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  • FIRST POST
    • ambitiouspanda
    • By ambitiouspanda 10th Mar 18, 10:57 AM
    • 58Posts
    • 39Thanks
    ambitiouspanda
    How can I stop living pay to pay cheque?
    • #1
    • 10th Mar 18, 10:57 AM
    How can I stop living pay to pay cheque? 10th Mar 18 at 10:57 AM
    Hi, I am 24 and I want to stop living pay to pay cheque.

    I always pay my expenses which currently are as follows:

    Income: £2583.94

    Debt: £3699 - credit card bills. The 0% interest is coming off in April 2018.

    Expenses (I live in London):
    Rent: £757.33
    Bills: £88
    Oyster: £153.60
    Therapy: £50
    Phone bill: £13
    Nails: £66
    Hair: £70
    Food: £130
    Tithe: £258.79
    Credit card repayment: £921.87 (my chosen amount)

    Left over to cover me until next pay is £94-100 (4 weeks)

    I pay so much for my credit card bill to rid myself of the debt. Especially because the 0% interest is coming to an end in April. The debt was much higher before and Iíve managed to pay it down. I got it to help myself out in a difficult period and assist a family member. My goal is to clear my cc bills by May. I know it seems like a no brainier but even when I didnít have debt I found that I still lived pay to pay. It is so embarrassing! At the moment I have £20 in my account to carry me to my next pay day (which is in 5 days)...

    Any advice would be useful!
    Left over:
    **2018 G O A L S**
    1) Save £3000-4000!
Page 2
    • ambitiouspanda
    • By ambitiouspanda 10th Mar 18, 1:48 PM
    • 58 Posts
    • 39 Thanks
    ambitiouspanda
    So, in essence, you will not give up the expensive luxuries. What, exactly, are hoping to hear instead?

    To put it simply, you do not earn very much, and you are choosing to spend it on fripperies, so you do not have any money left over. No advice in the world will change this.

    That being the case, maybe up-skill to be able to earn more?
    Originally posted by John-K
    Hey, sorry if my message came off like this. But I donít think youíll understand the hair aspect unless youíre a woc. I will definitely be doing my own hair for the time being but I have very long hair (waist length) so itís a bit of a challenge. So I get it braided up etc. I wonít cut my hair either!

    Please donít be too negative. Itís all love!
    **2018 G O A L S**
    1) Save £3000-4000!
    • ambitiouspanda
    • By ambitiouspanda 10th Mar 18, 1:51 PM
    • 58 Posts
    • 39 Thanks
    ambitiouspanda
    This isn't going to sound helpful but frankly you don't need to be asking this on a savings forum you just need to use some common sense about things.
    • Walk
    • Don't get your nails done as often
    • Don't get your hair done as often
    • Eat less or buy cheaper food
    • Don't pay tithe
    • Pay more or less on the credit card so be out of debit quicker or in debt longer and have some money left each month sooner or later

    There's nothing revolutionary about any of that and if you're going to say "But I have really awkward hair and I have to pay tithe" it perhaps shows where you priorities really are.
    Originally posted by rathernot
    Thank you so much for your input. It is common sense. Youíre right. Yes, I will do my own hair moving forward etc.. etc... and my nails too.
    **2018 G O A L S**
    1) Save £3000-4000!
    • pearl123
    • By pearl123 10th Mar 18, 1:52 PM
    • 1,374 Posts
    • 2,064 Thanks
    pearl123
    Somewhere on the debt board there is an expenses questionnaire. It includes the cost of buying clothes etc. If you could fill it out you would get a clearer idea of where everything goes.
    When you are in debt it is wise to let all luxuries go. A mars bar becomes a luxury!
    I!!!8217;m a Christian. I don!!!8217;t pay anything to the Church. Just very occasional donations to charity!
    Last edited by pearl123; 10-03-2018 at 2:49 PM.
    • atush
    • By atush 10th Mar 18, 2:46 PM
    • 16,690 Posts
    • 10,398 Thanks
    atush
    Being a Christian is great, but the bible has something to say about usury. God wouldnt want you to pay them.

    So cut the tithe out or down until debt is paid. Same with the nails, and get cheaper hair services.

