Have I ruined my life?
Discussion
confused2014 said:
Once again thanks for the support.
I found, when my earnings were heading south, that I went into a kind of 'financial hibernation'. Essentially, apart from the essentials, you just stop spending. You look at something in a shop - maybe only £10 - and think 'Do I actually need that?' And very often the answer is no, so you walk on, and are a bit better off than before.When happier times return, it is quite a hard habit to get out of, but that is the better way round of the two!
If you're still at the stage of trying to figure out where all the money goes, it might be worth signing up for http://moneydashboard.com/ (or similar)
It will pull in all the data from all your different accounts, categorise it and present it an easy to digest format. Doesn't solve the problem, but makes it easier to see what the problem is.
It will pull in all the data from all your different accounts, categorise it and present it an easy to digest format. Doesn't solve the problem, but makes it easier to see what the problem is.
Confused,
You're only stupid if you do nothing now. I worked as a Citizens Advice Bureau (CAB) helper and getting in the financial merde can happen to anyone. But, go and see them. The staff are not judgmental, will offer you coffee (tea also available) and biscuits and talk things through with you. They will contact everyone you owe money too, and take on all correspondence on your behalf. I have seen company directors and folk on 100k plus, per annum cry with relief when they a) share their problems and b) realise that the consequences aren't as bad as they once thought.
Whatever you do, don't approach any commercial company which can offer to help you until you've sat down with CAB.
You're only stupid if you do nothing now. I worked as a Citizens Advice Bureau (CAB) helper and getting in the financial merde can happen to anyone. But, go and see them. The staff are not judgmental, will offer you coffee (tea also available) and biscuits and talk things through with you. They will contact everyone you owe money too, and take on all correspondence on your behalf. I have seen company directors and folk on 100k plus, per annum cry with relief when they a) share their problems and b) realise that the consequences aren't as bad as they once thought.
Whatever you do, don't approach any commercial company which can offer to help you until you've sat down with CAB.
Dave350 said:
Also, what do you spend on a day to day basis? e.g. £5-6 in the work canteen adds up to a lot, i bulk cook food on a Sunday / Wednesday evening for the week, saves me a fortune!
I make my own lunches for work, normally just a sandwich (one filling) and/or some fruit with tap water.At the moment I'm living off of tesco basics pretty much.
I used to buy lunch from the shop round the corner which was £5/6 a day so that's where I realised I could save money. Also I have given up smoking. I wasn't a heavy smoker but I realised I was wasting money on a pointless habit.
Edited by confused2014 on Monday 1st December 17:50
Muzzer79 said:
OP - what did you blow all the cash on?
Be honest.
I'm not being morbidly curious - knowing what you spent it on helps advise on how not to in the future....
i.e was it booze and nights out? Stuff you don't actually need for the house? Expensive car? Combination of all three? etc, etc
Ok, so a proportion is historical. Some on an overdraft some on credit dating back to when I was 18/19.Be honest.
I'm not being morbidly curious - knowing what you spent it on helps advise on how not to in the future....
i.e was it booze and nights out? Stuff you don't actually need for the house? Expensive car? Combination of all three? etc, etc
I also borrowed about £9,000 to buy my car. All of this I was steadily paying off while living at my parents. And living comfortably still.
I received a job offer which meant relocating it was a dream job but with less pay but better prospects of future earnings for the future. I had to find a deposit for the house I was and still am lodging in and having to pay proper rent. Not just the token fee to my parents. I found this tough adapting my life to living on my own buying shopping and things. As pathetic as it sounds I never understood the true cost of living on my own. Being lazy I was buying takeaways and having drinks in the pub most evenings. Until I hit my overdraft limit.
In search of more funds I called my bank who suggested I take out a loan and consolidate what debts I had (loan, credit card and overdraft) this is where I went wrong I borrowed to little to pay the loan. And I was then paying two hefty loans after a couple of months (back in my overdraft and using credit card). In a panic I switched to another loan to consolidate the lot again. But the APR was high but I saw no other way out. A few months down the line I find myself struggling again.
I feel like I'm playing a game of snakes and ladders but keep landing on the snake.
However I do feel in better control since I've had a look and stopped spending on the unessasarys. I feel in less of a dark place from chatting with some of you this evening.
Abbott said:
Cancel all holidays and other non essentials
Down grade the car to a 1000 pound runabout.
Find an additional income, bar work in the evening.
Cut up the credit cards so that you are not tempted to spend.
Good advice. Money soon mounts up when you are too busy to spend it.Down grade the car to a 1000 pound runabout.
Find an additional income, bar work in the evening.
Cut up the credit cards so that you are not tempted to spend.
Any chance of getting a better paid job?
Sell car and get 125/scooter for commuting?
Edited by MarshPhantom on Monday 1st December 18:19
It's a long shot, but is there any chance you might have been sold payment protection insurance with any of these loans or credit cards?
If so, don't contact any of the numerous companies who will undertake the claim for compensation on your behalf, but rather the loan providers themselves.
