Help me decide what to do!

[USER11121]

Hi

Looking for some independent advice, no one in RL as no one is close enough to know my situation fully.

Basically, cleaning myself up after coming out of an abusive relationship just over two years ago. Got myself into a lot of mess and a bit of debt trying to escape my situation. Couldn't keep up the payments due to being financially abused. Credit rating is absolutely shot. Ex partner bought my car and smashed it up when I left, in the end I handed it back to him. Had no car for over two years.

Now an opportunity has come up where I need a car to earn more money. If I give an insight to my outgoings, can anyone advise what they would do?

Currently have -
200 - Loan
100 - Lodgings
45 - Phone
100 - Credit card (paid after 3 payments off £100)
25 - Internet
60 - Older debt
25 - Gym membership

I earn 1000.00 per month, new opportunity which requires a car will increase my earnings to 1400.00. I have applied for finance however I can't get it. My credit is too poor. I can apply to increase my loan however so it will be an outgoing of £350 which will be buy me a car. I'd then need to add running costs, insurance and fuel, savings for MOT and it will last for 4 years the loan.

What do you all think on the loan option?

any chance of getting a loan of £1000 or less to buy a car outright? you can get perfectly decent cars for this price.

that phone bill is ridiculous - I get that you need internet and probably can't have it in the house, but you can do a lot better than that. Lots missing on your list though - food? utilities? contents insurance?

Thanks for the response, my thought is if I could do that I'd need something to last at least the term of the loan so I was looking to spend more, but then I suppose the term of the loan is more.

Yes, my phone bill is stupidly high. Again this is due to being stung because of poor credit. It literally costs you so much more long term to miss a months payment.

I don't have any of those bills because I live with family, I suppose food I probably buy my own food most days and that might be half the problem with my disposable income. On paper there should be plenty left over.

I wouldn’t be getting into more debt now. As you’ve worked out - the outgoings with a car will be that much greater so no point.

As you’ve pointed out - your family are kindly helping you so you don’t have a lot of costs that you’d otherwise incur. I’d just focus on saving up, paying off debt, perhaps look for overtime opportunities or another part time job. Make sure you’re sensible with food and other expenditure. Phone bill needn’t be so insane either - DH paid £20 for a phone and his pay as you go plan costs him £5-10/month.

I wouldn’t be looking to buy a car or other expensive stuff until I had no debt and savings. Make sure you always have emergency money so you don’t miss payments.

Op needs a car to increase income.

Does your family have home broadband? If so, go for a £10 call and text phone.and get rid of the pricy brick.

I thought the main kind of response would be to save and pay off debt first. Thanks for taking the time.

The loan would be an increase of my current one but I'd get a better rate on it due to being a good payer.

The internet part is home broadband, I pay for this as I require it for university work. I'm tied into a contract for my phone unfortunately for another year. Hoping its another thing to increase my credit rating.

I had similar with a phone contract, moved back from overseas so had no credit history. The phone will help your rating, as will paying back the loan.

Are you using the gym enough to justify the membership charge?

When I finally got out of the relationship I used the gym as a place to get out, didn't have friends to go to the pub or cinema the gym was something I could do on my own. Its like an escape, I did cancel the membership middle of last year as I thought it was a cost I could do without but then I was withdrawn again so I've signed back up.

I think 25 for a gym is a good deal + a bit of an escape and hobby. However, cars are expensive. Either you fork out for a pretty new model (not reasonable in these circumstances) or if you get a cheap one, it might not be reliable. If your job requires a car, then it could involve quite a lot of mileage and no-one will be interested if the thing breaks: you'll need to for out for a repair ASAP and get a cab while you haven't got a car.

If you managed to pick up a few extra hours of work per month, it could push your income to 1100-1200 which would be on par with earning 1400 but having to buy and maintain a car.

When your phone contact finishes get a simcard only deal and put it in your old phone. £ 7.50 or & £ 10 will be the kind of price you'll pay.

Gym : good use of money as if you go several times a week the "per hour" cost is trivial.

Phone : cancel contract ASAP, switch to a cheap PAYG and learn how to find wifi.

Loans : make sure they are on standing orders so they go faster.

Car : buy a shed.
Seriously. A friend bought a 2010 Honda civic with 11 months MOT for £300
when the MOT runs out he'll scrap it and do the same again
but its a clean little 2010 Old lady mobile so looks fine for work

Internet
can you learn to scrounge free wifi at work and at the gym?

Have a look at debtcamel - great website

How much extra will your loan, MOT, Insurance, Petrol, a bit of a fund incase of breakdowns be?

Is it worth it at the moment?

Also your outgoings are £555.00 as you haven’t got food etc, so you should beable to save. I’d pay off the credit card then try to save as hard as possible for a few months, you could probably save 1000 pounds within 3 months, buy a car with that, which means you won’t have that extra loan.