Crotig's Debt Diary

crotig

Hello There.

I decided to post my diary after lurking and reading a lot of other peoples. I just wanted to get it all out.

This post is probably going to be a long one, so skip it if you're not in the mood or get comfy.

An SOA will follow but a bit about me first. If you don't want the back story skip to the bold part thats says TODAY.

I had my first experience with debt when I was 18, a student, and got my first overdraft. Despite recieving a full grant and working a 30 hr week I still managed to spend too much. Got student loan, got car, spend spend, got new account when O/D got cancelled and became unauthorised, new O/D, spend spend. I ended up leaving my course with both accounts closed and unauthorised O/D of £1300 and a loan of £1600.

I spent about 6 months unemployed and then got a job. I made repayment proposals to the debt collectors and then would stop paying after 1 or 2 payments as the interest and charges was taking everything and I would get fed up and depressed. The threatening letters would come and I would pay again etc etc.. This went on for 5 years while I went from bad situation to bad situation in life and living arrangements and I was always skint. I finally got a good living arrangement and sorted myself out and paid it all back, student loan as well. I knew nothing about dealing with debt or debt collectors and I estimate I paid back something in the region of £5500 due to charges and interest during that period. I was left with a poor credit history and a CCJ from 1998. I swore never again.

I found my living arrangements changing again into another bad situation which saw me paying far too much money but I liked where I lived and didn't want too move So I struggled along. I got my first sub prime credit card. Monument 29.9% £300 limit. Filled it. Another one Aqua 34% £500 limit. Filled it. Capital one 30% £500. Filled it. Limits got raised, I spent. I did not have an extravagant lifestyle I was just paying huge rent and bills and interest. This went on for 18 months before my living arrangements became a bit more affordable and I began to repay. A big work bonus helped and I was clear 2 cards with one to go.

I then found out I could no longer stay where I was and seeing as my CCJ had cleared from my file I decided to get a mortgage and buy. I had never tried before as I had assumed there would be no chance. I wish I had gotten a sub prime mortgage and bought in 2001/2002 as I would have paid about £45000 less for what I did buy. For about 5 months up to the end of 2005(move out date) I put everything on the card and saved my cash up for the purchase. I live in Edinburgh so prices were high, affordable property scarce. I missed out on 4 different places and with time becoming short I finally had an offer accepted on a 2 bedroom flat in a less than sought after area. I paid £75500 + fees for it. My Mortgage would only stump up 72500 so I had to push my O/D up to a level I thought ridiculous and use my saved up cash for the shortfall and moving expenses. So here I was huge debt of a mortgage. Owing big on O/D and 29.9% card, bills coming out of everywhere.

My mortgage was only a 6 month fixed term and when I went to the broker to re-mortgage he said "just wait a bit longer pay off some debt and get a bit more equity in your property as prices rise and then you can get a better deal". So I sat on a rising SVR through from 3rd quarter 2006 to 2nd quarter 2007, 4 rises. I finally went and got fixed for 2 years and consolidated my remaining debt into a loan and a 0% card. I tried my hand at stoozing, getting another 0% card, Egg money card, and transfered all the available to my account. I then got hit with one thing after another and made mistake after mistake financially. Denial and Depression were in full effect. I reconsolidate and find myself spending more. So now for those of you who sat through all that, thank you. I just wanted to put it down and acknowledge my foolishness.

TODAY.

Economy in the toilet. Fingers crossed on SVR cause no fixed deal, that does not have me hemorraging money, available. Minimum payments to credit cards. 2 of them are above monthly interest, one is exactly the same as interest, Treading water pretty much. Up to O/D every month. Running out the last 8 months of my last consolidation loan.

The SOA

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned....................

Monthly Income Details
Monthly income after tax................ 1243
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1243

Monthly Expense Details
Mortgage................................ 389 (currently SVR)
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 65
Electricity............................. 37 ( Just discovered my Account in credit
Gas..................................... 30 so hoping for DD reduce but.... Npower)
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 37 ( Reducing to £5 in Nov onwards)
TV Licence.............................. 12
Satellite/Cable TV...................... 25 ( Virign TV/BB/Phone just reduced from £48 to £25)
Internet Services....................... 15 ( Mobile BB reduced from £25. Home BB with Virgin)
Groceries etc. ......................... 100
Clothing................................ 5 ( No clue really, wear clothes full of holes from 5 years ago. Hate buying clothes)
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 5 (Bicycle maintanence, commuting on)
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 22-\ ( Taken at mortgage. Never changed
Contents insurance...................... 0 --- Life is critical illnes as well
Life assurance ......................... 30-/ Seemed like good idea)
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 ( Humbug)
Haircuts................................ 0 ( Clipper own hair to number 1)
Entertainment........................... 0 ( Never go out. Broadband is my primary source of entertainment)
Holiday................................. 0 ( Whats a holiday?)
Emergency fund.......................... 0
Total monthly expenses.................. 772


Assets
Cash.................................... 0
House value (Gross)..................... 75000
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 75500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 71500....(389)......4.84
Total secured & HP debts...... 71500.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
overdraft......................2200......30........19.5
Hfax card......................7317......117.......18.95
RBS card.......................2900......64........16.9
Loan...........................1800......183.......0
Egg card.......................950.......22........16.9
Total unsecured debts..........15167.....416.......-


Monthly Budget Summary
Total monthly income.................... 1,243
Expenses (including HP & secured debts). 772
Available for debt repayments........... 471
Monthly UNsecured debt repayments....... 416
Amount left after debt repayments....... 55

Personal Balance Sheet Summary
Total assets (things you own)........... 75,500 (If lucky!!!)
Total HP & Secured debt................. -71,500
Total Unsecured debt.................... -15,167
Net Assets.............................. -11,167

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


My snow ball calcualtor says at current payment level says 50 months and £6105 in interest. Nothing much will happen till I finish paying of the last of the loan in april next year and can use move that money to the next debt, till then I'm treading water.If I bump the payments level up to pips-squeeking-every-single-penny-level I can clear it 6 months earlier and save £1500 in interest but I doubt I could sustain that level.
Oddly a consolidation of all £15000 unsecured at even a high 12% would cost me £25 less a month and £2300 less in interest over 48 months. I know the reasons against consolidating but the numbers make it look so attractive. It's a moot point as no loans available. No card to transfer to either. My credit file is clean and I get a good credit score( supposedly) but knocked back for 6 applications spread out over the last 12 months. Sign of the times.

So there I am. The light at the end of the tunnel is a pinprick just now. Another 4 years of no money. Dreading an interest rate rise. Job I've had for 11.5 years that I hate but can't leave as won't get anything else that pays the same. Home I hate due to noisy neighbours and crappy area but can't sell/move. I wanted to put lots of smileys and stuff to show I'm not so miserable but after typing all that I'm not sure I can.I have not lived an extravagant life and don't have tons of stuff it's just I have made mistake after mistake for 14 years and now I'm paying the price for it.

Sorry for all the negativity.

Thanks for reading.

shaun40400

hi crotig
welcome to diary land....:cool:
well thats the hard bit over ,,,,1st post and admission of guilt:o
i wont be much help to you ....but theirs loads of nice freindly folk here who will be along soon to hold your hand ,,,give advice,,,and kick you up the bum when needed

crotig

Thanks Shaun. :beer:

It felt good to get it all down.

shaun40400

a few ideas you need to look,,, skim through some of the newer dairies for ideas and info
on line surveys ,over time,pt time job ,mystery shops:rolleyes:
sell your carp on ebay:o

Fire_Fox

Just popped in to say hello and welcome!