In Debt At The Age of 19

dcampbell86

yes i agree i have been told to get a consolidation loan but if i get that then i might not be able to pay the repayments then get another loan etc...............

i just wana get outa debt asap and never again get credit cards or loans or contracts

---lee---

dcampbell86 wrote:

yes i agree i have been told to get a consolidation loan but if i get that then i might not be able to pay the repayments then get another loan etc...............

i just wana get outa debt asap and never again get credit cards or loans or contracts

A consolidation loan is just a way of dragging the debt on longer. It's not a way of getting out of debt. It’s rarely the answer. It's spending habbits that you need to change.

It also gives you an excuse (by giving you more disposable income) to continue to run up other debts and get back into the same situation again.

It’s not advisable, and there are other posts that also say this.

dcampbell86

i cannot sell my fones cos i have already gave them away (dont ask why)

my mum has just said to me that i need to write out my bills for each month and take that off my wage then see hwat i have left to live on

from that half it and use half for debt and half to live on

that has been said in this forum as well

---lee---

dcampbell86 wrote:

i cannot sell my fones cos i have already gave them away (dont ask why)

my mum has just said to me that i need to write out my bills for each month and take that off my wage then see hwat i have left to live on

from that half it and use half for debt and half to live on

that has been said in this forum as well

Sounds like a plan to me.

It sounds like your Mum has her head screwed on. Why not ask her to help you manage your money and stop buying phones and other junk?

SaveMoreMoney

I wouldn't bother with a consolidation loan.

Having read this Thread from start to finish, you mention a couple of times that you want to be 'debt-free' by next Xmas. That is really impressive, but very tough indeed.

Can I suggest that you aim to clear this debt over say a three year period........which is less than £150 a month.

OK, three years might seem a very long time indeed to you at the moment - you will still have spare money to spend on things you want to and also 'learn' about the value of money.

After a few months steadily reducing your 'debts' you can then start to hit them harder with bigger payments and so the three year timescale will actually come down by quite a few months.

There has been some great advice here on this Thread from others - good luck. And if your mum is willing to help you budget better, then definately take her up on her offer.

dcampbell86

thanks for that matey

i did follow my Mum's advise then stopped cos i wasnt stickin to it

what u think of the 3 year plan that "savemoremoney" says

SaveMoreMoney

You will need to ensure that any credit card debt is put on the very lowest interest rate over the 'three years'.

If you get a wage increase back dated, then your salary for this month will be a fair bit higher than before........so if you have given your credit cards to your mum - what about your bank card ?

Are you drawing money out from the cash machines very often ? Why don't you give this card to your mum as well ?

I'd keep your bank happy first - pay the minimum credit card payments for a couple of months, and reduce the overdraft situation. After two or three months, you should have enough cash spare to clear the smallest credit card.

Use the month of December to sort out your spending (cutting out all the junk and rubbish) and then aim to start January with a positive mindset and start reducing your debt.

Start in a small way and then once you are going, you can increase your payments and reduce the overall debt quicker.

youngmoney_2

You have to realise that all of these points are valid points. But unless you can actually stick to a plan yourself then it's not even worth doing.

If you are anything like me you will set a budget for yourself and then go over it spending money on stupid things. I found that the best way to budget was to let someone else control your accounts.

By this I mean I left enough money in my account each month to pay my regular bills, but the rest of my salary I got automatically transferred into my mums account. I then asked my mum to not let me have the money unless it was for something I really needed. This may seem stupid and childish but it FORCED me to make my own budgets because my mum wouldnt give me my own money every time I wanted to buy a DVD. Sit down and agree a list of things you can and cannot spend on and then whenever you are tempted to buy something you don't really need you won't be able to.

Won't help the debts but WILL help you save a bit each month.

---lee---

OP this is a typical story of what happens when you consolidate debt (just in case you still have it on your mind).

http://forums.moneysavingexpert.com/showthread.html?t=123684

You have been given a lot of good advice on this thread, but you are in the driving seat. Why not talk it over with someone you trust like your Mum, decide on your plan and stick to it.

Good luck

:xmassign:

skintchick

Re Christmas - you could make peppermint creamsb/iscuits/shortbread quite cheaply and give those as presents.

The OldStyle board has recipes.

Then you won;t feel totally tight! I know how it feels - this year I bought stuff all year round so I had enough presents without needing to find £200 in one go. Try that next year, but this year just make stuff for people - they'll appreciate it.

Oh, and cut down your present list. Close friends (real ones!) and family ONLY.