In debt and need help ASAP!!...

Lillythepink_3

Hello All,

I am wondering if you can help me please?

I am 25years old and have been very silly with my finances, however I am now trying to rectify the wrongs I made as a late teen!

When I was 18 I obtained my first credit card it had a value of £3000 - I was so excited (and felt like Jack the Lad) that I got another from another bank this time for £4000. Armed with £7000 available funds I maxed the lot on booze, nights out and lads stuff. (I am not proud of this!) Once this had all gone I simply got another for another £3000 and again I maxed this. Then the bills started rolling in and I started oweing money. I also had a loan from my bank for £7000 for my car so my debt totalled over £10,000 - the bills kept coming and I simply could not afford to repay them but I did my best, sometimes missing one to pay another and so on...
Almost 5 years have past since this happened and I am still paying back the money, still struggling but as I have moved on and left home I have managed to deal with it. I have no social life whatsoever, rarely buy new clothes (thank God for the Salvation Army charity shop!! - no pun intended) and have sold my car to buy a cheaper, more economical one.

Skip to Jan 2007 (today) I have just moved into my first mortgaged house (that alone took some doing!) and I am now wanting to put all my loans together (or in the least the majority of them) so I can consolidate them into one, and thinking that now I have a house I might have a better chance of getting finance - I was wrong! I applied to the Alliance and leicester for a £10,000 loan over 5 years with the house (that cost £106,000) and they rejected me.
I then went on to Equifax's website and paid £10 for a credit report - this said my history was Poor and in the red marker.

What can I do? Is there a lender out there that will not scam me and help me to bring my payments into one lower monthly sum?

lynzpower

Hiya

I bet you are "overextended" ie too much debt for your salary? Or that you have applied too many times, and this is making it worse. If your rating is poor the only thing that will better it is PAYING off debt, not consolidating nor shuffling around. Credit reports with "settled" on improves your credit ratings over time.

Why not post a statement of affairs, Ie your income, outgoings, debt & APR and we can help see if we can find you any savings to pay off your debt quicker?

Lynz

Lillythepink_3

Hi there - sorry about the delay! PC has been playing up....

So my income is:

£1135.67 PCM

My outgoings (PCM) are

£535.32 Mortgage
£30 Gas
£30 Electricity
£25 Water
£12 TV
£105 Council Tax
£200 Food
£100 Petrol
£20 Tax & Service budget
£80 Insurance

I owe:

£4260 Nat West Loan @ £160.55 PCM
£500 Mint Card @ £50 PCM
£118 Dad loan (he wont let me miss a month)

This totals £1465.32

Meaning a shortfall of £329.65 each month.

I am struggling and going under fast! Please help...

lynzpower

OK do you live alone?

£1135.67 PCM

My outgoings (PCM) are

£535.32 Mortgage
£30 Gas
£30 Electricity
£25 Water
£12 TV
£105 Council Tax ( single persons discount?)
£200 Food ( for one? You can get this down to 70 if not less with some proper plannig & savvy shopping)
£100 Petrol ( do you have to drive?)
£20 Tax & Service budget
£80 Insurance ( whats this for? car??? your car is costing you 200 pcm miinimum)

I owe:

£4260 Nat West Loan @ £160.55 PCM
£500 Mint Card @ £50 PCM ( whats the aprs on these?)
£118 Dad loan (he wont let me miss a month)

This totals £1465.32

Meaning a shortfall of £329.65 each month.

I am struggling and going under fast! Please help...

lynzpower

can you get a lodger in ?

mjdh1957

Well done on taking the hardest step!

First thoughts:

How many people is the food for? If it's just one, that's a lot of money. Lots of ways to economise, take a look at the Old-Style board for menu and shopping ideas.

If you are on your own, do you claim the council tax single person reduction?

What's the Tax and Service item?

Is your insurance the cheapest you can get?

Can you car-share to get to work and so save petrol?

beverleyhills

:hello: Lillythepink and welcome to MSE. You seem to be in the DFW mode so don't panic while we suggest ideas which may or may not suit you.

Can you find any time for a part time job?

Consolidation is not the best idea.

Smashing

There's nothing in your budget for clothes, entertainment, socialising, birthdays, haircuts etc.
From now on, write down every single penny you spend - you need to know where it's going before you can save it.

Any chance of some overtime? A weekend bar job?

Lillythepink_3

Thank you everybody for your advice so far! While I am very ashamed of myself for letting my finances get into such a muddle I know that I can get out of it if I apply myself. To answer your questions, I only have a 1 bedroom property (it is a nice little place but no room for a lodger); the £200 for food was a rough giude of £50 week but to be honest it rarely goes over £35. I am on the reduced council tax and the "tax & service budget" albeit only £20 a month is towards car tax and service etc.
Unfortunatley I cannot car share but I have just found some cheaper car insurance (£55 PCM!). Here's the best news of all - I have just got myself an interview for a part time job as a barman at a local hotel every Saturday night!
Thank you all so much for your advice so far!!
One last thing - I have also been contacted by a large Americal finance/bank company that is based in the city (not to mention any names!!) and they have offered me a loan for £6000 - they assured me I am not alone and would like to "help me to help myself" - when I asked what the interest rate was the lady was hesitant and then squeaked "only 37%"!!!! I very politely declined!!

lynzpower

One last thing - I have also been contacted by a large Americal finance/bank company that is based in the city (not to mention any names!!) and they have offered me a loan for £6000 - they assured me I am not alone and would like to "help me to help myself" - when I asked what the interest rate was the lady was hesitant and then squeaked "only 37%"!!!! I very politely declined!!

:T :T

37% crikey that is high.

Jeez.