Debt Help

fulhamboy87

Hi guys

I'm a mid-20s guy living in London on a salary of £33,000. My takehome pay after various different deductions (tax, NI,student loan, company season ticket loan etc) is approximately £1600.

My credit rating is 'very poor' and I have the following debts:

Student overdraft - £2700 (fees of c.£54 per month as unarranged overdraft)
Credit Card 1 - £1100
Credit Card 2 - £1100
Credit Card 3 - £700
Current Account Overdraft £200 (using reserve limit of £150pcm with a fee of £22 per week)

My current payments out are subsidised with pay day loans of around £800pcm.

I pay £920 in rent and bills, with the following payments:

£100 to the student overdraft
£65 to credit card 1
£85 to credit card 2
£40 to credit card 3
The current account fees are around £66 pcm, and student account overdraft fees of around £60pcm.

IN addition to having to pay back the payday loan, I am left with little cash to live, with no savings. Does anyone have any ideas at all?

Thanks

thecassman86

Hi there, welcome to the forum :wave:

First of all, it's important that we get a proper breakdown of all of your costs so that we can best advise you; this includes the different credit APR's you're paying as well as what you pay for each bill. If you're happy to do it, fill out the form on this page: http://www.stoozing.com/calculator/soa.php, then press "Calculate" followed by "MSE" at the bottom on paste it back in here for us to look at. You have to be thorough and strict so we can give the best advice to you.

Clearly, the important thing is getting those PDL payments gone so whatever money we can claw back from your budget will go towards those - you'll need to provide full details of those too.

It's not unmanageable and i'm sure you can get yourself out of the spiral . You've come to the right place.

National_Debtline

Hello there,

I think the first thing to do is to complete a comprehensive statement of account. If you complete this one you can post up the results for us to all see: http://www.stoozing.com/calculator/soa.php

Given what you have said, it appears that you may have very little 'surplus' money left over to service your debts. There will be options, however, and we can discuss those with you once we know a little more about your financial circumstances.

Our website provides information on getting your debts sorted by completing four simple stepts, you can find out more here:
https://www.nationaldebtline.org/EW/steps/Pages/default.aspx

Do also consider switching banks to someone that you have no debt with, so that you can start afresh. You should then treat the old overdraft as a debt in the same way that you would a loan and credit card.

We've a useful fact sheet outlining the best strategies to help you deal with the payday loans. You can find it here:
https://www.nationaldebtline.org/EW/factsheets/Pages/41%20EW%20Payday%20loans/Default.aspx

Best wishes,

David @ NDL.

thecassman86

One thing that isn't included on the SOA is the limits of the credit cards... Presumably, if you're using PDL companies they are maxed out?

Tixy

Hi and welcome to the forum.

When is the payday loan due to be repaid? Have your payday loans debts been increasing over time? or have you been renewing it for several months or have you only taken out the loan recently?

It sounds like you may need to consider defaulting on your consumer credit debts and arranging reduced repayment plans at a rate you can afford after paying living costs.

You may want to speak to one of the debt advice charities for some help and advice on the possible options available to you. IMPORTANT - Where to seek professional impartial advice about your debts.

You probably need to set up a new bank account with a bank not connected to any of your current debts and need to cancel the existing CPA on the payday loan and the payments to the other debts.

Whilst you seek advice you could send your creditors a letter to say you are seeking advice and this should give you 28 days to decide on a way forward (but cancel the payday CPA with your bank first). see this template http://forums.moneysavingexpert.com/showpost.php?p=21937969&postcount=52

fulhamboy87

Hi guys

Thanks for this - I'll do this once I get home this evening and post it up. Thank you for your advice so far!

FinanciallyUnsavvy

Those OD charges are unholy! :eek: Make those your priority - even just clearing the £200 one will save you £800 a year in interest!!

You mention a pay day loan but didn't include it in your list of debts - how much do you owe here? As others have said, it'd be very helpful to post a full SOA so the lovely folks here can give you better advice.

I'm guessing since you live in London there isn't much wiggle room in your rent/bills, but posting an SOA will let people advise where cutbacks could be made. Even an extra £5-£10 a month can make a big difference.

Can you take on a small second job? Overtime at work? Considered various avenues of extra earning online? Things to sell on ebay?

