Depression of Debt @ 24.

Pal

Could you extend or take out a new reduced rate bank loan to settle the credit cards? If so it would reduce your interest payments a lot, although you would want the extra loan over a fairly short period so you can pay it off asap.

Rafter

Try to pay a bit more of your MBNA account off if you can - seems to be that is the debt with the highest interest.

Is there anyway you can talk to someone at work about taking on more responsibility or what you need to do/achieve to get a promotion?

It is possible to make money out of trading on ebay but you have to know what you are doing. Even old clothing and stuff can sell for a decent price if it is marketed in the right way. You can buy stuff from charity shops or car boot sales and sell it on ebay for a profit, but you have to really know what you are doing.

You could try to get some barwork or hotel work in the evenings and at weekends maybe - but don't overdo it and make yourself feel even more low.

Is there any chance your parents would help get you out of debt? They could take out a texaco 3.9% for life card and you could transfer the balance of your MBNA card to it and then start paying that off? You seem to be paying 20% APR on that debt at the moment. Getting it down to 3.9% would save you nearly £500 a year in interest and mean you could pay it off in half the time if you carry on paying the same amount per month.

Are you paying payment protection insurance on your MBNA card? If so, think about the protection it gives you and consider cancelling it?

Hope these ideas help.

R

summerday

Hi MerseyLad,

Firstly, sorry to hear of your situation and how you're feeling. I'm 24 too, and have £11.5k of debt, but I am more fortunate because all this debt is owed to the Student Loans Company who charge a very low interest rate of 2.6%. However, it's still a debt and like you if I think about it too much it depresses me as well.

But let's not think of the negatives. At least 24 is still relatively young, I know I'd definitely rather be facing this problem at 24 rather than 34 or 44. We have more time to sort it all out, put the debt behind us and still have plenty of years to save up for retirement and kids etc.

Well done for starting to pay more than the minimum payments off your cards, that's a big first step. The more you can possibly do this the better, as every extra pound you put towards it will help blitz the balance. When you owe so much it's sometimes hard to see how the odd £1 here or there can make a difference but it really does. When you but ANYTHING, be it a can of coke, or a magazine be aware that the amount you pay for it could instead be bringing your debt down by that same amount.

To this effect, think about how you can save money on everyday things like food shopping. I always go shopping with a list and vow to stick to it, this saves heaps. Buy lots of fruit and veg, these are relatively cheap, and get them from a market not from supermarkets, much cheaper. Perhaps base your shopping list on what is on Buy one Get One Free offers (check local papers/ websites).

It sounds like your job is really getting you down, so keep checking the job paper each week and at the Jobcentre to see if there is anything you might enjoy more, pref which pays better. In the meantime, maybe consider getting a second, part time job. This is what I have done- I am a Youth Worker for 2 evenings a week, this brings in an extra £100 a month, it all helps. Maybe think about doing similar just temporarily, if you got one the same pay as mine that's an extra £1200 a year to pay off your debts. You could ring supermarkets to see if they have vacancies for a few hours a couple of evenings a week, or pubs/bars/restaurants would be a good place to try too.


I suggest you do try to ring them again about transferring to a 0% card. Don't let them make you feel awkward or embarassed, at the end of the day they want your business. Ask to speak to a senior member of staff if possible, they are more likely to have the power to bend the rules if they believe you could potentially be a good customer despite a computer saying the opposite. Emphasise that you have always placed a high priority on always making your repayments, and that you are at a point where you are taking your finances extremely seriously as you have a view of saving for a house deposit.

Should this still not work, try appying for a different 0% credit card, and transfer the maximum possible to it from both your credit cards if poss. One word of warning- don't apply for loads and loads of 0%credit cards though, as this may have an impact on your credit rating, just the applying. Also, if you do get one, it is vital that you use those first months as a real chance to pay off as much as poss, as a lot of them rise the rate very sharply after the few introductory months, and may end up higher interest than the ones you already have now.

Do you have old CDs, video games or DVDs that you rarely watch? If so this is the kind of thing you could easily sell online. I have sold several CDs on Amazon, I found it very easy and was able to specify the price I would sell it for.

Anyway, keep positive, I know you'll get there. It's all a learning curve!

