New and need help

7839matth

Hello all.

I guess its about time i fessed up about the issues ive dug myself into.

Im currently in around about 13k of debt. Split across 2 loans, a credit card and an overdraft.

Having browsed through this forum 13k may not seem that much to some people but its breaking me!

Ive spoken to my bank and they are unwilling to help because they dont class me as having a debt problem.

Every attempt at cutting myself off something to save money, has led to me picking up something new and spending that money! The latest one sadly is gambling, in the weak hope of paying it off in one quick and easy method. Which, obviously, hasnt worked out.

Any advice would be greatly appreciated. I Definatley cannot see the light at the end of the tunnel

Tixy

Hi and welcome to the forum.

Have you worked out a monthly budget of your income and outgoings?
Are you currently able to meet the minimum repayments on your debts?

If you are not sure then its definitely worth doing a detailed budget and making sure you allocate money to all outgoings (even allow a small amount for entertainment etc so that you are not trying to cut back to severely that you will fail).

Sounds like you need a plan to get on top of your debts but then also some tips on making sure you stick to the plan (e.g. things like setting up different bank accounts /ensuring you pay off x per month to your debts on payday so you are less tempted to spend elsewhere/ setting yourself a 'pocket money' budget etc may help)


Are you still gambling? or have you stopped?

7839matth

Hi, thanks for the reply.

Ill start at the end of yours and say yes i have stopped gambling, Deleted all of my online accounts and randomized and changed passwords etc so even if i wanted to, i cannot get back on!

Im paying off the loans fine, The biggest problem i find is the CC, As im only doing the minimum payment, its only really covering the intrest charged each month, I doubt i need to go on about the overdraft but im stuck in the cycle of clearing it when i get paid, then by the end of the month im heading towards its limits yet again.

Im Setting my priority to paying off the CC First, followed by the OD and then the loans after that.

This is how my finances currently stand each month.

Wage 1900

Loan £80.93
Loan £164.87
CC £66.94
Mortgage £409.27
O2 £38.51
Gas £9.00
Elec £30.00
Water £36.70
Virgin £31.99
Council £101.00
Fuel £200.00
Eat/Drink £300.00

This leaves slightly over £400 left to play with, to cover anything from a night at the cinema to buying the mrs some flowers.

Either im being really bad with money (Which im pretty certain i am) or im just not looking at things in the right manner, but £400 has to cover any form of socialising, and get me out of my overdraft, plus any issues that may crop up throughout the month.

Tixy

Good news on the gambling.

Maybe try completing this statement of affairs http://www.stoozing.com/calculator/soa.php this will remind you of other costs you need to budget for (so if you have a car things like insurance, road tax, maintenance, MOT new tyres etc).

And will then help you see how much of an inroad you might be able to make in to the cc each month.

kazp11

I had similar problems this time last year. I went to the Citizens Advice Bureau. They were brilliant. I was getting myself into more debt trying to make minimum repayment. They contacted be loan provider and credit cad providers and agreed a payment plan based on the money I could realistically afford to pay. I now am reducing my debt, living within my means and most importantly SLEEPING at night and not worrying!!! You will have heard so many folk talking about making a budget, be honest, include everything (add all birthday expenses for. Year then divide by 12) etc etc.
I cannot tell you how much more relaxed I feel. If I manage to save a little from my budget I can even treat myself (family).
Good luck!!

dancingfairy

This might sound strange but a banks job is not necessarily to help you manage your money and any debt. Nowadays they are big businesses and it's about making money for the shareholders.
They obviously class your debt as not a priority/not important but obviously if it's bothering you then you should seek help.
Far better places (And more supportive) would be National Debtline, StepChange or your local CAB who can go through your options with you.
df

dancingfairy

I think planning is probably the key. Try and predict what expenses will come up in the month - somebody leaving? christmas/birthdays, car expenses etc etc. The more organised you can be (and the further ahead you can look) the easier you will find things. Perhaps you find one month is a little quieter and you save a small amount but know that the next month is going to be more expensive?
Do you have anything you can sell to give a quick boost to get the interest down?
Are you paying council tax over 10 months or 12? if 10 then hopefully you will have a couple of spare months soon coming up and can chuck it at the card.
best of Luck
df
Edit: you should start a spending diary to see exactly where that 400 a month is going.