Heavily in debt with no end in sight

TheLearner2008

Hi All,

I am currently £ 11,291.55 in debt and I can't afford to pay more than the minimum payments. I just feel completely helpless and stressed out by all this debt - I just don't know what to do anymore.

I opened a new credit card with the money transfer option. I paid off the Tesco loan but I blew another £500 of it. The rest I put in a savings account burning a hole in my pocket but also there in case of emergency!

I just feel like if I cut every last drop of fun what is the point of living? I get so depressed if I just sit at home.

Should I declare bankrupt or what should I do?

Here are all my details details:

Debit, savings and credit available:
======================
Tesco savings: £600
Coventry savings: £150
Virgin money ~ £ 5,148.00 (£5.5k limit) ~ 0% till Sept 2013
Lloyds TSB credit card ~ £ 6,143.55 (£6.5k limit) ~ 0% till May 2012
Tesco credit card ~ £400 (£1.5k limit) ~ 22%
2 international cards ~ £0 (£3k limit) ~ 15%

I have also committed £680 to do DJ lessons and £595 on laser hair removal

Income (I go over budget every month on food):
=====
£1870 per month income
£750 rent (including ALL bills)
£200 groceries
£200 entertainment
£60 transport
£46 gym
£144 personal trainer
£25 regular savings
£20 mobile phone
£10 spotify music
£52 virgin card
£63 lloyds card

I know that I shouldn't have a trainer and gym and music but honestly gym and music are my 2 true joys in life!

How do I get here?
============
First it started with a £2k Thailand holiday, then a £1k macbook and £600 iPhone and then I lost my job and then it just spirally out of control.

Bottom line I don't know how to manage my money - I am very organised with budgets and spreadsheets and getting the 0% deal but then I just slip - I have tried hard not to use credit cards! but i keep them around in emergency and then I slip!

My ideas:
======
1. Sell my macbook. I could get about £700 for it and then I could use my works macbook as I can take it home when I please.
2. Get a Tesco loan to pay off everything with a smaller monthly repayment so at least I am building towards something.
3. Cut up and throw away all my credit cards and only use my debit card.
4. Sell my iPhone for £300 and get a monthly increase my phone contract to £29

Potential income generators
=================
Sell macbook £ 800.00
Extra income (next month) £ 300.00
Coventry savings £ 150.00
Tesco savings £ 700.00
Sell iPhone £ 300.00

What are your ideas?

Pinkpenguin

Hi TheLearner,

I am by no means an expert at this but from looking at what has got you into the position you are in I would strongly advise you to stay clear of any 'consolidation' loans as I am sure the temptation of having more disposable credit would get the better of you and you will end up in much more debt.

I was in much the same position as you and looking for a consolidation option but decided that I had to bite the bullet and pay of my debts. I also enjoy the good things in life so to speak and I havent stopped doing those things, I just do it less frequently now.

Just a few ideas for you:

- Post a Statement of Affairs on here (which is basiaclly what you have listed above but may include a few extra things that you may have forgotten about) and we can suggest ways you can cut down. I see that you spend £200 on food which I would say is way too much for someone living on their own (is it just you?)

- Sell anything you can afford to live without. If you can use your Work Macbook then I think selling your personal Macbook would definately be a good idea

Just a few suggestions,

PP xx

The_Gruffalo

Personal trainer + gym + Spotify = £200pm.

If they are your only joys what is the £200 'entertainment'?

Smokemeakipper_3

I too am fairly new at all this but as has already been suggested it would useful to post a statement of affairs so all the lovely people here can offer some advice on where to start. You have identified the problem and that's the main thing.
The finer things in life are all well and good if there is the money sitting in your bank account waiting to be spent on them.
The most important thing to do though is to remain calm and logical and try to stay positive. You are not alone and with some determination and help you'll get there. Just like so many others before you and some more behind you too no doubt.

TheLearner2008

Pinkpenguin wrote: »

- Post a Statement of Affairs on here (which is basiaclly what you have listed above but may include a few extra things that you may have forgotten about) and we can suggest ways you can cut down. I see that you spend £200 on food which I would say is way too much for someone living on their own (is it just you?)

What extra things should I include?

TheLearner2008

The_Gruffalo wrote: »

Personal trainer + gym + Spotify = £200pm.

If they are your only joys what is the £200 'entertainment'?

Everyone needs to do things socially. I am single and live in London - you can't expect me to sit at home and watch 4OD

littlepearls89

I'm sorry but if you really want to help yourself clear your debt then you will have to cut back on some of the things you enjoy. We all have to make sacrifices to sort our money problems out. I've had to live within a strict budget these past few years in order to clear my own debt and when you're that broke you have to do without luxuries I'm afraid. Temporarily of course, unless you aren't serious about getting out the red.

Pinkpenguin

TheLearner2008 wrote: »

What extra things should I include?

All the little things that we forget about and then at the end of the month we wonder where the flippin 'eck our money has gone.

Birthday/Christmas presents, haircuts, Insurance, Car Tax, Bus Passes, Prescriptions, Holidays..... There is a sticky at the top of this board which links you to the SOA so you can fill out your own. I did mine a couples of months ago and was shocked!

I agree that everyone needs to do things socially and its personal choice as to what people choose to spend their money on. I LOVE going to nice hotels for weekends away and just because i'm in debt it doesnt mean I cant do it, I just have to do it less often and cut-back on other areas of expenditure.

PP xx

glasgowsaver2011

cancel all your credit cards close all the accounts.

You can still pay them off at the minimum if they are closed.

DJ lessons....

Personal trainer

Laser hair removal...

These need cancelled.

You spend 425 a month on entertainment and savings...Pay off your debt then make savings.

When thats all paid off think about starting up entertainments again

glasgowsaver2011

TheLearner2008 wrote: »

Everyone needs to do things socially. I am single and live in London - you can't expect me to sit at home and watch 4OD

No one expects you to do anything

This is your journey

This is your debt.

You can pay it back if you choose to, or you can get deeper in the mire.

Deny yourself things and only then will you find extra money to pay back the debt.

Cheap things to do.......


Museums.

Parks

A 3 quid latte with friends.

All these things will cut down on your expenses.

I dont yet think you have reached your Light Bulb Moment

That will happen and when it does you will turn into a fervent saver

Until then you will just be playing at trying to reduce your debt.


Apologies if you think I am being harsh but its up to you what happens next....

TheLearner2008

glasgowsaver2011 wrote: »

I dont yet think you have reached your Light Bulb Moment.

Yeah I totally agree with you. First step tonight is to cut up the Lloyds and Virgin cards and sell my iPhone and Mac on eBay