help with debt - 20yo

lukazade_2

hi my name is luke (new to the forum)

im currently struggleing with debt that i cant seem to manage.

my debts are

£1700 for a barclayloan
£1050 maxed out barclaycard
and a £450 overdrawn overdraft

i get paid every four weekly and i get about £400 i have a problem with spending as most young people do and i cant keep up with the payments. my bank keeps bumping charges on top such as guaranteed payments (payments which i am within my limits to make) and returned transactions (my own fault i know)

i go in branch and ask them if they can do anything to help me and they say nope nothing they can do.

i then created a plan to consolidade the credit card and the overdraft into the loan and pay that back and they say no because they dont want to increase my debt. its not increasing it its making it easier to manage.

please help as i am lost with this. the only plan i have is to open an account with natwest and pay barclays off when required.

SuziQ1962

Hi Luke-first things first-get rid of the credit card! Chop them up as it is a constant temptation to spend (says the voice of experience )
next post an SOA-there is a link at the top of the debt free wannabe page,be honest and put everything down-no-one will criticise as the people on here want to help! This will show you where your money is going and also you can then be advised where to save.
Is there any way you can increase what you earn?
Are you living at home,can your parents help you pay off part or all of your debt,and the you could pay it back?
Please don't worry,I am sure you will get some excellent advice in here :-)

stqueen

What are the APR interest rates on the loan, credit card and overdraft?

Is your overdraft maxed out?

Is the overdraft a 0% student deal (or otherwise)?

lukazade_2

my credit card is chopped up and its interest rate is 19.9% i am barely paying the minimum payments

my overdraft is maxed out at £463.33 and is 18.3% interest

my loan is an unprotected barclayloan and is 21.6% interest

i will do the soa now

dancingfairy

400 pounds is not much to play with - is that all you earn? are you up college/uni or is that after bills or something?
Are you entitled to any benefits to go with that?

I guess the hardest part is a 4 weekly pay and trying to manage to pay bills monthly- I'm not sure what the solution is to that to be honest - I guss some others will have some good ideas.

With regards to the spending once you've got your budget worked out you can see how much you've got left for your entertainment budget and see how to go from there.

Best of Luck
df

lukazade_2

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 450
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 450

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 50
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 35
TV Licence.............................. 0
Satellite/Cable TV...................... 10
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 295


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 900
Car(s).................................. 0
Other assets............................ 300
Total Assets............................ 1200

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
unprotected loan...............1700......56.6......21.6
credit card....................1026......50........19.9
Total unsecured debts..........2726......106.6.....-


Monthly Budget Summary
Total monthly income.................... 450
Expenses (including HP & secured debts). 295
Available for debt repayments........... 155
Monthly UNsecured debt repayments....... 106.6
Amount left after debt repayments....... 48.4

Personal Balance Sheet Summary
Total assets (things you own)........... 1,200
Total HP & Secured debt................. -0
Total Unsecured debt.................... -2,726
Net Assets.............................. -1,526

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

dancingfairy

200 pounds is quite a lot for groceries if it's just you - or is this a contribution to the family budget?
Have you got any opportunity to do overtime or anything? depending on what your circumstances are - ie college/uni etc can you get another part-time job to go with the one you've got?
Um anything to flog - car boot or ebay? any old clothes, dvd's , cd's or anything?
df

Culex

SuziQ1962 wrote: »

Feel the fear-acknowledge it -then proceed!

Resist the dark side, Luke, or the banks win have won!

lukazade_2

looking at it it really does look managable but i just have this spending addiction every time. i live at my parents with my bf and im supporting two people cos he dont have a job (hes 18) we both smoke so thats another cost. tried quitting but havent got there yet. will have a look at selling things.

NeverAgain_2

Luke,

Well done for getting to grips with this now, before it gets completely out of hand.

It will still be hard to repay this money, but not as hard as it would have been had you let this drift any further.

Despite your low income, you must believe your debts are manageable.

Plenty of people on here owe 10 times what you do, but they have nothing like 10 times your income.

dancingfairy

Is your boyfriend getting JSA? if not this may help a little?
Can you cut down the mobile bill at all - frankly even a 10 er off will help you.
50 pounds is not very much for entertainment for the 2 of you so you may have to get creative - now summers coming try walks, picnics, try orange 2for1 deals, museums, very cheap meals out - try using 2for1 deals, photgraphy?, anything that's pretty much cheap or free is going to be your mission.
Wine/dinner at home when the folks are out, tv at home? posh dinner like come dine with me? If you do go out on a night out pre drinks at home will be a must - and get into the clubs earlyish when they're cheaper.
df