How Am I Going To Pay Off My Debt?

~ Rob

This is a good question that I asked myself and I suppose the answer is to get smarter with my money and work towards a debt repayment plan. While I would say I’m not the most reckless person with money I do like to spend it and £65,235 is a lot of personal debt for any young person to carry around.

The problem with money is it’s easier to spend than earn and if you’re not watching it just disappears. With your money gone and your desire to buy things still strong that’s when personal debt happens. And debt makes your money disappear and slip through your fingers even quicker due to the interest payments you have to pay back.

Debt has had a negative effect on my life and tied me down for too long. So what can I do about it? How do you begin to find ways out of massive debt?

I know I’ve made financial mistakes and that there isn’t a magic solution to get rid of this debt. In order to pay off this debt burden I’m going to have to evaluate my personal finances and change how I manage my money.

I admit I have got myself in this mess and I’m the only person that can fix it. To tackle this debt problem that has built up over the years I’m going to have to face it head on.

Here are some ideas that will help:

•      Be more financial responsible, no more crazy spending.

•      Start using a budget and overhaul my bad habits.

•      Focus on needs not wants.

•      Payoff as much debt as I can afford by cutting my expenses.

•      Shop around more for better deals.

•      Less of those treats.

•      Increase my minimum payments.

•      Read up on personal finance.

•      Waste less money and look after those pennies.

•      Work some overtime and put the earning into my debt.

•      Find people and resources that offer debt advice.

•      Master the art of frugalness.

Doing this will aid me in eliminating debt forever and help secure a better financial future. Breaking the bondage of debt and reaching financial freedom is possible. You have to dedicate the time to learn how to manage your money, change your money habits and form new financial disciplines.

Be More Frugal

~ Rob

Living more frugally will help you consider where and what you spend your money on. Being more frugal will help you understand the difference between wants and needs. I used to think I needed to buy lots of stuff and keep up with the lifestyle of friends and family. I’ve since turned over a new leaf and changed my financial habits.

Being frugal will make your money go further. Using a little frugal finance you’ll be able to save money and pay off your debt quicker.

Use a budget and seeing where you can save money is a good starting point. It’s too easy lose track of your cash and overspend, so fix the amount you spend each week.

To become more frugal doesn’t mean you are cheap, tight or can’t treat yourself and others, it only means you more sensible with the money you’re got. You might want to spend less on grocery bills, fast food, eating out, clothes, music, games, gadgets, music and takeout coffee.

Giving up a few luxuries will save money but you can also shop around for the best deals and discounts when you do need something.

You can save thousands by reviewing your current debt expenses, find cheaper mortgage and insurance deals and switch to interest free credit cards. We waste lots of money spending on debt interest payments so look for better deals.

Debt is so overpriced compared to the money we make on our savings, searching out better deals will save money and enable you to pay more into your debts to pay them off quicker.

Shop around for cheaper energy bills, lower mobile phone costs, switch Internet providers, cancel TV subscriptions or reduce down your current package.

A few ideas to help you save a small fortune include, taking packed lunches to work, avoid branded foods and goods that cost more, plan your meals to stop wasting food and buy in bulk if it saves money on the things you use.

Find cheaper hobbies, activities and entertainment you can do for free. Save money by becoming more healthy, cook cheaper food like frozen veg, when you can walk or cycle instead of using the car, cut down on your booze and of course stop smoking.

Access to easy credit and shopping online has made spending money easier. Not everything you buy with a few clicks is a bargain and sales exist to keep you spending on useless junk you don’t really need.

Stop using spending as a means of escape. When we buy something we want it gives us a little kick and a boost. Often we spend money to try cheer ourselves up and make us happy. Shopping gives us a high and the thrill of getting something new, something that briefly lifts up our spirits in the short term.

People shop for convenience, to alleviate boredom and get a buzz. This spending cycle of highs and lows can turn some people into shopping addicts and can impact their finances and relationships.

