Hello, young newbie

Blackruby

Hey there,

My name is Dee, I'm a student so I am already in debt. Probably around 15k but won't know till I get my end of year statement thing. But I know that will come out my wages and only when I am earning enough so that doesn't worry me much.

What does worry me is my huge O/D, I know the bank told me it will be interest free until a year after I graduate, which is in July, but I've heard horror stories from friends about banks suddenly switching to an adult current account and have huge amounts of interest accrued on it.

If this doesn't happen, then I am fine, coz I have a plan to get out of my current Mcjob in the retail industry and get on a graduate training program which pays lots more money and will be full time. But if it does happen, then I am screwed.

Basically I am on the board for money saving ideas and to start figuring out how much to put back in to my overdraft each month if/when I do get on the graduate training course.

I also feel like I am living really hand to mouth at the moment, because my job is a weekend, minimum wage thing that pays for everything, plus a few treats but leaves me with nothing at the end of each month.

I know all it would take is one unexpected event, prolonged illness or a redundancy to really screw me over. So if I can start actually saving that would be good.

But good news is that I paid off my credit card recently in full (why they let a student have a credit card I don't know) because I had used it to live on while unemployed in the summer, paid it off with my student loan in september, had two ridiculously large util bills in Jan and used it to pay them, so I was back in debt on it, so used march's loan to clear that.

Half tempted to cut the card up but don't want to in case I do get in financial dire straits again. Other good news is that it's my 21st birthday monday and I have joined the quit smoking thread to get 30 quid back each week.

Ta-ra

Insomniac Dee

Sue-UU

Hi Dee,

Have sent you a PM, can't put any more on here tonight as I have to get to bed, but I do wish you well as you sound like such a very sensible person who has their head screwed on and will succeed ....as you will with all the above, given time.

If I can't get back here before, then have a wonderful 21st on Monday and make it a worry-free day, you deserve that much for sure. Have a great day and a great year ahead!

All best wishes, Sue x

Blackruby

Thank you for the reply and the compliment *blush*

And good idea putting the advice in a pm, that way I can always refer to it!

Good night, I should probably go bed too. It is 2AM, youch. Good thing I am still on holiday from work.

mizmir

Hi Dee

Welcome! You've come to the right place - and excellent plan to prepare in advance for dealing with what might be round the corner - I'm sure with that attitude you will be fine. You don't sound like you have much slack in your budget at the moment but it might still be worth posting your SOA so that people can see if there is any where you can shave a bit - folk on here are pretty amazing at spotting ways to save a few pounds and that all adds up very quickly!

Anyway just wanted to say hi and welcome. Well done on quitting smoking too - improve your finances and your health in one fell swoop! There is a quitting smoking thread on this board if you're interested. :T

Blackruby

Yep, already on that board. I think I will go make myself a cup of coffee and go do this SOA thing. I can't believe I am up this early considering the fact I went to sleep at half 2.

Blackruby

[tt]Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 332
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 332

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 165
Management charge (leasehold flat)...... 0
Council tax............................. 0
Electricity............................. 10
Gas..................................... 10
Oil..................................... 0
Water rates............................. 6.6
Telephone (land line)................... 0
Mobile phone............................ 25
TV Licence.............................. 27
Satellite/Cable TV...................... 0
Internet Services....................... 7
Groceries etc. ......................... 30
Clothing................................ 8.3
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 7.91
Haircuts................................ 0
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 336.81

Assets
Cash.................................... 222.51
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 222.51

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
o/d............................2473.99...0.........0
Total unsecured debts..........2473.99...0.........-

Monthly Budget Summary
Total monthly income.................... 332
Expenses (including secure debts)....... 336.81
Available for debt repayments........... -4.81
Monthly UNsecured debt repayments....... 0
Surplus(deficit if negative)............ -4.81

Personal Balance Sheet Summary
Total assets (things you own)........... 222.51
Total Secured debt...................... -0
Total Unsecured debt.................... -2,473.99
Personal net worth...................... -2,251.48

Well just for a few clarifications, I have paid my rent up until july so that is not a worry until then (yay student loan). Also my bills may seem quite cheap but that is quarterly divided by four, for me and my house mates.

And also, just realise I get paid next friday and I still have 222 quid in my account, mostly left over student loan but get in! Money in my account!
Entertainment is nights out.

tara66_2

Hi Blackruby,

Well done on being proactive and getting sorted now, rather than waiting until the interest goes on your overdraft and worrying then about it.

Can I just ask you a couple of things, have you listed all your expenditure on a monthly basis, as the tv licence for example looks too much. Also what are your plans beyond June when your degree ends? You have mentioned that you are hoping to get into a graduate position but would this be from June or would it be September? In addition what will your living arrangements be? Are you planning on moving back with family for the Summer?

Sorry if this seems nosey but I am just trying to get a grasp on your situation as it seems to me it may be changing quite a bit pretty soon, and I think during that transitional period some students actually increase their debt before they settle into work.
This extra info will help those who advise on here. Good luck with your degree and future career.
Tara x

RachyClaire

have you looked into the possibility of switiching your account to another bank? I was with Natwest whilst at Uni and I have 3 years after I've graduated to pay it back (although they do reduce the amount thats interest free each year so up to £2000 in 1st year after grad, £1000 2nd year £500 3rd year) Also I've recently started doing Mystery shopping with Retail Eyes after I read about it on here, ok so you dont make a lot, but I so far I've got a nice meal out and a new Animal T Shirt from it, and been paid £10, not bad for a few minutes work!!

talliedebtbuster

Hi there Dee, a massive well done for coming on here. Im am a graduate and doing another degree as my job is paying for it and it would have been mad to turn down. I live at home still at the ripe age of 25! I just wanted to say you can do it.....to motivate you here is my story....

2 years ago i grauduate form my London uni. I then went to do a postgrad but only did one year because it wasnt for me, and the fees to carry on with the course i was doing were so much and i couldnt work and the course....beleive me it was that hard!

so anyways....i decided to get a full time job in something that interested me related to my degree.....but it took a while and in 2006 i was in 20k of debt (inc of the student loan).....i then learnt to drive coz i had to to get to work (shifts, xmas day) and then bought a brand new car...for the reliabilty my old one kept breaking down loads costs! so my debt was about 25k....sorry for the essay here.....

BUT!!!! i worked my bum off with any overtime i could get, sometimes working 12 hour shifts for 10 days strait...2 off back again... reduced everything in spending you name it and its now april 2008 and i owe only 11k (inc student loan) so you can do it!! If things go to plan, in summer 2009 ill be debt free.

It is not going to be easy to get on a grad scheme and you need a plan B. start thinking options, where are you going to live after july, get a job any job, which town do you live? London? call centre, police or ambo control room best jobs ever (guess where i work!!) the overtime is always there. or get a 9-5 anywhere and a second job in eve or weekend. Just for a year you could clear half that debt im sure.

I still live at home but pay the same as outside, everything in our house is split 3 ways. Please think positive and dont make the mistakes my mates did, they waited till they had graduated before getting applying for jobs. its not easy and you dont just walk into a scheme. thousands apply for them and a first these days is a must!

PM me if you like

Tallie