At rock bottom, please help.

Swishter

Hello all,

I'm new and I really need some help. I've just done my SOA and can't quite beleive it to look at it.

I feel like such a failure. I'm going to be 30 soon and my life is a mess. I'm up to my eyes in debt, have virtually no assets to my name, i'm overweight, have spots and a crappy flat.

I'm sorry to be such a pain but I just feel so down, like i've made a mess of things. The thought of getting up to go to work tomorrow makes me feel sick, but I know that will only make things worse.

Income Full Time: £1137
Income Part Time (Worst Case): £125
Total: £1262

Mortgage/Rent: £300
Council Tax: £66
Water: £12
Electricity: £25
Gas: £35 Trying to reduce this and electric should drop right down now its spring.
Phone/Broadband: £47 stuck in a contract but trying to keep calls etc to a minimum.
Mobile (PAYG): £10
Food: £100 - aiming to reduce as much as poss.
Cigarettes: £80, trying to quit - it would make a big difference but the more stressed I am at the mo the harder I find it.
Socialising: £40
Contents Insurance: £10
Car Insurance: £63
Petrol: £50
Servicing/Tax etc: £25
TV Licence: £11.50
Course Fees: £33
Total: £907.50

Debts:

HSBC Loan Approx £13.5K 8.9% fixed payment£289
Egg CC £2150, 19.9% Limit £2200, min£50
Argos £950 min £60 - This account is currently locked in dispute, long story, I am not making any payments while the mess is sorted out and am putting it into savings to clear off a big chunk whens its evntually sorted.
Overdraft: £500, 15.9%, end up right in this every month, paying approx £3 per month interest
Dad £2500, £100 per month, if I struggle some months I don't have to pay it but want to.
Tax £2000, not due at the mo as its being added onto PAYE, but I figure this is what I will owe when I leave my current job at the end of the year, paying an extra £50 onto credit card as I can pay them that way and will save CC interest too. Trying not to think too hard about the shortfall just yet.
Total Debt £21,100
Payments total: £549

Total Income: 1262
Total Outgoings: 1456.50

Deficit: -£194.50

Just looking at it and I can't beleive it, I don't have any new outgoings but this is dreadful. I'm shaking just thinking about it.

I'd appreciate any advice on what to do.

Swishter

Mozette

Hi, you've come to the right place, and cleverer people than I will post some help. Don't feel a failure, you've got in a bit of a mess - just like everyone else here, but you're going to do something about it, which is really positive, so feel proud of yourself for that. Good luck, it's a struggle, but it is so worth it.

smashedbooboo

Right stop and take a deep breath right now, Welcome. You are on the first step to sorting this situation out. I am not so good at giving financial advice but here for support. But someone will be along soon with more to add. Please dont worry anymore. You are in the right place. Your debts are not as bad as some we have seen and the folk on here have managed to them.. Have a look at the FAQ and a scan throught he DFW board. You will be amazed at how far people have come in a such a short space of time

angelavdavis

Hi Swish and welcome.

Well done for facing up to everything. I have made a few comments and suggestions below:

Swishter wrote: »

Hello all,

I'm new and I really need some help. I've just done my SOA and can't quite beleive it to look at it.

I feel like such a failure. I'm going to be 30 soon and my life is a mess. I'm up to my eyes in debt, have virtually no assets to my name, i'm overweight, have spots and a crappy flat.

I'm sorry to be such a pain but I just feel so down, like i've made a mess of things. The thought of getting up to go to work tomorrow makes me feel sick, but I know that will only make things worse.

Income Full Time: £1137
Income Part Time (Worst Case): £125
Total: £1262

Mortgage/Rent: £300
Council Tax: £66
Water: £12
Electricity: £25
Gas: £35 Trying to reduce this and electric should drop right down now its spring.
Phone/Broadband: £47 stuck in a contract but trying to keep calls etc to a minimum. This is a rubbish deal! Can you see if you can negotiate a better rate with the same provider.
Mobile (PAYG): £10
Food: £100 - aiming to reduce as much as poss. You should be able to reduce this by at least £30 per month - check out Old Style forums.
Cigarettes: £80, trying to quit - it would make a big difference but the more stressed I am at the mo the harder I find it. Try rollups? This should reduce by a third.
Socialising: £40
Contents Insurance: £10
Car Insurance: £63 Try to get this down - shop around online and buy through quidco.co.uk - there are good cashback deals on there at the moment. Even though you are under 30, this is very high.
Petrol: £50
Servicing/Tax etc: £25
TV Licence: £11.50
Course Fees: £33
Total: £907.50

Debts:

HSBC Loan Approx £13.5K 8.9% fixed payment£289
Egg CC £2150, 19.9% Limit £2200, min£50
Argos £950 min £60 - This account is currently locked in dispute, long story, I am not making any payments while the mess is sorted out and am putting it into savings to clear off a big chunk whens its evntually sorted.
Overdraft: £500, 15.9%, end up right in this every month, paying approx £3 per month interest
Dad £2500, £100 per month, if I struggle some months I don't have to pay it but want to.
Tax £2000, not due at the mo as its being added onto PAYE, but I figure this is what I will owe when I leave my current job at the end of the year, paying an extra £50 onto credit card as I can pay them that way and will save CC interest too. Trying not to think too hard about the shortfall just yet.
Total Debt £21,100
Payments total: £549

Have you cut up your cards?

