Im 19 and really down because of debt!

mwr789

Hi,

Well i dont know where to start. I'm in only small debt to what you read about in papers but its getting me really down and i just need some help and advice of how to deal with the problem.

It all started last year, i got kicked out by my mum and step dad and have slowly got more and more in debt. I have a credit card with capital one with about £300 outstanding, I owe £325 to my girlfriend for a holiday we booked and then i couldnt afford to pay back. The biggy for me is Vodafone. I took out a contract for my "best" friend and then he upped and left town with massive phone costs. My contract was linked and they were forcing me to pay which i couldnt afford his side of things. they were both 40£ a month with around 12 months left and he has over £200 outstanding from previous months. I believe i probably owe close to £1000 to vodafone.

My outgoings seem huge (being young and car insurance doesnt help) and i want to get debt free ASAP so i can move into my girlfriends and live happily as i do not want to bring my debt to her.

I dont want replies to this of people telling me how stupid i am as i know this! ANY advice would be helpful, maybe people who have been in my situation.

Thanks for the time in reading this

Max

Pollycat

Hi & welcome.

Don't worry about being accused of being stupid, most likely all the replies you get will be supportive or helpful.
This is the one board in MSE forums that is hardly ever judgemental or nasty.

Any debt, regardless of how big or small, is a worry if you're struggling to pay it off.

Best way to start is to post your SOA (Statement of Affairs), here's the link:
http://www.makesenseofcards.com/soacalc.html

If you use this format, it will make sure you don't miss anything out.

I'm sure you'll get good advice on the Vodaphone debt.

Regards

Erme

welcome firstly . You have come to the right place.

You have done a HUGE thing by admitting and taking your head out of the sand...

First things first after the above...Phone vodaphone and explain the situation and see if you can pay off what you can afford bit by bit. Okay so they might get a bit fussey about you getting a contract again with them (I think the worst they might do is insist you pay by direct debit) but they should be okay. About 6 years ago when unwell I ran up a huge vodaphone bill abroad and I just paid it off over a few months and went on min mins and texts for a wee while. Likewise when on a DMP I got really harassed by Natwest and I phoned them up and eventually sorted things out. It may take more than one phone call but you can do it . Don't lose hope. It's just not worth it.

My debt has gone from £8k 5 years ago to about £4 in a few years. It's possible. Really it is....

There are lots of threads and challenges you can join on MSE to help too. Just browse and enjoy.

If you need me I'm here for you though I won't fling advice if you don't want it...

Hugs

E

davidjwest

You may feel down now but believe me I wish I'd had my "light-bulb" moment when I was 19!

Work out a budget and then work out how much you can afford to repay off the debts, I don't know your circumstances obviously but you appear to owe a total of around £1,500 - if you can afford to pay back £150 a month then it's going to take less than a year to be debt free, personally it's going to be around 4 years in my case so I am envious!

If you post some details on here you'll get good advice about how to economise to maximise your spare cash so you can be debt free more quickly.

mwr789 wrote: »

Hi,
My outgoings seem huge (being young and car insurance doesnt help) and i want to get debt free ASAP so i can move into my girlfriends and live happily as i do not want to bring my debt to her.

What do you mean exactly, do you mean you don't want to move in with her while you have debt or your worried about your credit rating affecting hers? You don't really need to worry about the latter unless you were to get a joint account or apply for a loan together etc.

Good luck!

mwr789

Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 1036.26
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1036.26
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 450
Management charge (leasehold property).. 0
Council tax............................. 95
Electricity............................. 40
Gas..................................... 0
Oil..................................... 0
Water rates............................. 24
Telephone (land line)................... 0
Mobile phone............................ 65
TV Licence.............................. 0
Satellite/Cable TV...................... 62.5
Internet Services....................... 0
Groceries etc. ......................... 60
Clothing................................ 0
Petrol/diesel........................... 100
Road tax................................ 0
Car Insurance........................... 116.59
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.................. 1013.09

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

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
capital one....................300.......15........0
holiday........................325.......0.........0
vdafone .......................800.......0.........0
Total unsecured debts..........1425......15........-

Monthly Budget Summary
Total monthly income.................... 1,036.26
Expenses (including HP & secured debts). 1,013.09
Available for debt repayments........... 23.17
Monthly UNsecured debt repayments....... 15
Amount left after debt repayments....... 8.17
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -1,425
Net Assets.............................. -1,425
Created using the SOA calculator at Reproduced on Moneysavingexpert with permission, using IE browser.

Hope this helps,, looks like im in real need of some advice! Thanks for the help so far

davidjwest

Formatting is a bit hard to read, can you edit it?

