Struggling and feeling down about it...
Comments
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JayRitchie wrote: »Ok - understood, but what happens if you don't have a car?
Sorry, is this a serious question? If I don’t have a car I can’t drive anywhere.... thought that would be pretty obvious0 -
Yes - I understand that. You don't do much personal mileage - but what happens with work if you don't have a car? You don't earn the sort of money where you would be expected to have a car available.DigitalDevil wrote: »Sorry, is this a serious question? If I don’t have a car I can’t drive anywhere.... thought that would be pretty obvious0 -
JayRitchie wrote: »Yes - I understand that. You don't do much personal mileage - but what happens with work if you don't have a car? You don't earn the sort of money where you would be expected to have a car available.
I would guess I’m no longer able to meet the requirements of my contract of employment.
I’m not sure what you mean by that, I doubt the local pizza delivery guy earns great money... but... well... you know...0 -
Budgeting is like losing weight - you need to stick with it all the time. Many people who say they have trouble with budgeting are simply not budgeting at all, just vaguely trying not to spend too much. If your trainers fall to pieces, or mates suggest a trip to the pub - you should know what your budget for such things is, what spending that money means for your other plans for the month and not try to make it up as you go along.
Being honest with yourself, do you know exactly how you got into this debt? Was it really worth it? Have you changed all those habits?But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll0 -
Is there any chance of taking on a second job? You say you work 9-5 so perhaps part-time evening or weekend work - bar work, supermarket, even cleaning? It wouldn't be forever, but could help clear your debts for while.0
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JayRitchie wrote: »Yes - I understand that. You don't do much personal mileage - but what happens with work if you don't have a car? You don't earn the sort of money where you would be expected to have a car available.
Lots of low paid jobs require employees to run a car, home carers, delivery drivers, meter readers etc.0 -
theoretica wrote: »Budgeting is like losing weight - you need to stick with it all the time. Many people who say they have trouble with budgeting are simply not budgeting at all, just vaguely trying not to spend too much. If your trainers fall to pieces, or mates suggest a trip to the pub - you should know what your budget for such things is, what spending that money means for your other plans for the month and not try to make it up as you go along.
Being honest with yourself, do you know exactly how you got into this debt? Was it really worth it? Have you changed all those habits?
So my current budgeting is managed through a two account system, all of my income goes into account 1, all of my bills are taken from account 1, all income not required for bills moves forward into account 2 which I have a debit card for. So every month my bills in their entirety are covered and no payments are missed. Beyond that I don’t have any additional money to cover “unexpected” events, that’s sort of how the CC’s started but they’ve spiralled beyond their initial purpose and that’s why I’ve destroyed the cards.
Fortunately things like “Pub with mates” don’t happen, they are all coupled and have families so spend their time doing family stuff, when everyone does go out it’s a “couples thing” so my attendance isn’t required.
I got into the debt through two things, the loan was to support a partner in getting a car and the CC’s were originally for emergencies only. Was it worth it, no, it’s ruined my life and every day I feel like I’m stuck in the same cycle and I just want to end things.Is there any chance of taking on a second job? You say you work 9-5 so perhaps part-time evening or weekend work - bar work, supermarket, even cleaning? It wouldn't be forever, but could help clear your debts for while.
I had been working 2 jobs 7 days a week for around 18 months (to clear debts faster and save for a house), unfortunately this resulted in a multitude of issues, one being the breakdown of my relationship, as in her words “what’s the point, I never see you, all you do is go to work”, another is that my health has deteriorated and I’ve been diagnosed with Colitis which isn’t helping my situation and stress makes things worse. I have been suffering with depression around my situation and at Christmas time last year I made an attempt to take my own life, to be totally honest I sit here today and barely feel much different than I did 6 months ago, it just feels like there is no point.0 -
Firstly, are you getting any help for your depression? Taking care of your health, mental and physical, has to be your priority.
On the finances, you can do it. You’re doing a great job answering all the questions and taking advice on board. Things will look a lot better once you can get out of that phone contract.
