I failed.

Mr_Original

Hello there,

firsts thing first, I have been a long time lurker of these threads, over the past 6 months i have made frequent visits. Each time I think I have my light bulb moment, think yeah I can change! then go to bed and forget about it. I just called my bank, and I realised I only got paid less then a week ago and I have no money left for the rest of my month. I want to go to my room and just cry, but i figured I would lay it all out, in this shameful post.

My financial situation is very frustrating. I am only 22 and earn 24k a year, but my debt is roughly 25k. Is has got to a point now where I can see myself sinking into this debt cycle and im totally screwed. I cant afford to make monthly payments on a lot of stuff (my over draft bank charges are £100 a month alone)

The most frustrating stuff about all this, is if i was not such a totat !!!!, i would be really comfortable. I earn a really good wage and im aware of that, but its the equivilant as if im on 10k a year due to my debt. I have tried to make adjustments, I sold my car, my laptop, most things i have cancelled that I feel I can, i dont go out as much as i used too and yet im still struggling. Im not sure what more I can do! i do not want to live my life where i cannot go the pubs with my mates, not even once a month. Or go out or do nothing. What is the point in it then?!

Anyway, here is my incredibly embarrising SOA:


In:
Monthly wage (after tax): £1450

Out:
Egg credit card (min): ~£15
Egg money card (min) ~£15
FirstPlus: £210
Lloyds loan: £138.42
Phone bill: ~£50
Online backup: £7
David Lloyd: £48.50
Account charge: £17
Overdraft interest: ~£30
Rent: £550
TV/Phone/Gas/Internet/Elec/Council Tax: £125
Overdraft fees: ~100
Food: ~£175
Going out / spending money (Pub, cinema, games): ~£100


Debt:

Account Start amount Term APR Paid back per month
Loan - FirstPlus £16,570.00 84 8.30% £215.22
Note: my mum got this loan for me, 3k is hers
Loan - Lloyds £5,000.00 48 15.42% £138.42
Overdraft - Lloyds £3,000.00 - 17.76% £0.00
Overdraft - RBS £100.00 - 0.00% £0.00
Purchase credit - Dell £550.00 36 18.90% £19.97
CC - Egg £500.00 21.90% £15.00
CC - Egg (Money) £500.00 21.90% £15.00

Total Debt £26220

Assets: 0

So yeah, im painfully aware of all my debt and yet I have still managed to ignore it for all this time. Its now at a point where im just depressed i pump all this money into it and the figures dont seem to move. My egg card interest seems to outweigh the minimum payment so this doesnt budge and my lloyds overdraft is just impossible.

I have spreadsheets on all my debt with principles and interest and i calculate it would take till at least 28/01/2016 for me to be debt free. with those sort of numbers, i just dont see the point?!

I was thinking if i would be able to bankrupt myself. I am still young, so am planning on renting for years yet, and this would help me tp get rid of the massive amount of debt, at least freeing me up each month so im not choking.

I have looked over my accounts again and again and I dont really see what im doing wrong, i essentially only spend 275 on myself, which seems peanuts.

Any advice would be gratefully recieved

RuralGuy

Cancel the phone bill, cancel the online backup, cancel David Lloyd, cancel the Account Charge, start eating cheaper and going less. Immediate savings of between £122.50 - £322.50 a month. Get your spending under control and within your means and then you will really be able to start paying off your debts.

It sounds as though you are savvy enough with your spreadsheets and understanding of the numbers to get back on track financially. It will take some sacrifices, but unfortunately there is no quick-fix, easy option.

studentjames

do you live near your parents? if so could you move back in with them? I know it doesnt sound like any fun, but if you coulld save £550 a month on rent, then it might be worth it.

Nargleblast

I suggest you do the Statement of Affairs which puts all your income and expenditure plus your debt situation in a clear format. You will find it in one of the stickies at the top of the threads list - there will probably be items on that SOA that you haven't thought about including. Post the completed SOA on here and we will try and help you find ways of tightening up your budget. You also could start keeping a written record of everything you spend every day - that couple of pints or so, that kebab you bought on the way home, the newspaper, the Mars bar - everything. That will show you where your spare cash is going every month. Well done for posting on here, it takes guts to make that first contact with the people on this site, but you will find us only too happy to give the benefit of our experience - most of us have been where you are at some point.

