PH Debt-free wannabe thread!

[Pulse]

Jon999 said:

All these ideas to save money are great and chip away a few pounds here and there but the easiest way is earn more, put some effort into job applications IMO. Obviously be cautious of the "grass is greener" syndrome, I've been stung with that once but found the easiest way to increase your salary when young is chop and change jobs going for a pay increase every time.

Whilst I actually agree, and the investment of your time should be wisely undertaken, understanding how to save and plan should be fundamental throughout. Whilst I've seen my pay go up (and my partner's pay), we still plan and save as we always did, as it makes clear sense to do so. I will always hold on to that control.

[Slowped]

Interesting thread, and good luck to the OP and all PHers who have shared their situation,

I am/was in a similar situation to Bohally.

I finished my second year at Uni £2700 into a £3000 overdraft, and needing to move to Leeds to begin a 12 month internship/work placement with the firm I now work for. It was 2009, I was 20 and appeared to be up st creek. I made, and learned from several mistakes during that 12 months and looking back now, I think in that period I went from a lolabout student child to an adult.

First mistake was that I decided to rent a 2 bed flat in LS1 with another of the placement students. The other guy was a fk wit, (he says) so I sorted the flat. I had visited Leeds to look at a few flats earlier that Summer and we were shown one at a development in York Place- a flat had come up for let there just as I started to need to arrange accommodation. Partly because I didn't have enough cash for the Nottingham to Leeds train and mostly because I was 20 and thought that letting agents were trust worthy, I didn't view the flat. The agent told me it was the same as the one I viewed previously. It turned out to be a duplex in the old freezing Victorian house front of the development. It was in the corner, with no light coming in and the bedrooms looked into the basement car park. I should have gone for an all bills included house share. I digress.

My salary was to be £901 per month rising to £981 per month (both gross) after passing the Securities & Investment Institute exams. After deductions I was getting £750 a month ish. The rent on the freezing dark flat was £600 between 2 of us. Then there was the bills and general survival costs. Fortunately, we didn't have to pay council tax as students. Things were looking bad, I was pretty overwhelmed with the situation. I had to go to my uncle for the deposit and first months rent.

To make things worse, I thought that I would join the most expensive gym in town. It had a pool, I couldn't help it. That was another £50 per month.

So, I owed £2700/800, had no free money from my wages, was on a 12 month contract and would have to pay £1200 up front the following June for my first instalment of my final year student housing back in Sheffield. It was never going to happen so I took action and got another job which took up all weekend. I became a part time care assistant for a guy a few years older than me who had Duchenne Muscular Dystrophy. I would get to his flat at 8:30am on Saturday morning and leave at 6:30pm on Sunday night. The wages were decent, at £7.57 per hour, and I would have worked about 36 hours over the weekend. In effect, I was managing to work 2 normal months in 1. It was really hard, not having a day off is tough and wears you right down. At the same time I was studying for my exams- it wasn't a great time.

Quite quickly, things started improving, I would get about £225 for the weekend after BR tax . I opened another account to put theses wages in and I soon had the money for my accommodation instalment due in June 2010, even though we had not found a house in Sheffield yet. The months went by and I got into the routine and came to really enjoy looking after someone else, I used to take him out on weekends with one of the other carers who was my friend, so it wasn't bad at all.

I got the overdraft cleared by the time I had gone back to Uni, and also managed to go to Le Mans. In addition, I was able to buy a 1990 Honda CRX VT for £1200.

To save money during that year, I did loads of things differently. I bought a gas cabinet heater which was in the classifieds of a local paper for £15 and used that to heat the freezing flat over winter. It saved me a fortune I think. Another that makes my stomach churn- I bought a 4 pack of basics baking spuds for about 85p and added basics beans and some cheese. I had that meal for tea consecutively for about 2 weeks..

