23 Years of age £12,500 in debt - any advice welcome please

NathanP93 · 26 June 2017 at 12:01PM

Hello all,

I am writing this as i know within this forum i will get the best possible advice regarding my situation,

About me:
23 years of age
Working 2 Jobs - Around 60 hours a week

Minimum Payments & Current Debts:-
£75 p/month overdraft interest lloyds (£4950)
£190 p/month 118118 money (£3900 left - £2020 if i can early settle, not happening)
£117 p/month satsuma (£1200)
£70 min payment/month Vanquis (£1000)
£15 Min payment/ month Barcleycard (£400)
£25 Min payment/ Month Marbles (£500) - Family member maxed and left me to deal with
£260 a month for 3 months Wonga (£780) <-- yes i was stupid.

Total: £752

Above are what i owe in total, coming down to £11,000 or so if i could early settle (Possibility)

Income:
Job 1 - £1108 p/month after tax and NIS
Job 2- (Depends on hours worked) 4 week month £500/ 5 Week Month £600
Between 30-40 a week tips from second job.

Total: +/- £1730

Outgoings:
Due to the nature of my second job i pay no form of petrol to get to and from each of my jobs
£400 rent - which will be void from the end of this week due to moving in with different family to use this to pay debts
£155 to partner for child maintenace
£110 car insurance
£177 car finance - this debt i am fine with and will let run its course
£28 GAP insurance - to end in December
£66 Mobile <- bad i know trying to sort something out

Total: £536 now without rent

Leaving me with just under £500 (my spreadsheet says more a month but this is a guide idea)

One positive hopefully - A family member is currently in the process of selling a family business in which i will be able to lend everything i owe and just pay them back my second job pay a month for the next year or two.

Any idea's how to tackle these incase the above does not happen,

Thanks,

NP93

Candyapple · 26 June 2017 at 12:08PM

Enter your debts in the link below starting with the highest APR first and it works out who to pay what to:
http://www.whatsthecost.com/snowball.aspx

Arleen · 26 June 2017 at 12:12PM

You shouldn't be fine with the car debt as it's currently running you 19% of your income before petrol, totalling 315 quid every month. You can do a lot of bus driving and even some ubers for that every month where you can't get a commute and still be financially ahead.
With just that and axing the horrendous phone contract, you will save 378 quid every month, also known as almost-your-rent or 4536 GBP a year.

NathanP93 · 26 June 2017 at 12:30PM

i understand this, the car will be the last thing paid off once the rest has been paid.
I pay nothing towards petrol and my second job is delivering so the car is a must really
Most my debts are because of buying 2nd hand cars and paying the price for fixing them up to work which landed me in a worse spot.

Candyapple · 26 June 2017 at 12:40PM

Regarding your second job - do you have the correct insurance cover?

Standard private motor insurance policies do not normally cover the drivers’ business use of their vehicles — typically they will only provide cover for social, domestic and pleasure use. However, even if the driver requests a business use extension on their policy, the stated business use may not cover fast food delivery. Drivers must extend their private car insurance policies with the purchase of a hire and reward use, in a similar fashion to a taxi or courier.

Hire and reward use covers a driver’s liability when something is delivered from one place to another for a fee, including when delivering food. Unless the insurer is specifically told that the driver is undertaking deliveries and attaches the proper hire and reward extension for delivery use, the driver is likely to be driving without proper cover and at risk of prosecution.

Police are aware of the potential for improperly insured vehicles, which can lead to fines, points and even seizure of the vehicle itself.

NathanP93 · 26 June 2017 at 12:55PM

I have the correct cover to use my car for business use,

Also i am covered under the companies business insurance which is only third party.

MallyGirl · 26 June 2017 at 2:03PM

NathanP93 wrote: »

One positive hopefully - A family member is currently in the process of selling a family business in which case i will be able to [strike]lend [/strike]borrow everything i owe and just pay them back my second job pay a month for the next year or two.

this would sound like a way out - as long as you have fixed the root cause of the overspend, otherwise you will just be back here in a year's time with more loans plus owing a family member money too.
You need to get your language right and do the maths so that you know exactly how long you will be paying back - allowing for the 2nd wage variation - rather than it being 'for the next year or two'.

leespot · 26 June 2017 at 3:24PM

A family asked me to help them out of a similar situation, and I agreed but with a condition. That condition was that they paid off the creditors whilst they were with me, best to know that they were spending the money to pay off the debt. It might reassure your family member if you sit with them whilst arranging to settle the accounts with the money they are kindly letting you borrow.

Trouble is that once the pressure to repay banks is off, there is less incentive to repay the loan quickly.

NathanP93 · 26 June 2017 at 6:03PM

I agree 100% I will be sitting with them while paying it all off then cutting up my cards.
It is the same family member I am going to be living with so instead of paying rent they will receive the money from my second job

Moneybutterfly · 28 June 2017 at 11:11AM

I'd look into your GAP insurance and cancel. I've always had GAP until recently when I needed to use it and they got out of it with a loop hole. Read the small print as it was no use and pointless having. I was missold it I'd say x

-taff · 28 June 2017 at 9:22PM

Head to the debtfree wannabe board and post your original post again.

23 Years of age £12,500 in debt - any advice welcome please

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