    Once your debt is paid, and you have emergency cash of at least 500, you can then reinstate any tithe.
    • theoretica
    • By theoretica 10th Mar 18, 4:01 PM
    • 5,153 Posts
    • 6,402 Thanks
    theoretica
    I think it is great you are paying so much off your debt each month. What is your plan for the money once you are out of debt? I would encourage you to put a large chunk of it into savings, so you don't need to take out debt in the future, and before you get used to spending it.
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
    • capital0ne
    • By capital0ne 10th Mar 18, 5:18 PM
    • 474 Posts
    • 236 Thanks
    capital0ne
    Expenses (I live in London):
    Therapy: £50
    Nails: £66
    Hair: £70
    Tithe: £258.79
    Left over to cover me until next pay is £100 (4 weeks)
    Any advice would be useful!
    Left over:
    Originally posted by ambitiouspanda
    My Advice - ditch the above - £500 ahead at the end of each month - simples
    • Bravepants
    • By Bravepants 10th Mar 18, 6:04 PM
    • 402 Posts
    • 434 Thanks
    Bravepants
    Yeah, I'm not sure about the tithe thing either.

    If you lost your home due to debt, would your church bail you out?
    • Morphoton
    • By Morphoton 10th Mar 18, 6:12 PM
    • 80 Posts
    • 68 Thanks
    Morphoton
    A comment on the travelcard cost is could some/all of the journey be done by bus ?
    A bus only travelcard is £81.50 per month.
    Alternatively as London buses are zoneless any travelcard allows bus travel in any zone not just in the particular zone of the travelcard. So a Zone 2+3 travelcard at £98.00 allows bus travel in zone 1 with tube in zone 2+3.
    Likewise a Zone 1+2 travelcard at £131.00 allows tube in zones 1+2 with bus in zone 3.
    Without knowing your journey I do not know how feasible any of the above are.
    • RG2015
    • By RG2015 10th Mar 18, 7:07 PM
    • 1,216 Posts
    • 710 Thanks
    RG2015
    In this case, the recipient of the money decides upon the ultimate beneficiary. One would hope that such beneficiary is worthy of the sacrifice being made by ambitiouspanda.

    Ambitiouspanda, I respect your openness and honesty and hope that you achieve the outcome that you deserve.
    Last edited by MSE ForumTeam3; 11-03-2018 at 8:18 AM. Reason: Quoting deleted post
    • jamesperrett
    • By jamesperrett 10th Mar 18, 9:24 PM
    • 797 Posts
    • 432 Thanks
    jamesperrett
    I am going to call Barclays (my cc card) and see if they can extend my cc promotional period by 1-2 months. That should swerve any unexpected costs when repaying the loan.
    Originally posted by ambitiouspanda
    You would probably do better to look at getting another 0% card and transferring the Barclaycard balance to it. That way you could probably give yourself a couple of years to pay off the debt rather than a couple of months. Just don't be tempted to add anything else to the card.
    • bowlhead99
    • By bowlhead99 10th Mar 18, 9:48 PM
    • 7,825 Posts
    • 14,292 Thanks
    bowlhead99
    My Advice - ditch the above - £500 ahead at the end of each month - simples
    Originally posted by capital0ne
    Taking more cash to save is not 'simples' if the therapy is useful and valuable to you (addressing a medical or psychological condition).

    There is clearly some emotional value in the tithe also, although if financial well-being is a priority, it's perhaps something which any reasonable person would be happy for you to pay later in a larger amount if it takes you out of the hand-to-mouth rat-race. Due to fixed costs of life in general, it's way easier for someone on £100k to give 15% of their pay than someone on £50k to give 10% and there is a lot more for the beneficiaries if the £50k person cuts their 10% to 5% but then ups it to 15% when they are ten or twenty years further along in their career and on more money.

    In practice of course living on the remaining £90-100 a month in London is tough if that is to cover all clothing, leisure and socialising etc beyond the basic bills and food for a person in their 20s. But clearly where the person is living paycheque-to-paycheque but part of the paycheque is actually £900 clearing a credit card and that credit card balance will be settled in four or five months with no further ongoing payments needed, the light at the end of four-or-five months' long tunnel is shining brightly when all of a sudden no credit card payments are needed.

    So, there is no real problem. If looking to save money, the concept of nails probably 'helping for work' depends on what sense it helps. Is it a social thing, or do you really have better prospects (tips, bonuses, promotion prospects) by having a professional do your nails, rather than learning to do them yourself to a high standard? If it's an image thing, may be better to save on the nails to spend on clothes and shoes which are harder to DIY.

