21 and in a complete mess : ( !!

DanniL_2006

Hello,

In just over a year I have managed to get myself into £16k of debt.

This is through credit cards, loans to pay off these credit cards and putting it back on my cards.

I am now at the point where I owe on 2 loans (about 7k) and the rest is accross 3 credit cards.

Its started to hit me how much of a mess I am in - I moved out of my parents house nearly 5 months ago and because rent is so high, along with bills I have no money left at the end of the month and I am having to beg and borrow to see my way through.

I want to pay my debts off and beable to live without worrying about it all the time. I called CCCS and spoke to a credit counsellor there who suggested I go bankrupt which is not really what I want to do as I know it will affect me for the rest of my life.

Has anyone got any honest advice of how I can start working my way out of this. I was thinking of selling a lot of my things I bought on ebay and maybe getting a part time job but Im not sure I would have time for that.

Please help as i dont know what to do : (

Thanks so much.

Danni

wanna-be-mortgage-free_2

First of all, welcome Danni and secondly big hugs to you!

Can you post your income and outgoings (SOA) so we can have a look to see where you can make cut backs. Also put down the loans and interest rates along with your credit cards and the interest rates they are charging.

**purpleprincess**

Hey hun!! :wave: first thing is first welcome!! And also you need to post an SOA, see the sticky about first time posters. I'm 21 too so you're not alone!! (((hugs))) And we can see what we can do to help!

Glitterari

Can you move back into your parents - you should not be paying rent that you deem to be 'too high' - that should be causing alarm bells to ring immediately.

james32_uk

CCCS appear to be advising lots of people to go bankrupt at the moment. I hope it's not a trend as in this case it seems quite reasonable that Danni can sort herself out without resorting to such drastic measures.

Well done to Danni for recongnising the problem. You've taken the biggest step and with affective moneysaving and a good attitude it should be downhill all the way.

Post your SOA and we'll help you get through it!

DanniL_2006

Monthly Outgoings:

Rent: £450
Water: £30
Council Tax: £23
Gas: £27
Electricity: £27
Insurance: £17 ( Mobile and House)
Mobile bill: £80 (average per month)
Travel: £86 - £130
Barclay Card: £110
Morgan Stanley:£70
Loan 1: £36
Loan 2: £91
Topshop: £5
Egg: £30
Charity: £10

This is without food so just the basics, I get paid £1276 after tax.

I Owe:

Barclaycard: £3,550
Morgan Stanley:£2500
Egg: £1550
Loan 1 £1846
Loan 2 £5666
Overdraft £500

I am not paying my overdraft off at all and am paying minimum payments on everything else.

melancholly

that's a really big phone bill - you could save a bit there, and the travel amount is quite a big range - if you stick to the lower end that's an extra £528 a year!
what are the interest rates on the credit cards/loans?

Emmzi

That looks like £1136 a month outgoing to me, assuming higher travel cost. Add on your food and incidentals, and you're just about breaking even, but not defaulting on anything.

Costs seem reasonable except

mobile £80?? VERY high!
And I don't know if you can afford £10 to charity right now.

Have you checked to see if you can save by switching energy providers?

Do you rent a flat on your own? Sharing could save you some too.

What options are there for you to get overtime/ a second job/ car boot sales etc to bump up your income?

Total debt = £15, 612. If you could find another £200 a month, it's 6 years to repay.. ish...

The DFW nerds would also like the APRs on your credit to see if some switching could save you in interest!

davesgirl_2

first thing i wouls suggest is drop the charity one till you can afford it again - you need to sort yourself outbefore you can help anyone else.
as already suggested try and cut back on travel and mobile expenses.
look on os board to help keep your food shopping to an absoloute minimum - this really does make such a big difference;)
and most of all keep your chin up, stay positive and tell yourself that you can clear this debt, i know its hard not to get down about tings but it wont help (((hugs))))

james32_uk

I cant believe CCCS are tellilng someone in her position to go bankrupt! Insane!

wanna-be-mortgage-free_2

DanniL_2006 wrote:

Monthly Outgoings:

Rent: £450 (is it possible to move back with parents until you get yourself out of debt? - may be a bit drastic but if you really want to get sorted and quickly it might be the most appropriate course of action - just wish I could move back with mine...)
Water: £30
Council Tax: £23
Gas: £27
Electricity: £27
Insurance: £17 ( Mobile and House)
Mobile bill: £80 (average per month)(change to payg and only use for emergencies)
Travel: £86 - £130 (could this be reduced by walking/cycling/car sharing with a friend)
Barclay Card: £110
Morgan Stanley:£70
Loan 1: £36
Loan 2: £91
Topshop: £5
Egg: £30
Charity: £10 (seems harsh I know but until you are sorted I would stop this donation - sorry)

/QUOTE]