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Messed up...!

Hiya everyone, I've came on here to try and figure out how to sort everything out.

I'm 19 years old (almost twenTEEN!) and would really like to start sorting out my debts, debts I acquired due to stupidity and immaturity the moment I turned 18 really!

I live between my parents home and my fianc!'s parents home. I am currently on benefits (unemployed due to mental health problems), and have no children.

I have about £5/6k debts with: various gas/electricity suppliers (from when I lived in a rented house), mobile phone contract companies, door step lenders, and the bank (Lloyds TSB). The Lloyds TSB debt is the largest at about £3500. I also bought a PS3 from a high street weekly repayment store (not sure if i'm allowed to give names on here so best not, although I have previously seen banks names mentioned so assumed it was allowed) which, i'm sure the credit agreement stated would eventually cost me over £700, so that probably bumps my debt up to over £6/7k.

I have been advised to contemplate a Debt Relief Order, but would like to attempt to clear these myself, now that my maturity has reached a stage where I've realised I can't just "hide" from my debtors forever..!

I'm just after a bit of advice and support really.

Do you think I should head down the route of a DRO, or, offer the various debtors monthly payments of a couple of quid each? As it stands, the companies have not contacted me for over 12 months, as they do not have a forwarding address.

With my large debt in Lloyds, I was informed that the account was being frozen, that was probably over a year ago too.

I realise to get in to this state was idiotic, but young people do these things, (or maybe it's just me!).

If I do go down the route of offering my debtors small payments, how do I go about it? Do I just phone up the company, and offer say £5 a month? Or will it still be with debt collection agencies?

Arrghh! So confusing! I have no idea who to contact and/or what to say when I get through!

Any idea's or advice is very much appreciated..
TIA
Young&Dumb! X
£1 a day challenge £15/365
Spending limit from 15/01/11 to 22/01/11: £250
(Brothers birthday & owe mother £120!)
«134

Comments

  • Soph86_2
    Soph86_2 Posts: 96 Forumite
    Debt-free and Proud!
    Hi younganddumb,

    Look through the posts on here and you will find you're most definately not the first, second, third or thousandth person to have gotten yourself into debt - that's why we're all here, and because we want to clear it. Firstly, conrgats for having your lightbulb moment, posting on here and making a start to paying off your debts.

    Firstly, you need to post your SOA (statement of affairs) so we can have a look at what you have coming in and what payment you have to make. Try to fill this in accurately and someone will help you. Given that you haven't had any contact with any of your creditors for 12 months you will most certainly already have defaults and/or CCJ's on your credit file, so it might be worth speaking to a debt management company (use a free one, such as Payplan) to see where you stand. They may recommend you doing a debt management plan, IVA or other - although because you're on benefits I'm not sure if this is true. I'm by no means an expert, so try ringing them. It's a free phone number, but if you're ringing from a mobile ask them to ring you back, which they will always do.

    Anyway, post us up a SOA first and we can start to help!

    Soph x
    DFD = [STRIKE]May 2028[/STRIKE] February 2016
    Nov 2010 = £49128.50
    February 2016 = £0.00
  • I think you need to do an soa this way you will get advice from the users here.
    :money:
  • Hi younganddumb

    firstly you are not dumb. It sounds like you have had mental problems which doesn't help with anything. I hope you are feeling better now.


    do you know if utility debts were based on actual readings or estimated?

    Does your fiance know? If they love you they will want to know & help/support you - and better to know now than after you get married (as happened with me!)

    xx


    CC2 3/2/11
    [STRIKE]£435.45[/STRIKE][STRIKE] 3/3/11 £425.76[/STRIKE] [STRIKE]6/5/11 £402.37
    [/STRIKE] 6/8/11 £328.82
    The Great Declutter 2011 - email decluttering 5/2/11
    [STRIKE]2030[/STRIKE][STRIKE]3/3/11 2000[/STRIKE] [STRIKE]3/5/11 1850[/STRIKE]22/11/11 1600
  • Thanks everyone for your quick replies. I've never done a statement of affairs before, but i'll try! Hope this gives you all some more info to help me :)

    Monthly Income Details:

    JSA..................................................£360.00
    DLA..................................................£360.00

    Monthly Expenditure Details:

    Board/Rent........................................£120.00
    Petrol...............................................£200.00
    Car Insurance....................................£90.00
    Cigarettes.........................................£250.00
    Eating out / Takeaways.......................£120.00
    Morses Loan......................................£20.00
    Park catalogue (for next xmas!)............£40

    Basically that's it... The car insurance is my other halfs, but I pay for this as if it wasn't for me he'd hardly use the car! So I pay for the petrol too, which varies as some months we'll go all over the place but others we'll stay in playing on the playstation and the like!