    Being a Christian is great, but the bible has something to say about usury. God wouldnt want you to pay them.
    Originally posted by atush
    Being only 24 but earning 45-50k+ a year (assumed from having £2,600 net pay a month after paying 7.5% pension contribs) might imply she is in an industry like financial services where the income is pretty much usury-driven! Not many other industries make that kind of salary available to relative youngsters, beyond perhaps commercial law or media/entertainment (the latter a possibility, given the nails are apparently career-enhancing).

    I am going to call Barclays (my cc card) and see if they can extend my cc promotional period by 1-2 months. That should swerve any unexpected costs when repaying the loan.
    Originally posted by ambitiouspanda
    Let us know how you get on, unlikely they will have much interest in doing that unless you are willing to pay them a fee for doing it. What's in it for them? You owe them £x and are not in financial hardship (£45-50k gross income, £4k owed) and they have the right to start charging you interest from next month. Why wouldn't they?

    As jamesperret says, probably a better route is to find another credit company where for a small balance transfer fee you can transfer your balance for a decent amount of time at 0%. For example, this one from Virgin (https://uk.virginmoney.com/virgin/credit-cards/pre-apply/?product=bt-card) is 32 months at 0% in exchange for a 0.6% fee.

    So for under £25 fee you could spread your £3700 debt over almost three years and reduce your £900+ per month payments to more like £100-£120 range, giving you plenty for living, saving, and investment.
    Last edited by bowlhead99; 10-03-2018 at 10:06 PM.
    • ValiantSon
    • By ValiantSon 10th Mar 18, 9:58 PM
    • 1,844 Posts
    • 1,702 Thanks
    ValiantSon
    Can you explain what is Tithe? I suggest you do your own nails and use a training school to get your hair cut.
    Re therapy if itís something that is professional and crucial for your mental health then of course continue. If it is some new age Mumbo jumbo knock it on a head too.
    Adittionally, your food costs are rather high for one person.
    Originally posted by pearl123
    Really? £130 p/m is high for one person? Buying a reasonable amount of fresh fruit and vegetables with good protein is not going to come at bargain basement prices. I would suggest that £130 p/m is actually quite a modest amount for someone trying to eat a sensible and healthy diet.
    • Alexland
    • By Alexland 10th Mar 18, 10:02 PM
    • 2,388 Posts
    • 1,789 Thanks
    Alexland
    Really? £130 p/m is high for one person? Buying a reasonable amount of fresh fruit and vegetables with good protein is not going to come at bargain basement prices. I would suggest that £130 p/m is actually quite a modest amount for someone trying to eat a sensible and healthy diet.
    Originally posted by ValiantSon
    I agree £30 per week sounds very reasonable especially if this includes toothpaste, cleaning products, etc which I have not seen itemised anywhere else.
    • theinbetweener007
    • By theinbetweener007 10th Mar 18, 10:51 PM
    • 17 Posts
    • 16 Thanks
    theinbetweener007
    Do some volunteer work once a month which is a far more moral and productive contribution to society. You will sleep just fine knowing that.

    You!!!8217;re doing great paying off your debt, keep going. As soon as it!!!8217;s finished, open up a savings account so you can continue the discipline. Perhaps start at £500 a month? With that extra cash plus no tithe you will get closer to the life you deserve. Enjoy life, it goes so quick.

    (Text removed by MSE Forum Team)
    Last edited by MSE ForumTeam3; 11-03-2018 at 8:19 AM.
    • pearl123
    • By pearl123 10th Mar 18, 11:00 PM
    • 1,374 Posts
    • 2,064 Thanks
    pearl123
    Really? £130 p/m is high for one person? Buying a reasonable amount of fresh fruit and vegetables with good protein is not going to come at bargain basement prices. I would suggest that £130 p/m is actually quite a modest amount for someone trying to eat a sensible and healthy diet.
    Originally posted by ValiantSon
    I!!!8217;m paying £30 more per month for 3 people to eat, so yes I do think it is expensive. All fresh food and no convince foods. It includes salmon, organic chicken, seads, nuts, tons of fresh veg etc. Including cleaning products.

