Need some guidance on what to do next...

andrewlancelot

I will try make this as short as possible. I am 19, still living at home in a large house with my dad. I work at Sainsburys and I earn about £200 p/w after tax However sometimes it can be £150-£180 a week depending on what overtime is available. Currently from that income, my outgoings each month consist of;

£350 housekeeping to my dad
£45 phone bill
£60 travel costs
£100 food
£70 broadband

Total outgoings = £625.

From my 18th birthday I got stupidly talked into getting credit. On my 18th I got myself a expensive phone on contract costing £45 a month. From then onwards, I applied for credit cards and got myself an account with Littlewoods. I then continued spending like an idiot, treating family to meals out, travelling to see my ex who lived 50 miles away, buying random crap. However, I have got absolutely nothing to show for any of it apart from the fact I am up to my eyes in debt.

I thought I was in control but there again I suppose most people who are getting into this mess think the same thing. I fell behind with credit card payments and my catalogue repayments and then my phone bill/broadband. From then on it was a downward spiral, I have received countless letters from debt collectors and demanding letters from the companies. I now physically feel sick everytime I hear the postman open my gate, because I know it's bad news.

To top all this off my parents know absolutely nothing about it and I feel if I told them I'd be in some serious trouble. My dad always put my mail on the side but I think its a matter of time before they find out. Below I have illustrated roughly what I owe each company but near enough my debts total over £2200.

Aqua Credit Card - £480 (credit limit is £500, currently paying that off at minimum payment each month)

Capital One Credit Card - £500 (with continous charges added to the account because I couldn't afford the repayments, I am now about £100 over drawn because my limit was only £400. They have suspended my account)

Littlewoods - These are the worst problem for me right now as they are the ones sending me the most letters. Each letter is costing me £12. I owe them around £400.

T - Mobile - again, they have suspended all my lines (I had 2 laptops with them, 1 for me, 1 for my mum totalling £70 + a £45 phone bill) I owe them around £350.

Argos Card - this is ok for the moment as the items I purchased was on buy now pay later, however it's going to be a problem later on this year. I owe them £500.

I would just really appreciate some advice from people because I feel so lost in this mess. I don't have much money left over from my wage once my outgoings go out, I just feel in one big fat mess.

janeawej

Hi the first thing that strikes me is that you pay your dad quite a lot for housekeeping yet still spend £100 a month on food, I know that my kids housekeeping/rent whatever you ma call it covers food too, does yours not cover food or are you eating out or spending a lot on snacks and buying lunches? If this is the case, try taking a packed lunch s this will be much cheaper.
Phone bill sounds a bit pricey, can you ring them and try to negotiate dropping a level on your contract? I managed to shave £10 off mine last month by doing this so its worth a go.
£70 for broadband seems expensive too, I pay just £30 per month for landline and broadband, If your father has a landline already could you just pay the top up for the broadband?

Im sure others with more knowledge will be along later to help

lvm

£350 is definitely a lot for rent to your Dad. I guess your Dad will know how much you earn - can he not be a bit more lenient on the rent-front. You could probably get a proper flat-share with that money.

You defintely need to write to all creditors letting them know your situation and requesting that they freeze interest and give them a specific amount of money each month by direct debit.

Try and take on as much overtime as you can or even look into a 2nd job.

If you haven't already been issued defaults on your credit file you should definitely act now as if you get one of these, this will affect your life for the next 6 years - around the time you might want to start thinking about getting your own place and a mortgage.

andrewlancelot

I have no choice but to pay the £350 otherwise we would lose the house. He is on a bit more money a month than me and without my contribution we wouldn't have a home to live in. The £100 a month on food covers time when I am at work or out or at my girlfriends. The £70 broadband is because we have sky tv and broadband, although I am starting to wish we never got it

MFWannabe

As other posters have said the amount of £350 to your Dad is huge; can you speak to him and eplain that on your wage could he not reduce this amount
£100 on food? Is this takeaways; work lunches etc? If it's work lunches then you need to start taking your own; if it's takeaways then they need to stop; or at the most make it a once a month treat. If it's food for the house then why are you spending extra when already paying £350 to your Dad?
Make these few cutbacks and you can make a dent in your debts; your debts may seem a huge amount but they are payable
If you have to come clean to your parents; yes they will probably be vvery upset with you but they will also understand why you have to cut some of the above payments to get the debts paid off; maybe instead of dropping your rent your Dad might say he will keep £200 for rent and pay £150 per month off your debts?

MFWannabe

Sorry was typing the above while you were also replying. Reference Sky; the package can be reduced to the minimum package even if you're still in contract period

MFWannabe

Also sell your current phone on ebay and use that money to pay off some of the debts; you only need to get a cheap mobile to make and receive calls. Do you have anything else you could sell?

guest999

It's also worth talking to the companies you owe money 2, as certainly you may be able to negotiate with the Credit Card companies/Argos/Littlewoods, etc to freeze the interest, and agree payment plans, which might mean you are paying less back a week/month. This may only be for 6 months or so, but will give you breathing space and it will mean you will start paying down what you owe. You might have to re-negoitiate at the end of this period.

As janeawej pointed out the Broadband does seem expensive, as does the amount you are paying to your Dad. Which some months must be pretty much half your wages.

I know it seems hard but I would tell your parents. On your salary I would not expect you to be paying that much to your Dad. I would say £30 or £40 a week would be enough. £350 a month would suggest you are on a really good salary, not the amount you are. And you cannot afford it. The £100 on food if that's at home would seem excesive too, especially as I would expect that to be covered in the money you are paying your dad.

At your age you should be out having fun, not suffering from all this worry.

Trust me the worst thing you can do is try and avoid sorting this out. Or just ignore it.

I know it seems bad but £2200 is not disastrous. And can easily be recovered from, if you're sensible.

Cut up your credit cards/Argos Card etc and return them to the companies concerned once you have spoken to them/negoitiated with them, so you are not tempted to use them again.

guest999

Also we have just renegotiated with Sky and reduced our bill to £54 a month from £96. We had Sky with the Sports and ESPN, Broadband and our phone with them. So you must be able to get yours down to less than ours.

You can certainly save on your food bill though!

andrewlancelot

I have cut up my credit cards and store cards. I am going to try speak to my parents tomorrow. Would anyone recommend CCCS?

dreamdreamer

I have no choice but to pay the £350 otherwise we would lose the house.

You said in your original post it's a large house - could your dad not get a lodger to help with costs? What is he planning on doing when you inevitably move out? And why are you paying all the sky and broadband costs by yourself? This should be included in your housekeeping!

I hate to be blunt but you can't afford to subsidise your parents - not if you want to pay your debts off before you get defaults. You need to speak to them.