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  • FIRST POST
    dcampbell86
    In Debt At The Age of 19
    • #1
    • 6th Dec 05, 8:12 PM
    In Debt At The Age of 19 6th Dec 05 at 8:12 PM
    Hi,

    I am currently nearly £5000 in debt.

    I have 3 credit cards, one overdraft, a loan to pay back and 3 mobile phone contracts.

    I really am finding it depressing have this debt (not the only person!)

    How can I repay everything quickly and get out of debt?

    My target is to be out of debt by next Christmas.

    Does anyone has any advice at all that they can give me to get out debt ASAP?

    Also, does anyone have a budget spreadsheet (Think it's that) that I can use to work out exactly how much money I have to spend when I get paid etc?


    Thanks
    David
    Last edited by MSE Andrea; 12-12-2005 at 4:03 PM.
Page 1
  • gizmoleeds
    • #2
    • 6th Dec 05, 8:16 PM
    • #2
    • 6th Dec 05, 8:16 PM
    I hate to say it, but aiming to pay off all £5,000 in a year is a tall order at your age.

    Are you living with parents?

    Be glad you have realised this early on - many reach £20,000 - £30,000 before taking any action

    There is an MSE spreadsheet somewhere.
    • wendyl1967
    • By wendyl1967 6th Dec 05, 8:21 PM
    • 313 Posts
    • 238 Thanks
    wendyl1967
    • #3
    • 6th Dec 05, 8:21 PM
    mse budget planner
    • #3
    • 6th Dec 05, 8:21 PM
    mse have a budget planner to download and fill in. Be reaslistic and truthfull when you do it.



    http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1089226742,17582,
    Wendy
  • dcampbell86
    • #4
    • 6th Dec 05, 8:22 PM
    • #4
    • 6th Dec 05, 8:22 PM
    Well I am earning £10,510 a year but recently got a payrise and now am earning £13,050 which has got ackdated to 1 November 2005.

    Yes, I do live at home with my parents - paying £150 a month in digs.

    That link you talk about the MSE spreadsheet - I have "Microsoft Works Spreadsheet" and it doesn't seem to work when I download the link.
    • wendyl1967
    • By wendyl1967 6th Dec 05, 8:27 PM
    • 313 Posts
    • 238 Thanks
    wendyl1967
    • #5
    • 6th Dec 05, 8:27 PM
    spreadsheet
    • #5
    • 6th Dec 05, 8:27 PM
    I think you need microsoft excel on your computer to get it too work.

    quote from mse site
    If you don’t have Excel



    Those without Excel, or who’ve tried the above and it doesn’t work, can access the fully automated online version of the planner.



    It should work for most people, though technically it needs something called Javascript. If this doesn’t work for you, then the best thing to do is download the latest version of your internet browser. The one major drawback with this version over Excel is that as it is ‘online’ unfortunately you can’t save it, so have all the documentation ready when you do it and print it out at regular intervals.
    Last edited by wendyl1967; 06-12-2005 at 8:31 PM.
    Wendy
  • DebtFreeDetermined
    • #6
    • 6th Dec 05, 8:34 PM
    • #6
    • 6th Dec 05, 8:34 PM
    Hi David

    Im new to all this too, i know how you feel but as said above you have taken action sooner rather than later.

    From reading lots of threads on here maybe you could post your monthly outgoings? and income, as a break down to aid people giving advice.

    First thing i would look at from your post is why 3 mobile phones? are the monthly phones? if so can you cancel the other 2? or all three and get a pay as you go phone?

    All the best

    Nick
    Dept at highest - £27,000

    Estimated dept free date - 2010
  • dcampbell86
    • #7
    • 6th Dec 05, 8:36 PM
    • #7
    • 6th Dec 05, 8:36 PM
    Thanks

    I cannot seem to stick to a budget at the moment.

    I have a habit of paying my friends for stupid stuff.

    i.e i pay them £50 to stay overnight at my house on a Saturday night and other stupid stuff.

    If i can provide you with figures of what i owe could you possibly advise me of suitable monthly repayments?
    • wendyl1967
    • By wendyl1967 6th Dec 05, 8:40 PM
    • 313 Posts
    • 238 Thanks
    wendyl1967
    • #8
    • 6th Dec 05, 8:40 PM
    • #8
    • 6th Dec 05, 8:40 PM
    Thanks

    i.e i pay them £50 to stay overnight at my house on a Saturday night and other stupid stuff.

    If i can provide you with figures of what i owe could you possibly advise me of suitable monthly repayments?
    by dcampbell86

    Why do you pay your friends to stay?! :confused:
    Wendy
  • $17mma
    • #9
    • 6th Dec 05, 8:40 PM
    • #9
    • 6th Dec 05, 8:40 PM
    Try this site as well. It will tell you in which order to pay off your debts depending on the interest rates.

    http://www.whatsthecost.co.uk/snowball.aspx

    Why do you need three mobile phones? :confused: get rid of two and reduce the one you will be using to a low tariff.


