Advice on adulting properly?

[weltweit]

Your monthly income and spending is reflected in your bank account balance and determines if you need an overdraft and or loan, especially where big expenses falling in one month are concerned.

You might have three months of positive, then one bad month where some big expenses come in.

At the start I would look at it over a year. What expenses will you have, and what will your income be? If that ends up negative already you are in trouble and need to cut your expenses (or up your income). You should be aiming at spending as much less than your income as you can manage so that you can pay back your debt.

Bear in mind which months your big expenses fall in, and if they will require borrowing or if you can save for them in advance. This is all about cashflow, you can be positive over the year but still run out of money in June.

 

[Storm Fox]

Another thing; if you are on a pre-payment meter gas or electric try and get off it as they are the most expensive, because apparently giving them money upfront so they can get the interest on it means you have pay more.
If not try price comparison sites.

But as an Electrician you probably know that already

 

[MrSki]

I am not one to really advise on matters of debt but you sound like you are doing a good job at sorting out your life. If you have had a steady income then a consolidation loan would put all your debt in one place at a much lower interest rate. I know people who bounced around debt at 0% interest for 12 months at a time & makes a massive difference to actually paying off the debt rather than just interest. As others have suggested then debt charities can be a great help or even your local Citizens Advice will certainly point you in the right direction.

Do something though. Even talking to a CAB advisor will make the whole situation less daunting.

Good luck & welcome to Urban75.

 

[Elpenor]

If you could do a balance transfer to a 0% or a lower % interest card that would be the way to kill the credit card debt quickest. The trick is to take the new 0% credit card and store it in a drawer somewhere after you’ve done the balance transfer and never have it in your wallet. Whether there’s one available to you is another matter.

The good news is that if you are currently paying off debt, then you’re already spending less money than you’re earning, so you’re baking in the right mindset to keep saving for a house deposit or whatever else is important.

 

[Sue]

I am not one to really advise on matters of debt but you sound like you are doing a good job at sorting out your life. If you have had a steady income then a consolidation loan would put all your debt in one place at a much lower interest rate. I know people who bounced around debt at 0% interest for 12 months at a time & makes a massive difference to actually paying off the debt rather than just interest. As others have suggested then debt charities can be a great help or even your local Citizens Advice will certainly point you in the right direction.

Do something though. Even talking to a CAB advisor will make the whole situation less daunting.

Good luck & welcome to Urban75.

Consolidation loans are generally seen as a bad idea because unless you deal with the underlying issues, you'll end up in exactly the same place (or an even worse place) a bit down the line

 

[MrSki]

Consolidation loans are generally seen as a bad idea because unless you deal with the underlying issues, you'll end up in exactly the same place (or an even worse place) a bit down the line

Surely paying a much lower interest rate has got to be better? As I sid above though I am not the person to ask about these things.

Pay off any council tax debt though because they add court charges & then threaten bailiffs pretty quick. Had a small council tax debt that ended up 80% court fees.

 

[maomao]

We had a few bad years for debt (a couple of years of minor silliness topped off with a run of brokwn appliances and household repairs) but have consolidated it with interest free balance transfer deals and are down to under 4 grand now. It does get smaller. Playing the credit card deals is cheaper than a consolidation loan but only if done very carefully.

 

[19sixtysix]

You are getting by but it would it be worth talking to one of the debt advice services. Actual expert advice might help you clear it quicker.

Get Debt Help. Our Free Debt Advice. StepChange Debt Charity

www.stepchange.org

Citizens Advice

Online free advice from Citizens Advice to help you find a way forward, whatever the problem. Our research enables us to campaign on issues affecting people's lives.

www.citizensadvice.org.uk

 

[Chilli.s]

Has anyone got any tips on how I could make progress to buying my own place? The cost of this house and price of a mortgage on it would be almost half of my current rent, but I don't know how to actually effectively save money!

You are heading in the right direction already, decent trade, employed.

Clear your debt, get a good credit rating

Save up a deposit

Shop around for a mortgage and be prepared to pay more until you have gained a bit of equity and can re mortgage at a better rate

every quid saved is a quid earned

 

[Sue]

Surely paying a much lower interest rate has got to be better? As I sid above though I am not the person to ask about these things.

A lot of people end up consolidating again and again as they don't address the underlying issues/get rid off their cards once they've consolidated. So yes, in theory it may be a good idea, in practice it often isn't.

 

[Riklet]

Short term plan - pay off the debt (great advice already been posted).

I'd def consider moving and paying less rent if possible. Thats the biggest expense! If you cant move you could always ask for a rent reduction... unlikely but worth asking.

Medium term plan - when debt free, put money aside so you have some savings just in case. And for extra fun stuff. You might want to pay a little bit extra into your pension too.

Once you have a few grand saved you will be in a much better position to start saving longer term for a deposit, for example. Your future £300+ a month will add up to quite a lot over a few years.

 

[pug]

Good idea to look at where your money actually goes, it might be that you're careful all the time but a lot of people have things like sky tv and other subscriptions, expensive phone stuff etc which could be changed. Also buying food and drinks while at work can add up to major amounts compared to packed lunch etc.