Advice to get out of debt faster ?

[Kiara1237]

When I was younger I was pretty stupid with money, saw credit as free money, and had a run of zero-hours contracts, an ex who took a lot of money from me etc and just didn't save much.

Anyway here I am with a credit score that 'needs attention'. I have no defaults or CCJs luckily, but did have a few missed payments in the past.

I owe £1000 overdraft (cut down from 2k), and £1500 in loans to my bank.
£800 on a credit card.
£4500 consolidation loan (I was given about 3k, used this to pay off old loans I was very behind on and half of my overdraft)

I earn £1200 and then for freelance extra work I can earn about £80 per month, and my parents tend to give me around £40 a month.

I don't want to do an IVA or anything as I know it affects your credit score for 6 years. I can afford all my current repayments, I'd just like to speed it up.

My rent is £370 including all bills.
Phone is £5 now.
Repayment of all my debt is basically £400 per month as i'm trying to pay back my overdraft at £100 per month.
Put away £20 per month in a savings account.
Gym £20 (this is my only subscription)
Have to spend about £100 per month on transport sadly.
Food £50 ish per month.
My haircut is like £15 every 6 weeks, all my clothes come from charity shops or Primark, eBay etc.
Don't drink or smoke.
£110 repayment for a cosmetic treatment I had, this is due to finish in April.
I've cut back in every single area I can. I don't want to give up the gym as it's important to me.
I also do paid surveys which can earn me around £25 a month if I do enough.

I'm trying to get a part-time job on top of mine. Yearly income is about 17k from my main job, 18.5k if you include the freelance.
Applying for anything, but haven't had much luck.

Anyone have any other suggestions?
Sorry it's a lot to take in and read.

Sorry, thought I had posted this in chat !

Ask mumsnet to move it to chat or credit crunch.

Although, I would recommend reading Money Saving Expert for ideas on how to get out of debt and save,

Thanks, I will have a look !

Google “debt snowballing”.

Oh and don't go near an IVA. They are sharks.

A debt relief order perhaps but don't do anything without speaking to a charity like stepchange or Christians against poverty.

Assuming from transport costs that you can't wfh. No idea if possible at your location but would jogging or riding to work be an option? Save money and could do instead of gym. Could you find a house/flat share for similar close to you'd work and walk to work?

Is your rent a good deal? If I was trying to get out of debt and no kids I'd get a house share, usually the cheapest independent way to rent. Or is moving in with parents for 12 months an option? And just plow every spare pound into your debt.

You have 100 spending money a month going on your list? What does this go on? Could you give yourself £15 per week and put the other 40 into your debt?

OP, no advice, but you seem really disciplined and motivated. Big respect and I hope it works out for you.

Do you know the interest rates on all the debts? Can you afford more than the minimium payment on the total?
Focus on the highest interest rate first. Put any spare money into paying off that debt. Once the first one has gone, focus on the next highest interest rate - but make sure you meet the minimium payment on them all.
Good luck. Your attitude it completly right in getting this sorted.

Thanks for all the suggestions. Sadly don't drive but having lessons (though it's difficult to even afford 1 hour a week)
If I moved in with my parents i'd have a 2-hour commute each way and have to get up at 5:30 every morning, would just be exhausting. Plus, still would be paying over £200 per month in transport costs.

I had a studio flat before which was £580 per month and now in a houseshare, it's one of the cheapest I could find really.

Money mainly goes on visiting bf and going out to eat etc. As he lives a couple of hours away atm.

Really I know I should be looking for a better-paid job, I have a Masters too, i'm 30 and lot of my friends seem to be on nearly 30k. I know money isn't everything, but it's true I could be earning and saving much more.

I know a lot of people say not to bother saving while in debt, but to pay the debt back faster.

The downside of that, I guess, is that you don’t have money available in an emergency.

Honestly, I would cut out the savings for now. There's no interest in savings at the moment, so it's better use of the money to repay the debt.
I'd also cut back the haircuts to once every 12 weeks, not 6. Not huge savings but you are already doing really well, so there's no much improvement to be made. As soon as you pay off the cosmetic treatment, switch that amount to paying off your most expensive debt.

Sorry if it's obvious advice but have you got anything you could sell? If you were silly with money do you have designer clothes or bags or jewellery?

If you pay your own electricity and water, you could save a bit of money by always showering at the gym not at home, and make use of any free coffees and teas they have instead of buying them elsewhere.

Thanks, I pay the minumum payments on them all atm as sadly that's all I can afford to pay and be able to pay all of them each month.
Sadly the consolidation loan has quite a high APR but I was getting rejected by most other lenders, and was 5 months behind on one of my old loans so was struggling.
I think the best solution for me would be to increase my income. I have a couple of credit building apps too which will help.

Have you done all the card switching to be in 0% interest? Can you pay of the consolidation loan early without penalty? If so would you borrow money from your parents and repay them without the interest charge?

I only put £20 per month in savings so thought it would be manageable, it's also a kind of credit building savings app.
But true about prioritising the debt first.
Sadly don't really own anything expensive like that, I don't even have anything to show for it really, just wasn't careful at all.
Luckily all my bills are included, and i've managed to cut down on food a lot, was spending around £150 per month before just from buying shop-bought sandwiches etc.

My parents said they would give me some Christmas money, and I have applied for 0% transfer cards but not getting accepted for anything atm sadly. My credit rating is due to update this week though, and i'm hoping it's going to go up as i've been doing all the right things.

I recommend download the Dave Ramsey podcasts to listen to on your commute. A bit American but he is very inspiring on paying down debt.

The £20 savings per month doesn't seem a lot out of your overall earnings and if you can keep it up you'll have a emergency fund to use instead of taking on more credit.

I am due to finish an IVA next month and it was the best thing I ever did. Granted, I owed around 20k and I also owned my own property which means my assets were protected. That said - yes it did go on for a while. BUT, it taught me loads about living within my means and not using credit or credit cards.

You should def work out a way to freeze the interest on the loan or cards you have. Have a look on moneysavingexpert.com lots of good advice on there.

I would ring the bank and put all the debt together for 5 years and then it's one payment. No more visa and get rid of over draft bar 50 quid. We all been their lv xx

Need a loan of 8k really try hitachi

I was a bad with visa and ran up debt and had a boob job etc on finance. I ended up with a loan paying 375 and I recently needed building work doing so I've extended the loan making it 13k now and it's only 245 a month over 5 years with Hitachi xx

Just do a 10 or 5 a month for each debt even if it takes years. It will go eventually

You are best to post this on debt free wannabe

I wouldn't consolidate. Every time my friend did that she was encouraged to borrow a bit more

I think your budget looks v sensible at the moment, and there doesn't seem to be much wriggle room. Giving up gym and hair would be a step too far I think. If you go too ruthless it can make you swing back to mad spending in my experience.

For now just try and throw a chunk of any windfall (overtime /Freelance etc) at the debt to help chip away

It sounds like the biggest help would be career progression ? Maybe look into some (free) careers advice and start applying energy in that direction now?

Have a watch of Dave Ramsey videos on YouTube. He has some great advice and very motivating.

Impressed you've taken Bull by the horns, accepted you have an issue and broken down your monthly costs.

Great advice upthread but why are you wasting money on visiting boyfriend a couple of hours away and eating out?