Banks have set aside millions in provision for claims still to be settled, and it is perfectly possible to do this direct, many years after the fact. A work colleague aged 33 is currently pursuing one institution for a loan he had at the age of 18.
In general I don't buy the 'mis-selling' argument, but how the juddering f can it be in your interest to consolidate various loans into another at extortionate interest rates.
If so, don't contact any of the numerous companies who will undertake the claim for compensation on your behalf, but rather the loan providers themselves.
Banks have set aside millions in provision for claims still to be settled, and it is perfectly possible to do this direct, many years after the fact. A work colleague aged 33 is currently pursuing one institution for a loan he had at the age of 18.
In general I don't buy the 'mis-selling' argument, but how the juddering f can it be in your interest to consolidate various loans into another at extortionate interest rates.
So £250 a week in your back pocket. What do you spend that on? Try taking out £100 cash on a Monday and see if you can get to the following Monday with anything left. If you can that's £150 a week paid off the debt.
Is it a Monday - Friday job? Can you get another job at the weekend?
As said earlier sell the car you can't afford such a luxury get over to the banger thread and get a frugal sub £1000 car.
Is it a Monday - Friday job? Can you get another job at the weekend?
As said earlier sell the car you can't afford such a luxury get over to the banger thread and get a frugal sub £1000 car.
Surely the day you used the first £1 of your overdraft should of been the point you realised that you are spending more than you earn in a month and should change your patterns rather than waiting to you hit the limit?
Also stop shopping at Tesco - get down aldi/lidl - it's better and cheaper.
Also stop shopping at Tesco - get down aldi/lidl - it's better and cheaper.
eliot said:
Surely the day you used the first £1 of your overdraft should of been the point you realised that you are spending more than you earn in a month and should change your patterns rather than waiting to you hit the limit?
Also stop shopping at Tesco - get down aldi/lidl - it's better and cheaper.
I fully agree, Also stop shopping at Tesco - get down aldi/lidl - it's better and cheaper.
Just over a grand a month leftover is a lot to be running through so quickly, especially since you've said you're living off Tesco basics when it comes to food.
You need to write yourself out a Statement of Affairs (SOA), you can find one online here - http://www.stoozing.com/calculator/soa.php (found the link on the MSE forums). Be honest with yourself with everything that you spend, don't just make a rough estimate and then reduce it to make yourself feel better. If you're not sure where it's all going then start a savings diary and track EVERYTHING that you spend money on.
Once you've got your SOA you can see where your worst spends are and can see where you need to cut down, or be smarter with your money. For example, sign up to somewhere like Quidco or Top Cashback and then use them for things like your car insurance, breakdown cover, ANY spending that you do online. Use the money you get back to pay off some of the debt.
You say you've only got your TV and PS3 but I bet there's a bunch of DVDs and games sitting around that you haven't touched in months. Go through them and ask yourself "if I haven't watched/played this in the past 6 months, will I play it within the next 12?", anything that gets a "no" answer goes in a pile. Then either sell them on eBay or take them to somewhere like CEX to trade-in.
If I were you I'd have a long read of this thread - http://forums.moneysavingexpert.com/showthread.php... And the Debt Free Wannabe forum in general. You'll find there are plenty of people there who were in worse financial shape than you but who managed to work their way out of it. You'll also get more advice (not that any PHers have given bad advice) about better ways to cut back on things or manage your money better.
Good luck!
You need to write yourself out a Statement of Affairs (SOA), you can find one online here - http://www.stoozing.com/calculator/soa.php (found the link on the MSE forums). Be honest with yourself with everything that you spend, don't just make a rough estimate and then reduce it to make yourself feel better. If you're not sure where it's all going then start a savings diary and track EVERYTHING that you spend money on.
Once you've got your SOA you can see where your worst spends are and can see where you need to cut down, or be smarter with your money. For example, sign up to somewhere like Quidco or Top Cashback and then use them for things like your car insurance, breakdown cover, ANY spending that you do online. Use the money you get back to pay off some of the debt.
You say you've only got your TV and PS3 but I bet there's a bunch of DVDs and games sitting around that you haven't touched in months. Go through them and ask yourself "if I haven't watched/played this in the past 6 months, will I play it within the next 12?", anything that gets a "no" answer goes in a pile. Then either sell them on eBay or take them to somewhere like CEX to trade-in.
If I were you I'd have a long read of this thread - http://forums.moneysavingexpert.com/showthread.php... And the Debt Free Wannabe forum in general. You'll find there are plenty of people there who were in worse financial shape than you but who managed to work their way out of it. You'll also get more advice (not that any PHers have given bad advice) about better ways to cut back on things or manage your money better.
Good luck!
confused2014 said:
Only my car which is probably worth about £4,000 but I need that to get to work. The only other things are electronics. But that's it if I sell those then i am really left with nothing.
Sell it and get something for under £1000, plenty of people on here running bangers with no problems whatsoever.Gassing Station | Finance | Top of Page | What's New | My Stuff