Im in a big fat ugly money mess...

Happytogetdebtfree

Hiiii want to know something really scary im 26 and my debt is double my age but with husband too ..... lets try and see if we can help post a statement of affairs .... lets see where the money is and where the money goes.... i dont know much about ivas or really about dmp... but i think martin explains some of them at the top of the tab page :-) do not beat yourself up... and dont get down about it ..... i suggest an soa first .. you must now have an idea of who you owe the cash to ?? lets see what us lovely debt free wannabes can offer on teh soa once posted

jonjamie1970

Good luck mate and chin up, you will feel better when you have it under control as such.

Dig out that pile of unopened letters and statements and sort them into order, you can then start to work out who you owe money to.

ilovebanksMCMLXXXI

Without doubt your first job is to find out who you owe and then how much. Get them facts belt and braced and you'd then be surprised just how many organisations there are out there that will help you out and get you back on track.

Cutting back on things, saving money, not going out etc etc are all well and good but ultimately with a debt like that it's not going to sort your initial problems out - them things can be more for the long term.

If you've got some form of income you'll not have too many issues getting yourself back on track.

Try somebody like PayPlan.

Best regards

Ellabelle

Hi GP87,

Just thought I would say Hi as I'm also 22 and in £15500 of debt. The people on these boards are brilliant. Someone often kindly replys in just a few minutes to any questions I have so don't ever be afraid to ask.

I would just like to reiterate what Sarsie said earlier about making sure you open a bank account with a bank you have no debts with (loans or credit cards etc.) if you bank with one of your creditors.

The banks all have something called 'the right of off set' which basically means any money in an account you have with them that you need for rent, food etc. they can take off you without your permission and without notice to pay any debts at the same bank leaving you without money for basic necessities. If you have an account with another bank this can't happen.

I'm not sure if you would need to go with an entirely different banking group to negate their offsetting antics (so not an RBS account as a replacement for Natwest as they are connected). perhaps someone could let us know?

Don't panic and definitely don't feel ashamed about your situation. Your dealing with it now which is what counts.

Take care

x.

NGlady

Bless you hon, im the same age and I couldn't imagin having so much debt, I owe around 2k and that was scary enough. All I can say is, think about it this way, your 22 with 22 grand debt but thats the average graduate debt, and at least this LBM didn't come 20 years and another 20 grand from now. It won't be easy, but with determination (which I think you've got!) you will do it! And even if it does take 7 years to do, theres a chance ull still be in your own house by the time your 30 and thats the average age (i think) nowadays
Good luck!

Moneytroubles_2

Hiya, i'm 24 (in a few days) and have a similar amount of debt, I remember when I had my LBM, I could never see the light at the end of the tunnel but now I can. You really do need to hit it head on, I remember phoning creditors and hanging up before they had chance to answer cos I was so scared of talking to them, but once I did it and I realised it wasnt half as bad as I had originally imagined the next call got easier and the one after that even easier!

First off you need to complete a SOA and then take it from there, I also find using the site every day useful and not just the forums but the offers etc aswell.

I know we are young and it seems crappy now, but at least were dealing with this now. I have friends who are obvioulsy going down this path, as they rock up to work in 09 and 10 plates convertibles and holidays every few months and I really wanna say to the them STOP IT and warn them of where they will be in a few years but I can't , just glad its not me (anymore) xxxx

foxgloves

You have a big debt to repay, BUT the major thing is that you've realised now that it has to stop so that you can devote the next few years to sorting it out & then it won't hold you back in anything else you might want to do a bit later on. Make a list of all your monthly payments. Add them up and see how it matches up to your monthly income. Are there any monthly payments you can get rid of? Any non-essentials can be ditched. People will be able to offer practical help with this once you post an SOA on here. The thing with spending more than you earn is that you don't actually have to overspend your income much each week to have a chunk of debt by the end of the year. If you spend more than you earn by just £50 a week, even if you are not tempted by putting bigger stuff on credit, you'll have a £2,500 debt after just one year. And £50 (I used to be a big spender) is nothing, really, it can be an extra night out, a pair of pretty shoes, a top, a few beauty products....we know we could all go out & spend £50 just like that on a simgle thing. I'm using this example, because I used to be in denial about where my debts were coming from. I now tell myself that just £50 over my income a week is fine IF I want an extra £2500 of debt a year which then keeps growing. I don't! You need to learn to budget. It sounds dead boring....and frankly it is, but I wish I'd started doing it when I was your age instead of nearly 20 years later. Stop spending from right now on anything that isn't essential while you get an SOA done & a budget in place. Get as much info on your finances as you can....it might feel very depressing now, but it will be the start of sorting it out & that will help you to feel stronger. Nothing you could buy for yourself now will make you feel as good as getting in control. x

Clurbur85

Hi GP87,

I really feel for you hon… I am 24 (almost 25) and I have a debt management plan (I have been on it for nearly two years). However I only really faced up to my problem and began to tackle it head on about six months ago – before that point I was reducing my debt management payment to £50 when I wanted an extra night out, or when I wanted to spend a bit more on a birthday pressie, but if you do this half-heartedly then you’ll get nowhere.

