debt free wannabe

mussgo · 1 March 2005 at 7:39PM

mussgo wrote:

I dont magazines at all!

M

oooooops ....sorry

I dont buy them at all.

skye · 2 March 2005 at 12:12PM

I have a bit of an addiction to them, so i am just gonna try and get maybe 2 subscriptions a month and start going to the library for books.

I have had a few ideas to try and radicially reduce my debt, can you let me know what you think and whether they would work?

1 - move back to my parents (my boyfriend would then have to rent a bedsit etc - this may put a big strain on the relationship though), this means i would save on council tax, rent, gas, electricity, water, food. Although I would have to pay my parents a bit of rent I would still save money, although I would probably then pay a bit more on transport and on my mobile.

2 - my flat is with a housing asociation, after I have rented it for 2 years (which will be November this year) I can buy it at a discount. In November if I decided to buy it they would take the market it price (one by me has just sold for roughly £70,000 and they only owned 75% of it, so it maybe valued at around £90,000) and give me £9,000 off the price (this stays the same no matter how long I rent it for, I will have paid around £5,000 for rent by then so hopefully I would get this back and make £4,000). What I could do is get a mortgage for it, do a bit of work on it and then sell it, hopefully (the house prices are still going up gradually in my area) make £10,000 and pay off my debts with that.

These are a bit more drastic options, and the second may not work depending on the housing market. What are your opinons, do you think they are worth trying?

Nickynoo1 · 2 March 2005 at 6:34PM

Hi Skye,

Please don't be offended but i think running back to mum and dad would be a bit of a cop out. You can beat this debt independently, many people have, and you'll have learn't many valuable skills along the way. The most important skill is to live within your means. A skill I took a long time to learn but I am finally there, with the help of this board.

I too found my debts just kept increasing, i was paying minimum payments and couldn't see how to make an impact. If you post your budget up, as i did, people will help. I thought i had my budget sussed, but still other MSE'ers found another £120 p/m to throw at my debt. I couldn't see it because i wanted to keep my lifestyle the same, but with a couple of adjustments and a lightbulb moment it all fell into place.

Oh and another important thing is to stick to your budget once you've set it. It gets a bit of getting used to. Saying no to going out, but invite friends over. Cooking up curries instead of ordering one. It can be quite challenging at first but you can make it fun.

Another thing i found motivating is on the first of every month i add up all my debts and log it on a chart. It's good to see it go down.

If your b/f asks to borrow money say no. You haven't got it. He might start to live within his means too.

BTW when you bought the plane tickets on your c/c did you put the money your b/f gave you straight onto the card or did you put it in your purse and spend it?

Good luck on finding your lightbulb moment

Nickynoo1

skye · 3 March 2005 at 5:25PM

i think i am kind of still indenial, for the example the plane tickets, would have put the money in my purse, paid a bit extra of the credit card that month, but not enough extra to cover the cost of the plane tickets. i think this is what has made the blue egg card go up (the idea was that the 0% would help lessen my overdraft but I have since got rid of it onto the green egg card). i really do need to just cut up all the credit cards and get him to get his own overdraft and debit card.

oh and when i lived at home i was in debt then (i was in debt before i met him but no where near the amount i am now), i was also getting taxis to work, going out with my boyf all the time spending a fortune cos he was working in nightclubs at the time - the idea of moving in together was the amount i saved on transport (the amount I spent on taxies is sickening) would pay my rent - i guess at the time i didn't realise how much i would spend on food and bills. if i did move back home then maybe my boyf would take responsibility of his finances - currently i sort out all the bills etc. my mum does know i am in debt but does not know how much i owe, i really don't want to tell her how much as i want to sort it out myself. however she said last night why don't i move in for 6 months and i said it is going to take a lot longer than that, so she said that if the debt is over £5,000 (it is £10,000) she wants me to move back home. i don't really know what to do.

I have now stopped getting taxis, stopped going to nightclubs (although I do still go to the cheap pubs but walk home), trying to take meals to work, trying to credit card shuffle, stop buying rubbish like magazines. However I really don't think I have the determination to keep to a budget and really don't know how how I am going to get the determination to shift the debt.

skye · 3 March 2005 at 5:28PM

just spotted a p/t job at a bar near my flat i might apply for

Nickynoo1 · 4 March 2005 at 9:11AM

Hi Skye,

If you do get the bar job, make sure every penny you earn from that goes as extra payments to the c/c. Don't use it to buy luxuries, or for making the minimum payments. You must use it as extra payments, else you won't see the debt go down and will get really peeed off at being tired and making no difference.

When I'm working my second job, sometimes I really don't want to be there and I have to remind myself why I am doing it. Getting focused helps me get through the shift.

Skye, get your budget sorted. Make a vow to stick to it, remind yourself whats important.

I know what your saying about moving home and if that is the only way then do it. But I know when I moved back to mum's after being away it was quite a strain, missing my indepedance. Couldn't do it again. You do need to learn to live independantly and take charge of your cash flow. What happens if say you move home, clear your debt. Then you decide to get another flat. Will you get in debt again? Will you have to go back to mum to help sort it again? Will you have learn't to live within your means?

Sorry if I sound harsh. Don't mean to but would really like to see you free of debt, and learning valuable tools.

Good Luck

Nickynoo1

skye · 4 March 2005 at 10:57AM

i think that was the problem last time i was working two jobs, i was spending on rubbish instead of putting it aside for the debts.

thanks for your help, even constructive critism is good as it will help me

fazer6 · 4 March 2005 at 11:34AM

You say you don't think you'll stick to a budget so force yourself to stick to it. I have an entertainment purse and a food purse and take out the cash each month for each thing. Before buying anything look in the purse and see how much is left, how long it's got to last and ask yourself whether you need to buy it.

