ejt87's trying to become debt free whilst at uni thread!

ejt87 · 7 March 2009 at 1:04AM

Ok well today I finally sat down and realised just how much I debt I owe on everything. Not taking in to consideration the student debt I have so far accumulated I am £5409.24 in debt, this being a mixture of my car loan, overdrafts and one credit card.

I'm 21, and a full time student, part time supermarket worker. I currently live in student accomidation, but due to a mix of the rent I'd save and the fact I can no longer cope with my food-stealing-unclean housemates I'm moving home and commuting to uni in July. Thankfully because my parents are so lovely they are letting me live there rent free, so other than the increase in the amount of fuel it will take me to get to Uni it will save me loads.

It's taken me all night to come up with a decent SOA, but I'm sure I will have messed something up, please tell me if you notice anything...anyway on to my SOA....

My 4 Weekly SOA...
Income: £363.25 (although, I usually earn more between the £400-450 mark as I grab any overtime I can!)
Student Loan: £385.41
Total Income Per Month: £748.66

Rent: £263.89 (includes water, gas and electric)
Car Insurance: £28.67 (although I do pay it in a 1 off installment of £343.57)
Car Tax: £11.25 (I usually pay for 1 years worth at £135)
Car MOT: £3 (£35 / 12)
Petrol: £30
Food Shoping: £30
Mobile Phone: £35 (I'm not sure if they'll let me cut this down its on an 18 month contract of which I have 6 months left, any tips?)
Internet: £15
Gym Membership: £19.95 (I know! I'm going tommorow to cancel it!)
Contact Lenses: £13
Birthdays/Christmas: £10 (I only buy Mum, Dad, Brother, Boyfriend and Best Friend...occasionally we just make each other stuff as we're both always broke)
Clothes: £0 (for the time being, I honestly cannot justify buying any clothes at the moment.)
Magazines: £8 (too much I know, I think I'm going to ask for subscriptions for my birthday)
Haircuts: £25 (I honestly don't know what to do here, I'm blonde and it looks rubish if I do it myself and I feel even worse with roots....I go to a cheap salon so thats a plus?)
Total: £483.75

Car Finance: £65.57 (60 Month term at 12.9%APR 33 Months left, balance £2054)
Asda Credit Card: Mininum Repayment: £57.79 (17.9% APR, balance £1884.75)

The other 2 reasons for my debt are 2 interest free overdrafts, so I have no minimum repayment for these. Also I have tried to get an interest free credit card to cover the balance of my Asda card, but due to my circumstances and they way credit is at the moment no one will accept me.

I think thats it? I can't think of anything else to add. Thats opened my eyes! I had no idea how much money I've been wasting. Anyway, I'll try and keep on top of this thread and any advice you have I'd be grateful for!

boredofbeingathome · 7 March 2009 at 1:12AM

Hi and welcome to the boards.
Am a bit tired at the moment but will have a look at your SOA in the morning.
It is always hard taking the first step, but that is why the DFW board was created.
There is a link at the top of the board for first time posters and a SOA calculator, which may be off better use to you.

http://forums.moneysavingexpert.com/showthread.html?t=107280

Bob x

sammy115 · 7 March 2009 at 7:09AM

HI ejt

You need to expand a little...there is no petrol on your SOA at the minute and no debt repayments so we have no idea what your real position is at the minute.

You really need to start keeping a spending diary too as this will open your eyes even further. You could try ringing the mobile phone co up and explaining the situation to them. They may review your tarriff...

Sorry - just realised you have put rent in (so maybe no petrol) but when you move out there may be petrol but no rent - yes?

ejt87 · 7 March 2009 at 11:46AM

boredofbeingathome wrote: »

Hi and welcome to the boards.
There is a link at the top of the board for first time posters and a SOA calculator, which may be off better use to you.

Thanks Bob, I tried using that calculator but I couldn't figure out how to copy and paste the information on to here, so that was why I made my own up.

sammy115 wrote: »

HI ejt

You need to expand a little...there is no petrol on your SOA at the minute and no debt repayments so we have no idea what your real position is at the minute.

No I do use petrol so I will add this, I need it to go to work and visit my family and friends.

I think the idea of a spending diary will be really good, because I'm sure my money just goes on random trips to Tesco and Asda, it looks like I have a decent amount of money coming in, which I would if I did divide my student loan up rather than just spending it when I get it

Fire_Fox · 7 March 2009 at 6:02PM

Nothing on your SoA for car repairs, food, college books etc.? Mobile phone - ring them up and ask when you can reduce the plan, often it's before the contract itself is up. Hair - get it done at a local hairdressing college. Gym membership - if you use it and you enjoy it, keep it. It is good for stress levels, for helping your concentrate and keeping you busy (stops you shopping!). DO NOT ever go to the gym with any cash on you, they make their money from selling you water/ snacks/ towels/ sunbed sessions. Are you on the student rate? Gyms often don't advertise this. :money:

