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Questions about my situation, any advice gladly and gratefully received
bobble1990
Posts: 3 Newbie
Hi all
I have a bit of a conflict going on about what to do about my debts and will explain how this has come about....
I am now 29 and have carried debt around since my undergrad days in 2005. This debt has always been difficult but I have always managed till more recently. The debt is:
- Overdraft from undergrad uni for £2000 but I only get charged interest on £1000 of this (so £8p/m) due to me wrangling it as a student account through my MSc and Doctorate also. However this is likely to change this summer.
- Tesco credit card of £1450. I am struggling to make the payment I have set up for this of £50 and, I know this is terrible but, I am stuck in a vicious cycle each week where £25 of that gets taken in interest and I have to money transfer the other £25 etc to myself for petrol at the end of the month etc. So this debt is neither growing or shrinking but costing me.
- £6000 Personal loan (was £9200) which funded my doctorate, I am paying £304 a month back on this.
The difficulties have come as I have had in January to leave my full time role which was paying £1700p/m to a part time £1450p/m role and this is obv taken its toll on a alredy tight budget. The reason for the role change was personal and I am glad I did it for many reasons except the money. The new company have applied to make my role FT and we are awaiting this outcome.
Recently I have tried to be more pro active and therefore contacted Step Change. They have advised me to do a DMP as my outgoings were found to be £1129, leaving £312 for creditors. I found the people I spoke to helpful and supportive but I am new to all this and have a few concerns/questions:
- They seemed very keen to get me on one of these plans! I am hoping this is because they want to help but a bit of me wonders about it being too good to be true and therefore (I know they are a charity but) what could they be gaining from me signing up to this???
- The plan would hopefully help my mental health etc but I am worried about what effect it will have on my future credit rating? They did not really mention this but then I did not ask.
- My GF is also worried about me doing this as might want a mortgate etc in next few years, getting old now!
Since sharing the above with my family yesterday my Dad has now offered to pay my CC in the hope this is the one thats breaking my back so to speak and I would not need to repay him till I have cleared some of the other debt. This probably seems like a no-brainer but I have my pride and dont want to end up in debt to my Dad, esp if it does not help as much as he hopes and I am still struggling.
So that is where I am currently at and would be hugely grateful of anyones thoughts. Please be gentle though, I may have a Doctorate but I am finding this truely difficult, I think things are harder when they are our own due to anxiety, depression, guilt etc etc.
I have a bit of a conflict going on about what to do about my debts and will explain how this has come about....
I am now 29 and have carried debt around since my undergrad days in 2005. This debt has always been difficult but I have always managed till more recently. The debt is:
- Overdraft from undergrad uni for £2000 but I only get charged interest on £1000 of this (so £8p/m) due to me wrangling it as a student account through my MSc and Doctorate also. However this is likely to change this summer.
- Tesco credit card of £1450. I am struggling to make the payment I have set up for this of £50 and, I know this is terrible but, I am stuck in a vicious cycle each week where £25 of that gets taken in interest and I have to money transfer the other £25 etc to myself for petrol at the end of the month etc. So this debt is neither growing or shrinking but costing me.
- £6000 Personal loan (was £9200) which funded my doctorate, I am paying £304 a month back on this.
The difficulties have come as I have had in January to leave my full time role which was paying £1700p/m to a part time £1450p/m role and this is obv taken its toll on a alredy tight budget. The reason for the role change was personal and I am glad I did it for many reasons except the money. The new company have applied to make my role FT and we are awaiting this outcome.
Recently I have tried to be more pro active and therefore contacted Step Change. They have advised me to do a DMP as my outgoings were found to be £1129, leaving £312 for creditors. I found the people I spoke to helpful and supportive but I am new to all this and have a few concerns/questions:
- They seemed very keen to get me on one of these plans! I am hoping this is because they want to help but a bit of me wonders about it being too good to be true and therefore (I know they are a charity but) what could they be gaining from me signing up to this???
- The plan would hopefully help my mental health etc but I am worried about what effect it will have on my future credit rating? They did not really mention this but then I did not ask.
- My GF is also worried about me doing this as might want a mortgate etc in next few years, getting old now!
Since sharing the above with my family yesterday my Dad has now offered to pay my CC in the hope this is the one thats breaking my back so to speak and I would not need to repay him till I have cleared some of the other debt. This probably seems like a no-brainer but I have my pride and dont want to end up in debt to my Dad, esp if it does not help as much as he hopes and I am still struggling.
So that is where I am currently at and would be hugely grateful of anyones thoughts. Please be gentle though, I may have a Doctorate but I am finding this truely difficult, I think things are harder when they are our own due to anxiety, depression, guilt etc etc.
0
Comments
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Well done for facing up to your situation and being open to any advice.
I don't have personal experience of StepChange but whenever they are mentioned on this part of the forum comments are positive. A DMP would harm your credit rating but an overdraft and a credit card balance that is not decreasing aren't good either. How close are you to being unable to make your monthly payments?
Could you pick up any part time bar work or tutoring to boost your income? Have you got any old books you could sell? How much food do you have in your kitchen? Could you have a frugal month where you eat out of the freezer and store cupboard and put the money saved to reducing your overdraft or credit card debt?
Good luck with this and your future plans.0 -
To be honest I would swallow your pride and take the money offered off your dad. BUT I would also then set yourself a budget so that you USE the money saved each month to pay down the other debts you have more quickly.
Good luck
chevI want a job that is less than an hour driving away from my house! Are you listening universe?
0 -
To be honest I would swallow your pride and take the money offered off your dad. BUT I would also then set yourself a budget so that you USE the money saved each month to pay down the other debts you have more quickly.
Good luck
chev
Agree strongly with this and to avoid a DMP since the main issues could be resolved in the next 6 months.0
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