19 and in Debt

phil-good123

Hi Guys

Im 19 years old and was recently made redundant by my company, in which i was doing my apprenticeship for 3½ years. I was laid off before i could become fully Qualified, so job hunting becomes harder. I haven't found a job in the last 3 months, as there is nothing in my field and all the jobs i apply for a get no reply. When i was working, to make sure i had enough money to go out id borrow from payday loans and now im not working i can't afford to pay them off. Iv extended one in hoping i get a job soon which now stands at £378.

On top of all this im £500 into my overdraft and iv got a phone bill which has accumilated to £150. Although i live at home with my parent im no way going to ask them for it as i think it would make look down on me. But also they are indebt themselves. Iv got my Inteerview with the job office tommorow for JSA, i left it late because of my pride and or embarresment( i know im being stupid).

Iv now got debt collecting companys ringing me up about this and that, but i just can't afford to pay it until im working, bit they don't seem to care.

Any ideas would be grateful

cheers phil

Tixy

Hi

Are you up to the top of your overdraft (or even over it?). First step is probably to open a new bank account elsewhere to have your JSA paid into.

Have you got anything you can sell to raise some money to put towards your debts?

Is the payday loan done be cheque / debit card or direct debit? How much do you owe in total to your payday loans? is the £378 just one of the loans.

Regarding the phone - are you in contract? if not then cancel your contract and get a PAYG sim, that will stop anymore debt building up.

You probably need to write to all your creditors to offer them a token payment until you find work (explain you are on JSA) and can only afford maybe £5 per month to each?

There is a template letter you could use as a starting point but for it to be any use for the payday loan you need to stop them being able to take funds directly. http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#6 (third letter on the drop down list).

Are you applying for all jobs (not just ones in your chosen industry). Try all the local bars/shops etc.

RAS

Phil

First lesson with DCas, is never talk to them on the phone.

Second thing, is that you must get a new bank aco!!!! today and get your JSA paid in there.

Unfortunatley until you can close the old bank account, the payday loan company will be able to keep raiding it, unless the bank stop them.

But first get the new basic bank aco!!!! with someone to whom you do not owe money.

Do you have any stuff that you can sell on e-bay, amazon or at a car boot sale?

phil-good123

Hi ,thanks for the reply

iv got a new account opening soon. Iv spoke to the DC today iv arranged that id pay it off over the next 3-4 months for the phone bill. The payday loan company wants £384 next week.

Iv got my Xbox and Tv i could sell, but that would be my last option as i only just brought them recently for alot money

dancingfairy

Just because they want the money doesn't mean they can automatically have it - if you haven't got it then they can't have it - no matter how much they jump up and down and stamp their feet. Although they can try and make life difficult for you and could in theory take you to court.
Have you tried connections? I believe they cover things like benefits/job hunting help etc etc for 12-19 year olds? they might be able toadvise re apprenticeships or have jobs advertised etc.
df

g_attrill

The payday loans will accrue a lot of interest very quickly (calculate it), so I would say pay those off in full as soon as possible, even if it means borrowing money from your parents.

woody01

Iv got my Xbox and Tv i could sell, but that would be my last option as i only just brought them recently for alot money

You haven't bought them.
Payday loans and your overdraft have. You cannot afford them, so offload them and get these people off your back.