So after all that, I got to the end of my final year and owed about the same again. I had carried on looking after my friend every few weekends and saved up about £2000 in another account over my final year. Enough to see off most of the debt, however, I had planned to go to SE Asia for a month/6 weeks. I did this, but before I went I ended up lending (giving) an immediate family member £1100 to get out of a bind. I came back from SE Asia and st was hitting the fan financially- unplanned overdraft fees and so on. In addition, I had been turned away from various firms and my job outlook was bleak. I spent the next 6 months in turmoil trying to get a proper job and doing shifts when I was given them. I managed to get the bouncing bank account under control but probably paid about £200 in unplanned fees. I finally got a FT job in March '12 and sold the CRX for £1800 to clear the OD to -£1200, and then applied for a tax rebate for the 2 previous years. I guessed HMRC owed me something since I had paid a lot of BR tax. That got me about £2100 and sorted the last of the overdraft out.

I had moved back to Leeds and got a house share (which I viewed before signing for), paying £340 per month including internet, council tax, water and TV. 6 months later I was able to secure a position back with the firm I did my placement with and since then I have started doing a bit better for myself. I have about £1400 in credit card debt which is some car insurance and remnants of old times when I couldn't afford the shopping or something. I've got enough cash to pay it off but its all on 0% at the moment so i'll pay it down monthly I think. One of the best things I have done to save money is get a moped. The fuel costs £7 for 2 weeks, making it miles cheaper than public transport for getting to work, plus you don't have to pay for parking in the city centre.

[Steve Evil]

Jon999 said:

All these ideas to save money are great and chip away a few pounds here and there but the easiest way is earn more, put some effort into job applications IMO. Obviously be cautious of the "grass is greener" syndrome, I've been stung with that once but found the easiest way to increase your salary when young is chop and change jobs going for a pay increase every time.

It's much easier to save money by not spending it unnecessarily than earn more money, especially as it gets you into a saving mindset, whereas you can quite easily spend any extra you earn on frivolities if that's the way you are with your money.

I agree that moving around in jobs is a good idea when you're young, but so is getting the foundations of being savvy with your money.

[BoRED S2upid]

Bohally said:

Just ran a credit check score and was scored 1/5. This is serious cause for concern.

How does everybody live cheaply? I simply cannot do it.

I've recently graduated and I'm earning £16k a year . Not a lot.

I have 3.5k of Student Overdraft I need to clear.

In my hand I get £1141 each month.

From this I pay.

£350 Rent (This includes bills e.t.c)
£40 for my phone

This leaves me £751 for the month.
I want to be out of debt as quick as possible (seeing as my OD is interest free at present).
Trying to put £350 a month towards it.

Leaving me £400 a month to live on. £100 a week. This should be more than enough (I'm walking distance to walk - although I take the car!).
I think it's going to be a case of living on 80p cuppasoups and just walking everywhere for a while.

I tend to find that my wages last half the month. And the last two weeks are a struggle. My folks tend to help me out around week 3/4 of the month (£150 or so). I'm fed up being skint/in debt. I don't think I'd mind being skint as much if I was in the black.

Tips appreciated!

Withdraw the £400 in cash at the start of the week, its a lot easier to be frugal when you see the hard cash being spent than using cards, you will actively be spending less as you try and get to the weekend with more of your £100 allowance left.

Cook your own food rather than buying it pre prepared, much cheaper. A £5 Gammon joins with a few veggies and pulses can easily do 6 meals! porridge every morning is another £1 per week! it doesn't cost too much to feed yourself.

[okgo]

Or grow a fking pair, and a brain and take control of your own financial situation.

[Steve Evil]

esvcg said:

Right... I went BR in 2010.

If you have more debt than your income after tax, then u cant afford to pay the debt.

If u have no assets then just go BR, as there is no point in an IVA, and those stupid loan consolation sharks etc. Your health and life is more important than some credit owed. Also note that banks build in a certain number of defaults per 100 loans given, so they'll be fine if u pay or not, and they also have an insurance fund between all banks so they're covered doubley.

The BR form was easy to fill in online, and youll need to print three copies. Youll need to book a county court date and turn up with the papers above, plus about £600, altho might be more now.

Takes a few hours. Then find the nearest coop bank or barcleys bank and open a cash only account, as i was told by the court.

Then about a week later youll get a call from your given official receiver, to go over stuff. If yr car is worth less than 2k and u need it for work, they will let u keep it. You will also find out if they want u to make some sort of payment, mine was £70/month for 3 years.

Really easy if u have no assets, and if u do lie to lower yr monthly payments that u might be given(above) be consistent and don't get caught as they will bend u over and f@@k u up.

