Very Depressed newbie

darkstar5212

Well this is my first post so bare with me.

Like most people on this site I am in somewhat of a big hole with no sigh of any light. I have all the usual debts loan, credit cards etc but a few months back I found myself unable to pay most of my D/D’s and made the worst decision ever and went to the money shop to cash personal cheques. Since that time thing have really escalated and every time I get paid now it just disappears and im left having to cash more cheques just in order to try and keep up with payments and I know this will only get worse with time. This is also constantly putting my current account well over its limit and they are now demanding full payment to clear it and asking for my service card and chequebook to be returned or face further charges. I recently came across a company called Gregory Pennington who sent me through all the paper work needed but after reading other posts from this site decided against it. I have drawn up a SOA below but do not have the APR's yet but will find out that information if needed.

Salary: £1100 after tax
Out goings: Rent £100 (living with parent who know nothing about this!)
Mobile: £40-60
Car Ins: £46
Petrol: £50
Entertaiment:£40 (vodka)
Smoking: £150 P/M (I know I should quite, but when this stressed its near impossible)

Sainsburys C/C: £2189 (limit £2000)
Natwest C/C: £3296 (limit £3300)
Egg C/C: £1248 (limit £1250)

Natwest Loan: £8650 (was £10,000)

Blue Cheque: £600*
Money Shop £600* (*These two are the real killers)

RBS Current Acc: £189- ( No O/D limit £10 P/M)
Natwest Current Acc: £520 (limit £250)

Think that covers it.
Any help or adive would be greatly welcomed.
Kindest Regards Jon.

Lucy1982_2

Hi Darkstar.

Welcome to DFW! Everyone here is really friendly. I'm not really experienced enough to help that much, but I would suggest that your phone's look a bit expensive, mine costs £25.00 a month with T-mobile flex contact.

I would also look at snowballing. I'm sure someone will post the link, if not I'll find is and pop it on.

The key is to not panic, you are in the right place and we will help!

Well done for getting this far :T

Lucy1982_2

http://www.whatsthecost.co.uk/snowball.aspx

Here's the link, but you will need all of your APR's. Hopefully someone else will offer advice soon.

Keep smiling

ifstar

Snowball calculator is here -
http://www.whatsthecost.co.uk/snowball.aspx

You probably need to post a more complete SOA with you APR's and also your min payments (or what payments you make to each if no the min).

Your outgoings (other than debts) are working out about £450 so this is leaving around £650 to pay onto your debts. If this isn't the case then you need to do a spending diary to work out where this money is going.

Since your living at home and don't have huge outgoings, you should be able to batter your debt down without too much hassle.

ani*fan

Hi darkstar

I have firsthand experience of cheque-cashing as a short term solution to having no money. At one point I was paying £91 per month on a debt of £700 :eek: which was a real killer. And this amount was paying off none of the original debt, it was all pure interest.

Get rid of those cheques first and foremost. Find out what the interest is but I'm pretty sure putting that debt ANYWHERE ELSE IN THE WORLD is cheaper than what you are paying now. (But do double check that the interest on your overdraft or wherever is less.)

Once the cheques are gone you will immediately have more cash to put towards your debts.

Best of luck and much, much sympathy. :grouphug: Those cheque-cashing places are too tempting.

Shineyhappy

"Salary: £1100 after tax
Out goings: Rent £100 (living with parent who know nothing about this!)
Mobile: £40-60
Car Ins: £46
Petrol: £50
Entertaiment:£40 (vodka)
Smoking: £150 P/M (I know I should quite, but when this stressed its near impossible)"

Ok I know giving up smoking is a killer at the best of times (I have been there too), but try swapping to roll ups as you can not afford to spend 150 a month on fags. They aren't so bad when you get used to them. I smoked them for a couple of years and in a way because you smoke smaller cigarettes it might make it easier to give up.

I would try and cut down on the phone bill, maybe phone friends house numbers on your parents landline and give them the cash?

I hope thats Value vodka you are buying

If the real killers are only 1200 have you thought about getting a second job for a month or two? Just untill those are paid off?

Bestthingsinlifearefree

Hi DS,

Welcome to MSE :beer:

There is always a way forward.

Your over heads seem quite low, what have you spent the money on?

darkstar5212

Hi Lucy1982,

Thanx for a quick response, the trouble is im tied into an 18th contract but ill certailny cut down on the call costs as the line rental is only £35. Every little helps.
Jon.

Lucy1982_2

Hi Jon

I have an 18 month tariff and I've been able to change it. I was only paying £20 a month and getting £34 allowance, but I was spending more than this so I've put it up to £25.00 and I get £60 allowance.

Try giving your provider a ring, or check their website and see if there is another, cheap tariff you could move onto. Then just use other phones as much as possible. My Mum's phone costs 6p per hour in the evenings to UK landlines, very handy as I call friends landlines from there!!

But think positive and you will get there.

Also check when your car insurance is due as you should be able to get this cheaper. I'm currently paying £63 a month (I didn't shop around last year ) But I've had a few quotes and I think I can knock about £30 off this if I change provider. Of course this depends when you need to renew.

But I agree with everyone else, you need to pay of the highest interest first!

Storm

What are the minimum payments on the debts? Your listed outgoings come to £436 a month, so if you pop up the minimum amounts we'll get a clearer picture of what's coming in & going out a month.

What I would suggest however is opening another current account, not with Natwest or RBS where you can start getting your salary paid into. If they're starting to demand full repayment of the O/D the danger is that they'll just take your salary one month & not let you draw anything out.

Have you got anything you can sell to make a few quid quickly?

Switching to roll-ups from cigs does make a huge difference, I was on 20 a day, so spending about the same as you, roll-ups cost me about £50 max for the whole month, and normally a lot less.

The £50 petrol - is this commuting mainly? If so, do you have any colleagues you could car share with, or offer to pick someone up for a few quid each week towards the petrol costs?

yellowmonkey

darkstar.

Well done you on posting.

You have made the first step on your journey.

The longest adventures always need the first step forward

Regards

ym