Why do you have two overdrafts? Most banks terms and conditions state that your student account must be your main or only current account. Where is the rest of your income going? Do not take a card or cash out of the house and you can't spend. In fact, cut up your credit card! Pay a lump sum off your debts the minute you get paid, then you will have no option but to survive on the remaining money. Having to choose between a magazine and food concentrates the mind!

ejt87 · 7 March 2009 at 8:38PM

Hi Fire Fox!
I've added food, I really don't spend much on it as I tend to buy own brand food and I also get staff discount. I don't put anything aside for repairs for my car which is bad I know, but luckily I've never had a problem with it. I've only bought 1 book for uni, the rest I just get from the library.
I am on the student rate at the gym, which only saves me £3 a month, I don't use it enough to justify the money I spend on it so I've canceled it, the money I save from it will help a long way and I have an exercise bike and find a run around the block just as effective! I will definately look in to the prices at an hairdressing college, my hair needs help at the moment!
I honestly have no idea where the remaineder of my wages/loan have been going, and I am going to keep a spending diary to keep an eye on this. I don't think I will be able to properly sort myself out with this until my next loan installment on 20th April though

I get paid next Friday which I've calculated will be somewhere in the region of £389. This will more or less cover the outgoings I have going out, I will try and make up the other £100 from Ebay sales which I've already made a good start on

The reason I have 2 overdrafts is because I have my main student account with Natwest with an over draft of £1250, I also have a normal account with Barclays and they for some reason gave me an Overdraft of £100, i think the interest rate is something like 0.10% according to my bank statement.

I've got myself in to a mess so far, but this week I've posted well over 50 items on ebay and worked 10 hours overtime this week, so I am trying to turn things around.

wendz86 · 7 March 2009 at 9:51PM

Hi,

I just thought I would pop in and say hello. I am in my first year as a graduate so know how easy it is to run up debts at uni.

You seem to be doing all the right things.

di1985 · 7 March 2009 at 10:06PM

Hey, Id try and approach your student help/advice centre, mine is based in my student union and is where you can get free debt advice - they can do the same thing as citizens advice bureau(negotiate repayments, budget help etc). I see you are trying to clear debt though rather than reduce outgoings but i think you should still approach them. If you look keen and wiling to help yourself they may be able to apply for cash for you to pay some debts off. You can also 'use' the systems in place for financial help(perhaps apply for things you dont really need, tends to be easier when you ahve your own home though). I know this appears dishonest but its often abused for the wrong reasons and the belief is that the more that is paid out each year, the more financial aid the uni gets(from the government) the next year(dont quote me on this!). My advisor is usually happy to help in a 'i'm not saying you should do that but if you do don't tell me you are' sort of way! He believes higher education is too expensive so is not against doing these things when accompanied by good intentions(ie not for new shoes or nights out!). Anyway, please do approach someone who can help you with this, its free and it may really help! Oh and can I say congratulations for tackling this while its quite a manageable situation, at 23 I have a horrendous credit record from when I was younger and although Im working on it its a long process!!!

SolicitorMidlands · 7 March 2009 at 10:33PM

I know exactly how it feels - I was a student some time ago but things don't change as government funding gets better and/or worse! Students get into debt.

I moved out of my shared house in the first year and got my own flat. It was so tough I got in a real mess at one point. I started listing things on ebay, going to home bargains and cheaper shops and going to asda late at night for the reductions. some weeks i would live off beans on toast and soup.

My main expense was clothes and makeup but you haven't fallen into that trap so you are doing really well.

Can you call the credit card company and ask them to stop the interest?

ejt87 · 8 March 2009 at 10:35PM

Thats a good idea to go and ask for debt advice at uni, I'll definately go and make myself an appointment sometime this week

Thanks.

I could ring my credit card company, but I don't suspect they'll drop my interest, I don't understand why they would?

On the plus side I'm on my 3rd NSD today...I've also asked my cousin to dye my hair for me, so thats going to cost me £5 for the hair dye rather than the £25+ I'd pay at the hairdressers, oh and I've been selling a few bits on eBay too

I also need to chase up £28.50 I'm owed off my Mum and £22.50 from my friend which I'll put straight into my Asda Credit Card, I think I'm going to make it my goal to have that paid off and closed by the end of the year.

Oh and some other interesting news! I might be putting my car up for sale and using my boyfriends Mum's car which she said I can use as my own whilst she's living in America as long as I get my own insurance policy on it. One problem is that it has a bigger engine which means it will be less economical but it will still save on my monthly repayments!

Off to make some posters for it now

ejt87 · 10 March 2009 at 2:28PM

Spent some money yesterday, I took half a packed lunch to uni, but I had no bread so I ended up buying a sandwhich while I was there for £1.45 and a bottle of water for 49p, but I'm going to keep the bottle and refill it for the week, so thats not too bad. Oh I spent 45p on some orange juice too, I'm getting bored of just tea, coffee or water!

Today my cousin is dying my hair for me, so that'll cost about £5, she had to cancel yesterday because she was tired after work. I'm gonna have to keep a note in a little spending diary though

ejt87's trying to become debt free whilst at uni thread!

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