Good luck, and well done for taking the first step. It's scary, but once you've admitted to yourself you need to take control and start doing it - it's a good feeling.

fulhamboy87

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 1600
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 100
Total monthly income.................... 1700

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 810
Management charge (leasehold property).. 0
Council tax............................. 39.25
Electricity............................. 0
Gas..................................... 33
Oil..................................... 0
Water rates............................. 8.8
Telephone (land line)................... 0
Mobile phone............................ 120
TV Licence.............................. 7.28
Satellite/Cable TV...................... 0
Internet Services....................... 5
Groceries etc. ......................... 150
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 40
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 200
Holiday................................. 0
Emergency fund.......................... 0
Current Reserve Charges................. 66
Student Account Interest................ 60
Total monthly expenses.................. 1539.33


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card 1..................1120......30........24.9
Credit Card 2..................1180.34...40........30.34
Student Overdraft..............2700......100.......0
Credit Card 3..................700.......40........16.9
PDL............................880.......880.......0
Current Account Overd..........300.......50........0
Total unsecured debts..........6880.34...1140......-


Monthly Budget Summary
Total monthly income.................... 1,700
Expenses (including HP & secured debts). 1,539.33
Available for debt repayments........... 160.67
Monthly UNsecured debt repayments....... 1,140
Amount short for making debt repayments. -979.33

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -6,880.34
Net Assets.............................. -6,880.34


The limit on credit card 1 is 1200, 2 is 1300, and 3 is 750.

I currently work about 50 hours a week, and my additional income is from the weekend when I act as a sports official. I'm busting a gut, and have already spoken to the student bank who have agreed to suspend the payments as long as i continue to pay off £100 each month.

Thanks guys

19lottie82

£120 a month for a mobile??????

And nothing for haircuts, clothes or presents? Not realistic.

fulhamboy87

120 quid for a mobile (80 pcm) and an ipad (40pcm). My haircuts I get done free by my friend who gives me questionable quality, and I my family will usually buy me clothes when I need some. I don't often get presents enough for inclusion, and if I do they are of small value.

FinanciallyUnsavvy

fulhamboy87 wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 1600
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 100
Total monthly income.................... 1700

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 810
Management charge (leasehold property).. 0
Council tax............................. 39.25 Do you share? Is there no possibility to move to a cheaper property? If you aren't sharing, could you find someone to share with?
Electricity............................. 0
Gas..................................... 33
Oil..................................... 0
Water rates............................. 8.8
Telephone (land line)................... 0
Mobile phone............................ 120 This is astronomical. Contact your supplier to see if they can offer you any reduction. CANCEL THE CONTRACT AS SOON AS YOU CAN!!!!
TV Licence.............................. 7.28
Satellite/Cable TV...................... 0
Internet Services....................... 5
Groceries etc. ......................... 150 This is a lot for once person. I spend under £120 a month for two. Brand swap, batch cooking, trying Aldi/Lidl etc. all work wonders.
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 40
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 200 Clearly you don't have 200 spare!
Holiday................................. 0
Emergency fund.......................... 0
Current Reserve Charges................. 66
Student Account Interest................ 60
Total monthly expenses.................. 1539.33


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card 1..................1120......30........24.9
Credit Card 2..................1180.34...40........30.34
Student Overdraft..............2700......100.......0
Credit Card 3..................700.......40........16.9
PDL............................880.......880.......0
Current Account Overd..........300.......50........0
Total unsecured debts..........6880.34...1140......-


Monthly Budget Summary
Total monthly income.................... 1,700
Expenses (including HP & secured debts). 1,539.33
Available for debt repayments........... 160.67
Monthly UNsecured debt repayments....... 1,140
Amount short for making debt repayments. -979.33

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -6,880.34
Net Assets.............................. -6,880.34


The limit on credit card 1 is 1200, 2 is 1300, and 3 is 750.

I currently work about 50 hours a week, and my additional income is from the weekend when I act as a sports official. I'm busting a gut, and have already spoken to the student bank who have agreed to suspend the payments as long as i continue to pay off £100 each month.

Thanks guys

My comments are in blue. Good luck! Good to hear that the student bank are willing to suspend payments at least.