In January I asked my debt management company for the figures that I owe and it added up to £11,600 (it was previously about £14,500). I cried my eyes out when I got the letter, because even though I knew things were bad, seeing it in black and white made me feel physically sick and I felt like a complete idiot. Also, that debt is not including the £12,000 student loan that I have built up (but that comes out of my wage automatically and at the moment it isn’t as much of a priority as my unsecured debt).

This site has helped me so much, people are so friendly and helpful and you get lots of different ideas regarding ways you can up your income and save money.

It’s not easy attempting to rectify a financial mistake. I have low points all the time, because I feel like I have no money and I’m sick of constantly thinking about my debt. However I have made this situation so I will deal with it and hopefully in three years (if I stick to my plan), I will be free of this burden. You just have to learn to say no and live within your means – I found this so difficult at first but it does get easier.

I think you should look at the positives, you’ve realised your problems now (not when you’re 40 / 50 or 60) and you’re making positive steps to get straight. Good luck!

xxxxxxxxxx

MS_Kitten

:(Good Evening fellow Money Savers...

Today i took a few postive steps thanks to the advice given to me here! Heres what i did today...

1. Got everything ready for my CCCS appointment tomorrow. I now know who i owe money to & how much.

2. I no longer bank where i have debt and as from today I have a basic bank account. The branch lady even sorted my direct debits & wages out for me. She was so helpful and warm when i explained the mess i had made. She opened me up three accounts. Two basic bank accounts and one savings account (although im not sure if im going to be able to!) The first account my wages are paid into & on the same day the direct debits go out. Then i can transfer it into savings (so its harder for me to spend) and then into my other basic account for general spending (which i plan to be doing very little of with your help)

3. Changed my username from GP87 as i figured your stuck with me now & im commited to sorting this out! Its now MS Kitten however pls just call me Gem. Unforunatley the 'Gem' username was taken though lol!

4. I have made a mini S.O.A its not much but its something. Please have a look and give any hints tips you can. I really need as much help as i can get!

I pay out....

HOUSEHOLD

Rent.................£300
Council Tax........£130 (Two years combined into one bill)
Water...............£30 (Arreas from last year)
Gas..................£60 (Prepayment - Clearing debt @ £3 p/w)
Electric.............£80 (Prepayment - Clearing debt @ £3 p/w)
TV License........£15 (Just under £40 per quarter)
TV/Phone/BB.....£30 (Basic Sky, TV & internet in contract)

TOTAL 1 ==== £645

PERSONAL

Mobile..............£30 (Contract for another 10 months)
Car Insurance....£30 (Third party fire & theft)
Pet Insurance....£25 (Two dogs - My life & source of excersie)
Council Tax 2....£50 (Clearing CCJ's)
Teeth..............£216 (Braces - Half way through treatment)


TOTAL 2 ==== £351


OTHER

Food.............£160 (Two of us inc dog food)
Petrol............£110 (30 miles work & back + 60 personal miles p/m)
Social Life......£0
Other............£50 (Vets, Clothes, Shoes, Bithday presents, christmas presents, car tax etc etc etc)

TOTAL3 === £320

BILLS TOTAL £1316 P/M

INCOME === £1200
OH SHARE = £215


+/- ====== +£99


This leaves £99 for debt repayments but as i havent made any repayments in over 18 months my starved creditors should be happier than now anyways.

There isnt anything i could cut back. I have spent hours going over it with a fine tooth comb. Its hopeless. I will have to make payments of £99 for 18 years..!!

I think at this point i want to bury my head back in the sand. Help guys. My light of optimism is fading again

NorthernLas

Hurrah you owe less than £25k and it is tight but you spend less than your outgoings (OK this is not including debts)!!!!

Don't let that light bulb go out ...

Can you find where that £99 goes at the moment - keep a spending diary?
Can you up your income? ebay, car boot, daily clicks, any buying through a cashback site
Is your financial arrangement with OH fair (you don't need to justify, as long as you are happy)