Until then, I think it would really help if you could start saving, however little, to cover those unexpected things that got you in this position to start with. Given the way you’ve organised your finances over the two accounts (which is very sensible by the way), how about leaving a little more in account 1 than is required to cover your bills. Even if that’s just rounding up the amount to the nearest £10. Or adding an extra £5/10 if you can.
That way the balance in account 1 will gradually build up a little.
On a similar note, I’d suggest setting up the direct debits on your credit cards for a fixed round amount slightly above the current minimum payment. That way you’ll be automatically overpaying by a small (and increasing) amount each month. It’s surprising how fast this can add up without really noticing.
Good luck!0 -
Also, have you talked to your parents about this?
I know you probably want to do this by yourself, but if they can afford / are willing to let you defer your rent for a while, you could throw that straight at the high interest credit cards. They should be gone in less than a year with that plus the extra from the phone in September. Which will free up enough to pay them back in an affordable way.
You’d have to be totally sure you stuck to your budget and didn’t put any of it back on credit cards though.
Just a thought.0 -
Great advice from Yellow in those two posts there.
A few more comments from me in red as usual...DigitalDevil wrote: »Monthly Income; There is no option for overtime (typical 9-5), I have no formal qualifications so don’t have the appropriate means to apply for better paid work.
HP Loan; 36 months remaining when did you enter into the agreement?
Phone; Ends in September Already dealt with - diarise to give the supplier a call next month to see if you can drop to SIM only early.
Clothing; Don’t buy any new clothing In which case you must occasionally buy second hand clothing. And, honestly, when it comes to socks and pants, a budget for new is really the way to go...
Road Tax; It’s paid monthly, IIRC it’s something like £160 spread or £140 upfront. So setting aside enough now to make sure you can pay upfront when renewal happens saves you £20 which can go to the debt - excellent news!
Insurance; Was renewed last month via comparison website. Great work, so you know that one's as good as you can get anyway. well done!
MOT; No MOT as car is too new, servicing included in HP package. What about tyres, wiper blades, screenwash, that sort of thing? Is the HP package a full depreciation and repair package so it covers all these things AND any unexpected mechanical issues that aren't covered by the warranty - for example damage caused by hitting a pothole?
Presents; We aren’t really a “gift” giving family and have always just exchanged cards.
Hair; I usually get it cut every 12-16 weeks by a friend who is a barber for free. That's great, so what is the "barter" on this - he does your hair, and for him in return you do...? Does this cost any money or is it something like babysitting that you do for free?
Entertainment; £10 covers Spotify, I have access to Amazon Prime and Netflix through other people’s accounts and my “rent” includes Sky Q Multiroom/Internet.
Holiday; Haven’t been on Holiday for over 5-6 years, Friends now go on Family holidays with wives/children. In the longer term this is something you need to budget for. IOn the short term I'd add to the entertainment budget to be able to go out and do *something* here and there, for the sake of your mental health.
The CC’s have been chopped up for a few months now so are not able to increase. Both are poor rates at around 30%. Good on the chopped up, grim on the rates. That's something to tackle once you have your budget on an even keel - keeping an eye to see if you can get balance transfers to better rates.
I would have to reach out to the Loan company for specific details, the loan was over 60 months at 3-6% apr IIRC (like I say, would need to check the exact details. OK =- that's one to get on to them - although they should be sending you statements either in the post or electronically? If they are not you need to challenge that.
I’m unsure what you mean by options to get out of the car finance. There is sometimes a clause in the contract of such things that means you can simply hand a car back in those circumstances. Something else to consider on this is if there is a balloon payment due at the end of the 36 months, how you propose to cover that.
There is no maintenance requirement on the car (service agreement and no MOT as it’s too young), the £50 fuel covers my personal use, I travel for work (Scotland and Northern England) so my fuel costs are covered via work. You do have business use on your insurance, yes? Also check that you're reimbursed mileage at the correct rate - the reimbursement is meant to cover depreciation as well as the actual physical fuel cost for the trips.
Some more food or thought there hopefully - sometimes it's only when we stop top think about the small stuff - so in this case the clothes, the question of exactly what's being covered on the car contract etc, that we can see where things might be going wrong and where financial difficulties are arising even though on paper, at a first glance, all looks fine...🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00
Balance as at 31/12/23 = £112,000.00SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0
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