21, In debt and very very scared!

cleland1909

I'm 21 and have no one to blame but myself for being so deep in debt. At first I thought I could manage it - mainly because I was being quite ignorant to the advice of my mother and thought I knew best - but now I've run myself into a fair bit of touble and I'm scared as to what may happen now!

I recently bought a Ford Fiesta for £9500 on HP, I have a £7000 loan from HSBC which I'm paying £160 a month and have done for a year now, I have a £1500 loan with Beneficial Finance for which i pay £115 a month. I have been contacted by GE money to pay a £300 balance off for something I bought a year ago and now they are threatening to take me to court.

I now want to cancel the car agreement and buy a second hand car but I have been reading around on the forums regarding cancelling a new HP car agreement and by the looks of it there's no way I can do it without having to pay off a massive balance...which I can't afford!

Any advice anyone has on how to possibly manage a bit better would be incredibly helpful and massively appreciated!

Thanks

savingholmes

Hi - rather than just going straight to solution - could you give us some more info on your income, outgoings, assets and liabilities (debts) including APRs and minimum payments. You can do that using makesenseofcards another website and then format it to post on the mse forum (here) and then we can give you some advice on where you might be able to make some savings or cut backs ..... based on our varied experience.

Good luck.

halight

Hi mate,
I got into debt when i was in my early 20s, And at its worse i could not afford to even pay the min bals i had a lot more going out come pay day than i had coming in!!! you realy need to try and sort this as soon as you can. There are loads of good people on here who can help you a lot better than me. but you need to understand that one day this will be soted and you will come throuth it. When it gets hard and you started to get worried on how you are going to cope try to think that every small payment you make it a step closers to you paying off the debt aand been debt free.
You will come throuth all the hardships and get to the other end one dayits taken me 5 long years to pay off my debt and now iv only got ten months left to pay and i will be debt free. Thats the end that you need to aim for.
Good luck mate

--Gem--_3

Have you considerd contacting HSBC & Benifical to reduce your payments. What is common in the HSBC group is to put you on to a repayment schedule which is reviewd every 12 months.

Before that, make yourself up a financial statment (SOA) and post it so we can see what were working with...x

happy_chick_3

bumping you up to the first page

falady

Hi Cleland,

Can I suggest that you post an SOA so we can see income and outgoings and try to help! Doing an SOA really helps you to see where your money is going and where savings might be made.....

Ali

Horace

Hi

If you post your SOA, we will be able to see where you are spending money.

https://www.makesenseofcards.com/soacalc.html

Keep a spending diary so that you know where you are spending and see where you can cut back.

Do as others have suggested and contact HSBC to see if you can get your payments reduced.

cleland1909

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1200
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1200

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 100
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 0
Clothing................................ 0
Petrol/diesel........................... 120
Road tax................................ 0
Car Insurance........................... 100
Car maintenance (including MOT)......... 230
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 620

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

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
HSBC Loan......................7000......160.......14.9
Beneficial Finance.............1500......115.......30
FordDirect.....................9500......230.......12.9
Total unsecured debts..........18000.....505.......-

Monthly Budget Summary
Total monthly income.................... 1,200
Expenses (including secured debts)....... 620
Available for debt repayments........... 580
Monthly UNsecured debt repayments....... 505
Surplus(deficit if negative)............ 75

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -18,000
Net Assets.............................. -18,000

cleland1909

Looking at my SOA it must be wrong because I am being left with £100 or less for the rest of the month, however, I have written down as much as I can think that I have going out. This is possibly contributing to my problem? Not knowing where it's all going?

GeorgeUK

Car Insurance........................... 100
Car maintenance (including MOT)......... 230

Every month?

For the HP agreement you would need to pay 50% of the original price (minus wear and tear) so if you have only recently got the car, it is a very large amount you will still need to pay.
http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=16_how_to_deal_with_hire_purchase_debt#6

Are you sure you owe the £300 being requested? Have they provided statements or anything for the debt?

Staciep88

cleland1909 wrote: »

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1200
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0 Are you able to take a part time job?
Total monthly income.................... 1200

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 100
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 40 are you able to lower your tariff?
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 0
Clothing................................ 0
Petrol/diesel........................... 120 is your work far away? seems alot
Road tax................................ 0
Car Insurance........................... 100 is this each month?
Car maintenance (including MOT)......... 230 Surely not, each month?
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 No presents?
Haircuts................................ 10 Every month?
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 620

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

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
HSBC Loan......................7000......160.......14.9
Beneficial Finance.............1500......115.......30 Are you able to make over payments? This one is the biggest problem due to the interest
FordDirect.....................9500......230.......12.9 Give them a ring, I have a car on HP and I was told I would be able to get out of it if need be
Total unsecured debts..........18000.....505.......-

Monthly Budget Summary
Total monthly income.................... 1,200
Expenses (including secured debts)....... 620
Available for debt repayments........... 580
Monthly UNsecured debt repayments....... 505
Surplus(deficit if negative)............ 75 least its not neg!

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -18,000
Net Assets.............................. -18,000

If all fails - a consolidation loan maybe?

Thats all the advice I have really. Hope it helps, good luck x