Help/Advice much appreciated...

Moog_2

I am a new member to this site and I apologise in advance for any self-pitying tone and if my story rambles on. I know loads of people have debt problems and I'm no different but any advice or tips anyone can offer would be much appreciated.

My debt problems have reached a worrying stage, in the space of 4 years I have accumalated a debt of around £16K.
Before this I had always been rather sensible with money, and only owned 1 or 2 credit cards to reduce the risk of temptation and had an outstanding debt of around £800.

But then I became involved with a man who had various health problems, these became worse after he moved in with me, I became the sole breadwinner on my £12K a year take home salary.
As time went on and various expenses cropped up my reliance on credit cards increased. Even to pay for food shopping sometimes.
I also took out a loan to build him a workshop to start a new venture so he could try and work from home, although ultimately it didn't generate any money. Part of the loan also paid back his mother for a car that she had bought him.

I'm ashamed to say that I used some of the loan to buy us much needed items (new fridge etc) for around the house and also some luxuries that we had gone without for so long.

This summer I broke up with my partner.
To help me get over the heartbreak, I was stupidly generous and would treat friends to meals out and treats. Straight after I broke up with my partner I treated a friend and I to a holiday. I must have been in some sort of denial as I didn't realise how bad my debt was at this point.

I went completely nuts on spending for a while, I think I was a little depressed after the break-up and just hit the self-destruct button.I accept total blame for the mess I'm in but am starting to feel a little hopeless. None of my family, nor my ex-partner know what a financial mess I'm in.

I have taken advantage of a couple of cards with low interest rates balance transfers until the debt is settled. I am trying to pay any extra onto the credit card with the least amount of debt so I can get it paid off and can write off that debt to give me encouragement.
I am also moving back to my parents to save money. My dream was to have my own place by next year, but there is no way I can do that now.

I am so disappointed in myself.

has anyone else been in a similar situation and managed to work their way out of the debt?? And if so - any tips?? Or basic guidelines to stick by?

southernscouser

Hi Moog. Welcome to MSE and don' worry, you are not alone (and I don't mean aliens and all that)

You'll find an absolute wealth of knowledge and sometimes more importantly, encouragement and support, on these boards and the best thing of all, it's free. :j

Well done for facing up to your problems. It's generally known on here as your "lightbulb moment"! We all have different reasons for getting into debt and whether it's through greed, filling voids in your life, addiction problems, uncontrolable circumstances or whatever else you will find hardly anyone judges you. Those who do just ignore.

OK, what is very important for us to be able to help you is to list a SOA (state of affairs). Think of it as a newbies initiation test!

Tell us all your monthly incomings and outgoings. Tell us every penny you owe, who to, how much, and the APR's. Then we will do all we can to help you as much as possible.

Give yourself some credit for making a great start yourself. Moving back in with your folks may not of been what you wanted to do but is a great start. :T

Robert_Sterling_3

A very brave and frank statement Moog.
I think you have come to the right place to get some help and support.

Moog_2

Thanks for those kind words, to be honest it's such a relief to finally talk about it, not being able to tell anyone is just awful.

I will get together all the info on various balances and APR's and then if you can help me I would be eternally grateful and in your debt(!)

I'll do some digging online today just to double check my outgoings too.

Once again, thanks for your words of encouragement, for the first time in ages I don't feel quite so adrift.

ceegee

Moog wrote:

My dream was to have my own place by next year, but there is no way I can do that now.

IQUOTE]

Not next year, nor probably for a few years to come. But, one step at a time. Most of us have dreams, I certainly have, but even at the age of 49 they are still some way away. With determination you will get your dream one day but, like me and just about everyone else, it takes a long time and a lot of hard work. One thing I would say is to keep your dream tucked away in the back of your mind for now and concentrate your energies on sorting out your present situation. Once that is sorted, and it may take a few years, then you can start thinking a bit more about your dream. Concentrate on your finances.....until they are sorted your dream will not happen.

(It might turn out to be in your favour actually.....there is speculation about falling or stagnant house prices.) :cool:

ms_london

Hello.

As SS said, you are definately not alone (and I mean the aliens and all that, tee hee!!).

Although I made my final payment last week and am now debt free, I was in debt for a long while, and have spent so much time here that I want to continue to help others if I can. Afterall, if I can do it, anyone can.

As SS said, firstly post your SOA, listing all of your incomings and outgoings. Are you struggling to keep your repayments? What is your credit rating like? Are you keeping your repayments, but are struggling to manage on whats left?