    We rarely spend any money going out, we never go out drinking or anything like that, we're not very big alcohol drinkers and if we do my parents pay as we go with them.

    My parents also pay for my mobile phone contract at the moment and that is not due to run out until March 2012 (24 month contract).

    Eating out / takeaways is a large sum of money as although I pay board at my parents house, I sleep at my other half's nearly every night, and not wanting to pay board at two houses, we usually just get chips or whatever on a night time. Which is a different story all together as i'm planning on starting a diet soon, so that will be totally cut out! Just need to get myself to the doctors and try to get referred to the dietician!

    Back on track, lol, yes my fiance knows about my debts, his are pretty similar to be honest. My plan is to sort mine out, and figure out how to do this, then help him to sort his out. The CAB have advised him to do the DRO, and he's thinking about this, although he doesn't want to be out of work for another 12 months just so his "surplus income" is less than £50 a month!
    £1 a day challenge £15/365
    Spending limit from 15/01/11 to 22/01/11: £250
    (Brothers birthday & owe mother £120!)
  • Oh & also I presume the utility debts were based on estimates, as nobody ever came to do a reading, nor did I give them one!

    I admit I have been very naive and ignorant with everything, but i've just been burying my head in the sand and trying to enjoy myself, although none of the debt itself helped me to enjoy myself, the money I had by not spending it on repaying my debts did!

    I'm just glad i've had my light bulb moment now, better to be sorted sooner rather than later!

    Thanks again to those who've replied, it is much appreciated :)
    £1 a day challenge £15/365
    Spending limit from 15/01/11 to 22/01/11: £250
    (Brothers birthday & owe mother £120!)
  • Thanks everyone for your quick replies. I've never done a statement of affairs before, but i'll try! Hope this gives you all some more info to help me :)

    Monthly Income Details:

    JSA..................................................£360.00
    DLA..................................................£360.00

    Monthly Expenditure Details:

    Board/Rent........................................£120.00
    Petrol...............................................£200.00 thought u didn't work so petrol so high
    Car Insurance....................................£90.00 can U get this cheaper (look around)
    Cigarettes.........................................£250.00 give or at least cut back
    Eating out / Takeaways.......................£120.00 defiantley stop savings straight away
    Morses Loan......................................£20.00
    Park catalogue (for next xmas!)............£40

    Basically that's it... The car insurance is my other halfs, but I pay for this as if it wasn't for me he'd hardly use the car! So I pay for the petrol too, which varies as some months we'll go all over the place but others we'll stay in playing on the playstation and the like!

    We rarely spend any money going out, we never go out drinking or anything like that, we're not very big alcohol drinkers and if we do my parents pay as we go with them.

    My parents also pay for my mobile phone contract at the moment and that is not due to run out until March 2012 (24 month contract).

    Eating out / takeaways is a large sum of money as although I pay board at my parents house, I sleep at my other half's nearly every night, and not wanting to pay board at two houses, we usually just get chips or whatever on a night time. Which is a different story all together as i'm planning on starting a diet soon, so that will be totally cut out! Just need to get myself to the doctors and try to get referred to the dietician!

    Back on track, lol, yes my fiance knows about my debts, his are pretty similar to be honest. My plan is to sort mine out, and figure out how to do this, then help him to sort his out. The CAB have advised him to do the DRO, and he's thinking about this, although he doesn't want to be out of work for another 12 months just so his "surplus income" is less than £50 a month!

    I have made a few notes, Surely it would be best to make cut backs rather than handouts from parents, Although I understand with health issues as to suffer but it's better to do this now rather than leaving to late, your fiances is understanding but will this be the case when you are married or do plan on behaving in the same way, sorry but this is my view I too have an 19 year old, but we don't support him as he has to learn we did.

    I don't mean to edgy but it's how I feel your far to young to be like this.
    :money:
  • Niv
    Niv Posts: 2,566 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Well you can save alot by:

    1, Stop eating out/at least cut down!
    2, Stop smoking (ok not an overnight thing but is Money saving and good for your health)


    What do you spend £200 pm on petrol on? Thats quite alot for someone that does not have a job (i.e no cummuting expenses)
    YNWA

    Target: Mortgage free by 58.
  • Soph86_2
    Soph86_2 Posts: 96 Forumite
    Debt-free and Proud!
    I don't really have any more advice that has already been given. You are spending a lot on things that us DFW's can't spend money on!

    If you and your finance have similar debts, sit down and decide what you are going to do together, come on these boards and read regularly, and take on the challenges on here. Honestly, I first thought people were stupid who got excited about putting 16p into their sealed pot. Now I get excited, record it on a spreadsheet, and look how much less time I now have before my debts are paid off.

