your spending on them.

You've got a lot of travel costs, does your course involve travel? Could you walk or cycle for some of those journeys?

You can get this under control