Fighting a losing battle!

liamgallagher87

Hi all,

Im a 24 year old male with severe financial stress.

I bought my first house when I was 21 with my girlfriend at the time, we separated last summer and since then my financial troubles have spiralled so im wondering if anybody has ANY advice.

My current monthly income is £1330.

My outgoings are as follows...

Mortgage £425
Graduate loan £105
Family Loan £200 (paid for deposit on house)
Car Insurance £78
Gas/Electric £107 (should be £80 but in arrears so have payment plan)
TV License £35
Water £11
Phone and Internet £25
Mobile Phone £25
Bank Fee £15
Overdraft fee per month £31 (currently £1500 od)
Council Tax £65
Life Insurance £7
Home Insurance £17

As you can see my monthly bills are a total off £1081, excluding food. I then have petrol which costs me £65 a week taking my monthly expense to £1341

Minus £11 per month


I'm guessing a lot of people are thinking my family loan can be put on hold only it really can't, you can pick your friends but not your family they say!

I'm a web designer by profession and this evening i've emailed 20 local companies for some freelance work but I dont have high hopes as nobody seems to need a new website/can afford one

I cant move home with family as they're no longer local.

My only option is to search for a flatmate it seems but after all the hard work I've put into my house I dont know if I could cope mentally feeling like its gone to nothing, I know this is probably a childish outlook and I should do anything I can to sort my financial situation but this is my very last resort.

So, advice? :idea:

DVardysShadow

Basically. you are doing the right thing, looking to up your income. It does not look like there is much you can trim. Having a lodger long enough to wipe out your overdraft would save you your overdraft fees. I've gritted my teeth and taken lodgers and if it takes off the financial pressure, it is less stressful overall.

In your position, I would take the lodger and overpay the family loan as far as possible

tallyhoh

What does your bank fee give you, do you actually use the benefits? Please fill in a statement of affairs (SOA) from the sticky at top of the forum, theres loads missing off your finances above that you need to take into account.

Getting a flatmate is an excellent idea by the way.

sarahw89

is there any chance you could cut down your mobile bills or phone and internet? I know you say you cant cut out your family loan but could you lower how much you pay back a month?

Takeaway_Addict

Could you really not look at getting the family loan payments halved for now?

I agree with above...lodger time, tax free income!

sgtbush

I agree with a lodger but its not tax free I think. You should declare it but thts up to you if you do or not. 60 to 75 quid a week including bills would certainly help you and at that price I would jump at it:) but I have my own house lol

tallyhoh

I believe there is a scheme called rent a room where you can earn £4250 per year tax free. see directgov for details.

JohnnyJet

Just a few questions -

Why is your Gas/Electric £80 PM? I pay less than £70 even in the winter and still have a surplus.

Can you change your phone to pay as you go or look for a better tariff?

Your car insurance is very high, is that normal for your age? Have you considered getting cashback through Quidco?

Are you really unable to reduce what you pay to your family, even of it is £50 less?

Regardless of these questions I agree with the previous poster, think you really need to consider a lodger. It may be a hard thing to do but it need only be short term, until you can reduce your debt.

lindsaygalaxy

I think it comes down to having a lodger, getting a second job (doing anything) or cutting down the family loan. It might be nice having the company of a lodger - do you have any friends that might want to move in? Also your petrol is a lot - could you car share at all?

InsertWittyName

liamgallagher87 wrote: »

I'm a web designer by profession and this evening i've emailed 20 local companies for some freelance work but I dont have high hopes as nobody seems to need a new website/can afford one

Register yourself on http://www.peopleperhour.com/ set yourself up with a good profile and bid on jobs.

It's a mainly UK focussed site and I get a lot of freelance work from there in a similar field to yourself. I never have to leave my house to do the work either and I have a full time day job.

Good luck!

paulmapp8306

Why is the TV £35? Licence is £12/month.

why £65/week petrol? Thats very high, somewhere like 50 miles round trip every working day. If its for work public transport may well be cheaper.

I dont think the Gas/elec is that bad - Mine is £140 for electric alone, though its a 4 bed house - wife & kids and expensive leccy in NI.

A lodger is a definite way forward.

What benefits do you get? with that income you should get some.

Try looking at the government schemes that pay you mortgage interest while in difficulties as that would cut a chunk of you outgoings down, at least short term.