Young and Hopeless!!

Beautiful-Moose

I thought I would update people this month.

Basically things have got worse for me I am sad to say. I am scared and feel I have no one to turn too. These are the true figures of my debt. I had a day off last week and thought I would try and sort things out. I finally took my head out the sand and now I am scared stiff!!

Barclaycard - ££6,716.93
Natwest - £2,655.48
Overdraft - £400
Car Loan - £1278.62 ( finishes on 28th July 2013)

What do I do?! I am tempted to get a loan for £12k in March 2013 when my Boyfriend has finished paying me back what he owes me (He's the only one who seems concerned about paying me back. My parents don't.) Spread the costs over 2.5 years as I still want to be debt free by the time I am 28. I accept I may be 28.5 but still I don't want to enter my 30s in debt. Cut the cards up and just deal with this stupid mess I have got myself into.

I just want to cry. I feel like a failure! Any harsh words or kind words (not that I deserve them) would be welcome right now.

Jox

Sorry to bear unwelcome news but it may be difficult for you to get a loan for 12k with that much debt.

Keep paying as much as you can to the barclaycard and natwest credit cards, see if you can get a 0% card and do a balance transfer (there will probably be a fee) and split your payments over the 0% period.

After you pay off the car loan in July 2013 pay the amount you were paying towards your other debts.

Have you tried the snowball calculator? Put in your debts and it tells you the order to pay them and when you'll pay them off by.

http://www.whatsthecost.com/snowball.aspx

Can you sell unwanted items on ebay or join a cashback site like topcashback and do surveys, every little helps?

Well done on facing up to things, yes it's scary and horrible but I'm sure you will be debt free before you are 30 and will have learned a valuable lesson.

I have been in this situation a few times over the last 15 years so know what it's like!

Beautiful-Moose

I have just done the snowballing thing - Wow! That is so good! I already feel a lot more hopefull about the future. It is do-able and without loans! If I could get a card with 0% even just for one of them that would be amazing! Would I be able to transfer my Natwest debt to another card do you think?

I joined up to topcashback at the start of the month and have already worked up £10. I intend to do any/all shopping through it over the next year.

I will defo look into selling certain things. I bought a PS3 that I next to never use. I would be better off with just a DVD player!

Thanks so much for your post Jox!

Jox

Yay, I'm so happy you sound more cheerful, glad to have helped.

I've learned things the horrible, hard way and with the help of Martin Lewis and the good people on the forums I am in a way better situation and have helped 3 people in my personal life to claim back PPI and bank charges and it's such a good feeling

Stick to your plans, keep a spreadsheet of monthly payments and watch the figures go down month by month.

If you do apply for a credit card and are rejected, don't apply for another one for maybe 6 months.

But keep plugging away and pay whatever you can to the debt, it will shrink!

Beautiful-Moose

I have recently put in a PPI claim so I am hoping something happens there that wipes out my car loan as that would mean I could dedicate more money to ridding myself of my debt.

I think I am going to stick that chart on my wardrobe and cross off every month I make the payments as an incentive to keep me going and focused.

I am going to take the cards out of my purse as a start and leave them out of sight in my room which will hopefully lead to out of mind.

Jox

Good ideas

Any chance of getting a better paid job, maybe go to some agencies or apply online, it's worth a go!

That would be great if your PPI claim can wipe off the car loan, if you get it make sure you do pay off the loan otherwise it can get blown very easily with nothing to show for it! Then put the car loan payments towards the other debts.

When you are debt free then you can save money up and treat yourself occasionally as well

Beautiful-Moose

Well I really like my current job and the have said I am due a 3.5% pay rise which I suppose is better than nothing! I also have a sneaky feeling my manager is going to leave soon so here is hoping I can get her job and pay rise.

The car loan is defo the 1st thing I am going for if my claim is successful! Anything extra gained from it will go to paying off the overdraft and then cards.

I sat down with my boyfriend last night and explained the situation and how in the new year we will have to limit our nights out and take aways etc. I even gave him the option to walk away now if all this wasn't what he wanted from the relationship. He is going to stick around and infact even said he is going to use the time to sort out his finances too and start saving and help me out where he can.

Jox

That sounds great about your career prospects and pay rise!

And about the conversation with your boyfriend, well done, this will strengthen your relationship and take it to the next level!

Me and hubby didn't get home til late last night and were so tempted to get something unhealthy from the chip shop but we were sensible and made ourselves beans on toast and steamed carrots, parsnips and brussel sprouts (!) and enjoyed our quick and cheap dinner!

lilian1977

Welcome back B-M - how is your mum?

Great that you'vehad a 2nd LBM, the snowball calculator really is fab. A few years ago I had £1000 left to pay on a loan and by knuckling down I managed to pay it off within 3 months.

Have you looked at the Virtual Savings Pot challenge? You basically "round down" your bank account as often as you want into a seperate savings account (preferably one not connected to your current account so you don't see it when you log in). So, if your balance was £11.13, you would pay in £1.13 to your savings. Have a look at the 2013 challenge: https://forums.moneysavingexpert.com/discussion/4320309

Good luck xx

PurpleJay

Hi BM just been reading through your thread. Well done on realising the problem and facing up to it. It must be hard if your parents struggle with money issues and debts but saying that, I was in debt in my early 20s too and my mum was of the save up and don't buy it until you can afford it mindset and I didn't follow her example. I got out of debt by moving back in with my mum for a year after selling the house I had with my ex and then throwing everything at my debts. I had credit cards, overdraft and consolidation loans. My bank account was closed.

Now I have no debts apart from my mortgage and am 40 but I am very aware that I am overspending lately and savings have gone down. Now I am trying to reign myself in and get control again. I have 1 credit card and pay off the balance each month. For ages I daren't have one at all!

Keep a spending diary, sell what you don't need and throw anything you can at your debts. Plan what you need that month at the start and try and tick to it. i noticed on your brief soa there was no car insurance or mot which you need to budget for. Keep that goal in mind - to be debt free and in your own place. You will get there.

Why not sign up to some of the challenges on here. Virtual sealed pot, no spend days, etc. I am doing the December debt destruction challenge and there will be a new one in jan. it is brilliant, have a look. It is really helping me. Keep posting - it will keep you focused.

Good luck x