New some help and avice

scotta

Hi guys i'm a first time poster and currently struggling with what seems to be for me a mountain of debts.
For the best part of this year the problems have been getting worse and i've started to become ill because of worrying and getting stressed with Debt collectors constantly phoning and send me letters.
I'm currently in full time employment and i'm 21 years old. i'll list below a rough guidance of what mess i'm.

Paypal Credit Cards (Santander) - (Credit Card) - £1600 owed £1500 limit
This has now been referred to Viking Collections.

HFC Bank - (T.v Hire Purchase) - £450 owed

DLC - Orange Communications - £350
DLC - Admiral Car Insurance - £190

HSBC - Informal overdraft - £2000

Family - Various - £1600

Basically all the above are overdue by a year and i've done the worse thing you could imagine which would be ignore them.They are also request the FULL amount which i cannot pay!

My current outgoings are as followed:

Leisure - £120 pm
Rent - £120 pm
Petrol - £160 pm
Contract Phone (2 years) - £45 pm
Car Insurance - £70 pm

I earn after tax just under £1100 pm

As i've stated above i've gotten myself in to a mess and i'm not eating as well as i should be and i'm underweight for my age. I'd appreciate any helpful advice or pointers in the right direction to help me over come this problem.
I'd hate to say it but i'm desperate to resolve these matters.

If you would like to know or if i have missed any information then please let me know and i'll update accordingly.

Many thanks in advance,
Scott

Tixy

Hi Scott and welcome

You need to work out a full list of all outgoings (eg you need to budget for your car tax and car maintenance costs etc - budget 1/12 of the annual cost each month). Also you need to consider allowing yourself a small budget for clothes, haircuts and presents etc.

Is your rent board to your parents (or similar)? are you food costs, toiletries etc included in this? if not you'll also need to budget for that.

Once you have worked out a fuller budget you then need to look at how much you have spare each month. You obviously cannot pay your debts in full so instead you need to work out how much to offer them all a month from your surplus.
You could speak to one of the debt charities who could help you set up a DMP - https://forums.moneysavingexpert.com/discussion/2077631
Or you could come to informal agreements with your creditors yourself. If you go this route you should split your surplus pro-rata based on the amount you owe each creditor.
Personally I would advise speaking to one of the charities first so you understand the implications of doing a debt management plan.

If you have around £400-£500 spare each month and owe just over £6000 you should be able to make some headway providing you do make sure you use all of your surplus to pay off your debts.

pixiechick_2

Hi Scott and welcome.

Tixy has given you very sound advice. Definitely talk to one of the debt charities. They are very helpful and non-judgemental.

Whatever you do, make sure you are eating healthily and don't make yourself ill with worry. I know (from experience) that it's easier said than done. There are lots of people on here to chat to and who understand what it's like to have worrying debt problems, many, including me, owing far more than you.

You are fortunate enough to be in full time employment, so I'm sure that something can be done to help you.

(((hugs)))

Pixie

pixiechick_2

By the way, don't talk to debt collectors on the phone, always deal with them in writing. Could you change your number?

scotta

Thanks for the advice given it's something I'll definatly look into. In regards to rent the amount showed is for everything you stated.
Also I have recently changed my number as I've got a different contract now. I have an appointment with hsbc this week which I sorted today..

Thanks both for your comments I'll post further this week and let you know of any progress made.

Thanks,

Scott