Numpty_Monkey

:hello:Hi Mr Original

If you use this SOA calc http://www.makesenseofcards.com/soacalc.html
It makes it easier to see the details and what are missing

Welcome along we are good people on here:A

meetdave

You have made a good move posting and starting the process, but as a previous poster said it will be a long and painful process.

You pay £550 per month rent, as i dont know where you are in the country i cant gauge what type of accomodation this is, could you consider taking in a lodger to help out with those costs. It is down to real detailing of your expenses that you will see a difference.

Sorry that isnt much help but really you do need to take the bull by the horns and make changes, bankruptcy may be an option but not to be taken lightly and you would be paying into it each month for quite some time too. As said eqarlier, post up a full SOA and those more experienced can guide you. But well done you have taken the first step, its not about how you got there its how your gonna sort it and making sure you dont get back there.

Mr_Original

Thanks to all for your thoughts so far, here is my SOA as requested, sorry for not posting it before:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 1450
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1450

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 550
Management charge (leasehold property).. 0
Council tax............................. 62
Electricity............................. 7.5
Gas..................................... 20
Oil..................................... 0
Water rates............................. 7.75
Telephone (land line)................... 8.5
Mobile phone............................ 50
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 4.99
Groceries etc. ......................... 175
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
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)...... 30
Haircuts................................ 10
Entertainment........................... 100
Holiday................................. 0
Emergency fund.......................... 0
Gym..................................... 48.5
Online backup .......................... 7
Lloyds overdraft fees................... 100
Lloyds interest......................... 30
Lloyds account charge................... 17
Total monthly expenses.................. 1228.24


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
FirstPLus......................16570.....215.2.....8.3
Lloyds loan....................5000......138.4.....15.42
RBS overdraft..................100.......0.........0
lloyds overdraft...............3000......0.........17.76
egg money card.................500.......15........21.9
egg credit card................500.......15........21.9
purchase credit - del..........550.......19.97.....18.9

Meet dave: unfortunatly im in a contract till the end of June and I cannot move. I live just outside london in an expensive area, so would be looking to move to somewhere cheaper once that is over. Trouble is wherever i move will cost me in transport, i currently live a 10 min from work

studentjames: I did think of moving home, but i dont really think i could cope with it. plus it costs about £250 in transport so i would not be saving a huge amount as my mum would want rent

I am trying to wrap my head around how much sacrifice i have to make! It seems irrational to cut every single spend out of my monthly budget except bills and food, what sort of life is that?!

beanielou

If you dont mind me asking what have you spent the money on?
It is quite a lot of money.
You need to think what you have spent the money on.

beanielou

Your grocceries are high.
One thing I think you need to do is open a new basic bank account to get your money paid into so you get out of the cycle of bank charges.

studentjames

Mr_Original wrote: »

studentjames: I did think of moving home, but i dont really think i could cope with it. plus it costs about £250 in transport so i would not be saving a huge amount as my mum would want rent
QUOTE]

Might be worth asking your mum she wants for rent, even if you pay her £150 a month (which is pretty fair considering she if your mum), then add £250 for transport, you will still save £150 a month, thats £1800 a year you could spend on paying off your debt.
As a side point, hopefully you will get pay rises as you progress in your career, so you wont be on 24k for the rest of your, life, and if you decide to get married, you would have two incomes coming in, but with the same amount of debt.
The future isnt that bleak.

minidannii

i would cancel your David Lloyd and going out, even say for 3 months, then thats £500 saved, its always a little of your loan paid then

your groceries does seem really high, honestly if you want to have money again, i work i a supermarket and beleive me theres people who buy there whole shopping (basic range) i know you pay for what you get, but i guess your grocery bill will at least half if you buy more basic things.