Student in debt

alenax · 16 April 2009 at 12:35PM

urg123 wrote: »

Looks like we crossed posts.

my initial thoughts are:

1) £200 per month on clothes seems like an awful lot.
2) you have £700 per month to pay off you debt - is this really what you end up with every month? Try keeping a spending diary and write down every single penny that you spend.
3) you have £1000 in cash/savings. Can you use this to help with the debts
4) the general rule of thumb is to pay back the ones with the highest interest asap.

Also, what have you got that you can sell - books on Amazon. OTher stuff on ebay. It can all help to pay off the debts.

Hope this helps

urg x x

Thank you, very helpful post. 200 is a lot but that's approximately how much I've been spending so far, should really cut down though.

My initial plan is to put all my money into paying off the debts, live off the bare essentials and buy myself one 'treat' with every paycheck, e.g. a DVD (big CSI fan here

) or a pair of shoes. The problem is, I'm a self-confessed shopaholic and that's how I got into trouble in the first place...

yorkshire-lad · 16 April 2009 at 12:40PM

alenax wrote: »

Thank you, very helpful post. 200 is a lot but that's approximately how much I've been spending so far, should really cut down though.

My initial plan is to put all my money into paying off the debts, live off the bare essentials and buy myself one 'treat' with every paycheck, e.g. a DVD (big CSI fan here ) or a pair of shoes. The problem is, I'm a self-confessed shopaholic and that's how I got into trouble in the first place...

everytime you go out and you see something you like, just think about how your feeling at the moment.
i think one treat a month is a good way, it gives you something to look forward to and also see it as a reward for your hardwork in paying off your debts:)

pebblespop · 16 April 2009 at 12:44PM

if you use the £1000 to pay off the store card and one credit card you will have £3250 to pay off.

this can be done within four months if you throw the £700 + £200 clothing amount at the debts each month.

i wouldn't bother with the consolidation as you may end up spending on the cards again and have the consolidation loan and the credit cards to pay off.

urg123 · 16 April 2009 at 12:48PM

Sounds like you are an ideal challenger for the 100 day challenge. The '100 day challenge Take 3' is for anyone who wants to stop spending on a particular thing. Why don't you sign up - we're only a few days in.

Joining challenges does help you going and keep you motivated. There are lots:
£100 clothing challenge - you can only spend £100 over the year!
No Spend Day (NSD) Challenge - Aim for a certain number of NSDs every month.

They all help to get you out of your spending ways!

urg x x

alenax · 16 April 2009 at 12:52PM

pebblespop wrote: »

if you use the £1000 to pay off the store card and one credit card you will have £3250 to pay off.

this can be done within four months if you throw the £700 + £200 clothing amount at the debts each month.

i wouldn't bother with the consolidation as you may end up spending on the cards again and have the consolidation loan and the credit cards to pay off.

I think I put that in wrong, the £1000 I thought meant the wages. Oops!

If I did get consolidation then I would cut up my credit cards and request the banks to cancel my overdrafts, my only worry is that I suspect the APR on these loans is massive and also my credit rating; I'm planning on buying a new laptop soon as my old one is knackered and I work from home and so need it to carry on earning.

pebblespop · 16 April 2009 at 12:58PM

alenax wrote: »

I think I put that in wrong, the £1000 I thought meant the wages. Oops!

If I did get consolidation then I would cut up my credit cards and request the banks to cancel my overdrafts, my only worry is that I suspect the APR on these loans is massive and also my credit rating; I'm planning on buying a new laptop soon as my old one is knackered and I work from home and so need it to carry on earning.

even without the £1000 in cash, if you cut back on the clothing and put the £700 towards your debts each month it will take 5 months to pay off the £4250 (even quicker if you sell stuff on ebay or join in the make £10 a month/payment a day challenge).

you say you need new a laptop - will you be buying this on credit?? can you not save up for this each month (perhaps take 6/7 months to pay off the debts)

alenax · 16 April 2009 at 3:39PM

Thanks for all your replies everyone. So in conclusion, it's better off to pay everything separately?

Penny2myName · 16 April 2009 at 4:13PM

alenax wrote: »

Thanks for all your replies everyone. So in conclusion, it's better off to pay everything separately?

Correct, and there is nothing stopping you from cutting up your credit cards now. Once cut up you cant keep using them. I cut mine up on cam in front of my best friend, and I think she went more pale than I, then I sealed it into an envelope and have given that envelope to my mum to look after till my balance becomes £0.00, that way i cant play at zigsaws so as to use it online.

fairydiamond · 16 April 2009 at 4:17PM

Good Luck. It is good that you've realised the spending needs to stop!

retrocircles · 16 April 2009 at 5:31PM

I might be dumb, but I can't see the problem here? Are you considering consolidation just because you don't like seeing your accounts in the red?!

Just stop spending, any cash you have pay off debt, and pay as much as you can every month!

Sorted!

Student in debt

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