Young and in debt.. Help!

Ostinato

Hi there. I am only 19 but have gotten myself into a bit of debt. The thing is, I have always been very sensible with money and have generally been in quite a good financial position since I started working at 16.

I had 2 jobs and also had student loan money coming in, with very little outgoings with only £50 insurance for an old banger of a car I had...

Anyway, last month my car failed its mot very badly and it was costing more than it did to buy in the first place... so I wanted to use the £1000 savings I had to buy a new one as I do need a car. However, I was wanting something a bit more reliable and not as infuriating as the old banger I had considering I am now at an age where I do need a car but obviously want something a bit nicer...
Anyway I used the money I had plus money from an arranged overdraft to buy one and got myself a good wee bargain.

However, after buying it my insurance ended up being a lot more than I first had expected (due to original 'quotes') and I also lost my second job.

Anyway I am about -1500 in my overdraft at the moment which is arranged... Although I knew I would be in my overdraft when I bought the car in the first place, I now have less income and basically all the money I am getting is going straight to paying for the insurance, petrol and everything else leaving little to actually pay off the overdraft... then I have basically no money to enjoy myself at all.

Ah sorry for ranting, been holding this post in for a week or so I guess!

I am going to do a SOA but tbh I don't have much to put to it as I only pay for myself and only reall yhave my car to pay for and a couple of other things.

Basically I know that the car is costing me a hell of a lot of money and obviously if I sell it off I am going to be out of this debt. I know my situation isn't that bad compared to most people on here but from going from having a good bank balance to being in such a minus is quite a shock and I hate not being able to just be young and spend my money I earn freely...

I do however need a car and therefore keep reminding myself of this and ensuring myself 1500 isn't that great an amount and I will have it paid off eventually...

Except it doesn't seem like it's gonna happen as I just seem to be paying insurance again and again plus petrol and everything else...

Anyway I will get my soa up and would appreciate any advice you guys can give... be gentle :P x

Ostinato

Okay below is my SOA. It is very general as there is sometimes different things I need to pay per month. Occasionly I will need to buy a uni book for isntance, and atm I am about to have to pay a vet bill (and a ticket :@)

It gives a rough idea though... It says I roughly have about 100 spare per month once everything is paid... So at that rate it would take me about 15 months to pay off all my overdraft if that didn't take into account other expenses that crop up here and there and also the fact I have a holiday to pay off that I didn't include on as I haven't as of yet had to make payments... Entertainment includes basically like a night out...

Also dont have to pay anything for road tax or anything yet but this ends up in april and will then need to include that too..

Anyway... advise away I guess :P


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.................... 1

Monthly Income Details
Monthly income after tax................ 200
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 230
Total monthly income.................... 430

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 20
Clothing................................ 0
Petrol/diesel........................... 90
Road tax................................ 0
Car Insurance........................... 115
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 8
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 323


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2300
Other assets............................ 0
Total Assets............................ 2300


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0<
Overdraft......................1500.....(0)........0
Total secured & HP debts...... 1500......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 430
Expenses (including HP & secured debts). 323
Available for debt repayments........... 107
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 107

Personal Balance Sheet Summary
Total assets (things you own)........... 2,300
Total HP & Secured debt................. -1,500
Total Unsecured debt.................... -0
Net Assets.............................. 800

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

catmiaow

Ostinato wrote: »

Okay below is my SOA. It is very general as there is sometimes different things I need to pay per month. Occasionly I will need to buy a uni book for isntance, and atm I am about to have to pay a vet bill (and a ticket :@)

It gives a rough idea though... It says I roughly have about 100 spare per month once everything is paid... So at that rate it would take me about 15 months to pay off all my overdraft if that didn't take into account other expenses that crop up here and there and also the fact I have a holiday to pay off that I didn't include on as I haven't as of yet had to make payments... Entertainment includes basically like a night out...

Also dont have to pay anything for road tax or anything yet but this ends up in april and will then need to include that too..

