Will I ever get out of this mess?

Miss_Fox_2

Here I am at 24 with £8,400 of debts (credit card, store card, loan, overdraft). Every month is the same. I get paid and within a matter of days I'm overdrawn in my overdraft. I'm being charged £80 a month in bank charges because of payments being requested and not getting paid. It's just getting worse and I worse. I have no money (I'm not even kidding, I have nothing) now until 24 August.

I just wish I could get a loan to consolidate all of the debt, but because of my mess last year (missed payments), I'm declined. I feel like I'm never ever going to get out of this tricky situation.

Tixy

Hi

If you are getting bank charges for missed payments then you would seem not to be able to afford everything each month. You really need to do a statement of affairs http://www.makesenseofcards.com/soacalc.html so you can work out exactly how far short you are each month and see what you might be able to cut back on.

If you also post the results on here people might be able to advise you on possible options / solutions for your situation.

I would guess without making any serious changes and/or possibly entering a DMP then you probably won't get out of this mess.

If you know payments are going to bounce then you would be better off cancelling the DD. That way at least you are not wasting money in bank fees.

Miss_Fox_2

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1200
Total monthly income.................... 1200

Monthly Expense Details
Mortgage................................ 510
Secured/HP loan repayments.............. 128
Rent.................................... 150

Mobile phone............................ 45

Groceries etc. ......................... 60
Other travel............................ 120

Buildings insurance..................... 15
Other insurance......................... 15
Entertainment........................... 40
Total monthly expenses.................. 1083

Assets
House value (Gross)..................... 110000

Total Assets............................ 110000


Secured & HP Debts
Description....................Debt......Monthly
Mortgage...................... 110000...(510)
Secured Debt.................. 4000.....(128)
Total secured & HP debts...... 114000

Unsecured Debts
Description....................Debt......Monthly
Credit Card....................1600......40
Store Card.....................1000......40
Overdraft......................1800......40
Total unsecured debts..........4400......120


Monthly Budget Summary
Total monthly income.................... 1,200
Expenses (including HP & secured debts). 1,083
Available for debt repayments........... 117
Monthly UNsecured debt repayments....... 120
Amount short for making debt repayments. -3

Personal Balance Sheet Summary
Total assets (things you own)........... 110,000
Total HP & Secured debt................. -114,000
Total Unsecured debt.................... -4,400
Net Assets.............................. -8,400

Miss_Fox_2

...Although I feel like I'm missed a few things. I have a spreadsheet at home that helps me with my outgoing payments. The situation is, I don't account for the monthly bank charges so my money is generally all covered but because of the charges, I'm struggling. I know it's my own fault...

BigCraigJohn

Open a new account, pref a basic account that won't go overdrawn or charge for bouncing payments then treat any overdraft as a debt.
Will help you feel a bit more in control.

RAS

Can you advise what you APRs are for all the debts?

Also, is this because you are getting charges for unpaid/bouncing SO and DDS or daily/interest charges?

Tixy

What is the situation with mortgage and rent? is it a shared ownership home that you live in?
You seem to have a lot of costs missing such as utility bills, tv licence etc? does someone else pay these?

Are you able to do any overtime or increase your income at all?

Are you in contract for your phone? have you asked if you can drop to a cheaper tarrif?

tbourner

As suggested it would be a good idea to get a new bank account, maybe the Co-op one as that's recommended on here a lot:
http://www.co-operativebank.co.uk/servlet/Satellite/1193206368743,CFSweb/Page/Bank-CurrentAccounts?WT.svl=copy
Move all your payments into that account, cancel all DDs and SOs from the old account then move your pay into the new account.
Your old account will probably be closed and you'll be asked to pay off the overdraft, and then is the time to start writing letters to everyone telling them your situation and how much you can pay them each month.

husemin

...I disagree with some people above, DONT get a new bank account because if you did and you treated your overdraft as a debt, the bank will see that your not keeping the bank account active eg, money going in (at least £500 -£1500) a month. If you dont service this account they will ask for all the overdraft back at once!
Therefore keep the overdraft account as the active one.

H

Ames

husemin, that's the point. Once they recall it then it's just a debt like any other. And if you have a different bank account then they can't just take money whenever they want, or recall it just after payday.

tbourner

Exactly, if the bank think you're having trouble and they're likely to not get their money back, they can close your overdraft and turn it into a debt anyway, except they won't tell you they'll just absorb ALL your pay to pay off as much of the debt as possible, leaving you in the 'beep'.