Are you spending too fast? Are you in danger of falling into bad heavy debt? Before you buy anything stop and think – Do I actually need this, could I go without? A quick way to curb spending is to stop acquiring stuff that don’t add value in your life. Cut back and learn to be a more frugal and savvy shopper.

Acting On Impulse

~ Rob

I used to spend money on all sorts without really thinking about it. Advertisings techniques influences us to spend more and online shopping makes it convenient and easy to buy without leaving your house. If you fail to control your spending desires it can lead to overspending and debt.

These days I challenge myself not to spend my cash on unnecessary stuff. I avoid chasing new tech upgrades, buying the top brand names in fashion and food and hottest game releases.

I think we all have some kind of spending weakness, act on impulse buys and make misjudgements on what we spend our money on. We’ve all bought something we regretted purchasing afterwards or bought more than originally intended.

Now before I buy something I stop to think – do I really need it, can I wait and will I use it and gain value from the purchase? If I still need and want it can I buy it cheaper somewhere else or even second hand. That buying pause can save you money and find you better deals. It also helps reduce impulse buying.

Setting new shopping rules will save you a fortune and empowered you to pay off debt quicker. When you are out shopping it’s easy to spend without even thinking a purchase through. Mainly because going shopping for stuff makes us feel good. It’s nice to buy something we want or the stuff we believe we deserve as a treat.

Marketing tactics persuade us to spend, boredom encourages us entertain ourselves, competition with the next door neighbours, friends and family tempt us to buy things and keep upgrading, all causing us to act on our spending impulses.

And if you don’t have the cash then debt steps in so you can buy it. Shopping trips get very costly when you use borrowed money to buy things. Sure it feels nice to buy things you want but what is the real price tag long term?

As a result we end up trapped in the cycle of debt, working longer to waste money on interest payments that suck are wealthy away. That’s not really financial freedom that’s a formula for financial failure.

To combat this you need to be strong. You need to learn how to be more frugal and thoughtful with your cash. You need to learn how to say “NO”. The inability to stop overspending is a downfall that will cost you more than money. When you head off to the shops or browse the Internet for special offers you have to set limits and rules in place.

For example, you may use cash only, have no spend weekends or even cut up your credit cards. Your new spending rules will help you to control your money better and avoid racking up more debt.

Thanks to impulse buying there are lots of things I wish I hadn’t bought with or without using debt to fund the purchase. I’ve wasted thousands on buying junk instead of seeing the bigger financial picture.

What about you do you spend money without thinking? What have you bought that you wish you hadn’t?

Budget Update

~ Rob

The latest budget snapshot is above. Nothing to write home about, however on pay day I took out £100 in cash for food shopping, reduced from £125. The rest will pay the rent, bills and loans.

I did manage to make an extra £345 eBay cash and put into the kitty then took out £230 to finally pay my mate back. Then take him off my debt. GET IN. That’s one debt gone.

Leaving £115 in the kitty. I may go out and celebrate.

Managing Your Student Debt and Student Finances

~ Rob

I try and view my monstrous student debt as a positive despite it seeming like a massive burden that needs to be dealt with. I know my student debt was for the sake of my education and supposedly for the greater good yet sometimes I question was it worth it at the end?

Funding higher education and a taking a degree course in the UK has turned into a debt game. Student debt is now Education, Education, Deprecation.

While at university studying your degree course may not be biggest thing you have to worry about. It’s your money management. You need to develop good student budgeting and money saving habits or managing your students finances will go out of the window. Taking your student finance lightly will cause you bigger worries in the long term.

In most cases when it comes to getting a university education the costs can be staggering. For many students going to university it will be the first time they’ve had to manage their own money and personal finances. Unfortunately with rising costs associated with university attendance students need to learn how to juggle their student income and expenses like food, rent, utility bills and loans.

In addition it will also be the first time they have access to credit and borrowing through an overdraft and possibly a credit card. Which means there is a price to pay for higher education and it can take practise to handle budgeting and borrowing for the inexperienced. Mismanaging your money can have an impact on your future credit rating.