Anyway... advise away I guess :P


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.................... 1

Monthly Income Details
Monthly income after tax................ 200 - Are you looking for a second job to increase income or is it possible you can get more hours at your job now?
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 230
Total monthly income.................... 430

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 20
Clothing................................ 0
Petrol/diesel........................... 90 - Wow this seems very high, Would public transport not be cheaper?
Road tax................................ 0
Car Insurance........................... 115 -Shop around and use cashback sites
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 20 - What's this?
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 30 -I gather you are still a student, if so should you not be getting all this for free?
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 8
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0 Put something in this to cover for unexpected expenses.
Total monthly expenses.................. 323


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2300
Other assets............................ 0
Total Assets............................ 2300


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0<
Overdraft......................1500.....(0)........0
Total secured & HP debts...... 1500......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 430
Expenses (including HP & secured debts). 323
Available for debt repayments........... 107
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 107

Personal Balance Sheet Summary
Total assets (things you own)........... 2,300
Total HP & Secured debt................. -1,500
Total Unsecured debt.................... -0
Net Assets.............................. 800

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

A few comments above, hope they help. If you were desperate to clear your debt quickly you could sell your car for now, which will save you a lot, which you can put towards a better car in the future?

Ostinato

The whole dentist, prescription thing was for my contact lenses. I cant get them cheaper (well have done before but they dont suit my eyes so need comfort plus ones).

The car insurance is at the cheapest possible, I have compared every possible option on every different site lol... Just cause I am young and unfortunately the car has a big engine i guess...

The other travel is for my travel in and out of uni... Although I have my car I still get the train in as my petrol costs and parking would be so much greater for a day at uni...

Also been looking at other jobs but its difficult as I am at uni most days, have my current job and also help out babysitting my baby brother (parents struggling for childcare)... I am having some more hours in work this month though... like I say my soa is kinda general as my hours change and stuff as well as my monthly outgoings can change.

DarkConvict

Some universitys have hardship funds, go in and ask, but they do want to see bank statements.

HappyMJ

You just need to up your income. Stop giving everyone free lifts. Request a pound from everyone including the OH for any lifts. Cut down the driving £90 is a lot to spend on fuel when you use PT to get to/from uni. And get another paying job...Quit giving free childcare. Become a registered childminder and start charging. £2-£3 per hour per child is the going rate.

MrsTinks

Sell the car or get a second job... if you want to get rid of the debt you need to either up your income or decrease your outgoings - if you can't do one, you must do the other.

bunny999

You can't afford the car.

Snow_White_5

Hi OP and well done for posting your SOA.

Ostinato wrote: »

considering I am now at an age where I do need a car but obviously want something a bit nicer...

I do however need a car and therefore keep reminding myself of this and ensuring myself 1500 isn't that great an amount and I will have it paid off eventually...

Except it doesn't seem like it's gonna happen as I just seem to be paying insurance again and again plus petrol and everything else...

I don't want to sound harsh, but there's no specific age when you NEED a car (I'm 30 and get by just fine without one). Needing a car has everything to do with circumstances and not age. If you do need one for uni/work fair enough though. I can also understand that you want something 'nicer' - everyone does, but if you can't afford it you need to be realistic.

1500 might not sound like much but it is really if you a) are only earning a few hundred a month and b) can't make decent-sized repayments because of the additional costs associated with the car. This is how a lot of us got into debt in the first place. You buy one thing, can't repay the debt, so you borrow some more.. it's a slippery slope.

But you're only 19 and you're on this board already, so you'll probably learn the debt lesson early on and end up better off for it. As others have said, you need to up your income if you're going to keep the car. Enjoy driving it and good luck with the debt.

JamieT1977

Sounds harsh, but remember those days when you only paid £50 for car insurance??? Either return to those days and get "a banger" or do without a car until you can afford one.

Happytogetdebtfree

Hi well done for posting. I had a luxury car but it was just working out too expensive I now have a cheap banger for a to b trips oh has company car. I spend less that 40 a month on fuel and my insurance this time is 20.06. Although I'm insured as a named driver on my mums insurance. Not bothered about building no claims I'm bothered about comfort and affordibility. What about asking your parents to insure the car and u be a named driver that is how I am able to afford. 1500 might seem very little but when you are struggling to pay it seems alot. Rethink things. It was hard for me at uni but I was running my old banger so I didn't care I still say when I buy my next car it will be out right! And I will demand to go home with it that day or il not buy it. Ahh one can dream x