I dont know what to do...

krayzechick

Hi, *waves*

My names Rachel and I'm a spendaholic! I'm only 21 but I'm so ashamed of what Ive gotten into... so much debt!

Back in November I decided to take a real look at my debts. (light bulb moment?) I had a friend that was really bad for me, she had HUGE debt problems herself and encouraged me to spend spend spend..

Now I'm struggling to make repayments. Its spiralling out of control.

I dont know what to do! where to go, what to do, who to turn to.

My SOA

Monthly Incomings
Wages: £829 (although in 2 weeks I start a new job and expect about £1000)
Boyfriend: £50 (payment for petrol & holiday repayment - he's a student so this is about 50% of his monthly income)

total: £879

Monthly Outgoings
Rent to parents - £180 (covers internet, food, electricity, keep)
Car loan - £150 to parents (car bought from mum)
Car Insurance - £50 (0% interest)
Mobile contract - £70 currently, changing networks so will be £35
Petrol - £70 (I travel 30 miles to work every day, and my boyfriend lives 120 miles away!)
Car Tax - £10 (into savings - pay 6 monthly)
Car Parking - £40 (use park and ride)
MBNA loan - £191.85
Lloyds TSB CC- £75
Capital One CC- £40
Choice catalogue - £6
Dorothy Perkins - £20
Gym - £23.50 (im overweight and this is the cheapest in the whole of my area!)

total: £926.35


Debts
MBNA loan - £13,813 @ 14.9% [72 months of £191.85]
Lloyds TBS CC - £3,500 @ 1.24% per month [not sure on PA. minimum £70 per month]
Capital One CC - £400 @ 19.9% [minimum £20 per month]
Overdraft - £650
Dorothy Perkins - £75
Catalogue - £12 @ 0%


I've tried applying for MBNA, HSBC and M&S cards to get 0% offers etc but have been declined by all. I applied to look at my credit rating and its 890/1000 which is 'good' apparently. I always pay my bills on time and at least meet minimum payments.

I dont know what to do, at this rate I'm going to be paying things off forever!

I have about £15 in savings. I want to be as near to debt free in 3 years as I can. Me and the boyf want to move in together then. He would have paid student loan off then.

Any advice??

thanks millions,

Rach xx
[I feel so much better now :j ]

southernscouser

Welcome aboard Rach!

Shame about the boyfriend. It was looking so good until then. Female, 21! :rolleyes:

OK now I don't mean this to sound patronising but sometimes we don't see the obvious things. Your income needs to be greater than your outgoings. You can do this by either increasing income or reducing outgoings or better still both.

There isn't a lot of manoevure (sp) in reducing the outgoings, but the mobile is a definate! And you are starting a new job with more pay which is pucker! Well done! :T

Have you got anything you can sell on ebay? Old clothes, CD's, DVD's etc? Will help reduce the debt while your waiting for your new job to start?

And is a part-time job out of the question?

joeblack066

Hi, welcome to the boards! You have stopped it spiralling out of control by posting here, so well done! There are many others here who will offer good advice, so I will leave that to them, and just say this; you are now recognising where you are and are there fore gaining control. You have a raised income coming which will mean that you will have more to throw at your debts. The main things that you can do until you get better advice from others on here are 1) Get rid of your cards..... (There are posts on here about freezing them in water so you can't impulse buy but they are still there for genuine emergencies!) 2) Start to keep a spending diary to see if you are wasting money 3) see if you hae anything that you can sell on ebay/ car boots etc. Then act on the advice that you will get re paying off your debts in 3 years. Congrats on having the great relationship, and welcome again! Debs.

joeblack066

SS, we posted at the same time!! Debs! x

roswell

Welcome,

First problem is you have to much out goings and not enough income so some of the out goings are goign to have to .. GO.


Gym - £23.50 (im overweight and this is the cheapest in the whole of my area!) ( Walking / running is free, cycles can be got off ebay / freecycle very cheap)

Petrol - £70 (I travel 30 miles to work every day, and my boyfriend lives 120 miles away!) ( Get a new boyfriend ?? Only joking, but does he travel to see you ? what about meeting half way ? or changing car for a diesel)

Car Tax - £10 (into savings - pay 6 monthly) (pay yearly its about £15 cheaper)

Rent to parents - £180 (covers internet, food, electricity, keep) (Any chance of a few rent free months to get you on your feet?)

ms_london

Hi Rach

Welcome to MSE!! You've made the first step in the right direction, so give yourself a big pat on the back - dont be ashamed, you are definately not the only person to have gotten yourself into debt, at least you are young enough to learn from it & get debt free & have the life you want..

Monthly Outgoings - 593.50
Rent to parents - £180 (covers internet, food, electricity, keep)
Car loan - £150 to parents (car bought from mum)
Car Insurance - £50 (0% interest)
Mobile contract - £70 currently, changing networks so will be £35
Petrol - £70 (I travel 30 miles to work every day, and my boyfriend lives 120 miles away!)
Car Tax - £10 (into savings - pay 6 monthly)
Car Parking - £40 (use park and ride)
Gym - £23.50 (im overweight and this is the cheapest in the whole of my area!)


