I'm only 18 and have over 11K debt, Help! Plz :(

G8EKS

Hi, My name is Fraser and i am 18. As soon as a turned 18 i started to get into debt. I started with credit cards, bank loans, mobile phone contracts then worked upto a car loan and personal loans. I have had my debts less than a year and am really struggling and could use some advice on what to do. I am out of work currently and on benefits as i do not keep well and am unfit to work.

I have about £11-£12,000 worth of debt in total and have already had my car repossessed with several debts already been sent to collection agencies.

I had a look at the SOA Calculator but it's hard to fill in for me as most my debts are not being paid just now and most have been sent to collection agencies. I can however give an accurately as possible and upto date a detailed list of current debts and amounts etc...

Wow here goes -

* Monthly income after tax (Benefits) - £684.80

*Monthly outgoings at present -
Diggs - £80.00
Disabilty car through my mum including insurace - £200
Provident - £84
Black horse car payment £20

Total outgoings pcm - £384

*Current debts and balances (24/02/10) -

Debt 1 - Black horse - £4035.05 Balance aftre car repossessed. Agreed montly payment of £20
Debt 2 - 02 Contract 1 - £1087.00 - Currently at debt collections Not being paid
Debt 3 - 02 Contract 2 - £702.12 - Currently at debt collections Not being paid
Debt 4 - RBS Credit card 1 - £1122.85 Limit is £1000 - Currently at debt collections Not being paid
Debt 5 - RBS Credit card 2 - £1036.54 Limit is £950 - Currently at debt collections Not being paid
Debt 6 - RBS Bank overdraft - £2599.89 Limit is £2000 - Currently at debt collections Not being paid
Debt 7 - Provident loan 1 - £410.00 - Currently paid at £42 per month
Debt 8 - Provident loan 2 - £504.00 - Currently paid at £42 per month

Total debt - £11,457.45 :eek:

Total income pm - £684.80
Total outgoings - £384.00
Total left over each month to pay unpaid debts and petrol etc.. £300.80

If anyone could suggest what i do next please help! Thank you in advance. Also feel free to ask me anything (within reason)

DarkConvict

Running up ~12k of debt in a year as soon as your old enough shows you haven't been brought up with a respect about money. :S But at least your looking for help.

As im sure you have missed other expenses ill say you have £150 left to pay off your debts, it will take (without interest and charges) about ~4 years to pay off, if your circumstances do not change.
But since i know Provident charge a fortune, and you will be hit with late payment charges it will take longer.

I do have to ask, why did you get 2 high value phone contracts.

Your best bet i think would be to let a debt charity manage a DMP for you (ring either national debtline or CCCS), is this where they pool all your income and split it between all your creditors to pay it off. Since 1/2 the debt is on generic loans/cards is there anything you brought that can be sold to speed it up, TVs, Games Consoles, Bikes etc.

The other option if you are not likely to return to work, maybe bankruptcy as you have no assets to protect, however it maybe declined as reckless spending.

gonzo127

hi well congrates on facing up to this problem

first thing is really to do a SOA on the calc, now even if you are not paying anything on some of the debts you can still add in to the SOA with the amount you owe to give a full info on where you stand

i only ask this as we could do with finding out how much you spend on everything, as with only diggs car and you loans going out you show nothing on anything else so

what do you spend on
food?
clothes?
entitainment (DVD's CD's etc)
going out if at all
haircuts?
presents for others bday and christmas?

once we know you full situation we can try and offer what advise we can

dancingfairy

I'm guessing you live at home? Is the 80 a month all you pay for rent etc? and it is per month and not per week?
Also do you not have any other expenses - ie food? you've mentioned petrol.
Have you contacted one of the debt charities that Martin recommends and had a chat with them?
Good Luck
df

dancingfairy

I think a dmp may be suitable - your 'spare' income after bills like clothes, food , rent, petrol etc have been paid will get divided up and split between your creditors. In return for you seeking help from a debt charity you request that the companies stop charging you interest in order that you can make some headway into repaying the debt. You do have to be aware that 1) you will need to promise not to take out any more debt while on the plan and 2) it will trash your credit rating further (although I suspect your credit rating is now pretty bad anyway).
Yes it might be a pretty painful lesson and yes it will take many years to pay off but the other alternative I can see at the moment is bankruptcy.
Best of luck getting it sorted.
df

G8EKS

DarkConvict wrote: »

Running up ~12k of debt in a year as soon as your old enough shows you haven't been brought up with a respect about money. :S But at least your looking for help.