A credit rating needed for renting a flat, getting a mortgage or loan. If you’re had credit problems and missed payments it will impact your credit score.

Large student loans, maxed out credit cards can impact on your credit ratings and be hanging over your health and well being for many years to come. Knowing you have this student debt baggage weighing you down can make you wonder if all the years of education was worth it.

Student debt is crippling university graduates with many not expecting to pay back the outstanding debt. After graduation the student loan bill and other student debt will have mounted up. Students from poor homes and backgrounds are faced with higher educational costs as they have to borrow more money to fund their higher education and living costs. In some cases the desperation of student debt has lead to depression and suicide as banks and loan companies hound students for money.

A good chunk of what you owe not only goes on the tuition fees but also the means to survive for three years with little income. Living costs and low graduate salaries don’t deliver on expectations of living the high life.  After you qualify with a degree in hand it soon becomes apparent it’s the wrong sort of paper you need to eat, deal with bills, pay the rent, afford a mortgage or buy a car to get to work.

Student Debt Advice and Student Debt Help

Student debt is a financial pig so here are some practical student debt advice . Every year you’re in university and higher education you are building up your student debt. Therefore it’s important you get to grips on your student budgeting and manage your student finances.

The student loan for tuition fees isn’t the real problem at the outset because you don’t have to start paying it back straight away until your salary hits the current £25,000 minimum (The minimum is subject to change). The major concern and real issue are the interest payments on all your student borrowing. That’s the killer. Student loans are also wiped out after 30 years.

If you land on your feet into a well paid job your first pay check won’t go as far as you think. Not when you have credit cards, bank loans and you owe your parents a small fortune to after bailing you out from eating baked beans.

Graduate debts worries and the uncertainly cast a shadow over students who are concerned about the grim reality that once they graduate this debt needs to be tackled and managed. If you’re struggling to make payments you need to manage your lifestyle and debt situation.

Managing your student debt requires serious money tips for students. It is important to have an understanding of money. Set a student budget of incomings and outgoing funds and don’t waver. Choose a good student graduate bank account. Aim to pay off unpaid bills and higher rate bank loans and student credit cards first. Make sure you keep up with repayments to protect your future credit score. If you have borrowed from parents pay then Bank of Mum and Dad last – They usually offer the cheapest interest rates.

When you are at college or university your finances aren’t at the top of your agenda. You only care about beer, women, sex and having a good time. Paying back your student loan back is usually the last thing on your mind.

When the real world hits you it can be a struggle to survive. Life gets crazy in the adult world, everyone wants a piece of your attention and income.

In my youth I didn’t want much to do with financial management. Retirement seemed like decades away and something I didn’t need to worry or think about back then. After the financial mess I’d got myself in and the BUY, BUY, BUY of capitalist culture in was time to change and follow my Top 7 Financial Tips.

You’ve had a taste of freedom and independence and with that comes financial responsibly. I know student debt and the uncertain future is a worry. Education is important, the problem is education shouldn’t price us out of the market and put us in so much student debt.

There are high costs that go along with higher education. For this reason you should know where you money is going and learn how to manage your cash flow. Your student loans and time at university is for getting the education you are hoping for not giving yourself liver damage.

Managing your student finances is no picnic and gets problematic when you have limited money coming in. If your student finances aren’t managed it can create crippling debt for those students who lack budgeting skills and self control. Students need financial aid, student loans for many reasons mainly – funding for higher tuition fees and living costs.

The temptation for many is to thinks it’s all the money in the world and blow it on nights out and shopping trips. Maxing out overdrafts, student credit cards and loans in a short space of time. Don’t be irresponsible, all borrowing has to be repaid back to lending agencies and providers with added interest on your loans and borrowing on top – It’s not free cash. Which means your student debts can really add up over time.

In addition student loans are taken into account as part of your budget when applying for mortgages. The whole purpose of going to university is to secure a well paid job in your chosen field of work. As interest mounts up the poor students of today are often worse off for investing in their future.