- Great that you are changing your mobile network, well done.
- Is there a cheaper way than driving to work AND paying the park and ride? Public transport?
- Well done on budgeting for car tax too, very impressive!!
- Gym - everyone is allowed a vice and to be honest it's not that costly, also if it's your "social life" too, then why not, cheaper than going out drinking all the time!!
- It's also great you are paying your parents for your keep, would it be possible to reduce the car loan payment just slightly for the next few months? I know this is cheeky, but would your parents rather you pay off a debt with interest than them first. Obv if they need the money, then continue to pay it...

Debt Repyments - 332.85
MBNA loan - £191.85
Lloyds TSB CC- £75
Capital One CC- £40
Choice catalogue - £6
Dorothy Perkins - £20

- I think you need to think about repaying your overdraft monthly too. Decide on an amount you can afford & call your bank and ask them to reduce it by X pounds each month on X date. That way it will reduce itself, otherwise it'll always be sitting there.
- Clear your Catalogue & DP card NOW, the DP card will be around 30% interest, and then you will have gotten rid of 2 creditors instantly - so will be a bit of a boost!!
- If you have tried applying for 0% cards you may have to accept your credit rating isnt as good as you thought, and just pay the debts with the current interest rates. Definately call each creditor though, explain your situation and ask if they can a) stop the interest/charges and b) work out an amount you can afford to repay each month - its worth a try, you dont ask, you dont get! One of my creditors stopped ALL interest, it makes a lot of difference!!

General

- Taking into account your new monthly wage of $1000 (excuse the $ sign, I mean pounds, but am in Oz!), you will be left with $406.50 AFTER your main outgoings, and not including your debt... (this will be slightly less after your mob bill changes though)
- First of all you need to think if there is anything else you should be budgeting for (although youve done a pretty good job already!), for example, car repairs/service, birthdays/christmas/holidays, and also savings - even if you only start at $20 a month, this will help & get you into a routine of saving money. And you dont have ANY money for social/clothes etc etc?
- So effectively you have an extra $73.65 to throw at your debts, perhaps throw it at your Cap One card, or use it to clear some of your overdraft (although if this is at 0% you may be best off leaving it for the time being and throw it all at your Cap One card....)
- Could you sell anything on ebay to make a bit of extra money? Or take on a 2nd job to boost your income?

Definately stick around these boards though, they are a great help, whether to ask for advice, know that you're not alone or to have a rant about being in debt - lots of people going through the same thing, and it does make moneysaving fun!! (honest!!).

You could potentially be debt free a lot sooner than 3 years, but you have to want to, it is hard work and you have to sacrifice a lot but it will be worth it in the end!! I promise!!

Will pop in and see how you're getting on.

xx

ms_london

southernscouser wrote:

Shame about the boyfriend. It was looking so good until then. Female, 21! :rolleyes:

Rach, ignore him, he's the inhouse pervert

Still waiting for my PM/Email Mr..........

SunderlandBlackCat

It's worth phoning your credit card providers & asking if they could give you a better rate on your existing cards. The worst that could happen is they say no.

Could you approach your parents to suspend payments for the car and/or rent?

You could cancel the Gym membership & increase the amount of walking you do.

southernscouser

ms_london wrote:

Rach, ignore him, he's the inhouse pervert

Still waiting for my PM/Email Mr..........

Check your box! Ooo eer missus!

krayzechick

thanks for the advice!

Not really got a lot to sell on ebay at the moment. Had my room decorated over the summer and I sold so much then. Everything I have is stuff I need really I have a few 7" vinyls left but Ive tried about 3 times on ebay and a numerous car boots and have had 0 luck. Im just wasting money listing them and getting nothing back!

My mobile - im currently only 6 months into my current contract. Its £25 a month with O2 but I ALWAYS go over my 500 free txts. Ive tried getting that raised by no luck. Looked into the Orange Dolphin plan and for £35 a month you get unlimited txts!! Even if for 6 months I can run to the 2 contracts, its still less than what I'm paying now (I can reduce the O2 one to £20 a month).

All my cards are cut up No more spending for me. My parents have offered to lend me money for emergencies. 0% parents offer is good! :T I only keep the catalogue open because its 0% for 20 weeks. Good for when you just NEED a new bra or something! hehe And the Dorothy Perkins account they offer discounts for card holders. Its usually paid off in one or 2 months (maxed out at the moment as they had 20% off deal and I needed new clothes for my new job.)

I dont really have time for a part time job. I work 8am-5pm. It takes me an hour to travel each way (rush hour *boo hiss*). Monday - Weds I have commitments (I run Brownie, Guide and Rainbow units ) Thursday is my night off although I normally go to the gym for a good workout. Friday - Sunday is spent with the boy. And normally doing something or other to keep busy, usually on the internet!

xxx

ms_london

SunderlandBlackCat wrote:

It's worth phoning your credit card providers & asking if they could give you a better rate on your existing cards. The worst that could happen is they say no.

Definately, my motto def is "You dont ask, you dont get". You might be suprised, but it really doesnt hurt to ask!!

I think if your gym membership is your only luxury, keep it, sure you could walk outside and stuff - although its winter for you guys & perhaps not too safe in the dark either, but I dont think it will make an awful lot of difference to your overall budget. If it makes you happy, keep it (although SunderlandBlackCat, I do appreciate what you are saying!)