As im sure you have missed other expenses ill say you have £150 left to pay off your debts, it will take (without interest and charges) about ~4 years to pay off, if your circumstances do not change.
But since i know Provident charge a fortune, and you will be hit with late payment charges it will take longer.

I do have to ask, why did you get 2 high value phone contracts.

Your best bet i think would be to let a debt charity manage a DMP for you (ring either national debtline or CCCS), is this where they pool all your income and split it between all your creditors to pay it off. Since 1/2 the debt is on generic loans/cards is there anything you brought that can be sold to speed it up, TVs, Games Consoles, Bikes etc.

The other option if you are not likely to return to work, maybe bankruptcy as you have no assets to protect, however it maybe declined as reckless spending.

Hi, thanks for the fast reply. There is noone else to blame other than me for the situation I'm in really. My mum was always telling me not to get debts but i just did not listen and look at me now

The 2 phone contracts were a bad idea i admitt. There high just now because of the cancellation fees etc... that were added on. I was offerd a 75% reduction in the settlement but i couldn't get the money together at the time and lost the chance.

gonzo127 wrote: »

hi well congrates on facing up to this problem

first thing is really to do a SOA on the calc, now even if you are not paying anything on some of the debts you can still add in to the SOA with the amount you owe to give a full info on where you stand

i only ask this as we could do with finding out how much you spend on everything, as with only diggs car and you loans going out you show nothing on anything else so

what do you spend on
food?
clothes?
entitainment (DVD's CD's etc)
going out if at all
haircuts?
presents for others bday and christmas?

once we know you full situation we can try and offer what advise we can

Hi, thanks for the reply.

Spend wise, food is part of my diggs (£80 per month) Not alot i know. Clothes and entertainment are minimum at the moment and going out spend is only really petrol and food which is about £20-£30 per weekend. Haircuts are about £5 every few weeks.

Thanks

G8EKS

dancingfairy wrote: »

I'm guessing you live at home? Is the 80 a month all you pay for rent etc? and it is per month and not per week?
Also do you not have any other expenses - ie food? you've mentioned petrol.
Have you contacted one of the debt charities that Martin recommends and had a chat with them?
Good Luck
df

Hi, yes i do live at home. £80 diggs are per month which i agree is pretty low. Petrol yes, this is about £20 every week. Food is included digg wise.

I have not tried any debt companys yet as i didn't know where to start but now i do i will give them a ring and see what they can do to help me.

Thanks.

G8EKS

Can i just add that i am from Scotland if this makes any diffirence to who i need to contact about my debt.

Thanks, Fraser.

claireabelle_2

Hi Fraser, don't phone a debt company! You need a debt charity! One of the more informed dfws will be along to tell you which one but I think citizens advice bureau or CCCS http://www.cccs.co.uk/ would be a start.
best of luck getting sorted
Claire

baza52

why are you paying for a disability car? If you are disabled can you not get one through motability.
Your benefit is quite high for someone soo young. What benefits are you receiving?

stephy110288

DarkConvict wrote: »

Running up ~12k of debt in a year as soon as your old enough shows you haven't been brought up with a respect about money. :S But at least your looking for help.

As im sure you have missed other expenses ill say you have £150 left to pay off your debts, it will take (without interest and charges) about ~4 years to pay off, if your circumstances do not change.
But since i know Provident charge a fortune, and you will be hit with late payment charges it will take longer.

I do have to ask, why did you get 2 high value phone contracts.

Your best bet i think would be to let a debt charity manage a DMP for you (ring either national debtline or CCCS), is this where they pool all your income and split it between all your creditors to pay it off. Since 1/2 the debt is on generic loans/cards is there anything you brought that can be sold to speed it up, TVs, Games Consoles, Bikes etc.

The other option if you are not likely to return to work, maybe bankruptcy as you have no assets to protect, however it maybe declined as reckless spending.

To be honest I think its quite unfair that you critise how they were brought up. I was brought up being told all the time never to live beyond my means and to never get a credit card. Halifax gave me my first credit card without me asking on my 18th birthday, and they constantly increased my credit limit without asking. The banks fell over themselves to give me credit when I was eighteen, and I took it, and that wasn't because of how I was brought up.

The good thing is that you've realised you have a problem. Speak to the cccs first, after one phone call you will feel better. get a pay as you go phone, no more contracts. you have got yourself into a mess. but you can sort it if you are willing to