A New Start!

Discussion in 'Community Discussion' started by Pau.c, Mar 16, 2011.

  1. Pau.c macrumors regular

    Joined:
    Sep 20, 2009
    #1
    i have recently decided to turn my stupid life of getting everything on finance around!

    i had loans after loans after loans. I owed just over £8000 and I'm only 21! it all started when i wanted to get a brand new scooter but did not have the money, i was 18 and thought, I'm now legal for credit I can get what I want now and pay for it monthly! then i got a Mac on credit, took out a loan to buy a car and pass my driving test and pay for a years insurance i took everything out on credit. if there was a credit option i would go for it, instead of parting with the cash that i had. DOH!

    this led to me paying out over £600 a month in bills! and I only come home with £840 after tax! not good! it was a big cloud above my head! always knowing i have to pay someone back, wont be able to get my own place etc etc.

    I did some research last night after seriously not being able to sleep because of it, so i had a look to see what i could do.

    When I got up this morning i thought to myself 'Right, Im going to do something about it'.

    so about an hour ago I Chopped up all my credit cards,Store cards, Luxury items like cineworld unlimited cards, cancelled my lovefilm subscription. cancelled every single thing but my iPhone Contract.

    i called the bank explained that i am up to my eyeballs in monthly payments and i want to see if they can help me. after going to visit the bank, they said that they could offer me a loan of £9000 on a 9.9% APR over 5 years the monthly payments would then be £188 a month and this would leave me an extra £1000 to pay what i have left on my insurance for my car.

    so instead of paying over £600 a month. I'm now paying £188 to my bank, only one loan, instead of about 8 with 8 different interest payments and the £40 iPhone Contract.

    what led to this was my decision the other week that I am moving in with my Girlfriend. she lives 56 miles away and i am spending hundreds a month just traveling backwards and forwards to hers.

    so now instead of having just under £200 a month to myself I now have just over £600 to myself. and this means i can afford to rent my own place with my girlfriend.

    I know I have been stupid and i have a new motto, if I don't have money for it, I am not going to buy it!

    have I done a good thing by going for one debt instead of loads? I know I will be better off because of it and I will be able to save!

    do any of you have stories about yourself being in trouble with debt? I would really like to hear them. or even do you Recommend any books, tapes etc etc?

    Thanks for reading. :)
     
  2. iJohnHenry macrumors P6

    iJohnHenry

    Joined:
    Mar 22, 2008
    Location:
    On tenterhooks
    #2
    Only one suggestion, beat the Hell out of that balance, every chance you get.
     
  3. elizabethjane macrumors member

    elizabethjane

    Joined:
    Feb 23, 2011
    Location:
    Indianaaaaaa
    #3
    Yup Yup. :)
     
  4. mscriv macrumors 601

    mscriv

    Joined:
    Aug 14, 2008
    Location:
    Dallas, Texas
    #4
    Dave Ramsey is an american financial counselor and speaker who's written several books and has a website. I think his basic principles would be applicable regardless of any European differences from the American economy.

    My wife and I are still paying off debt from stupid spending habits and other things that happened in our college and early adult years. The key is learning to sacrifice. You've got to be willing to live on little and work hard to put everything you can toward knocking out the debt.

    One of the reasons I like Dave Ramsey is because he's experienced being broke and in debt. Through hard work he turned his life around and now he uses a lot of success stories to encourage people. His books, radio show, and events offer countless stories of people who have been able to overcome debt. Check him out, you'll be glad you did.
     

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