Newbie - needs help

GJL

Morning all.

New poster here.

Just after some advise.
Im in financial difficulty and needed to take action.

My finacnes run a little like this.

Loan £24,500
CC1 £1250
CC2 £280
OD1 £400 (limit £200)
OD2 £497 (limit £500)

Now I live at home with my folks and all of my debt is unsecured so no worries about the property.
But I just can afford to live.

I managed to see that I was in serious trouble and I bearly have enough money for fuel to get to work and back.

I saw that i was living beyond my means and stopped it but im in a position whereby unless i obtain a 100% pay increase im never going to be able to start clearing this down.
I have spoken to the banks involved and they in all fairness just dont want to know.

I earn £1000 once my repayments have gone out im left with roughly £100, which does not give me any money to try and eat into the debt.

This is quite a problem as I really would like to get on the property ladder myself - but with the debts above plus no savings I have no chance.

I have filed for an IVA (which I assume people are familiar with)
I was just wondering if anyone has any experience from this?
I have read the pros and cons but just after some insider information.

Any help would be great.

Thanks for taking the time to read this.

illmonkey

you might want to post a SOA, basiucally, break down what you earn and where it goes. Include loan payments, APR's and who its all with.

People can then help you shave those £££ off, so you have more money to throw at debts.

GJL

I earn £1000 pcm (there abouts)

Loan - £424 High APR
CC1 - £50 High APR
CC2 - £50 High APR
Phone - £50
Rent - £250
Car Insurance - £50
Fuel - £150

= £1024

Im at my borrowing "limit" now i simply can not obtain any more credit.
I cant shift anything about im stuck with it.

black-saturn

Can you get rid of the car? Then you would be cutting down on car costs and fuel saving you another £200 per month which could go towards the debt. I know you will make up every excuse under the sun to keep your car but I got rid of mine 3 years ago and I couldnt believe how much extra money it gave me. Now i use a pushbike, walk, share a lift or get a bus to where I have to go and it is surprising how easy it is to get used to.

skintchick

You need to be specific - thereabouts is not good enough if you are serious about sorting out your finances.

You haven't put a budget for food, going out, car tax, servicing, CHristmas and birthdays, holidays, etc.

If you don;t do a proper budget you will never get yourself out of debt, because you will never be properly in control of your finances.

dinkylou

If you live with your parents do they know about all this debt?

If not, you could always tell them and ask nicely for them to reduce your rent slightly if offer to help in the house more? (or something)

This would be on the condition that you used that money towards the debt.

Worth a try?

GJL

My parents are not aware - Family issues prevent this.

The car - i wish i could get rid - but i drive 30 miles each way to work, and i can not commend the cash i pull now with a local job as i live in a village so the car really is a must - the other problem is that obviously if i could car share which would help but no one lives my way.

Going out etc... havent included as you can see im already over budget hence why i have filed for an IVA.

skintchick

But we can't help you if we don;t know the full picture...

Why can't you tell your family? Surely they would want to help you or at least support you?

GJL

Well i have stopped going out

But you could add around £150 to the total for living expenses - car tax etc....

Total expense is around £1200 pcm
Incomings £1000pcm

Thats my problem - hence the iva.

Parents cannot and will not help me - they have bailed me out enough in the past and i simply cannot tell them again. It would finish my mum and my Dad well lets not go there.

skintchick

OK.

I can't help with IVAs I'm afraid, but I still feel that as long as you are vague about money, you won't be in control of your finances - I know all my outgoings to the penny.

tomstickland

You're in a serious position.
Need to know the exact APR on the various loans.
-Get rid of the phone, that's using £50 per month which is 5% of your income and a much higher proportion of your income after paying off loans
Cut back on car use.
Get a 2nd job.

Talk to consumer advice bureau.