    My advice would be to cut back little by little - it's taken me 12 months to get to where I am now with my spending habits. In my opinion, your end goal needs to be to spend a lot less on petrol, quit smoking - you can't afford it, quit eating takeaways - you can't afford it, stop eating out - you can't afford it. Others will have different opinions, but I would sit down with your OH and decide which part of your spending to tackle first. If you decide that tomorrow you're going to walk everywhere, quit smoking and never have a takeaway or eat out again, you will last about 24 hours before you give in. For example, if you're eating out/takeaways 5 nights a week, decide that this week you will eat out 4 nights. THen next week 3 nights, then the week after 2 nights etc. Do the same with petrol - make a pact not to use the car for one day a week, or walk to one place that you would normally drive to, and then increase this until you drastically reduce your petrol costs. If you're super organised, sit down with your OH, get a 2011 calendar and decide now how much you are going to reduce your spends by each week for the rest of the year, and stick to it.

    Go and see your doctor about quitting smoking, or visit an NHS stop smoking clinics. Go to support groups, join a board . It's difficult but you need to do it. If your OH smokes, suggest you go together.

    You said you have many more debts that don't feature on your SOA - can you fill these in? You should be able to find a proper and full SOA on here to copy and fill in and then post up. It's difficult for people to give you advice if we can't see your total debts, and your income-expenditure total.

    Sorry for the esssay.

    Best,
    Soph
    DFD = [STRIKE]May 2028[/STRIKE] February 2016
    Nov 2010 = £49128.50
    February 2016 = £0.00
  • Hi,

    It must be hard to deal with such a debt as well as not feeling well. I hope you manage to get it sorted!

    From your DLA amount I suspect you have at least middle care rate if not higher? Does your fiance get Carer's allowance? Also, it might be worth checking if in your area there are any free bus travel possibilities. I know that in Scotland there is this option and free travel includes a companion if you have higher rate (need someone accompanying you, I know that travelling alone can be hard for some people with mental health problems). This can help reduce petrol costs.

    You have identified yourself where you feel the spending is high, so this is good. I guess next step is to see how to reduce them :) Takeaway is expensive and I assume this is just for you? So for the two of you it would be double the amount? In that case it might be cheaper to buy food and prepare it yourself

    Cigarettes - I am not a smoker so I had no idea how much this can cost :eek:. Perhaps when you go for referral to dietitian, you might consider asking if they have quit smoking programmes? You might be able to cut down and get support in doing so. Some programmes give out free patches/gums etc. to help you. Of course, this is completely your choice :) I enjoy my glass of wine in the evening and I know it costs money, but it is my little treat ;)

    I do hope that you manage to sort things out. Worrying about debt on top of not being must be terrible. I wish I could give any good advice, but I have little idea who you could/should contact. I am sure other helpful ppl will come forward.

    Good luck!
    Personal Challenge - Debt Free Debt: Loan £[STRIKE]995[/STRIKE][STRIKE]858[/STRIKE] )!, credit card[STRIKE] 2500 [/STRIKE] £900
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  • Petrol is so high as I go to my parents house every day (to look after my mam who also has mental & physical health problems) which is 10 miles away, so a 40 mile trip daily as he has to go home after dropping me off then come back to pick me up. Isn't an ideal situation but it's just the way things are at the moment.

    I'm sorry I have led you to believe I receive handouts from my parents, the mobile phone contract that they pay for was initially a necessity as it was a business phone for which I used to receive and send e-mails and telephone calls for my parents business, when they were away and / or could not do so themselves. I used to regularly help out with the business so they needed me to have a phone to make sure I could do everything I needed to.

    When I stopped helping out with the business, it was agreed that I could keep the phone and they would pay the remainder of the contract for me, as a gift for my 18th birthday.

    I do not receive any other handouts from my parents, unless you count going out maybe once every three months with them for 2/3 drinks as a handout...

    The car insurance is also the cheapest we could find, we checked on all price comparison sites etc and nowhere could beat the quote. This is due for renewal in April so will be looking around again then.

    I agree we need to at least cut down on the eating out, I had suggested to my partner that we could stop eating out for 1 week, and use the money saved to buy some things to go in the freezer at his house what we could have for our teas. Will have to discuss this further with him and start doing this when we next receive our JSA.

    I am also planning on trying to quit smoking as my parents have been quit 3 months and have saved an impressive amount of money!

    Thank you for the advice Soph, I am definitely going to be taking it!

    I'm sorry but I don't understand what you mean by the 16p in a sealed pot, and DFW? Could you explain these to me please?! I'm going to try and have a good look through the boards now and learn some new ways to save money.

    Thanks for all the advice given.
    Young&Dumb! X
    £1 a day challenge £15/365
    Spending limit from 15/01/11 to 22/01/11: £250
    (Brothers birthday & owe mother £120!)
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