23+skint!!!

moneywaster_2

hi
i just celebrated my 23rd birthday last month and im in serious debt!!! all i do is worry or cry!! its eating me up!!! the last two weeks have been the worst!! ive managed to keep it a secret from my mum and dad and long term bf for years but yesterday it got so bad that i told my bf, who in turn made me tell my parents. i thot they would go crazy but told me to try not to worry but they woud help me!!!
ive got a student overdraft of £1950
barclay card £3900
HBOS cc £1800
in march i took out aloan of £7000 to pay it back and i did!!! but managed to spend it all again!!! i feel like such a bad person!!! i have not defaulted on any of my payments!!! i pay them every month but im not making a dent on it!! apart from my loan!
Both parents and bf want to pay it for me and in turn me pay them back- duno what to do???
is there a light at end of tunnel for me?

Glass_Half_Empty??

Well it is very nice if they offer to pay some for you, it will be less interest you will pay as well but it could cause problems if you start building the credit up again after they have helped you. I would talk to all of them and put proper plans in place before you take any money from then as that way you all know where you stand
Good luck, you will need to put a S.O.A up so the regular folk can help you out with what you can do to sort it out.

moneywaster_2

im new whats a soa?

KittyKate

Statement Of Affairs (there is a sticky at the top of the board on how to make one). Just a list of your incomings and outgoings.

Try not to worry. I'm 24 with similar sized Uni debts and the council are really understanding.

Mrs_pbradley936

Hello, and Happy Birthday. You are in the right place for help with your spending habits.
There are plenty of people in worse trouble than you so stop being unkind to yourself. You have not said if you are working or what your living expenses are yet and you need to do an SOA (statement of affairs). This will achieve two things, firstly you will be able to see what you have coming in and going out and secondly everyone on here can give you advice about where to cut back.

Basically you need to prioritise your spending into wants and needs. Meaning you might want a new pair of shoes but do you need them? When you understand the consequences of buying things on credit you are not so keen to do it. Then a change happens in your psyche and spending has less of a hold on you. Some people learn those lessons from their upbringing, others from their own experiences, some people never learn them at all and are always in debt. You sound like one that has to learn from your own experience and you have just started the process. You’ll be fine, stop worrying.

barnaby-bear

moneywaster wrote:

hi

in march i took out aloan of £7000 to pay it back and i did!!! but managed to spend it all again!!! i feel like such a bad person!!! is there a light at end of tunnel for me?

This is a BIG issue - taking the a pound spent is derived from two earned barnaby rule (tax/VAT etc) - you have spend £5k extra in 5 months that's £12k ish a year extra - assuming an income of assuming a basic living income of £12k you need to be earning £35k to be spending at that rate. What did you spend it on?

Economically family paying off will save money but only if you accept responsibility and pay them back and learn what went wrong - look at some of the other threads and people who've done this 4 or 5 times repeatedly, in their 30s, parents cleaned out unable to take holidays bailing kids out.
Think how many hours in bar you'd have to work to clear the debt
You are young, have back up if you learn you'll not only clear your debt but will be financially set for life. Figure out where that 7k went. Get a financial education, in 5 years you could have cleared it and have a nice little savings pot for a home/family etc.

Look at the DFW who haven't sorted themselves out and are 15 years down the line, you've got a choice and lots of options. Do something positive make a plan of action, you're 23 a grown-up, you spent the money and completely capable of sorting this out reasonably quickly.

moneywaster_2

i earn £800 a month

My outgoings are £219 on loan
£120 on payments (min) to credit cards
£150 Digs to parents
£35 gym memebership
£60 phone bill
£15 car insurance
£40 on travel to work
which leaves £161 but im no making an impact on my debt on cc' and o/d

moo_moo

Hi money waster
(perhps you could be kinder on yourself and call yourself mis-guided money spender!?!)

Although you might not want to take their help you are very lucky to have such good support around you. There is always light at the end of the tunnel - you just have to look for it (and sometimes we look in the wrong place especially when we are upset and sad) Could you try and see this as big life learning lesson in which you can now start a new term and learn from your experience .
Try and not be too hard on yourself - what is done is done. Now try (with your parents support) and make things better.

take carex

Headintheclouds_3

A belated Happy Birthday _party_ !

Well done for confiding in your bf, and for coming here. You'll find some great help and advice from the friendly folk here; good luck!

msmicawber

Hi MW and welcome,

It would be helpful if you could post up the APRs for your credit cards and their minimum payments - that way people can give you more specific advice.

Your SOA doesn't include any money for food, toiletries, presents, car tax and maintenance (do you just have use of a car?), petrol, going out, etc. In order to keep a budget under control it needs to include everything, then you can see more clearly where your money goes and what you need to change to prevent yourself from running up more debt, as well as what is available for throwing at your debts.

A couple of things you could cut out or cut back on are: Gym membership and your phone bill. Do you have a mobile contract? Can you move to PAYG instead?

Try not to worry, telling your parents and BF, then posting on here's a excellent start.

moneywaster_2

the apr on both cards is 12%.
my gym contract runs out in november and im gona cancel it. i stuck with my phone contact for another 12 months.
my min payment on my barclay card is £88 and HBOs is £44!
hoping to get a new job soon should increase my monthly wage by another £300!Tried to apply for 0% cards but got declined! i live at home and my digs pays for my food!! have stopped going out, just stay in with my bf at home or at his house!!