I owed £36k, but paid 600 to go BR, and 70 for 3 years. That meant I got away without paying back nearly 33k. happy days

P.S. Ignore all the aggressive bank letters and debt collection letters, as their just different company names but still in the same building as the main bank, its all to scare u to pay.

P.S.
And ignore ALL the stupid money savings suggestions in this forum. Go BR and enjoy yr life without this around yr neck - it takes more guts to admit you f##ked up and then write it off, than it does to do the perceived "right thing", and take forever paying it off, especially when the banks couldn't a sh#t if its less than 100K.

Edited by esvcg on Thursday 24th October 16:27

What a shining example of a responsible adult you are.

[Sarkmeister]

esvcg said:

P.S.
And ignore ALL the stupid money savings suggestions in this forum. Go BR and enjoy yr life without this around yr neck - it takes more guts to admit you f##ked up and then write it off, than it does to do the perceived "right thing", and take forever paying it off, especially when the banks couldn't a sh#t if its less than 100K.

Edited by esvcg on Thursday 24th October 16:27

Whilst I accept that in some cases going bankrupt is the only option, I disagree with the above.

Do you feel no guilt at all that other people are essentially paying for your excesses?

I got myself into a large amount of debt a few years ago by being stupid/greedy and spending more than I had. Thankfully I had the guts/willpower to pay it all off over a couple of years (by spending less obviously) and now am debt free and feel a lot better for it . A lot better than I would have felt if I had taken the easy option and expected someone else to sort out my problems.

It does take guts to admit your mistakes and go bankrupt, but it takes a LOT more to sort it out yourself.

[Ollerton57]

esvcg said:

Right... I went BR in 2010.

If you have more debt than your income after tax, then u cant afford to pay the debt.

If u have no assets then just go BR, as theirs no point in an IVA, and these stupid loan consolation sharks etc. Your health and life is more important than some credit owed. Also note that banks build in a certain number of defaults per 100 loans given, so they'll be fine if u pay or not.

The BR form was easy to fill in online, and youll need to print three copies. Youll need to book a county court date and turn up with the papers above, plus about £600, altho might be more now.

Takes a few hours. Then find the nearest coop bank or barcleys bank and open a cash only account, as i was told by the court.

Then about a week later youll get a call from your given official receiver, to go over stuff. If yr car is worth less than 2k and u need it for work, they will let u keep it. You will also find out if they want u to make some sort of payment, mine was £70 for 3 years.

Really easy if u have no assets, and if u do lie to lower yr monthly payments that u might be given(above) be consistent and don't get caught as they will bend u over and f@@k u up.

I owed £36k, but paid 600 to go BR, and 70 for 3 years. That meant I got away without paying back nearly 33k - happy days;)

P.S. Ignore all the aggressive bank letters and debt collection letters, as their just different company names but still in the same building as the main bank, its all to scare u to pay.

P.S.
And ignore ALL the stupid money savings suggestions in this forum. Go BR and enjoy yr life without this around yr neck - it takes more guts to admit you f##ked up and then write it off, than it does to do the perceived "right thing", and take paying it off, especially when the banks couldn't a sh#t if its less than 100K.

P.P.S. Ignore this post as it is filled with some woefully dreadful 'advice'. BR should only ever be a last resort and can have a massive impact in your future.

As to lying about assets....I really hope you were joking.

[MrAdaam]

esvcg said:

Right... I went BR in 2010.

If you have more debt than your income after tax, then u cant afford to pay the debt.

If u have no assets then just go BR, as there is no point in an IVA, and those stupid loan consolation sharks etc. Your health and life is more important than some credit owed. Also note that banks build in a certain number of defaults per 100 loans given, so they'll be fine if u pay or not, and they also have an insurance fund between all banks so they're covered doubley.

The BR form was easy to fill in online, and youll need to print three copies. Youll need to book a county court date and turn up with the papers above, plus about £600, altho might be more now.

Takes a few hours. Then find the nearest coop bank or barcleys bank and open a cash only account, as i was told by the court.

Then about a week later youll get a call from your given official receiver, to go over stuff. If yr car is worth less than 2k and u need it for work, they will let u keep it. You will also find out if they want u to make some sort of payment, mine was £70/month for 3 years.

