Need help to clear debt befoe uni starts in sept

greendale9061

Hi Everyone.

Would appreciate if any have any advice.

It all started when me & my partner bought our first home 2 1/2 yrs ago. We couldn't afford a decent home on our wages, so my mum said she would help us out with a joint mortgage in mine and hers name. So we bought our dream house. My mum is paying 1/3 of the mortgage (£250/month) to help us out. When I moved in my credit history was excelent, I always had savings and looked ahead with money.

Since Dec 2004 the bills starting coming in fast and alot more that I had budgeted for. I starting paying bills on my Natwest Credit card, thinking it would give me enough time to pay them. Last year I missed a few payments on my credit card and so reduced my credit limit. Other things started popping up, car insurance, birthdays, weddings, family emergencies. By this time I though I could handle it. Dec 05 came and I lost my debit card, so I was buying xmas gift on my new hsbc c card (got this in Aug 0% purchases for 6 months). I wanted to give everyone a nice xmas, so bought approx £1000 in gifts. When I got my statement in Jan, it was almost £1100 & £2300 still was on my natwest & my partners hsbc card was £2100.We were both paying the min balance. We both decided to get a EGG card each 0% bal transfers for 9 months. I got the card but my limit was only £2000 so I got a MBNA one aswell 0% on bal transfers for 6 months. I have kept regular payments on my Egg card of £150/month and just the min balance on MBNA-£40.

This is were is starts to get bad. In Sept last year I applied to go to uni (3 yearsof studying). I understood then that I couldn't afford it to study f/time so I oppted for p/time(2 days a wk). I have enquired about a student loan or any financial help to try to pay off my debt before I start uni, but can't get one. I have applied for personal loans with out any luck, but I was offerd a £5000 loan from CITI FINANCE, the APR was 23.9%. I turned it down as I was not prepared to pay that much intresst. Then in May my partner decides his wants to leave me. Im sprilling out of control. My current employer has found me a new postition in the company but my wage will be decrease from £235-£180 net/wk from september. I know that all my bills come to £1300/month but my income is only £1100 max. Since then its been a nightmare.

Last week I finally went to my parents for help, I told then I would like £3000 for home improvements. I also found out that they are not getting on too well (dad's a workaholic) so there may be a divorce on the table. I don't want to make it any worse by telling them the truth, so im stuck. I don't really want to become bankcrupt, or have my name black listed by credit agencies as that last for 7 years. Shall I keep on changing my credit cards? Maybe in 5 yrs time I will be debt free?

Glitterari

I would put uni on hold until you can sort out your debts.

lynzpower

Changing CCs hun is no good if you dont have the income to pay the balances and you carry on using the debt.

I do agree with glitterari, that you should put UNi on hold, until you can get straight.

Pop up an SOA and lets see if there are any other savings for you, to help clear this debt asap

Lynz
x

Quincifer

I agree with the above, uni is likely to get you into more debt and balancing studies with work and debt management will be hard work.

I'd give CCCS a ring for some advice
xxx

Thriftylady

would the uni put your place on hold for a year? I remember when I left school that a couple of friends put their places on hold whilst they went travelling, but thats over ten years ago, would they still do that ?

I'm thinking along the same lines as the other posters, that uni will only add to your debts and stress if you go at the moment...

greendale9061

Hi,

Thanks all for your advice. but uni is a must as im going round in circles with my current and i'm on a very demanding course, so may not get another chance at it.

I have just been onto the council and I can claim for council Tax benefit instead of having a student discount, so should save myself around £250/ yr. I have just cancelled Sky - £21/month (don't know how im gonna live without it) just cancelled my phone line & broadband - £30/month. With my food bill, im gonna shop at Iceland for frozen and just buy the essentials from Asda/Tesco (no sweet stuff for me or clothes) - saving myself £80/month. Im gonna try and only use my car to and from work (no picking up friends or going for drives in the countryside) £50/month. so im making a start =180/month. It will be a start. Next im gonna change all gas/electricty suppliers. I have also thought about downsizing my car, but im gonna be in neg equity so there no point.

