Slowly come round to debt

sam25

Hey guys, thanks to stupid gambling (which im now getting help for) and me being silly with money I find myself in ever growing debt.

2 months back I was in the money, £2000 for myself. But I slipped and blew it on rubbish, mostly gambled it.

After several mad binges I am now facing no cash at all and whats worse is I have been refused for loans to clear it all.

Earlier in the month I owed money for bills so I took a payday loan of £190. I have to repay back £250 on payday in 2 weeks.

I have borrowed and borrowed and borrowed off my family and I owe them over £400 which they want very soon.

I also have a £100 overdraft with my bank where I have maxed it out.


Seriously dont know what to do. The £1000 loan would of cleared everything I owe, I would be debt free and have money for myself, then only have to pay £80 per month back for a year which is better than the way things could turn in a month or 2 if things arent sorted.

I only early on average £400 per month. So from what I owe at the moment it will take all my wages and more.


I have sent an appeal to my bank who I applied for a loan with.... what are the chances of them offering me a loan at all, even at a higher rate of interest (I had a loan with them years ago and paid it all off, my credit rating is low because I dont have a credit card or other things to pay off.... I have however had a loan with them before which I payed off in full, I have lived in this house all my life and am on the electoral register, I have held a bank account with them for nearly 10 years as well as being in a secure job for over 6 years)


I dont know what else I can do.... but I know for sure if I cant get a loan to pay everyone back then its curtains for me

tallyhoh

If you had a loan you would not be debt free, you have to repay it. The general opinion on here is that taking out loans to clear debt doesnt work, you end up repaying a loan & running up debts again.

Do you earn £400 per month, its not too clear. Are you entitled to tax credit?

sam25

Thanks for the reply.

My wages change every month as its not a salary. Im now contracted to 8 hours which is a guaranteed £210 each month however overtime is given to myself 52 weeks a year thus it averages my wage per month to be £400 per month (from september until january its around the £700 mark). Sadly im not entitled to any tax credits or anything. In the words of the job center and goverment.... Even though im 25, I still live with parents meaning if I have any money problems they think my parents are the people to give me a helping hand.

It would be another debt with a loan but.. paying £80 a month for a year back on my loan would work out a bit better than it is at the moment where I wont have enough wages this month to pay all debt, meaning next month the debt will increase so again I cant pay it, and so on, or worse still I would have to keep taking a payday loan every month to clear it (We all know that will make the cycle happen a lot quicker).

The loan last time made me more responsible with money. I knew if I didnt pay it off or have the money to pay it I would have a really bad credit rating and be in extreme debt, so I became more careful with my cash, never blew a penny on rubbish

staffie1

sam25 wrote: »

The £1000 loan would of cleared everything I owe, I would be debt free and have money for myself, then only have to pay £80 per month back for a year

You need to get your numbers right if you're going to sort things out. This may be part of the problem.

£1000 loan with repayments at £80/mth means you would repay £960. So you are going to borrow £1000 and pay no interest, in fact you're going to pay back less than you've borrowed?

dancingfairy

How much money do you have for debt repayments this month? Do you have overtime lined up? Can you get any overtime?
Have you got any stuff you can ebay/car boot to get money?
df

bargainbetty

Can you look in the local papers and see if there are any bar jobs available? Handy man stuff, gardening, anything to raise some funds... I know finding work is tough, but you could drop into any of the big superstores and ask for an application - at least get on the lists for them.

Good luck

Little_Miss_Uni-Debt

Hey Sam,

A loan would take you from £750 in debt (as you are now) to £1100 in debt with monthly repayments of about £95.

That's half your guaranteed monthly income gone, every month for the next year. You say you have bills each month to pay so what would you have left after your loan payment and bills? It would be a very boring year to live through for you.

It's unlikely you'd be offered a loan if your guaranteed income is low as lenders are so strict now, if you've been refused then don't keep applying as it is registered on your credit record.

Also if you're prone to crazy spending sprees then freeing up monthly income while you still have debt to pay isn't a good idea. i.e if you slip up and rack up more debt then you won't have an escape route.

Just 4 months of being strict with yourself on payday will mean you are done and dusted and that's just on your basic income.

As you say from Sept-Jan you get upto £700, you could clear it all in 1 month with overtime.

Then you can be TRUELY debt free and become a saver! :j

sam25

Hello guys, Sorry about my loan figures.

I got that wrong, I was basing it on a £2500 loan I wanted years ago but that was to be paid over 3 years. The correct figure was more like £100 per month. Sorry about that. It has just been a stressful time so with the figures.