    Your loan.. are you paying PPI? if so get it taken off by cancelling it. By doing this you could reduce your payments up to £40 per month and may recieve a refund for what you have already paid in PPI.

    Your credit cards are they on 0%? if not switch them to 0% ones then close them..

    http://www.moneysavingexpert.com/creditcards

    Also you speak to your mum and dad, maybe they can reduce your monthly rent until you get yourself in better position.

    Your overdraft, how about explaining your current situation to your bank and ask them to freeze the interest. If you dont ask you dont get!

    Well done for sorting this out now before it got any worse.
    All it takes for evil to succeed is for a good man to do nothing!
  • dcampbell86
    Well when i got my first mobile phone i got a pay monthy one and i started using that but went over allowances etc.

    Then i saw another phone that i wanted and got that on pay monthly and yet again.

    You cannot cancel the contract unless you pay the line rental for the remainder of ur contract.

    I have just had a payrise so dont know exactly what my wage will be per month.

    I always do around 30hours overtime a month and that gets paid at time and a half.

    I pay £150 to my parents each month as rent.

    I repay £102 for my personal loan.

    I have 3 credit cards - one at £500 (the limit), one at £1179 (over the arranged limt) and one at £200 (the limit).

    Got an overdraft which is currently at £600 (the limit).

    To be honest i am in a mess with money, seems to spending more than i earn a month.

    I want to get out of debt while i can since i am still young.
    • wendyl1967
    • By wendyl1967 6th Dec 05, 8:44 PM
    • 313 Posts
    • 238 Thanks
    wendyl1967
    If you don't already take sandwiches instead of buying lunches.
    Wendy
    • HLK
    • By HLK 6th Dec 05, 8:44 PM
    • 957 Posts
    • 281 Thanks
    HLK
    Thanks

    I cannot seem to stick to a budget at the moment.

    I have a habit of paying my friends for stupid stuff.

    i.e i pay them £50 to stay overnight at my house on a Saturday night and other stupid stuff.
    by dcampbell86
    You pay friends.. ? they aren't friends.. sorry I can't believe you would pay, or they would take the money. Crikey, they save money by coming to yours and get paid... time to offload! Sorry if sounds a bit harsh !
    HLK

    "Karma - it's a wonderful thing" - Just ask Earl!
  • dcampbell86
    i do not know why i pay my friends - i suppose i just want to be around them more but to do that they want money for it and i am stupid enough to do it.

    i used to do this a lot but then i stopped and then i started offering them money (shouldnt have done!) and now they take it as i offer but they have stated that as long as i dont offer, they wont take
    • wendyl1967
    • By wendyl1967 6th Dec 05, 8:48 PM
    • 313 Posts
    • 238 Thanks
    wendyl1967
    i do not know why i pay my friends - i suppose i just want to be around them more but to do that they want money for it and i am stupid enough to do it.

    i used to do this a lot but then i stopped and then i started offering them money (shouldnt have done!) and now they take it as i offer but they have stated that as long as i dont offer, they wont take
    by dcampbell86

    time to say to those kind of friends.
    Wendy
  • dcampbell86
    what is PPI?

    no my credit cards have interest on them

    will the bank freeze the interets if i explain im struggling to repay?

    i shouldnt be struggling to repay but i am for some reason

    ihave already spoken to my mum and dad and they arent willing to reduce the rent
  • dcampbell86
    i have already started taking in my lunch to work now instead of buying it so i have a head start there
    • wendyl1967
    • By wendyl1967 6th Dec 05, 8:51 PM
    • 313 Posts
    • 238 Thanks
    wendyl1967
    You have to start with the budget planner and then if you are in the red you need to see what you can realistically cut down on. You can't carry on spending more than you earn!

    Carry a note pad and write down everything you buy. Even a paper and see how much money you waste in a week on stuff you could cut down on. Write down the latte, the bus fair etc.
    Wendy
    • HLK
    • By HLK 6th Dec 05, 8:57 PM
    • 957 Posts
    • 281 Thanks
    HLK
    Paying 'friends'
    Perhaps you could ask for some of it back... they probably have savings!

    Seriously though, they will not respect you for this, and I think you know that.

    However, just the fact you have sought advice on here is a good sign.. sometimes that 'lightbulb' moment doesn't happen till a person is a lot older than yourself and a lot deeper in debt. Once you have confronted this issue and are on the way to sorting it .. you will gain in confidence. I wish all the best in this.
    Last edited by HLK; 06-12-2005 at 9:00 PM. Reason: topic
    HLK

    "Karma - it's a wonderful thing" - Just ask Earl!
  • dcampbell86
    well i cannot stop using the buses cause they are the way i get into work, it cost me £1.85 for a return ticket every day.

    is there a way i can work out how much i should repay to my credit cards and overdraft per month?

    i already have a set amount of £102 which i pay monthly
  • gizmoleeds
    it cost me £1.85 for a return ticket every day.
    by dcampbell86
    That's quite good, but are there any weekly/monthly tickets which would work out cheaper?
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