Help!

MissH88

I am 21 years old and living with my parents, and already my credit rating, well, stinks.

I foolishly took out a credit card in June last year to help with holiday payments (which my parents advised me against, so they don't know i have this card), then lost my job before i could pay the balance. As a result, i still owe almost £400 on this card.

I decided on becoming a rep for a wee known beauty brand, but due to lack of organisation, I also have a balance with them that remains unpaid.

I've tried to apply for a balance-transfer credit card, but because my rating is now terrible i can't get one!

I realise £500 is not a huge debt to be in to some people, but I am now only on a small part-time wage and am finding it difficult to repay this, as i have a contract phone bill to pay, as well as a car to run. I'm embarrassed to admit to anyone how much i owe as its all down to my own stupidity.

Please advise on what I can do to get my credit rating back to normal and to erase this debt ASAP?

tealady

Hi
Firstly I would put up your SOA so we can see where you can make savings.
Any chance of a 2nd job or increasing your hours?
I would fess up to mum and dad, I bet they suspect you are in debt but dont want to say anything yet.

BLT_2

MissH88 wrote: »

I am 21 years old and living with my parents, and already my credit rating, well, stinks.

I foolishly took out a credit card in June last year to help with holiday payments (which my parents advised me against, so they don't know i have this card), then lost my job before i could pay the balance. As a result, i still owe almost £400 on this card.

I decided on becoming a rep for a wee known beauty brand, but due to lack of organisation, I also have a balance with them that remains unpaid.

I've tried to apply for a balance-transfer credit card, but because my rating is now terrible i can't get one!

I realise £500 is not a huge debt to be in to some people, but I am now only on a small part-time wage and am finding it difficult to repay this, as i have a contract phone bill to pay, as well as a car to run. I'm embarrassed to admit to anyone how much i owe as its all down to my own stupidity.

Please advise on what I can do to get my credit rating back to normal and to erase this debt ASAP?

Just tell your mother and father. If it was me I would just pay the bills on your behalf, and I suspect most parents are exactly the same.

I would eat lard on toast for a month rather than let my children worry.

gonzo127

i would also suggest to confess to your parents.

in all likelyhood they will actually think more of you as an adult for owning up then trying to hide it (i know i would if my kids where in your situation), as if you think about it hiding things is a child's method for covering up something they know they shouldnt have done.

so be an adult, fess up and live with the consiquences and above all learn from this so you stay away from credit in the future.

JasX

Agree with the above, your parents sound a sensible lot from their initial advice plus I can see things going something like this.

Current Situation
you:
owe £500 to credit card company paying 25% odd interest plus charges, you have a trashed credit rating.
parents:
probably have £500 somewhere earning 2.25% before tax if they're lucky

Better situation
you:
owe £500 to your parents and maybe pay them a little extra by way of interest/do a few extra chores in lieu of interest, your credit rating gets less trashed over time
parents:
have loaned you the £500 and now getting a much better return
credit card company:
gets nothing as its all kept in the family


If they have the same good sense they showed last year they'll have you cut up the card too...

BLT_2

JasX wrote: »

Agree with the above, your parents sound a sensible lot from their initial advice plus I can see things going something like this.

Current Situation
you:
owe £500 to credit card company paying 25% odd interest plus charges, you have a trashed credit rating.
parents:
probably have £500 somewhere earning 2.25% before tax if they're lucky

Better situation
you:
owe £500 to your parents and maybe pay them a little extra by way of interest/do a few extra chores in lieu of interest, your credit rating gets less trashed over time
parents:
have loaned you the £500 and now getting a much better return
credit card company:
gets nothing as its all kept in the family


If they have the same good sense they showed last year they'll have you cut up the card too...

Obviously you had richer parents than me, mine rarely had 10p stashed around the place at 2.25%

Tixy

I would agree to talk to the folks about it. Even if they cannot help financially they should be able to give you advice and support.

You need to work out a budget and make sure you are paying something towards each creditor each month (even if its just token payments of a £1 to each debt).

Have you tried to get more hours at work? or a second job? do you need the car for work? could you sell this to pay off your debt? and then start saving to buy a new one when you can afford it.
Do you have anything else you could sell (ebay/amazon/gumtree/carboot sale etc).
Have you looked at the up your income board here on MSE about ways to make a bit of money from doing online reviews/surveys/daily clicks etc - http://forums.moneysavingexpert.com/forumdisplay.php?f=145

At 21 and with that level of debts you can tackle this and then take those financial organisation skills forward so you keep in better control in the future.

DarkConvict

I totally agree with the others, you are lucky to realise you have a problem at £500. You have a chance to learn from the mistake and to resolve it, we have had many people who wished they did the same at that first £500.