Budgeting is something you have got to learn at some stage so now is as good a time as ever, it's just part of growing up I'm afraid.

How well are you planning your meals? Have a look in your freezer tonight and plan as many meals as possible using only what you already have in. Think about some cheap meals you can do - omlette, pasta bake... and mix these in with your meal plan. Then and only then do you write a shopping list. Do you absolutly have to have something this week, can you manage without. If not then buy it, but where can you get it cheaper? Aldi, Lidl, Netto, Tescos... Have a look on http://www.fixtureferrets.co.uk to check if a supermarket has an offer on something you need. This sounds like a lot of work to begin with but once it's part of your routine it takes no time at all and could save you a large amount of money each month. This then goes to pay off the debt sooner and saves you interest so you save twice as much!

Once you know what you have at home go to money saving old style and ask people what you can do with the food you have and how you can make it stretch further. We'll all help you get your meal planning sorted so you'll save so much time wondering what to have for tea. I always have chicken on a monday, cheap meat (mince/sausages) on a tuesday... so meal planning's easy and I know that I'm planning a mixture of meals that save money.

THRIFTY_JO · 4 March 2005 at 2:18PM

I think in your situation you have accept your problem first, which you have done, good for you.
I'm probably highlighting the same points as everyone else.
1.When I moved in with my partner we set up a joint account, same amount from each of us into it. It is only used for household bills which thanks to this site I feel I have got the best deals for all. We then reviewed it and added a little bit more.

2. Make sure your essentials are as cheap as possible. Daft as it may sound, do you leave all the lights on around the house, do you open the window when it is hot or shut off /turn down the heating? Do you have drafts that sap your heating out of the house? You can get energy saving lighbulbs fom most electricity comanpies and energy efficiency centres.Little things add up.

Look at https://www.uswitch.com for the cheapest utilites - make sure you check the price per kilowatt. The trick with most financial stuff it getting into the detail, boring , I know, but think how you will feel when you are debt free and are then able to save to spend?

3. Cook in bulk- large spag bol that lasts for 2 days for 2 people, curries, casseroles, soups, pasta dishes, even try a veggie one (costs less than meat) Holland and Barratt do dehydrated veggie mince that is a fraction of the cost of Quorn and tastes just as nice. Try growing your own herbs if tempted by the plants when shopping.

4. I never used to take a shopping list and used to spend £60 a week a least for 2 people. Now I do a list and I never stray from it- Shopping is now £30-35 ( we have a cat to feed too). Never go shopping on an empty stomach, everything else is too tempting.

4. Walk where you can, though make sure its safe, one taxi fare is better than walking home in the dark.

5. Make the most of your local facilites to do stuff on the cheap. Most Councils have museums, art galleries, most libraries do video and dvd rentals. Have a girls night in, one does drink, one does popcorn , one does video, social event for c£2!

6. Repair clothes and reheel re sole shoes than buying new ones. Mmm new shoes £50 ish or 2 credit card min. payments?

7. Give your boyfriend a boot up the behind. He has managed to get himself out of debt and is staying that way because you are subsidsing him. Harsh, I know but I bet he feels good that he is not in debt and maybe has forgotten what it is like to be in your shoes. Gently remind him and sit down with him one night with an exercise book, title each page with different debt so when the amounts are coming down you have something to remind you but by having him help you fill in the book or a wall chart it is strikingly obvious that you can not help him out! He has to learn that for you both to be happy and not to resent each other you BOTH have to learn to live within your means.

Money has been shown to be the most argued about thing in a relationship.

I hope I have helped, I'm sure with budgeting, a few small changes, and a bit of focus you will be able to sort this out without having to move back home. Have a look a bricks1 on the debt free forum. He is doing really well now and I'm sure you can too.

skye · 15 March 2005 at 6:15PM

Update (think I got a few details wrong in the original post as my bills do not make sense):

My debts:

Goldfish Loan @ 6.7% Payment £107.62 per month. About £4000 outstanding.

Barclaycard 0% til August. Min payment £38 per month. £1916 outstanding.

Egg green 1.7% til June. Min payment £57.71. £2827.68 outstanding.

Egg blue 0% on purchases til about June. Min payment last month was £27.52 but this will go up as we have spent on it. £1916 outstanding.

Lloyds 6.9% for the life of the balance. Min payment £10. £481.96 outstanding.

The bills:

Rent - £55.79 per week
Council Tax - £810 for next year starting April
Gas - £19 per month (but British Gas should be giving us at least £60 back at the end on March, so hopefully it will make the payments go down)
Electricity - £45-50 per quarter
My boyfriend gives me £200 for his share of these bills per month.

Other:
TV licence - £100 per year (this is paid til December)
Shopping - £40-50 per week for 2 of us - gradually getting it down
Takeaway/Pub meal - £8-10 per week (once a week)
Cigarettes - £10 per week (yes I know I should quit - I try to smoke just when I drink now)
Mobile phone - £20 per month (pay as you go)
Transport - £5 per week
Alcoholic drinks - £10 per week
Pub drinks £20 per week (yes we do go to the pub quite a bit but tend to stick to Wetherspoons now - we don't go out out very often now though)
Make up - £20 per month (maybe more if I am naughty)
Clothes - depends say about £60 per month (again sometimes more)

My boyfriend has said that he will pay off the blue egg card as he has been using it quite a bit lately. My wages are due to go up in April (£700 per year before tax), but currently after tax etc I receive £890 per month.

debt free wannabe

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