First time being honest...

ladymay

Hello everyone,

Honesty is very painful, but here goes:

I'm 25, and when I was 18 I got pretty much handed a credit card by my bank - and it's all gone downhill from there... I've been an idiot, suffice to say.

I know have £7200 on my credit cards, as well as being £780 overdrawn and a student loan of *gulp* £24,000.

And now I'm off to drama school...

While I know I can't dramatically reduce my debt for a while, I'd like to at least ensure it doesn't get any bigger for my year of post-grad study. I've got the letter templates to get ready and send off to the credit card companies, but if anybody can offer me advice or point in the direction of some potential help you'll get a thank you when I win my first Olivier :rotfl:

Take Care everyone,

Ladymay

blondieliz

Hi,

Didn't want to read and run, but just wanted to offer some support?

Is this your last year or are you returning to study - that's a pretty high student loan! Are you working part time to fund yourself? Have you checked to see if you are entitiled to any bursarys?

Go and see your student services office and ask if there is anything that they can help with.

Are you living in halls? A SOA would help to give us a better picture of what you can do to get the debt down.

The interest will only push it up more and you don't want to start your working life in massive debt.

Do you know what industry you are aiming to get in to? I studied Drama at uni - you need to get a plan and set clear goals.

xxxx

gratefulforhelp_2

Hugs, honey. Don't feel bad, its easily done. Post your SOA for a kick-off.

ladymay

Blondieliz - I'm doing a PG Dip in Musical Theatre and am hoping to get into performing. Luckily I'm being helped with fees a fair bit by a sponsor, but there's no help from charities (one of the biggest areas of funding for drama students) due to the recession. Post-grad financial assistance is extremely scarce right now. I've raised some money towards my living expenses by doing a 10k, selling all my worldly goods, and I'm doing a one-woman show in a couple of weeks as a fundraiser too.

I'm planning to work part-time, currently looking for a weekend job - quite hoping I get the job I applied for today *crosses fingers*.

I live with my bf, but our lease is up in November and we're thinking of moving from our one-bed flat to a room in a shared house to help a bit.

I've done a SOA on the CCCS website, will try and put that up...

ladymay

Ok guys, here it is...

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 150
Partners monthly income after tax....... 1185
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1335

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 694
Management charge (leasehold property).. 0
Council tax............................. 123
Electricity............................. 44
Gas..................................... 0
Oil..................................... 0
Water rates............................. 28
Telephone (land line)................... 11
Mobile phone............................ 56
TV Licence.............................. 11
Satellite/Cable TV...................... 0
Internet Services....................... 17
Groceries etc. ......................... 151
Clothing................................ 20
Petrol/diesel........................... 15
Road tax................................ 47
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 30
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 24
Haircuts................................ 80
Entertainment........................... 60
Holiday................................. 20
Emergency fund.......................... 0
Total monthly expenses.................. 1441


Assets
Cash.................................... 100
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 500
Total Assets............................ 1600

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
MBNA Credit Card...............4081......49........19.9
Halifax C/C....................592.......15........19.9
HSBC C/C.......................278.......7.........23.9
Egg C/C........................1876......42........16.9
HSBC Overdraft.................778.......0.........0
Total unsecured debts..........7605......113.......-


Monthly Budget Summary
Total monthly income.................... 1,335
Expenses (including HP & secured debts). 1,441
Available for debt repayments........... -106
Monthly UNsecured debt repayments....... 113
Amount short for making debt repayments. -219

Personal Balance Sheet Summary
Total assets (things you own)........... 1,600
Total HP & Secured debt................. -0
Total Unsecured debt.................... -7,605
Net Assets.............................. -6,005

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

And now I feel sick...

talana

Haircuts................................ 80

Per month, for 2 of you! :eek:
Sorry, but you can't afford that luxury at the moment.
Cut right back. No-one needs a haircut every single month.

Rent.................................... 694

Your rent represents over 50% of your combined income.
Too much. Alarm bells should start ringing if it gets to that level.
I see you are planning to move anyway, which seems a good plan!

Mobile phone bill seems high.
Presents/holiday are non-essentials you may have to forgo in the short term.

But rent is the big one.

talana

Unsecured Debts
Description....................Debt......Monthly.. .APR
MBNA Credit Card...............4081......49........19.9
Halifax C/C....................592.......15........19.9
HSBC C/C.......................278.......7.........23.9
Egg C/C........................1876......42........16.9
HSBC Overdraft.................778.......0.........0
Total unsecured debts..........7605......113.......-

Do you have room to spare on the Egg or Halifax cards?
If so, move that £278 off HSBC and on to a cheaper rate.
That'll be one card less to worry about.
You may have to transfer it indirectly, but easily done.

blondieliz

Wow - £ 80 on haircuts - that has to go sadly.

Also, I think a house share is probably the best way. Is your concil tax over 12 months or 10?

I will give you some advice from my own experience - be careful with Egg = the second that they get a whiff that you are stuggling they will hike th interest. JMO XX

Sharon87

As you are a student, you are not eligible to pay council tax so your partner can get single's person discount - well until you move into a house share anyway. Any whilst you're at it, ask to pay over 12 months instead of 10 as you are moving soon. If you can't you'll get a refund when you move out - well you've got to tell them.

I would also suggest moving the HSBC CC debt onto another card if possible or use the interest free OD. Then you can concentrate on the other debts.

arbroath_lass

I don't usually post here but are you really £47 per month for road tax? You only use £15 petrol do you really need the car? Can you sell it and buy something cheaper to tax if necessary?

Ames

ladymay wrote: »

Ok guys, here it is...

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 150
Partners monthly income after tax....... 1185
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1335

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 694
Management charge (leasehold property).. 0
Council tax............................. 123
Electricity............................. 44
Gas..................................... 0
Oil..................................... 0
Water rates............................. 28
Telephone (land line)................... 11
Mobile phone............................ 56 this is high, go payg as soon as you can.
TV Licence.............................. 11
Satellite/Cable TV...................... 0
Internet Services....................... 17
Groceries etc. ......................... 151 this could maybe be cut a little bit
Clothing................................ 20
Petrol/diesel........................... 15 if you drive so little do you really need the car? Especially with such high insurance. Would it be cheaper to use public transport?
Road tax................................ 47
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 30
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 24 this is high, cut to a tenner. Only buy for children and not adults.
Haircuts................................ 80:eek: I get mine cut for £4 at the hairdressing college and dye it myself for a fiver.
Entertainment........................... 60
Holiday................................. 20
Emergency fund.......................... 0
Total monthly expenses.................. 1441


Assets
Cash.................................... 100
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 500
Total Assets............................ 1600

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
MBNA Credit Card...............4081......49........19.9
Halifax C/C....................592.......15........19.9
HSBC C/C.......................278.......7.........23.9
Egg C/C........................1876......42........16.9
HSBC Overdraft.................778.......0.........0
Total unsecured debts..........7605......113.......-


Monthly Budget Summary
Total monthly income.................... 1,335
Expenses (including HP & secured debts). 1,441
Available for debt repayments........... -106
Monthly UNsecured debt repayments....... 113
Amount short for making debt repayments. -219

Personal Balance Sheet Summary
Total assets (things you own)........... 1,600
Total HP & Secured debt................. -0
Total Unsecured debt.................... -7,605
Net Assets.............................. -6,005

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

And now I feel sick...

I've put a few comments in above.