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  • FIRST POST
    • Retrievermomma31
    • By Retrievermomma31 19th Sep 16, 4:00 PM
    • 15Posts
    • 11Thanks
    Retrievermomma31
    Young and in debt :(
    • #1
    • 19th Sep 16, 4:00 PM
    Young and in debt :( 19th Sep 16 at 4:00 PM
    EDIT:
    Deleted
    Last edited by Retrievermomma31; 22-09-2016 at 2:01 PM.
Page 1
    • sourcrates
    • By sourcrates 19th Sep 16, 4:17 PM
    • 7,548 Posts
    • 7,482 Thanks
    sourcrates
    • #2
    • 19th Sep 16, 4:17 PM
    • #2
    • 19th Sep 16, 4:17 PM
    Hi,

    Theres no "quick fix" unfortunately, how much equity do you have in the house ?
    Would the house sale clear your debts ?

    If you go Bankrupt you may lose the house and its proceeds.

    For free debt advice please call National Debtline on
    0808 808 4000
    Monday to Friday
    9am to 9pm
    Saturday 9.30am to 1pm
    • enthusiasticsaver
    • By enthusiasticsaver 19th Sep 16, 5:15 PM
    • 2,167 Posts
    • 3,807 Thanks
    enthusiasticsaver
    • #3
    • 19th Sep 16, 5:15 PM
    • #3
    • 19th Sep 16, 5:15 PM
    The only relatively quick fix is to sell the property providing of course there is enough equity in it to pay your nan back. Neither a dmp nor bankruptcy will help you with that.
    Save £12k in 2016 #46 £13600/£12,000
    Debt and mortgage free and saving for early retirement
    • bellaboo86
    • By bellaboo86 19th Sep 16, 5:25 PM
    • 177 Posts
    • 228 Thanks
    bellaboo86
    • #4
    • 19th Sep 16, 5:25 PM
    • #4
    • 19th Sep 16, 5:25 PM
    Post a statement of affairs and i'm sure people will give you ideas about where to cut back.
    without wishing to pry why does your grandma need her money back? What timescale do you have to pay her back?
    Could either of you work overtime or get a second job?
    What about a lodger? Are any of your friends wanting to move out?
    • Grumpelstiltskin
    • By Grumpelstiltskin 19th Sep 16, 5:29 PM
    • 2,038 Posts
    • 1,911 Thanks
    Grumpelstiltskin
    • #5
    • 19th Sep 16, 5:29 PM
    • #5
    • 19th Sep 16, 5:29 PM
    If you only had a deposit of £11k how on earth did you get a mortgage on your small salaries?
  • National Debtline
    • #6
    • 19th Sep 16, 5:35 PM
    • #6
    • 19th Sep 16, 5:35 PM
    Hi Olivia and welcome to the forum.


    As sourcrates and co. suggest above, you should beware of "quick fix" solutions. While I appreciate your grandmother have some pressing needs, rather than jumping straight to the idea of bankruptcy or selling up, you first of all need to properly assess your situation. That means completing a Statement of Affairs http://www.stoozing.com/calculator/soa.php and posting the results here if you can. At the very least, contact one of the free debt advice charities for further support.


    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • Retrievermomma31
    • By Retrievermomma31 21st Sep 16, 3:55 PM
    • 15 Posts
    • 11 Thanks
    Retrievermomma31
    • #7
    • 21st Sep 16, 3:55 PM
    • #7
    • 21st Sep 16, 3:55 PM
    Post a statement of affairs and i'm sure people will give you ideas about where to cut back.
    without wishing to pry why does your grandma need her money back? What timescale do you have to pay her back?
    Could either of you work overtime or get a second job?
    What about a lodger? Are any of your friends wanting to move out?
    Originally posted by bellaboo86
    If you only had a deposit of £11k how on earth did you get a mortgage on your small salaries?
    Originally posted by Grumpelstiltskin
    Hi Olivia and welcome to the forum.


    As sourcrates and co. suggest above, you should beware of "quick fix" solutions. While I appreciate your grandmother have some pressing needs, rather than jumping straight to the idea of bankruptcy or selling up, you first of all need to properly assess your situation. That means completing a Statement of Affairs


    Dennis
    @natdebtline
    Originally posted by National Debtline


    Hi everyone,
    thanks for your replies!
    Today I found out that I had been succesful in an interview and am soon to be starting in a new better paying job, which has taken a lot of the pressure off.
    My partner is hoping to hear back about a job too.

    Now we need to decid whether to pay extra on our loans each month to get them paid off in 2 years, or to enjoy this extra income and let the loans continue 'naturally'

    • Oakdene
    • By Oakdene 21st Sep 16, 3:57 PM
    • 369 Posts
    • 459 Thanks
    Oakdene
    • #8
    • 21st Sep 16, 3:57 PM
    • #8
    • 21st Sep 16, 3:57 PM
    Hi everyone,
    thanks for your replies!
    Today I found out that I had been succesful in an interview and am soon to be starting in a new better paying job, which has taken a lot of the pressure off.
    My partner is hoping to hear back about a job too.