Really easy if u have no assets, and if u do lie to lower yr monthly payments that u might be given(above) be consistent and don't get caught as they will bend u over and f@@k u up.

I owed £36k, but paid 600 to go BR, and 70 for 3 years. That meant I got away without paying back nearly 33k. happy days

P.S. Ignore all the aggressive bank letters and debt collection letters, as their just different company names but still in the same building as the main bank, its all to scare u to pay.

P.S.
And ignore ALL the stupid money savings suggestions in this forum. Go BR and enjoy yr life without this around yr neck - it takes more guts to admit you f##ked up and then write it off, than it does to do the perceived "right thing", and take forever paying it off, especially when the banks couldn't a sh#t if its less than 100K.

Edited by esvcg on Thursday 24th October 16:27

Don't listen to this...

It's easy to get out of debt once you have a solid plan. I'm in London, living on less-than £100 per week and should be debt free (including having some savings) in around 12 comfortable months. I'm not comfortable with going into too much detail publicly, but my biggest help has been taking out the weeks worth of money and then watching the cash go. Much, MUCH, easier to see than when you're swiping cards left, right and centre.

[Welshbeef]

Going BR well you spent the money and you should be paying it back those poor individuals who have to take a loss due to your inability to control your spend or realise what you can or cannot afford is a rather unpleasant trait to have.

Worse is telling pork pies when going abR about assets and postng it online - I do hope the Mods either delete that post or give the information to the relevant authorities about that individual

[randlemarcus]

Welshbeef said:

Going BR well you spent the money and you should be paying it back those poor individuals who have to take a loss due to your inability to control your spend or realise what you can or cannot afford is a rather unpleasant trait to have.

Worse is telling pork pies when going abR about assets and postng it online - I do hope the Mods either delete that post or give the information to the relevant authorities about that individual

Did we ever get the name of the professional body you are registered with to discuss some of your posts on here?

[TwigtheWonderkid]

esvcg said:

[3] If you owe the banks, then you dont need to have a conscience about not paying it back, they are just fine with or without it

That's right, the rest of us will just make up the shortfall. Thanks for that!

[Sarkmeister]

esvcg said:

[1] The above is the advice you'll get from any debt charity if the below two are true:
- If you have more debt than your income after tax
- If u have no assets

[2] The assets line is exactly as I was told, do not lie in any way, otherwise if you get caught (a lot of people take risks here) you will get f##ked up for it - I guess sarcasm was lost in translation :/

[3] If you owe the banks, then you don't need to have a conscience about not paying it back, they are just fine with or without it

What state do you think this country would be in if everyone had the same attitude as you?

[Pulse]

TwigtheWonderkid said:

esvcg said:

[3] If you owe the banks, then you dont need to have a conscience about not paying it back, they are just fine with or without it

That's right, the rest of us will just make up the shortfall. Thanks for that!

I agree. Rates go up when bad debt has to be written off. Rates go up for those who actually pay their money back.

[Gwagon111]

It's been about 6 months of debt free-ness for me now. It's great to have nobody to owe money to, it's bad because I keep seeing stuff I don't need ( cars mainly )and a little bit of my brain is telling me to 'buy it you fool'. So far I've resisted, however a few choice motors have just appeared for sale, right on my doorstep. A Clio 200 Gordini ( very tempting ) a scooby STI ( kind of tempting), and a scooby GB 270 ( very very tempting). I've had both a scooby STI and a GB 270 before, I've never had a Clio. I'm trying to resist, and stay debt free, but my brain is seriously bothering me . I must resist .

[arsenalmorris]

Some great advice on here

[Darkslider]

I'm getting there at a snails pace, I was considering a consolidation loan but I've decided to give it a few months first to see how it goes and my balances on overdraft and my credit card are coming down, slowly but surely. Mostly due to a serious chat with the mrs about how daft we've both been with our finances, when we actually looked at everything in detail we've found loads of areas we can save money on. For example we've got rid of the £65 a month Sky package for a £33 a month deal with BT, that loses us some movie channels and a few others we never watch but we're gaining BT Sport and 76mb fibre optic broadband so it's a good deal all round. (looking forward to waving bye bye to my 9mbps download speed )