    I would suggest Op has a look into making home cooked foods and weekend prepping.
    It also helps to buy regular foods/ goods of course when they are on offer.
    Last edited by pearl123; 10-03-2018 at 11:03 PM.
    • John-K
    • By John-K 10th Mar 18, 11:36 PM
    • 654 Posts
    • 1,009 Thanks
    John-K
    Hey, sorry if my message came off like this. But I donít think youíll understand the hair aspect unless youíre a woc. I will definitely be doing my own hair for the time being but I have very long hair (waist length) so itís a bit of a challenge. So I get it braided up etc. I wonít cut my hair either!

    Please donít be too negative. Itís all love!
    Originally posted by ambitiouspanda
    How about getting a set of clippers? £20will get a decent set from Amazon, and you will no longer need to lay anyone to look after it for you.

    Iím afraid that at the moment your posts come across like someone complaining that their benefits will not stretch to waxing their classic Ferrari every week.

    You are on a very low wage, yet want to live like someone worth more. You cannot.
    • eskbanker
    • By eskbanker 10th Mar 18, 11:45 PM
    • 7,096 Posts
    • 7,522 Thanks
    eskbanker
    You are on a very low wage
    Originally posted by John-K
    How do you figure that out? OP says they're netting £2583.94 a month, which, allowing for pension contributions, bowlhead99 equates to a £45-50K salary, which sounds right to me too. Against what criteria do you classify this as 'very low' when it's substantially higher than the London average, never mind the national one....
    • bowlhead99
    • By bowlhead99 10th Mar 18, 11:52 PM
    • 7,825 Posts
    • 14,292 Thanks
    bowlhead99
    I`m paying £30 more per month for 3 people to eat, so yes I do think it is expensive. All fresh food and no convince foods. It includes salmon, organic chicken, seads, nuts, tons of fresh veg etc. Including cleaning products.

    I would suggest Op has a look into making home cooked foods and weekend prepping.
    Originally posted by pearl123
    This is all very well, but is one of your 'three people to eat', perhaps someone who doesn't have to get up and leave work at 7am and get back at 8pm?

    It's certainly possible to go out and source raw ingredients at market prices and cook healthily from scratch when you have an inordinate amount of leisure time. However someone sacrificing their leisure time to work a £45-50k job in their early 20s in London may struggle to carve out as much time for food prep and slow cooking of cheap cuts. It's monumentally cheaper per person if you are cooking for two or three than if you're cooking for one; more economic quantities and more hours between you to devote to prep.

    Not everyone seems to get this, and simply assume that if they can get by on a low food budget, anyone spending £130pm (£30pw including breakfast, lunch, dinner and special occasions like Christmas and birthdays) must be a special snowflake-generation character doing all their shopping at Waitrose who could easily halve their food budget by employing a bit of good-old common sense. That's not always the case.
    • hoc
    • By hoc 11th Mar 18, 3:43 AM
    • 230 Posts
    • 140 Thanks
    hoc
    I'm really perplexed by the comments.

    Stating a monthly income of nearly 2,600 net is "not much" is bizarre. That is very good income at 24, even for "London" and that rent (presumably in very outer zone based on oyster) is decent, especially if not a crowded house share.

    The answer is very obvious. The debt repayment is influencing the situation. Once paid off in 3-4 months you will have an extra grand a month. That's huge. If the current situation is too much on the limit just lower the repayment by a few hundred quid. Even if halved it would still be over in under a year.
    • Alexland
    • By Alexland 11th Mar 18, 6:25 AM
    • 2,388 Posts
    • 1,789 Thanks
    Alexland
    The answer is very obvious. The debt repayment is influencing the situation. Once paid off in 3-4 months you will have an extra grand a month.
    Originally posted by hoc
    We know that, it was already covered in my post #2. Once the debt is repaid, and the OP has built up an emergency cash fund the next step for most people in this position would be to start saving for a property using something like a Lifetime ISA to avoid the waste of rent. A grand a month sound a lots but buying property while investing for retirement is very expensive so money still needs managing carefully.

    If the OP wants to be a FTBer homeowner and would be buying at £450k or under there is an argument for rolling the debt onto a new CC and trying to earn as much of the Lifetime ISA bonus as possible before this tax year ends.

    Alex
    Last edited by Alexland; 11-03-2018 at 6:27 AM.
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