    Now we need to decid whether to pay extra on our loans each month to get them paid off in 2 years, or to enjoy this extra income and let the loans continue 'naturally'

    Originally posted by olivia.denny
    I thought the major issue was your nan needed the loan repaying urgently?
    • MallyGirl
    • By MallyGirl 21st Sep 16, 3:58 PM
    • 1,336 Posts
    • 3,389 Thanks
    MallyGirl
    • #9
    • 21st Sep 16, 3:58 PM
    • #9
    • 21st Sep 16, 3:58 PM
    or pay back your Nan?
    • AllyMac
    • By AllyMac 21st Sep 16, 5:59 PM
    • 28 Posts
    • 16 Thanks
    AllyMac
    Well that's your slippery slope right there.
    One minute you're desperate for money and asking about bankruptcy.
    You have debts. (a lot, for a 19yo on a low income)
    You have experienced how quickly that can go wrong.

    Yet when you suddenly have more money about to come, you think you might just "enjoy it".

    I advise you to enjoy it paying off your debts!

    Believe me, you'll enjoy spending all the more when you have no debts, some savings, and you can spend without a care.

    It's foolish not to pay off what you owe - it's all the more foolish when you *know* circumstances can change in an instant.

    What happened to paying back your family?
    • RainbowLaura
    • By RainbowLaura 21st Sep 16, 6:16 PM
    • 60 Posts
    • 6 Thanks
    RainbowLaura
    Depending on equity, perhaps it would be best to sell the house and pay off your debts before things get any worse? It sounds positive that you have a new job, but if there is an alternative such as living with family for a while it may be best to get fully on your feet again before buying another home. Good luck.
    • Muttipops
    • By Muttipops 21st Sep 16, 7:27 PM
    • 261 Posts
    • 247 Thanks
    Muttipops
    Hi,pay those loans off as soon as possible, get together some savings of at least £1k and work out a budget and stick to it.
    I know you are only 19 and want to live life a bit, but you chose to take on some responsibilities that you can't just take or leave. You have made a start in life on the property ladder and it would be a shame to get off again so early, but with some careful budgeting so that you live within your means, I hope you can continue to live in your house.

    Whilst working out a proper budget isn't anybodies idea of fun, it is essential so that you keep on top of the bills.

    Mrs Oldie here ( me) has lived enough of life to know that circumstances change and s**t happens; what happens if you are made redundant, have an accident and can't work, have a baby, car gets totalled, all this crap happens to most of us at onetime or another. You need to make your finances bomb proof, so that you can ride the storms, not just rack up debt. I am not a killjoy saying don't have a life, but looking further than the next wage packet is important in odrder to avoid getting into a situation you can't borrow your way out of.

    As for the bankruptcy idea, it was always a non starter, as any loans to family are included in the bankruptcy and you would not be allowed to pay them back, so they would loose all their money, hardly fair on them.


    Could you have a friend to share the house with you and so split the bills?. I am sure you would prefer your own privacy, but making a spare bedroom work for you would be a good idea, if you have one. You can earn up to £7,500 per year, tax free, if you rent out a room as a resident landlord.
    Finally, good luck to you and your boyfriend. I hope you take some of the advice on here; some of it might sound like being sensible and boring, but sensible and boring gets the bills paid and keeps the wolves away from the door, at least as far as money is concerned.
    Last edited by Muttipops; 21-09-2016 at 7:38 PM.
    • redpete
    • By redpete 21st Sep 16, 11:01 PM
    • 3,995 Posts
    • 3,496 Thanks
    redpete
    Now we need to decid whether to pay extra on our loans each month to get them paid off in 2 years, or to enjoy this extra income and let the loans continue 'naturally'
    Originally posted by olivia.denny
    Stop being so selfish and pay your nan back.
    loose does not rhyme with choose but lose does and is the word you meant to write.
    • MrsSave
    • By MrsSave 22nd Sep 16, 7:57 AM
    • 852 Posts
    • 2,781 Thanks
    MrsSave
    At a guess you'll be back here in a year or 2 with much bigger debts if that's your attitude. You owe £24,500 and instead of working to pay it off ASAP (and pay your gran back that was urgent just a couple of days ago) you want to enjoy the money.

    Pay off your debts ASAP. You can still leave a little 'entertainment' money so you're not going without, but pay off your debts and get some savings behind you. If you can pay off within 2 years, you'll still be young and can get yourself in a good financial situation.

    I wish I'd sorted myself out in my early 20's. It's a lot more difficult when you're quite a bit older with the added responsibility of a family, etc.
    Emergency fund #16 £111.36 Premium Bonds £1000
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    • autumn2012
    • By autumn2012 22nd Sep 16, 12:58 PM
    • 167 Posts
    • 195 Thanks
    autumn2012
    Get as much money together as you can, work two jobs each if possible and get out of debt asap! Trust me it will be like a weight off your shoulders. You dont have kids or anything so it will be alot easier than leaving it til later on in life. Speaking from bitter experience here
    • Retrievermomma31
    • By Retrievermomma31 22nd Sep 16, 1:42 PM
    • 15 Posts
    • 11 Thanks
    Retrievermomma31
    Well that's your slippery slope right there.
    One minute you're desperate for money and asking about bankruptcy.
    You have debts. (a lot, for a 19yo on a low income)
    You have experienced how quickly that can go wrong.

