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  • FIRST POST
    • kpbubbly
    • By kpbubbly 8th Oct 17, 1:40 PM
    • 6Posts
    • 5Thanks
    kpbubbly
    Please help my debt situation/spiral
    • #1
    • 8th Oct 17, 1:40 PM
    Please help my debt situation/spiral 8th Oct 17 at 1:40 PM
    Hello everyone, my name is Kevin, 24, live and work in London.

    I have gotten myself into a payday debt spiral since I was 18 and realised a while back how stupid it was for me to borrow from these but I am having alot of trouble trying to pay it back myself and only found out I am paying out more then I am earning until I do not have enough this month! so I am searching for any advice/help.

    A few things about my situation:
    • I am currently on a debt management repayment plan with all payday loans consisting of £1 payments and some at a higher rate to try and repay it back over time...
    • I have a credit union loan of £4000, however in mid-november I am eligible to borrow up to £20,000 at 1% APR. This seems very promising for me, but I would need to PAY BACK the £4k loan i initially borrwed and get an extra £4k in my balance to borrow x5 the amount (maximum £20k)
    • I am currently making minimum repayments to my credit cards and the car hire purchase will have £1500 left to pay back (5 more months). I cycle to work and drive to Norwich on the weekends to work with my girlfriend to earn another £45 but to be honest it just goes to seeing her and paying for the fuel.

    Thank you in advance!
Page 2
    • leslieknope
    • By leslieknope 9th Oct 17, 9:19 PM
    • 314 Posts
    • 469 Thanks
    leslieknope
    £320 just for food for yourself??! i don't even spend that and i eat out about once a week! you need to cut that down. and that car insurance is really high. as a new driver i was only paying £86 a month and in the second year it dropped. i take it you have been driving for longer than a year? is that really the cheapest insurance you can get? what kind of car are you driving for £500 a month on HP?
    CCCC #33: £42/£240
    DFW: £4355/£4405
    • zippygeorgeandben
    • By zippygeorgeandben 9th Oct 17, 10:51 PM
    • 723 Posts
    • 909 Thanks
    zippygeorgeandben
    Ditch the £2 breakfast and £3 meals.
    I eat cereal at home every day with superfoods added.
    I eat laughing cow on ryvita and a yoghurt for lunch.
    It costs me £2 for 16 LCs and I use 2 a day so that's 8 days, times this by 3 which would be 24 days a roughly working month and it costs me £6 for these.
    I pay £1.09 for Ryvitas, use 2 of them so that's £2.18.
    Then I buy yoghurts or jellies. Yoghurts £1.94 for 6 when half price at Ocado. Multiply by 4, 24 days in working month and that's £7.76.
    Basically I spend £7.76 + £2.18 + £6.00 for lunch for a month = £15.94
    You can't justify £3 PER DAY on lunch.
    End Sep 2016 End Nov 2017
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0(Zopa 4.0%) £0pcm

    £5344.50
    £2470.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £933.36 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £3403.40 Original DFD May 2019.
    • enthusiasticsaver
    • By enthusiasticsaver 9th Oct 17, 11:00 PM
    • 4,856 Posts
    • 9,176 Thanks
    enthusiasticsaver
    You have a secured loan and HP for the car? What is the secured loan for? Usually you should tackle secured loans first before unsecured debt and payday loans definitely last. You may have a case for a refund on those.
    1 week to go until early retirement. Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • Soundgirlrocks
    • By Soundgirlrocks 10th Oct 17, 5:55 PM
    • 450 Posts
    • 649 Thanks
    Soundgirlrocks
    Hi, Can you look at moving somewhere a bit cheaper? London is expensive but you can get a decent double room in a shared house near me for £550 - £600 Try here
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