Student in debt (non education related)

mayorbee

Hiya,

I am in my first year at uni, before I even began uni I was in debt but now its spiralling out of control.

I owe money on store cards, catalogues, and I now can't pay my phone bill.

I have a bad credit history and I was wondering if there was anyone that would give me a credit card that I could transfer all my debts to so I just pay off one a month instead of loads of different payments?

Thanks

stqueen

Hi mayorbee,

If you have bad credit history, I would say it is highly unlikely you will be approved for a credit card, especially a 0% or low rate. Even if you are approved it could be a spiral into further debt and charges if you are only making minimum repayments, or worse still, unable to meet them.

How much do you owe on your store cards and catalogues, and what are their respective APR's?

As a student, do you have access to an interest free overdraft? I know the banks were throwing them at me in my 1st year. If you can, it may be wise to pay the debts off using the overdraft (which at 0%, you wouldn't be paying interest on), then aim to rid yourself of the o/d ASAP

Tixy

Hi mayorbee. No nobody will loan to you if you have a bad credit history and cannot meet your current repayments.

As stqueen says do you have access to an overdraft or student loan you could use or are these all maxed out?

If they are all maxed then you either need to find a way to reduce your other outgoings, increase your income or consider defaulting on your debts and starting a DMP or other reduced payment plan. The latter option will have a serious affect on your credit file but may be your only option if you cannot do either of the others.

Might be useful to post up a statement of affairs to see if people can suggest any money saving tips or alterations you could make so you can afford your bills.

mayorbee

My loan just about covers my rent that it it, I also work and earn £300 a month, I can't do anymore hours at work as I am at uni 5 days a week 10-5, so can only work the weekends which is what I already do.

I owe £300 on store card, and £600 on a catologue, along with a phone bill.

I'm just wondering if i go into my bank ( and me being a student) is there a chance they would be whiling to help me out and give me a credit card or something like that?

ryan86uk

mayorbee wrote: »

My loan just about covers my rent that it it, I also work and earn £300 a month, I can't do anymore hours at work as I am at uni 5 days a week 10-5, so can only work the weekends which is what I already do.

I owe £300 on store card, and £600 on a catologue, along with a phone bill.

I'm just wondering if i go into my bank ( and me being a student) is there a chance they would be whiling to help me out and give me a credit card or something like that?

Firstly, you are in the right place to get good advice.

Now my first bit of advice to you is this. Forget the credit card. Paying debts by getting into debt? Doesn't work in the short, medium or long term.

On a positive note, you are not dangerously in debt and it is certainly manageable. I would ring up your network operator. Explain the situation to them. If you need to go without a phone for a few months that's the price you will have to pay.

You earn £300 a month, you NEED to adjust your lifestyle in order to make some kind of saving. Then use that money to slowly but surely pay off your debts. Paying the minimum will take ages to pay off. So you will be far better trying to smash your debts in the short term by making serious changes in your spending habits.

Try speaking to family and see if they are able to bail you out and you pay them back?

You will be so pleased when you get debt free!

archer7

mayorbee wrote: »

My loan just about covers my rent that it it, I also work and earn £300 a month, I can't do anymore hours at work as I am at uni 5 days a week 10-5, so can only work the weekends which is what I already do.

I owe £300 on store card, and £600 on a catologue, along with a phone bill.

I'm just wondering if i go into my bank ( and me being a student) is there a chance they would be whiling to help me out and give me a credit card or something like that?

You've ignored two very important questions from the other two posters - I know you probably have an idea of what you want already, but the people on here know a LOT about debt and can probably give you help in ways you haven't thought of.

Q1: What are the APR's?
Q2: Do you have access to an interest free overdraft?

Get the answers to these before you go any further, these are very important.

You will most likely not be given a credit card with your bad history, especially as you are a student. Even if you could, it would probably have a limit of around £250-500.

You also need to address why you got into debt in the first place. If the things you bought weren't necessary, you need to look at changing your spending habits otherwise you'll be back in this position again before long. If your extra £300 a month isn't being spent on essential items, you should be able to clear your debts fairly quickly.

If everything you bought WAS essential, you have a serious shortfall and credit will almost certainly not solve this.

mayorbee

The APR for everything is about 39%. The £300 I earn all goes on essentials, it helps towards my rent, travel, bills and phone bill. I get about £50 to live of which is for food and materials for my uni course.

So I don't have any thing left to actually pay all these things.
I am only 19, I got into these debts when I turned 18, they made it so appealing and I couldn't resist, and I was really young and stupid with my money.

Tixy

From the sounds of it you won't find anyone willing to give you a credit card or loan in your current position.

So instead maybe if you could post the details of all your debts and you income and outgoings for each month people might be able to suggest other alternatives as to what options you may have or how you can make it easier for yourself to be able to afford your debts.

mayorbee

Rent: £350
House Bills (water, gas, electricity, internet):£40
Phone Bill: £40
Travel: £30 (week)
Food:£40 (month)
Materials for uni: £40 (month)

My student loan pays the rent, what I earn covers the rest.

CH27

mayorbee wrote: »

Rent: £350
House Bills (water, gas, electricity, internet):£40
Phone Bill: £40
Travel: £30 (week)
Food:£40 (month)
Materials for uni: £40 (month)

My student loan pays the rent, what I earn covers the rest.

£40 is a lot for a phone bill. Can you reduce it?

mayorbee

CH27 wrote: »

£40 is a lot for a phone bill. Can you reduce it?

Nope, already tried that, Vodafone won't budge.