Please help w/ debt problem...

Alfred_Borden

Hi. This is my first post here but have been a viewer of these boards for a while now.

The problem I have is that I'm just over £2000 in debt on a LloydsTSB Credit Card that originally had a £1500 limit. This is from a few years ago now and the card is no longer usable as I cut it a long time ago. It begun when I was made redundant from a job a few years back. The interest has been increasing and the little I pay off every month just gets wiped over the next, when the charges increase again.

It's now got to the point where I'm getting letters from their solicitors (Moorcroft) demanding the payment in full or they will take me to court / take my belongings etc, and they want the full amount in the next couple of days. The best part of this is that I do not have a job and I'm a full time student, inwhich what money I do have goes on food and rent.

I really don't know who to approach, Moorcroft, Lloyds? and what to do or where to go next. I can probably pay little amounts each month, but the interest just increases and makes those payments redundant. Any help would be really appreciated. Thank you for taking the time to read this and thanks in advance for your responses.

Nargleblast

Hello Alfred and welcome on board. First of all you need to sit down and do a complete list of all your monthly income and expenditure - you can do that by going to the top of the Debt Free wannabee threads list and looking for the sticky that says SOA calculator (Statement of Affairs). Once you have done that post it on here and some of the regulars on here can help you maybe adjust your budget and see what money you have free for debt repayment. Then you can try writing a letter offering token payments.

Nargleblast

It may seem a bit of work to sort out all your figures, but if you are offering token payments each month to a creditor then they will want to see your financial situation in black and white to prove that you are offering the most you can afford. Don't stress yourself about it, there are other ways round this problem, but for now do the SOA thing and we will take it from there. Nothing is insolvable, least of all debt.

Alfred_Borden

Thanks for your quick response. The SOA is really hard to do as of right now I have no job. Like I mentioned I am a full time university student unfortunately, but I will list out the student loan money I recieve and where that goes.

BEING PAID IN

Jan 2010: £2000
February 2010: £700
April 2010: £2000

It may seem like a lot but here is where it goes.

BEING PAID OUT

Jan: £1900 rent (4 month term payment)
April: £1100 rent (last 4 month term payment)

As you can see, I have only £100 to last me til April which is bad enough, and I need food and living expenses with that. I'll have roughly half of the £700 payment left, as the other half is being dedicated to my current overdraft on my current account. This will leave me:

FREE CASH

February: £350 (est)
April: £900

I have another year left after this current year at university, and I'm really considering living at home, as rent is far too expensive to live away. This will require changing university (if they will even allow it for my final year) to a closer one near my parents, but this way I can probably pay off my full amount in September 2010. If there's no other way, this is what I'll do, and just need advice on how to tie them over until then. Thanks again for any reply, and hope this is useful enough info.

savingmummy

soa can be done never to hard to do, makes it so much easier to work out
http://www.makesenseofcards.com/soacalc.html

Nargleblast

For now focus on the fact that you will have only £100 to live on until April (the rest can be looked at later).

Can Mum & Dad help out with food? A food hamper perhaps, or stocking you up with the basics you need? If you look at the Old Style Moneysaving forum you will find lots of ideas for cheap and easy meals - learn to cook rather than buy readymeals and takeaways, cooking will be a very useful life skill for you.
Have you any stuff you could sell? Cds, computer games, clothes you don't wear any more etc etc. What about text books you no longer need? You can try selling them to new students. Have you seen the Student Financial Adviser they have at most universities? There may be a hardship fund available that can help you. You may need to talk to your parents and be honest about the struggle you are having, and if you can show you are seriously trying to find ways of economising they should be able to help out. I am sure others can suggest more ideas for you.

Alfred_Borden

Thanks savingmummy for your reply. I've had a look at the SOA, but as I have no monthly income and only my student loan every 4 months. It's really hard to make use of it. I find it easier to show you how much I receive every 4 months and what that goes on, which is utility inclusive rent, that and that alone. Please see my above post for my figues. Sorry if it's not much help. Thank you.

savingmummy

Nargleblast has gave fab advise. I would really consider using all them tips.
How about a part time or evening job to help? just a thought x

Alfred_Borden

Nargleblast wrote: »

For now focus on the fact that you will have only £100 to live on until April (the rest can be looked at later).

Can Mum & Dad help out with food? A food hamper perhaps, or stocking you up with the basics you need? If you look at the Old Style Moneysaving forum you will find lots of ideas for cheap and easy meals - learn to cook rather than buy readymeals and takeaways, cooking will be a very useful life skill for you.
Have you any stuff you could sell? Cds, computer games, clothes you don't wear any more etc etc. What about text books you no longer need? You can try selling them to new students. Have you seen the Student Financial Adviser they have at most universities? There may be a hardship fund available that can help you. You may need to talk to your parents and be honest about the struggle you are having, and if you can show you are seriously trying to find ways of economising they should be able to help out. I am sure others can suggest more ideas for you.

Thank you so much for your reply again. Yes, food is something I always manage to scrape by with. I love cooking and always find ways to get by with food on a low budget, so that helps. Also, yes, my parents do sometimes help with food. My parents can't help with my debt, they're usually struggling worst than I am. My Dad knows about my debt, but can't help really, and I don't live with my father, just my mother so it's hard to get that commitment.

Student advisors might be the way to go. Thanks for the suggestion. I'm a bit worried about the letters I've been recieving though, in that they want the full amount. I don't know who to contact regarding repayment problems? Do I go to Lloyds? Contact the solicitors I keep getting letters off? I just don't know where to turn. Thanks for your help.

Nargleblast

Are there any openings for bar work or shop assistant jobs in your area? Evening or weekend jobs that you can fit in around lectures? Ask around at University and see what sort of work your fellow students do - lots have part time jobs to make ends meet.

Alfred_Borden

Thanks for the suggestions on job hunting. I have been on the lookout for a part time job around the city, and hopefully something will come through in the near future. As of right now, I'm being threatened to pay this £2000+ within the next couple of days or they will take court action / take my belongings, and I don't know who or how to approach about payment problems. Thanks again for the help.