Is it too late?

System

ZippyWallet wrote:

Im only young and have gone a bit mental with the old flexible friend. I had my debit card taken by a machine today, kinda brought things crashing down.

I have a couple of cards currently :

£750 Monument
£210 Capital One
£1750 Barclay Card
£300 Next

Current Account -£670

I havent spoken to them yet is it worth doing this? I basically would like some advice on what to do? Is it worth asking for a loan so I can avoid the juggle and have a simple monthly payment ?

Hi ZippyWallet - welcome aboard!

First of all, what's your Current a/c overdraft limit? Make sure you speak to your bank and explain the situation, as your have on hear. They can't do a thing to help if you don't make them aware of your situation.

Secondly, you need to post the Interest Rates and Credit Limits for these credit cards, so that people can really get stuck into your finances!

Can't comment on Barclaycard - don't know much about them. Monument sounds like a sky-high credit card and I bet the Next a/c (being a store/catalogue debt) has equally high interest.

First thing to do is sort your bank a/c out - the worst thing you can do is run out of cash. Call your bank ASAP.

Also, somewhere on here (and I'm sorry but I can't remember where) are posts about reclaiming overdraft bank charges - basically no bank will contest them in court. Check out https://www.bankchargeshell.co.uk for further info.

System

ZippyWallet wrote:

Mortgage/Rent - £100
Phone - £35
Food (Lunch)- £150
Petrol - £140
Car - £155
Car Insurance - £65
Going Out - £120

Quite simply, your car's costing you a bloody fortune - is there any way you could downsize?

Phone and Food seem reasonable.

Rent £100 - take it you still live at home .

Going out - I used to go out 3 or 4 times a week in my early 20s, so can understand this, but even so - could you reduce it?

I think, in a nutshell, your problems could be sorted by getting a less expensive car and re-organising your credit card debt to 0% deals / or getting your existing lenders to reduce your current APRs. That's easier said that done I know, but that's the obvious solution.

As others have said, it may be good for you to go thru this now rather than later. Hopefully you can learn from it and not repeat the mistakes as you get into your late 20s and beyond.

The simple fact is that if you continue scraping by and paying the minimum amount on your credit card, the creditors will love you and entice you with bigger and bigger amounts of credit as you get older. You seem to be on a decent wage, so you'll probably still spend your income rather than adopt a more frugal approach.

I started on a £100 overdraft in 1995 (aged 23) and up until recently had available credit of £35,000 on bank and credit cards.

Unless you learn from this, 10 or 15 years from now, you could be in a similar situation.

Hopefully you'll be sorted within 2 years, though!

Dave

Is it worth asking Barclaycard (my lowest rate) to extend my credit limit transfer the other cards and cancel them ? I like the idea of one simple payment per month.

Well the worst Barclaycard could do is say "NO!" - so make sure you ask them.

Lucie_2

ZippyWallet
You have 2 main options: make more money or spend less.
Could you get a second job? Even 1 or 2 nights a week in a bar will bring in a fair amount & also has the added advantage of stopping you going out & spending. Working in a bar is like being paid to have a social life. If that's not an option, what about doing some ebaying? You must have clothes, CDs etc that you could sell?
Spending less - Do you realsie that £150 a (4 week) month on lunches is £7.50 a day :eek:. You could make a whole weeks worth of packed lunches for £7.50.

ZippyWallet

29Well I dont live at home, I live in a shared house which my dad owns. My work in collecting others rents etc all means that I get £100 all inclusive rate.

I cant cut down on my car, I live about 30miles from work and I need a car once in work. I cant risk having an old car and not starting etc. Petrol costs are so high due the mileage. Insurance costs are so high due to my age, 20.

I will call the bank tommorow and sort out my current account. I have enough cash in the house to finish the rest of the month.

Momument Card : 29.9%
Capital One Card : 29.9%
Barclaycard : 17.9%
Next : 24.99%

For most of the 0% deals you need a perfect credit history which now I dont think I have. Is it worth speaking to the companies and asking if I cancel the other cards are the willing to accept ?

skintchick

Hello - I wondered if you could cut down on the phone a bit?

I am single and spend £70 a month on food and lunches at work (I make them and take them in) so there's definitely a saving to be made there.

As there is with going out.

Ref your car - do work pay for your work milegae?
Would you be prepared to get an older, smaller car so the insurance would be less? Or go as a named driver on a parent's insurance? (I did this till I was 26 and now I pay about £300 a year for a 2004 Skoda Fabia 1.4 16valve 100bhp.)

ZippyWallet

Its a 1.2 clio, probably the lowest insurace group car thats driveable, I have a blotted past when it comes to driving, so am in my first year. I have discounted it as much as possible, advanced driving, parent on the insurance etc. I dont want to put it in my parents name as that causes problems when your older with ref to the no claims bonus

Even tho I have cash I am not going out this week, me and the laptop are best of friends now.

I am going to limit myself to £5 per day for lunch, I just cant make my own im lazy sorry Today I spent £3 and yesterday £2.90 so I can live with that.

skintchick

I didn't have problems with ref to the no claims bonus - I had to build it up yes, but I saved so much by being on my dad's insurance that it was still a moneysaver and well worth it, as when i did go in my own name it was much cheaper. But then I had a totally clear licence with no points at all, and had been driving since I was 17 - which I made a big fuss about when I went in my own name and they gave me some extra off to recognise that fact - either that or just get me off the damn phone!

It takes two minutes to make lunch - I do it while the kettle is boiling for my coffee. I take a packet of crisps, fruit, defrost rolls in microwave, then add grated chesse, or ham, or pate or whatever and wrap in film. Done!! You're too poor to be lazy, hon.

mintymoneysaver

The main thing I would do is pay off your NEXT card with whichever card has the lowest interest rate,saves you some money straight away.Then see if you can get a 0% balance transfer card from anybody and transfer as much as they will let you onto that from your highest interest rates.your credit rating should be okay as long as you haven't defaulted on anything.
With that much money spare each month you could sort this out in 18 months or so.Other people can probably give more detailed advice though..

ZippyWallet

I spoke to first direct today, nice bloke told me if I got rid of some of my cards they would give me a 0% loan to cover them, I also had a first direct credit card with like £100 on. So i get the loan for 12months, to cover monument, current account, next and capital one. All I have to sort out is the barclaycard.

I asked my dad for advice too and apparently in about 6months I get a trust fund which should cover it and more, so going from worried and annoyed things have got a bit better.

No excuse not to budget tho, I started by cutting up the cards today anyone want a piece. Thanks for your help

Bargain_Rzl

ZippyWallet wrote:

I asked my dad for advice too and apparently in about 6months I get a trust fund which should cover it and more, so going from worried and annoyed things have got a bit better.

No excuse not to budget tho, I started by cutting up the cards today anyone want a piece. Thanks for your help

What a healthy attitude :T

You're very lucky to be coming into some money, but a lot of young people with money handed to them on a plate would just think they could spend whatever they wanted and would end up in debt ten times worse than you're in now. Stay on this forum and we'll make sure you stay on the straight and narrow!