Loan reduction HELP!!! Failure to Launch

jamesarpc

I'm 27 yrs old, have a degree and a post grad NCTJ in journalism.
I, stupidly, took out a Career Development Loan to pay for this.
When I got out of studies I passed my driving test and needed a car so I got a consolidation loan, paid off the CDL and bought a 2nd hand car.

I am lumbered with £270 a month loan repayments over five years. I have 3 left.
It would be about £7000 to pay off in one go from now.
I earn little over £1000 a month but with phone bill, car insurance, £200 a month petrol, £60 credit card etc I can't afford to move out of my parents house!

It's so disabilitating.
Is there anything I can do?
I can't physically afford rent, council tax and food bills.
My parents are brilliant, they keep me, feed me, but its degrading being this old and stuck at home.

Any advice??:money:

J

lawrie28

Well, I coudln't advise extending the term as you will pay back more overall.

Have you checked out the upping your income board? If you took a second job, or did something else to earn extra cash it would mean you could save a bit of money and then pay off the loan faster.

But still, living on your own on £1k a month would be tough, so work hard in your job and get promoted/pay rise!

paddyrg

Sell stuff. Either do what all junior journo's hate doing and write a load of flannel puff-pieces about lipstick shades for the weeklies as spec contributor stuff for some notes here or there, or flog old clothes, phones, etc.

Whilst you are living at home, cut right back on other costs and accelerate the repayments - it will be clear sooner and you will pay less overall. Then never get another loan again ;-)

chalkie99

jamesarpc wrote: »

I'm 27 yrs old, have a degree and a post grad NCTJ in journalism.


It's so disabilitating.

*shakes head in despair*

jamesarpc

I'm so stressed my training has gone out of the window.

elaine12022

Hi

If you go onto the debtfree wannabee board, you may get more help. there is a link somewhere where you can write down your incomings & outgoings, so experienced people can see how to help..

chalkie99

jamesarpc wrote: »

I'm so stressed my training has gone out of the window.

Ahhh! Bless!

So, you are earning £1,000 per month out of which you have to pay your general living expenses but although you say you bought a second hand car it is actually costing you 60 months at £270 costing you £16,200 :eek:

That is hardly basic or necessary transport, it seems like a lifestyle choice.

As you have already stated you bought it through a consolidation loan then I assume you used the loan to buy it for "cash", not on an HP agreement.

In that case, sell the car now, pay down the loan and buy a cheap banger to tide you over until you have sorted your finances out properly.

dmg24

jamesarpc wrote: »

I'm 27 yrs old, have a degree and a post grad NCTJ in journalism.
I, stupidly, took out a Career Development Loan to pay for this.
When I got out of studies I passed my driving test and needed a car so I got a consolidation loan, paid off the CDL and bought a 2nd hand car.

I am lumbered with £270 a month loan repayments over five years. I have 3 left.
It would be about £7000 to pay off in one go from now.
I earn little over £1000 a month but with phone bill, car insurance, £200 a month petrol, £60 credit card etc I can't afford to move out of my parents house!

It's so disabilitating.
Is there anything I can do?
I can't physically afford rent, council tax and food bills.
My parents are brilliant, they keep me, feed me, but its degrading being this old and stuck at home.

Any advice??:money:

J

You don't really understand the meaning of the word degrading, do you?

ViolaLass

chalkie99 wrote: »

Ahhh! Bless!

So, you are earning £1,000 per month out of which you have to pay your general living expenses but although you say you bought a second hand car it is actually costing you 60 months at £270 costing you £16,200 :eek:

That is hardly basic or necessary transport, it seems like a lifestyle choice.

As you have already stated you bought it through a consolidation loan then I assume you used the loan to buy it for "cash", not on an HP agreement.

In that case, sell the car now, pay down the loan and buy a cheap banger to tide you over until you have sorted your finances out properly.

I think the £270 a month includes the CDL that the OP paid off so it didn't all go on a car.

OP, with only £1000 a month, you would struggle to live on your own anyway. Do you have prospects of earning more any time soon? Even with your current costs, you should still have half your monthly income left to throw at debts. Do you? Or do you not know where it goes?

chalkie99

ViolaLass wrote: »

I think the £270 a month includes the CDL that the OP paid off so it didn't all go on a car.

Yes, fair comment.:think:

Thanks.

jamesarpc

The consolidation loan was to pay off my Career development loan and student debts not to buy a flashy car. It is a ten year old 206 for under a grand.