19 year old in debt

abby1234519

Hi,

I need help. I don't know how to deal with this and at the moment I'm doing an Ostrich.

I am 19, silly me left home got into a bit of debt. Yes ok its not as much as some of you might have but I am still rather stressed.

Capital one debt about £550
Little woods around £600 payments usually around 100 or 200
Second month into welcome finance. Pay £136.06 for 24 months so its over 3 grand
1monthloan £195
Quickquid £350

I earn 1013.13 per month after tax and did a debt calculator and im about 70 over what I can afford to pay. Also these 1 month loans….was desperate but bad idea.

Not enough debt for an IVA, neither would I want one. I don't know what to do

Oeillade

Well done for facing up to it!

Could you put up an SOA so we can give you some ideas?

How about getting second job for a while until you can get this more manageable? Any charges on the capital one you could be reclaiming?

Good luck

(Land_of)_Maz

really that's not a bad income for a 19 year old, so you must be doing something right hun!

Let us know what your outgoings are, rent, etc etc and we'll help from there.....

you need to reign in your unecessary spending (and if necessary live like a monk for a couple of months!) so you can get rid of the payday loan type thingys in one (or two) fell swoops at the end of month.

The others are more routine creditors so might hold off with minimum payments until you clear the 2 pain in the buum payday ones... then you should find you have enough to make reasonable payments to the other creditors and still have a bit of a life....

these aren't huge debts given your income, it all depends on how much you pay on day to day living....

well done for taking the first steps.

LandyAndy

abby1234519 wrote: »

Hi,

I need help. I don't know how to deal with this and at the moment I'm doing an Ostrich.

I am 19, silly me left home got into a bit of debt. Yes ok its not as much as some of you might have but I am still rather stressed.

Capital one debt about £550 Is this a credit card? If so min rep is £11 for now (2%)
Little woods around £600 payments usually around 100 or 200 Is this a store card? (EDIT: or is it a catalogue?) What is the minimum repayment for now
Second month into welcome finance. Pay £136.06 for 24 months so its over 3 grand What did you buy with this? Not much you can do with it just yet.
1monthloan £195 Aaaaargh. All your efforts need to go to clear these. Never do this again....please.:D
Quickquid £350 ditto.

I earn 1013.13 per month after tax and did a debt calculator and im about 70 over what I can afford to pay. Also these 1 month loans….was desperate but bad idea.

Not enough debt for an IVA, neither would I want one. I don't know what to do

I think a bit of organisation and advice from here and you should be able to clear these fairly quickly.

An SOA is the next step.

learning_to_drive

I agree with LandyAndy, priority has to be the doorstop lenders as the interest is absolutely brutal.

Decent income though so it shouldn't be too much of a problem, do an SOA and the rest will be along to cut things back

ajaney

Post up a statement of affairs (SOA) - http://www.makesenseofcards.com/soacalc.html use the format for MSE button at the bottom when you've done it

We'll be able to help you better once we have this.

abby1234519

Ok will post SOA in a few minutes

abby1234519

Here is my SOA, I share the flat with my boyfriend, he owns it I pay rent to him. Hence bills are cut in half. I pay him one lump sum each month. I also have a dog, I pay £10 a month insurance and save a bit for self insurance. I don't have much choice in that as she needs spaying soon. I can't reduce rent payments to him as that would mean he wouldn't have any money as he earns the same as me and also has his own payments to pay. I am supposed to, well am committed to a holiday in Jan which I have not paid for. He remortgages in Nov but I don't have the heart to ask him for money.