My aim is to be DEBT FREE (ex mortgage) in 3-4 years, so I can go on to persue my career. Total £6000 (inc overdraft & car loan):T

beanielou

Hate to be a bore but not sure you can stick to that but I wish you all the luck in the world.

Sea78

Why don't you post a SOA (see first time posters thread at top of board) and we'll see if we can give afew more suggestions...could be some areas you'd not really thought of?

If giving up uni is not an option, how about seeing if you can get a second job until it starts? How about selling some of your stuff? Might help you start to meet your outgoings?

Sea xx

Glitterari

Well, I think that you should at least consider putting uni on hold. If you go to uni, you will almost undoubtedly land yourself with more debt, unless you have a clean slate to go off with.

i am also going to uni in September. The course I will be taking is over subscribed and is one of the best universities in the country for course I am doing. To give you an idea of how oversubscribed, I understand that there was around 400 applications for this course and around 30 or 40 interviews. A max of about 12 have got onto the course.

Now, I was due to start the course last year. I had my interview over a year in advance of the start of the course and in that year I was supposed to sort my finances out. However, I had not had my lightbulb moment and my head was stuck firmly in the sand and I paid no extra onto my debts. Around April last year I had a semi LBM and realised that I simply could not AFFORD to go to uni. The course I will be on will more that likely be very demanding of me and I have to do block placements which are unpaid. Now I am fully intending on getting a p/t job but if it becomes too much to study, do placements & work - then the job will go first. I thought about it and decided I didn't want to be worrying about ensuring I have enough money to make the minimum repayments each month - I would rather any wages and my bursary go towards ensuring that I can live while I'm there!

So I decided to defer my entry for 1 year. I explained to the uni my circumstances and said I want to be in the best possible financial position I can be in when I start the course. i don't want to start the course and be worrying the whole time about money and maybe even have to drop out because of it. They were fine about it.

Even so I didn't have the full on LBM until about October last year when the realisation hit me that if I don't do something NOW - I won't clear them in time! I am now about to clear my cc and a couple of more payments on the loan & car and they're gone too. That'll be all my debt (except for student loan but will tackle that after uni) gone and in time to start the course.

Basically, if you're good and the uni want you - they will let you defer. I also firmly believe that choosing to defer so you are in a better position when you do start the course (and therefore far less likely to drop out!) does not show failure - it shows a responsible and mature attitude - the uni should realise that speaks a lot more about you than you madly attempting to complete the course with loads of debt and getting more.

I really do urge you to reconsider your decision. Not only the likelihood of extra debt you'll end up with but you'll also feel so much better if you don't have that financial burden whilst you're studying.

If I were you I would look at deferring and throwing my heart and soul into clearing the lot over the next year. You said it was about £6k? Depends how much you're earning of course, but I would definitely say that it's doable!

Good luck

greendale9061

Good Morning,

Thanks for all your advice, ive been thinking about it and I will give uni a ring to see if I can start next yr instead. Below is my outgoings would like any comments.

Now Wages = 1100 (every quarter I may get a work related bonus of about £180 but not inc)

water - 26
gas- 20
electric - 25
council tax - 84
tv licence - 12
sky - 21 - from the 17/06/07 = 0
food - 120
mortgage - 728
broadband & phone - 30 - from the 22/07/06 = 0
car loan - 147
credit cards - 190 form the 01/07/06 paying the min on both = 80

Total = 1403
From next month = 1258/month

From Monday I will selling all my junk/ most my clothes on ebay to get a bit extra.

I have also asked my brother to move out of mum/dads home and live with me when he starts his 3yr in uni in sept. so should get another £350-400/month.

I can see things looking up a bit

sanfrancisco

Great idea about your brother.

What will your income actually be if/when you start Uni?