It’s a scary through thinking that your loan account may take years to pay off and may never actually be cleared in full. Currently the debt is cancelled and wiped out after 30 years but that’s making student finance and further education feel like a prison sentence – A thirty year stretch and you’re free to go. You get less for murder than managing future student borrowing.

Student life is no long party when you witness student debt mounting up. It weighs heavy on young minds and there’s no promise of a career when you graduate. It all gets a bit scary to watch your spiralling student debt run away into the 30 year sunset.

Some lucky and select students don’t have to worry too much about money but if you are one of the many that do then monitoring and managing your student finances will be of paramount importance.

Paying off student loans are a heavy burden to bear for graduates. Many students have difficulties clearing their debts and the full cost of student debt is often misunderstood and misleading.  Even if you are lucky enough to have your parents help with the costs and a college fund set-up its likely you’ll take out a student loan at some point.

I know how exciting and difficult living the student life can be. All the highs, all the lows. The joy of meeting new people, making new friends, hanging out with good company, drinking beer and the personal development you gain at the end.

When it comes to student loans always check the small print and terms of the borrowing. Some Student Loan companies don’t make it easy and attract a high rate of interest.

Student loans and the financing policies of education can get very messy. When you count for inflation the poor student will be worse off and you have to stop and think how it will affect the economy of the future.

I also know taking a degree isn’t a three year party. Surviving on a limited income, paying the rent, trying to make ends meet to put meat and vegetables on the table, all the while building up debt to fund an education. If you’re not earning while you’re learning then the true cost is a mountain of student debt.

The stress of student debt on top of your exams, dissertations all adds to student pressures. It important you focus on your study and forget about the mounting debt until your degree is over and you secure a job over the current threshold.

You won’t have to pay back any student loans until your salary reaches the pay back limit. So stop worrying (for now). Avoid using any credit cards, store cards and stay away from payday loans. Using these will only pile on the debt and interest payments. Extending your overdraft is also not a good idea in the long term.

Help with Student Debt

When living at home your food and financial needs are usually met by your parents but soon as you go to university you’ll have to learn how to fend for yourself. You need to make sure you have the bills and basics covered before you spend your student finance on nights on the town.

Your student loans and overdrafts won’t last as long as you think. Failure to manage your student loan instalments will result in more student debt and money problems. To avoid higher student debt the first thing is to organise your money and open a separate bank account for paying your bills.

The banks have plenty of options and interest free student overdrafts to help. Set up direct debts for all your outgoings and put money aside for rent, energy bills, phone, TV license and Internet access.  You’ll all so need to keep money aside for travel costs and train tickets home. After this you might not have much money left for food, clothes, beer, takeaways and partying.

Student Banking:

If you’re not great with money having two accounts helps. Opening one bank account for bills and an account for day to day living is a positive way to stop study costs and student debt overwhelming you.

House sharing with other students or friends can help reduce costs and give you extra cash. Before paying your bills as a joint household you’ll need to agree on who pays which bills or share the cost between you all. Deciding beforehand will stop arguments and fall outs over who pays what.

Check your accounts regularly and ensure you are keeping a check on incoming and outgoing money to avoid extra fees or charges.

We all want to be in the debt free zone and getting on top of your student finances and budgeting will limit the student debt you incur. Indeed after the exams then student debt and money problems are a big concern. Rising tuition fees and higher living costs don’t help the matter.

Viewing student debt as bad is the wrong way to look at further education funding. In spite of you owing thousands the fact you have a degree should open up higher earning potential. Borrowing with student loans to invest in your development and career shouldn’t be seen as a negative liability but when you look at your student debt your stomach make turn a somersault.

Take Control of Your Student Debt. Student + Debt, the word have a nasty connection which can trap young people down for years. It could be that the real educational investment is money management?

Anyone want to add anything else? Maybe some student money tips, tricks, lessons YOU learned in college?