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1013.13
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1013.13

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 400
Management charge (leasehold property).. 0
Council tax............................. 65
Electricity............................. 15
Gas..................................... 20
Oil..................................... 0
Water rates............................. 10
Telephone (land line)................... 10
Mobile phone............................ 35
TV Licence.............................. 7.5
Satellite/Cable TV...................... 10
Internet Services....................... 2.5
Groceries etc. ......................... 100
Clothing................................ 15
Petrol/diesel........................... 10
Road tax................................ 5
Car Insurance........................... 12.5
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 20
Buildings insurance..................... 7.5
Contents insurance...................... 7.5
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 5
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 10
Total monthly expenses.................. 782.5

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 50
Total Assets............................ 50

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Capital One....................548.......56........39.7
Little Woods...................623.13....185.......0
Welcome Finance................2993.32...136.......0
Overdraft......................500.......0.........0
QuickQuid......................312.5.....312.5.....0
1monthloan.....................205.......205.......0
Additions......................55.92.....15........39.7
Total unsecured debts..........5237.87...909.5.....-

Monthly Budget Summary
Total monthly income.................... 1,013.13
Expenses (including secured debts)....... 782.5
Available for debt repayments........... 230.63
Monthly UNsecured debt repayments....... 909.5
Surplus(deficit if negative)............ -678.87

Personal Balance Sheet Summary
Total assets (things you own)........... 50
Total Secured debt...................... -0
Total Unsecured debt.................... -5,237.87
Net Assets.............................. -5,187.87

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

Honeybee_2

Oh to be 19 and responsible enough to face up to debt. :rotfl:

Well done on realising now and nipping it in the bud. :T

Idiophreak

abby1234519 wrote: »

Here is my SOA, I share the flat with my boyfriend, he owns it I pay rent to him. Hence bills are cut in half. I pay him one lump sum each month. I also have a dog, I pay £10 a month insurance and save a bit for self insurance. I don't have much choice in that as she needs spaying soon. I can't reduce rent payments to him as that would mean he wouldn't have any money as he earns the same as me and also has his own payments to pay. I am supposed to, well am committed to a holiday in Jan which I have not paid for. He remortgages in Nov but I don't have the heart to ask him for money.

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1013.13
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1013.13

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 400
Management charge (leasehold property).. 0
Council tax............................. 65
Electricity............................. 15
Gas..................................... 20
Oil..................................... 0
Water rates............................. 10
Telephone (land line)................... 10
Mobile phone............................ 35When does the contract run out? Time to downgrade the plan or go PAYG
TV Licence.............................. 7.5
Satellite/Cable TV...................... 10
Internet Services....................... 2.5
Groceries etc. ......................... 100
Clothing................................ 15 Are you being realistic about this? Doesn't sound much for a 19yo to spend on clothes
Petrol/diesel........................... 10 Do you actually need a car if you use it so little?
Road tax................................ 5
Car Insurance........................... 12.5
Car maintenance (including MOT)......... 0 You have to allow something here -even if it's only 15 quid per month for MOT and service...otherwise it's going to become a nasty little surprise one month and could bump you back into debt.
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 20
Buildings insurance..................... 7.5
Contents insurance...................... 7.5
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5 Again, are you sure you can stick to this? 60pound/year doesn't sound like much? Same goes for haircuts and entertainment too.
Haircuts................................ 5
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 10 Don't worry about this for now - the money is better spent clearing debt.
Total monthly expenses.................. 782.5

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 50
Total Assets............................ 50

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Capital One....................548.......56........39.7 OUCH
Little Woods...................623.13....185.......0
Welcome Finance................2993.32...136.......0
Overdraft......................500.......0.........0
QuickQuid......................312.5.....312.5.....0
1monthloan.....................205.......205.......0
Additions......................55.92.....15........39.7
Total unsecured debts..........5237.87...909.5.....-

Can you give a little more detail on the debts, which are cards etc. Do you know what your credit rating's like? Getting some of this debt onto 0% or lower interest anyway could give you a breather to get things in order...

The important thing with making a budget from an SOA is to make sure it's realistic...you need *everything* you're going to spend to be covered by it. It's when things pop up outside the budget the whole thing starts falling down...

thepinkladez_2

just wanted to say well done for facing up to your debts at the tender age of 19, i only wish i had the same level of maturity at your age to get myself debt free and to get a sound knowledge of money. well done you!:T