At work I have taken all the overtime possible. My basic wage works out to be £205. (Worked out by head office as 52x8 = 416... 416x5.93 = £2466.88.... £2466.88/12 = 205). But I do overtime every single week which is 7 hours per week meaning its more than likely I get a wage every month of nearly £400.

The problem im finding is time. Like before when I had my loan as I mention I was careful throughout it. I knew its not my money really and I put it to very good use.

This time I just fear its going to spiral out of control. I have estimated my wage for the end of this month to be £398.42. I will have to pay £250 back for the payday loan. Which already takes me down to just £148.42. Even with just paying my mum £100 (including rent) that takes me down to £48.42. Then theres £30 for my phonebill, £7.50 month overdraft charge, £9 for internet and £20 for an annual DD bill I pay. That would bring me short by nearly £20 with not even a penny for myself (to get bus to work, food, etc).

The problem I think then will be i'll be tempted to take another payday loan... Well I will almost have no choice because if any bills exceed my overdraft then it means a £30 charge per transaction.

It hard to find another part time job in this town since theres very few going. Dont get me wrong... there is some about that are contracted to 8 hours... but my main job at the moment has changing work days every week, so at some point they will clash. Night work is also difficult because my mums disabled and where my nan is her primary carer (who claims carers allowance), I often have to be here at night in case she has a bad night.

DancingFairy - As above really, I have nothing left to my name thats worth anything apart from my pc, but it isnt worth much anymore.

Thanks guys, I appreciate all your comments

sam25

Another bit about my post guys, checked my credit report. But there is 1 simple thing that could affect any loans? thats simply.... Orange.

I have had my phone contract with them for many years. I pay my bill using my debit card. The reason I havent set up a direct debit was because the way I see things I saw it easier to manually pay them. This means if for example 1 month I get a top wage, I can pay in 3 or 4 months worth of phone bill amounts, so I dont have to worry about it for some time. Then if my wage is poorer I can pay a lower amount and pay double the following month when I get paid.

A while back someone from orange called me, asked if I wanted to switch to direct debit payments, I explained to them the situation and said im happy to carry on without paying via direct debit and taking the few pound non DD payment charge each month and they said thats fine.

On my credit reports however theres a lot of "missed payment" yellow flags a few times this year under my payment bit for orange. This month was the harshest. My bill came out on the 24th july which was "ready to view" I paid double the amount of my bill on the 6th august but they have flagged it on my credit report and "late/missed payment"

Giddytimes

You need to sit down and work out exactly what your essential spends are for the next pay period. The £100 to your mum, does that cover food? What about travel? Do you need bus fare etc?

Can your mum wait a month for the £100?

The important thing is to pay off the payday loan this month without getting further into debt, a loan is not the answer, tightening your belt for a couple of months and trying to make the ends meet is.

Don't panic plenty have been in worse situations than you, you should be able to sort your debt before Christmas if you're careful.

Once you've worked out exactly what you need to spend to get through next month (be realistic) and spoke to your Mum about whether she can wait until September for this months £100 then you'll know exactly how much short you are. Then it's a question of trying to make up that shortfall, look around you, you must own something you can sell on Ebay/Amazon to get you through this month?

Once you're through August if September pay is nearer £700 then you will be able to clear the overdraft and most of the debt to your family in one swoop. :T

Giddytimes

sam25 wrote: »

.

A while back someone from orange called me, asked if I wanted to switch to direct debit payments, I explained to them the situation and said im happy to carry on without paying via direct debit and taking the few pound non DD payment charge each month and they said thats fine.

On my credit reports however theres a lot of "missed payment" yellow flags a few times this year under my payment bit for orange. This month was the harshest. My bill came out on the 24th july which was "ready to view" I paid double the amount of my bill on the 6th august but they have flagged it on my credit report and "late/missed payment"

If you were paying in advance the 'missed payment' flags should not show on your credit report. What date was the 24th July bill actually due for payment?
When you say you're paying 3-4 months at once do you mean you're sometimes paying in arrears?
In either case it would be best for you to have a separate DD account which you could transfer the money to, 3/4 months in advance if you wished, then Orange could take their DD payments on the due date and there would always be money in your account to cover it.

If it's a choice between not being able to repay the payday loan and missing this months payment to Orange/your broadband I would cancel your DDs-as you say your credit file is full of missed payment flags anyway (which in my opinion is a blessing right now, I know it might not feel like it but being approved for £1000 loan is the last thing you need).