Do you have anything to eBay? You need to get the overdraft cleared to stop incurring charges and this would be the easiest way.

Have you looked into claiming back your cc and bank charges? There is a forum specifically covering this. http://forums.moneysavingexpert.com/forumdisplay.html?f=102

Try phoning Egg and asking if you can reduce the interest rate? Say you are looking at switching the balance to another card because they aren't competitive, so are they willing to offer a more competitive rate? If you don't ask....

How much are you up to in your Argos savings account? What interest rate are you getting for the money? Is it worth looking into getting it into a better rate account?

Have you tried applying for any life of balance rate credit cards? I don't know how your credit rating stands, but it might be worth trying to transfer your credit card/argos debt there and then use the Argos money to bring your overdraft back to zero.

Is it worth moving back home temporarily to clear your debts faster?

Total Income: 1262
Total Outgoings: 1456.50

Deficit: -£194.50

Just looking at it and I can't beleive it, I don't have any new outgoings but this is dreadful. I'm shaking just thinking about it.

I'd appreciate any advice on what to do.

Swishter

You have done really well so far, so don't get down - we all have off days and its obviously your turn!

kathfisch

£200 overspend per month is a lot and its not easy to see where you could make savings of that size... nothing in your soa jumps out as extravagant. Can I ask - have you been making all payments up to now?

There are only two things (put simply) that will get you out of the situation - earn more or pay out less. That's not meant to be flippant, i promise! What kind of work do you do and is there any prospect of overtime/pay rise/new job? Your part time job... you say £125 is the worst case, what is the usual?

As for paying out less... does your soa include everything you spend? A spending diary - literally write down every little bit you spend and what its on - can really help to open your eyes and feel more in control of things.

If after any increased earnings or decreased spending, you still cannot even make the minimum payments... you might be best off with a Debt Management Plan... basically where you (or a charity on your behalf) negotiate with your creditors to hopefully freeze interest/charges and to make reduced payments that are affordable. You do not need to use a company that charge a fee for this... Consumer Credit Counselling Service, Payplan, Nation Debtline, Citizen's Advice Bureau... any of these offer free advice on what's best for you and negotiate with your creditors if that's what you choose.

Everyone here will give you brilliant advice and support so stick around!

Kaz2904

Do you have to have the car or could you find another form of transport ie bus or cycle. Is ther any way that you can agree a deal with your dad to pay him back less or stop paying for the time being? Are you able to rent a room out to anyone or move somewhere cheaper?
To get out of your phone/broadband contract you could always phone them and try to reduce it and explain that they will have to be one of your creditors in a DMP if they won't reduce your fees?
You've taken the first step which is always the hardest.

grey_lady

HI Swishter,

Your not a failure, <hugs>
follow the advice you get here and do little things to make yourself feel happier, e.g Is your flat really crappy? or can you stretch the ciggies out for a couple of days and buy a cheap tin of paint or even some nice candles etc to make it feel more like home :-)

Start by really nailing down that monthly budget - as someone else you have
to account for everything, i used to put £10 a month aside for
birthdays, christmas etc but it took me a really long time to understand that the budget had to cover every possible outgoing e.g my car would need new tyres etc and if i put £40 a month aside for mot's / tax / servicing i would have the readies when it needed them.

Then get rid of the deficit e.g do you even need a car or would public transport be possible? (cars really cost)
can you cut back on food / ciggies even a little.
Once you dont have a deficit then you have breathing space even though your budget will need to be strict.

Eventually with pay increases etc you'll be able to throw more at your debt
and pay it back sooner. Or investigate the IVA / bankruptcy options, but
at least get to the point where you dont have to worry so much and that will happen when the budget is nailed down and you dont have the deficency.

I printed off the snowball calculator things from whatsthecost and every month would tick off that months repayments when i got paid, it gave me a bit of a visual incentive.

Think that's enough for now :-) but i've certainly been there, and things do change down the line, life moves forward etc difficult times do pass eventually and good times follow. One thing at a time though, and once the debt repayments is under control then please have a bit of a think about the smoking / weight thing or probably more importantly tackling any underlying problems that are making you unhappy.

hth

hypno06

How come you have £2000 tax estimated to pay? Is this an old tax bill and have you got any arrangement with HMIT to pay it in instalments?

If you are PAYE then surely your tax is all done as you go and there will be nothing to pay when you leave - you may even get a weeny bit back?

But remember, you are not a failure - if you are, then so are many many more and TBH failure is just not an option for any of us.

So chin up, join the gang and you will soon be on top of things. The tunnel may be long but there is a light a the end of it. Promise.

beanielou

Hi Swishster & welcome to MSE
Well done on posting & facing up to things.
You have had some great advice so far.
Take care.

Curious_Moose

Do you have a mortgage or pay rent on the flat?

barkingmadhound

Hi Swishter

I hope you don't take this the wrong way, but is it at all possible that you can move back home for a while? I know it isn't considered cool etc, but I did it for 2 years and it really helped me pay off all my debts, and I also studied full time for one of these years so I was earning nothing. I'm 33 this year, and am about to buy my first flat. If I can do it, you can too!!!

Good luck, have faith;)