    Yet when you suddenly have more money about to come, you think you might just "enjoy it".

    I advise you to enjoy it paying off your debts!

    Believe me, you'll enjoy spending all the more when you have no debts, some savings, and you can spend without a care.

    It's foolish not to pay off what you owe - it's all the more foolish when you *know* circumstances can change in an instant.

    What happened to paying back your family?
    Originally posted by AllyMac
    Stop being so selfish and pay your nan back.
    Originally posted by redpete
    At a guess you'll be back here in a year or 2 with much bigger debts if that's your attitude. You owe £24,500 and instead of working to pay it off ASAP (and pay your gran back that was urgent just a couple of days ago) you want to enjoy the money.

    Pay off your debts ASAP. You can still leave a little 'entertainment' money so you're not going without, but pay off your debts and get some savings behind you. If you can pay off within 2 years, you'll still be young and can get yourself in a good financial situation.

    I wish I'd sorted myself out in my early 20's. It's a lot more difficult when you're quite a bit older with the added responsibility of a family, etc.
    Originally posted by MrsSave



    I forgot to mention that my nan has 5 years until she will begin to run out of money. My loan with her will be up in a couple.
    Things aren't 100% set in stone with her yet

    wow people can be rude when they're behind a screen!
    • Muttipops
    • By Muttipops 22nd Sep 16, 1:55 PM
    • 261 Posts
    • 247 Thanks
    Muttipops
    I forgot to mention that my nan has 5 years until she will begin to run out of money. My loan with her will be up in a couple.
    Things aren't 100% set in stone with her yet

    wow people can be rude when they're behind a screen!
    Originally posted by olivia.denny

    Olivia, your first post stated that you were at your wits end with worry and that your nan needed the money back as soon as possible and then hey presto, a couple of days later you had a new job, money and seemed to have forgotten about nan needing this 11k asap, so people I would guess felt like you were being unthinking about your nan by saying you were going to carry on as before. Sometimes, people on here tell it like they see it, we are not your mates, we are often people who have been in shed loads of debt, have life experience of trying to get out of it and can see young people making the same mistakes we did; they are trying to save you a lifetime of worry and if being what you call rude shocks you just one little bit into thinking a bit clearer about debt and not falling into the same old trap year after year, then it is worth it.
    Don't take offence, you asked for advice and got it, you might not like what you heard, but I expect that if you thought about it, you did seem very unfeeling about poor old Nan who now wasn't going to get a look in about her 11k, according to you.
    I hope that when you get over being p'd off, you can see the sense in some of what was said about budgeting and paying off debt asap. Good luck.
    • takman
    • By takman 22nd Sep 16, 2:46 PM
    • 1,310 Posts
    • 991 Thanks
    takman
    There is no point in deleting your first post there is no way that says she needs it back as soon as possible did you mean 5 years!.


    Hi everyone,
    this is my first post here - I'm here out of desperation unfortunately

    I am 19 years old and me and my partner are in about £25k debt

    Here's a list of everything we owe:
    £11k left to my Nan (mortgage desposit)
    £5k car loan
    £5k personal loan
    £2.5k credit cards
    £1k computer finance

    We are both only earning about £1k a month each as we havent started our actual careers yet, we were just so desperate to move out and buy a house and didnt realise how expensive it is!

    We have got to th point where we have no money left each month as it's all going on bills or debt payments.

    Would it be an awful decision to declare bankruptcy?

    We were planning on selling our house to pay off most of our debts but due to personal circumstances my nan now needs the loan back as soon as possible.

    I've looked into DMP but that will only pay off the smaller debts (the biggest debts are with family members, which it wont pay)

    Can anyone suggest anything? We're at our wits end it's really getting us down, especially when we're this age!
    Originally posted by olivia.denny
    • enthusiasticsaver
    • By enthusiasticsaver 22nd Sep 16, 3:41 PM
    • 2,167 Posts
    • 3,807 Thanks
    enthusiasticsaver
    First of well done on getting a better paid job and hopefully you can now start to see a way forward on this. You can understand people being a bit off with you as in your first post your nan needed the money back as soon as possible and in your latest she does not need it back for 5 years. Which is it?

    I think people are trying to inject a note of caution into your attitude with money. You are in a considerable amount of debt for someone not yet 20 and as you now have a better paid job you will be able to make a plan to clear it. Enjoying the extra income should come after debts cleared. It is not being rude to point that out but people trying to save you from falling into a lifetime of debt spiral. Something many on this forum have done quite a few times over. Only winners are the banks and credit card companies.
    Save £12k in 2016 #46 £13600/£12,000
    Debt and mortgage free and saving for early retirement
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