lots of debt after uni

loubie_lou

Lots and Lots of Debt After Uni!!

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Hello

I took out a loan after university to repay my student overdraft (£3000 - barclays bank, ridiculous apr). Like a fool I didn't close the account and have now ran it back up again!
I would dearly love to get rid of this overdraft, but I am unable to take another loan out (because i have too much credit apparently - 8500 personal loan 7.9%, 1000 abbey overdraft - interest free, 350 credit card - 18.9%, phone contract).
I've had this account at -£3000 for about two years now since i left uni, when will they ask for it back? They have not so far so i'm worried they will demand it back in one go!!
I earn 12300 pa and after all my bills go out i only have about £200 disposable income, so paying it back like i already have a loan is not really that feasable!
Any ideas how i should tackle this and the other debts?

Thanks
Loubie-Lou

frepol

Are you still paying your wages into the account and keeping it in good order? If yes, then it is very unlikely that the bank is going to ask you to repay it in one go.

At the moment, you have the upper hand because you are not in the position of the bank demanding immediate repayment. Maybe you should call into the bank and say that you want to start reducing the overdraft and would like to have it reduced each month by an amount that you can afford.

loubie_lou

The wages are not going into that bank account and i have been going over the limit a few times!! if the bank demand it back, will i be able to do it in instalments?

nearlyrich

loubie_lou wrote:

I earn 12300 pa and after all my bills go out I only have about £200 disposable income

Hi Loubie_Lou welcome to MSE and Debt_free_wannabe, you have come to the right place.

Getting another loan to pay off existing credit is never a great idea, you need to have a plan to get rid of the debt and either cut your spending to match your income or increase your income to match your spending.

First things first, have you done a budget? "about £200 disposable income" would imply that you don't actually have that money to play with each month and you are still spending and increasing your debts. You might need to keep a spending diary to see where the money goes.

Snowballing, paying off the most expensive debt first will save you money in the long run and using the site linked above you can see how long it will take and how adding a bit more to the pot can make a huge difference.

Once you have paid off these debts you will have freed up a monthly sum which you can spend or save for the things you really want, clothes, holidays, house deposit or whatever. Good luck and keep posting.:)