its all my fault....but how to get out?

U

useless

Guest
Right so I've got loads of debt all over the place, and every single month I have to use to credit card to survive.

I've done my budgets before and I know that I am living way beyond my means, but I just can't seem to stick to a budget!! I've tried but I just don't know how?

Also if I didn't have the debt that I was trying to pay back I could quite easily come out fine each month!
 
> I've done my budgets before and I know that I am living way beyond my means, but I just can't seem to stick to a budget!! I've tried but I just don't know how?

Have you read these links?



One way or another you will really need to find some way to have the discipline to stick to a budget regime in order to regain control of your finances (and preferable learn new habits that ensure that you don't get into the same mess again). The good news is that there are plenty of resources and help (e.g. MABS) out there to help you in this respect.

Perhaps if you post detailed figures/information (along the lines of the contributor below) about your situation then people will be able to make useful suggestions?
 
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I get in 2500

650 - mortgage
90 - bills
60 - phone
190 - fags (that's only 20 a day)
300 - going out
350 - loan
100 - breakfast and lunch
100 - food for the house
60 - petrol
 
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oops

200 - SISA
50 - deposit account

But basically I have about 350EUR left over for clothes, parking, other expenses, and paying back the CC.

but the reality is 3 days after being paid I am broke and have to use my CC to draw cash to carry on for the month
 
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€30K net sounds like about €45K gross for a single person. Seems like more than enough for somebody with a relatively manageable mortgage and no major financial committments to get by comfortably.

You're probably not going to like this but there are obvious significant savings to be made by....

- Cutting down/out the fags (perhaps rolling your own would help?)
- Cutting down on the socialising
- Eating breakfast at home/bringing a packed lunch

And maybe more by switching to a more competitive mortgage lender, better value telephone company, shopping around a bit more for bargains (groceries, petrol etc.) and so on...

In the short term you need to find a way to avoid depending on the credit card as means of short term cashflow management. If this means getting rid of it or whatever then so be it.

You might want to consider contacting MABS for advice (see the earlier link) but ultimately it's up to you to take responsibility for your spending habits and financial situation in order to get things under control.
 
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> 200 - SISA

By the way, saving through an SSIA is normally a no-brainer but in this case you are saving while borrowing at high (credit card and other) interest rates so it may not be such a good idea. In general saving while borrowing (other than a manageable level of mortgage) is not a good idea.
 
How to Get Out

Whatever about the SSIA, you've got to stop putting 50 per month into a deposit account. It makes no sense to be saving at a low rate while having a debt at a hight rate.

It's worth considering reducing your SSIA payments also as the previous poster pointed out.

Now, to look at the hard facts.

1. Not including the Credit Card your debt seems to be about €1000 per month, including your mortgage, which means about 40% of your take home pay. This is certainly not a bad situation.

2. You say you have €350 left over for clothes, parking and paying back the credit card. I make it €410, but in either case it's still a reasonably healthy sum of money. Considering that you've taken care of the essentials like food and shelter.

3. You are spending too much on Going out and Smoking. Not what you want to hear but if you feel trapped by debt then you've got it wrong. You are spending close to €500 a month on Drink and Fags.

If you are spending €500 a month for that while relying on your credit card for day to day spending then you don't have a debt problem, you have a drink and fags problem.

Sorry if this sounds a little harsh. But I honestly think you are focusing on the wrong thing if you think debt is your problem.

Incidently, could you let us know roughly your CC Balance and monthly repayment. That would change my 40% figure above.

-Richard
 
that €350 loan !

Looks like a nice new car (or nearly new)

Could you sell it, get a cheaper car and clear the cc. The cheaper car should have 3rd party insurance which is also cheaper.

Then get rid of the cc to avoid temptation in future.

Then switch to a deposit account like me

Sorted. You cannot spend more than you earn anymore so you will adjust...believe me.

Also....learn to drink local and avoid those high taxi fares by walking home, that was what sorted me out and I still smoke 20 a day :) I suspect that 'Drink' inludes taxis in your case. They are a dire ripoff.
 
Re: that €350 loan !

I used to be just like you. Actually worse: I had no mortgage and no car loan and I still managed to live on my overdraft, though in fairness I always cleared the credit card. I used to enjoy the bank letters commenting that my account had not "fluctuated to credit for quite some time".

You really need to get your overheads under control. That said, if you are in your mid to late twenties and unattached, then this is perhaps just part of your growing up. One of these days, when you have responsiblities, (other than yourself) you will probably start to act responsibly. In the meantime, we were all young once....


Incidentally, you seem to be paying a mortgage on your own. Could you rent out a room or two in your house?
 
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