Anyway, are you living on your own and if so do you claim the single persons allowance for the council tax?

What car do you drive, can you get one that's cheaper to insure?

You don't spend anything on haircuts, presents, entertainments etc - really?

Shop around for your TV deal, I pay £30 a month for mine including free telephone calls, internet and some extra channels, speak to your supplier.

If you can get a water meter (if you're single) then you may be able to save a fair bit on the rates, I used to pay £18 a month in my old house and that was for a family of 3.

I'd also echo the advise above, speak to your mobile provider to see if they can put you onto a cheaper deal and talk about sorting out paying the arrears.

Two9A

Damn it. Just spent ten minutes or so cleaning that up, and er... you pasted it again :rotfl:

I should probably go do some work...

Pollycat

Hi Max
The format you've used is really hard to read, I've put some spaces in:

IncomeAmount(£)
Monthly income after tax1036.26
Partners monthly income0
Benefits0Other income0
Total monthly income 1036.26

ExpensesAmount(£)Mortgage0
Secured/HP loan payments0
Rent450
Management charge (leasehold property)0
Council tax95
Electricity40
Gas0
Oil0
Water Rates24
Telephone (land line)0
Mobile phone65
TV Licence0
Satellite/Cable TV62.5
Internet services0
Groceries etc.60
Clothing0
Petrol/diesel100
Road tax0
Car Insurance116.59
Car maintenance (including MOT)0
Car Parking0
Other travel0
Childcare/nursery0
Other child related expenses0
Medical (prescriptions, dentists, opticians etc.)0
Pet Insurance/Vet bills0
Buildings Insurance0
Contents Insurance0
Life Assurance0
Other Insurance0
Presents (birthday, christmas etc.)0
Haircuts0
Entertainment0
Holiday0
Emergency Fund0
Total monthly expenses 1013.09

The thing that stands out is that, even before you start to pay any of your debts, you are spending very close to what you earn (£23 per month spare).

Is the £60 per month on groceries realistic (it sounds low to me)?

I think the Satellite/Cable will have to go or at least be reduced.

Are you getting the discount for single person on Council Tax (assuming you're living alone)?

Are you tied to a contract for your mobile?
Can you drop a tariff?

You should have something in your budget for road tax.
And also for MOT - I'm assuming at £1500 value your car is over 3 years old.

Is that the cheapest car insurance you can get?

Do you never go out? If you do, you should have something under 'Entertainment'.
No haircuts?

It's important that your SOA is realistic and reflects your spends.

Any chance of upping your income - by overtime or a second job?

Pollycat

Two9A wrote: »

Damn it. Just spent ten minutes or so cleaning that up, and er... you pasted it again :rotfl:

Me too!

Two9A wrote: »

I should probably go do some work...

Me too!

RAS

Hi

Can you tell us your living situation; house share, rented flat etc?

mwr789 wrote: »

Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 1036.26
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1036.26
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 450
Management charge (leasehold property).. 0
Council tax............................. 95
Electricity............................. 40
Gas..................................... 0
Oil..................................... 0
Water rates............................. 24
Telephone (land line)................... 0
Mobile phone............................ 65
TV Licence.............................. 0
Satellite/Cable TV...................... 62.5 - you really really need to get rid of this. If they do not let you, the start by down grading the package.
Internet Services....................... 0
Groceries etc. ......................... 60 - this is not really enough if you are on your own?
Clothing................................ 0
Petrol/diesel........................... 100
Road tax................................ 0 - you have got to have this
Car Insurance........................... 116.59
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.................. 1013.09

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

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
capital one....................300.......15........0
holiday........................325.......0.........0 - when is this hoilday?
vdafone .......................800.......0.........0
Total unsecured debts..........1425......15........-

Monthly Budget Summary
Total monthly income.................... 1,036.26
Expenses (including HP & secured debts). 1,013.09
Available for debt repayments........... 23.17
Monthly UNsecured debt repayments....... 15
Amount left after debt repayments....... 8.17
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -1,425
Net Assets.............................. -1,425
Created using the SOA calculator at Reproduced on Moneysavingexpert with permission, using IE browser.

Do you absolutely NEED a car?

If you cannot take that off the road for a while and release some money, you need to either get additional work or find stuff youi can sell to start paying for the holiday and vodaphone bill.

Does you lovely friend still have the phone by the way?

Dharma_Bunny

Whoah, that's really tight, and as you haven't budgeted for emergencies, entertainment etc. you're prob spending more than that.

In your position I would sell the car, use the profit to pay off one or more of your debts and put the spare cash each month into saving for emergencies. Get moved in with our girlfriend to share bills etc.

And look at getting a second job or working more hours.

Can't help with vodafone though sorry.