Made my first steps today...

Loopy_Laura_2

Hi everyone, I've been a viewer of this forum for some time now, and today have made my first steps in resolving my situation, and firstly want to say thank you to all of you out there that post such useful, helpful and friendly advice! I have found nothing but empathy...and all of you will know what a relief it is to feel there are people out there who understand! So I will put a brief outline of my situation....

My debts are all my own fault and no-one else's, I just feel so stupid for letting myself get into this situation. If I had realised how they would impact my life I never would have got into this situation, but I am fantastic at burying my head in the sand, something I now admit I have been doing for years. It's time to face up to things and sort my life out! Thank you all you lovely people again for making me realise it's not impossible! Debts are as follows:

HSBC Personal Loan - £8,686 (4 years left @ £177pm)
GE Capital Woodchester (Car HP) - £8,300 (4 years left @ 159pm)
MINT Card - £3,500 (Maxed Out - min payments approx £78pm)
EGG Card - £2,300 (Maxed Out - min payments approx £50pm)
Barclaycard - £3,500 (Maxed Out - min payments approx £68pm)
HSBC Online Card - £2,000 ( £1,836 - min payments approx £60pm)
HSBC Credit Card - £500 (£495 - Min payment £10pm)
M&S Chargecard - £750 (£550 - Min payment £18pm)
Next Accountcard - £2,000 (£550 - Min payment £50ish pm)
Rent & Food - £350pm
Petrol - £60pm
Two Interest free loans from work - £135pm

I think that's everything, I'm cancelling my o2 phone contract at the end of the month as that has cost me a minimum of £30 for the last 4 years. I currently live with my partner who had a mortgage on the property before I moved in, mortgage payments are around £500pm and he's a sweetie, I only pay him £200 for rent, he pays the rest and we both put £150 each into a joint account a month for food, Sky and home phone (£8pm).
Even though all the above debts are all my own, my partner is lovely and classes the debts as 'ours' rather than 'yours', I am very lucky as he has been extremely supportive and understanding, it is only very recently I told him about how much debt I was in.

So my first step today was calling the CCCS, the lady I spoke to was very helpful and has arranged a telephone interview for me for next Friday, she has advised me to set up a basic bank account which I did right away with Alliance & Leicester, has a Visa Electron and no overdraft.

I'm gonna cut the post short there as it's getting a bit long...will post any other info you think may be relevant to help me work out what to expect next.

Thank you all. x

Magentasue

Ooooh, you do like to shop, don't you!

I know nothing about buying a car on HP apart from the fact you can't just sell the car like you could if you'd bought it with a bank loan. But what could you do - to get rid of the car and that debt?

Good luck with CCCS, I'm sure thinks will look better once you've got started with them. And well done, of course!

Loopy_Laura_2

Yes I used to love to shop, and am paying for it dearly now! Alot of my debt is years old from being at uni, even though I had a PT job I still spent like I was working FT, going out having a good time and pretending that my credit cards were a never-ending supply of finance.

The lady at CCCS explained to me that my car could be re-possessed if I missed payments, something I didn't realise so I must be careful with my payments there. I have considered selling the car, but it cost me £7,400 pounds and if I sold I would only get £3 or £4k, the value depreciation is ridiculous, I bought it last November! It would not be enough to clear the debt, But I will see what the CCCS suggest next week. I do need to keep it really as my partner will be leaving his job shortly (currently has a company car) so we will share mine and share the cost of running it.

Thank you Magentasue!

Old_iron_balls

Good on you for posting Laura.
Like you my debts are old but ive only just started to get myself back on track.

Im sure the more info you gather on here and the more organised you get - the better you will feel

Stay focused & ask as many questions you need to.
Good luck

Robert_Sterling_3

Loopy-Laura.

I wish you the very best of luck in your efforts to deal with your current financial situation.

matrix999

Loopy_Laura wrote:

I have considered selling the car, but it cost me £7,400 pounds and if I sold I would only get £3 or £4k, the value depreciation is ridiculous, I bought it last November!
QUOTE]

Remember a car under HP does not belong to you and therefore you are not allowed to sell it, although as far as i know you can hand it back after 50% off the payments are made.

Please correct me if i'm wrong.

Good luck with everything else

homersimpson_3

how much is your income? you and partner pay 300 into account for food, sky and home phone. how much is sky? if there's only 2 of you, amount spent on food seems very high and you could make savings here which could be targeted towards debt.
what is apr on these cards? - target the ones which highest apr first. suggest you cut them up. you've made an excellent start.

kiwichick

Hi loopy_laura,

Well done you, its a big step that first one but youve made it now and doesnt it feel good?? :T

I would suggest you read :money: new money diet. I've just finished it and there is a section near the back which helps to sort out how to pay off your debts in order of interest rates. Its more to do with card debt but would still be useful I think.

Other than that I would wait to see what the CCCS suggest, after all, they deal with this situation every day. They must know how to help you best.

Good luck,
Al.