Advise for a 27 year old in a pickle.....

craig2000

Hey,

I am at a time in life where I am paying for young stupid years. You've heard the stories of cars, holidays and general money squandering so I am not going to go into it!

Baiscally, I have 4 major creditors:

Bank: I owe £16700 on a loan at high interest (£360 a month) and have a £2500 overdraft

Loan: £7500 low interest (£199 a month)

Loan: £4000 Low interest (£118 a month)

I earn £1230 a month (take home). My other major outgoings are my phone (£50) and my gym membership (£60 which ends at end of 2010 and will not be renewed).

I pay £100 in rent, Car costs around £170 a month (petrol, tax and insurance) plus another £30 a month in odds and sods (lottery, sky multiroom, dog insurance)

I am at a point where I am in a bit of a mess financially, all my money comes and goes without me seeing it and I accept i am paying for my previous experiences. I dont call them mistakes as yes they where financial mistakes but I have lived my life as well.

Now I am ready to settle down, get a place of my own and grow up I guess.

I need some advice to get the best out of this situation. I have overdrawn on my account, but never missed payments on any loans. I have no credit cards or store cards.

Thanks in Advance.

LilacPixie

any scope to increase income? if you can you couldoverpay the big loan/save for a settlement

craig2000

I work 9-5 and because of the nature of my job, I can not guarantee to finish at a certain time as I must be flexible (part of my contract)

Weekends are difficult as I am involved with a sports team all day on a saturday, yes I could work a sunday I guess.

Unless you have any money raising ideas?

LilacPixie

If i did I would have alot less than 75k debt have a look at the up your income board for some ideas though.

Really you need to either up your income or reduce your outgoings ideally both. By my count you have £143 a month after your bills/loans not including clothes or if you go out.

Other option would be contact CCCS or another free debt help organisation with a view to setting up a Debt Management Plan but that your absolutly kill your credit rating/history for the next 6 years. There is no way you can afford a place of your own with this level of debt/payments

Ames

I doubt that CCCS would be able to help as you have so much spare income after debt payments.

First thing you need to do is find out if your loans can be overpaid, most can't be. If not then open an ISA and squirrel everything that you can into it until you have enough to pay off one of the loans, and then keep doing that as you free up money. Getting a sunday job, ebaying, car booting can help with raising more cash.

Sorry I can't be more help.

LilacPixie

Ames I wondered that but with household costs only £100 per month with no allowance there for medical/dental/opticians. No entertainment, No insurances and no personals care allowance for the likes of hair cuts and no provision for car repairs then its probably doubtful that the OP has any left over cash at all.

Nottoobadyet

craig2000 wrote: »

I am at a point where I am in a bit of a mess financially, all my money comes and goes without me seeing it and I accept i am paying for my previous experiences. I dont call them mistakes as yes they where financial mistakes but I have lived my life as well.

Sounds like a spending diary is in order! Try writing down everything you spend on (everything!) for a month and see if you have a better idea then where your money is going. Once you've done that, put up an SOA and we'll help you cut back your expenditure a bit. You'll need to know where its going first, though, thats a lot of money to just be burning through. I assume you live at home?

craig2000

As from payday on 25/8/10, i will try a diary, keeping track of what i spend.
Do I need to include all outgoings or just ones I generally spend on (I mean do I include loans and overdraft interest etc)

Yes I am currently at home, I am in no rush to change that, I just think its the next step on life's ladder for me, but the current situation will never allow me to leave.

If I take out another consolidation loan it just means its going to take longer. I dont want to go down that route.

Maybe its a case of getting a 12 hour pub shift on a sunday and earning an extra £200 a month. That maybe the answer? I guess I could definately do a Friday night also, so it maybe a big part of the solution?

I hardly drink, dont shop unless its needed, go to watch my footy team about 5 times a season max.

Im really down about my financial situation, I dont think debt plans or IVA's are the way I want to go as it has a lasting effect.

I did the CCCS thing online but I really dont understand it.....

elfen

Put EVERYTHING down, including DD's and check what they are to the penny....then you know what's going on

craig2000

Made a start last night, hopefully got some part time bar work coming up in September at my local pub!

Does anyone think its worth me getting an IVA or DMP in my situation? I am worried that doing this will hinder me in the future but if I have no credit rating for next few years, maybe thats a good thing?

DVardysShadow

craig2000 wrote: »

Made a start last night, hopefully got some part time bar work coming up in September at my local pub!

Does anyone think its worth me getting an IVA or DMP in my situation? I am worried that doing this will hinder me in the future but if I have no credit rating for next few years, maybe thats a good thing?

Before you go down that road, post a Statement of Affairs [SoA] http://www.makesenseofcards.co.uk/soacalc.html.