When I looked at my SOA, I saved money almost instantly:

* I downgraded my Lloyds account to a Standard one, and saved £5 a month

* I cancel the PPI on my loans/credit cards, saving £10 on each credit card and more on my loan..

I know some people think, well, its only a fiver, but that fiver can only be spent once, and it soon adds up!!.

Welcome to the board. Perhaps get yourself a copy of Martins new "The Money Diet" or get a copy of the old one from the library, also can I recommend "A girls best friend is her money".....

See you soon.

Ms_London

Moog_2

ceegee wrote:

Moog wrote:

My dream was to have my own place by next year, but there is no way I can do that now.

IQUOTE]
One thing I would say is to keep your dream tucked away in the back of your mind for now and concentrate your energies on sorting out your present situation. Concentrate on your finances.....until they are sorted your dream will not happen.
QUOTE]

Thanks ceegee, in actual fact I have to say it might make a pleasant change not to have bills to pay to run a home and the stress of a mortgage. I am just so pre-occupied with getting myself financially straight, owning bricks and mortar doesn't seem quite so important.

Thanks Ms London for your tips and congrats for sorting out your debts.
I look forward to the day when I can kiss goodbye to credit card statements.

I have recently purchased Martin's book and am planning on getting the other one - I need all the help I can get!!

Moog_2

Hello, me again.
Have had a dig around and to my horror realised I'm in debt to the tune of around £17,500 :eek:

Anyway, although it's a shock it's just made me want to sort it out even more. So onto the figures...

Currently my total outgoings are £846 per month including rent, utility bills and current debt repayments,but I am due to move back home at the end of this month, so a lot of these costs will be cut.

I will base my current situation on next month as that is how it will be for the
forseeable future.

My situation as it is today (based upon living at home):

Income
£1000 a month

Outgoings per month (There may have to be a contingency of £50 incase I've forgotten something!)
Rent £250
Mobile Phone £45 (varies, so have averaged it out)
Pension £10
Gym £34.50

Various Debts:

Overdraft on Current Account
Limit £1500 @ 14%
Current a/c balance £-830.00

Loan
Balance £8486.64 @ 7.7% p.a
D/D Payments of £210

HSBC Credit card
Limit £3000
Current Balance £1057.54 @ 14% apr
Repayments: Min payment + whatever else I can afford

Egg Card
Limit £3900
Balance £2487.20 @ 14% APR
Repayments: £10 more than Min payment

Alliance + Leicester Credit Card
Limit £3500.00
Balance £2585.80 @ 14%
Repayments: £15 more than Min payment

Halifax Credit Card
Limit £3000
Balance £2809.94 @ 6.5% until balance paid off.
Repayments:£10 more than Min payment

Sorry for the long list, but I thought if I made it as accurate as possible it would make it easier for everyone to give me pointers.

Thanks everyone.

I need a cup of tea and sit down after all that - I feel like I'm going to have a panic attack!!!! _pale_

frugglewump

Moog wrote:

My situation as it is today (based upon living at home):

Income
£1000 a month

Outgoings per month (There may have to be a contingency of £50 incase I've forgotten something!)

Well unless your rent includes food .....?

The two things I see from this that could be addressed (that most often get suggested on here) are your mobile bill & the gym membership.

I would also say that it would be better to move the extra £10 you give to th halifax credit card to one with a higher interest rate. If you go to this website:
https://www.whatsthecost.com/snowball.aspx

you can get a very good look at how to spread your repayments to the cards to pay the absolute minimum interest.

Moog_2

Thanks Frugglewump, I have indeed looked at the link you suggested and spent last night working out a few things.

It was really helpful, sometimes you feel swamped with figures when you try and work it out yourself, but for the first time in ages I actually had some hint of a plan of how I was going to get myself out of this mess.

Obviously it's hard knowing that a large chunk of my hard earned cash will be paying off debts for the next 3/4 years, but at least it no longer seems unobtainable.

I see your point about the mobile/gym membership, although my gym membership helps my confidence and gives me back a bit of control in my life. I will see how my finances fare and if it has to go, it has to go!!

xela_17

Moog wrote:

I have taken advantage of a couple of cards with low interest rates balance transfers until the debt is settled.

I see you have one card at 6.7% for life of balance but would it be possible for you to get any 0% interest cards to balance transfer? How is your credit score?

Also, I know that if you log on to your online banking with HSBC they have a section called Your Offers. I have noticed recently that one of my offers was 9.9% interest for balance transfers. You may have the same. You would have to pay off what you have on your HSBC cc first, to take best advantage of this offer. Worth looking at though.