Take care, Sarah.

scattycat_3

Hi, sorry to hear about your troubles.

Good for you realising that the only way forward is to stop using credit cards for purchases. The problem trying to get out of debt is the time lag, giving you the "Dohh I forgot I bought that 7 weeks ago", when the statement drops though the letterbox!

To reduce your monthly outgoings, stay in, watch videos drink from cans buy supermarket offers, especially cans, sponge off family ???, Get rid of mobile? Buy at carboots.

Seriously I would approach the gym, pleading to cancel contract, on the basis that if you are forced to stay, they will loose you to another gym forever, after the 12 month period. ( when you hope to be in a better financial position to rejoin. )

Look to where the most interest (ie wasted money) is going, and try to move that to a cheaper place. From what you say MBNA is the obvious one to rid yourself of, £7/m is not going to reduce the capital much . Try talking to the one that turned you down, as Sarah said.

Unfortunately MBNA are the easiest to get credit from, as you may know. So if you can pay them off, they will start to bombard you with offers a month after you dont owe them anything, and will probably up your limit. This may seem daft, but that is a chance to start tarting. Heres how, (assumes you can somehow get rid of the £3000+ to another lender).

Dont cut up cancel card, just wait. MBNA at some point will  offer you  0% , when they do grab it as the monthly repayment required is usually only £5 . Transfer the highest interest card left to them at 0%, to clear that card, say Cahoot, They (Cahoot ) then will realise you are a better risk and probably make offers and so the 0% card shuffle will be in your reach , You will have been proved creditworthy having cleared two cards!

(added) And remember not to use any 0% card you manage to get for purchases, as  you will get charged high interest on the spend, which will mount up as the money paid in each month goes to pay off the balance transfer first.

Keep trying for  low interest card transfers, but beware too many at a time will affect your rating. Barclays is the best at mo with 12 months 0%. Look for a card with a low ( 1%ish) monthly repayment amount as a lot require 2% which in your case would be reduce your ability to choose who to pay first.

Salary advance?, cheap consolidation loan (no more than 6%) to reduce your monthly outgoings, family help, especially mums, dont be proud, ask (and ye shall be given, so they say,) cos if you dont ask ::)

Dont stop trying as it can only get better, you are aware of the direction, just a little luck is required. and we all wish you that.

Hope this helps as there are a lot here in similar circumstances, but have the experiences to share, thats what MSE is about, Scat

MerseyLad

Thanks Everyone.

Just a bit of an update.

Ive transfered my MBNA balance to a Capital One Card I had cleared off ages ago and forgot about. They sent me a letter offering 6.9%, so i moved it across and guess what?

MBNA send me a letter saying, transfer balances to them for a new rate of 1.9%!!!!!

So will move Capital One back soon, and also move the Cahoot Card across there too,, so all the visa bills are on 1.9% for the time being, and ill just throw all my extra money on that and forget about it for a while and see where that gets me.

Just need to sort out some extra work/money.

Robert_Sterling_3

I wish you great success in your efforts to put into practice the wise words of Charles Dickens more than 100 years ago.

Income 20 Shillings Expediture 19 Shillings and Sixpence Result Happiness

Income 20 Shillings Expenditure 20 Shillings and sixpence Unhappiness.

... or something like that.

The words have echoed down the years and rung out again in "Blood Brothers" by Willie Russell

A musical which has been running in London for now for over ten years.

If only we could learn from other peoples mistakes rather than our own.

All the best with your efforts.

shanni

Merseylad,

I totally empathise with your situation. I'm 10 years older than you and in a similar mess. I think the best move you've made is to find this site. I wish I'd discovered this place before now.

I'm on a major cut-back/tight budget now and intend to sort myself out once and for all. It is hard though, my salary isn't wonderful and it doesn't take long to get into debt.

Good luck, the advice here is the best! I'm so very glad I found this place, everyone is so helpful and patient with newbies like me.

At least you've got the sense to not leave it as long as I did. Good on ya

forest4ever_2

Merseylad. If you're keen on football or other sports, get some autographs, preferably signed photos. They sell well on E bay. Get your girlfriend to take your photo as the celebrity signs, to prove its authentic.
Sell anything you've got thats old. Postcards, stamps
beermats, coins. Charge a bit more for P+P.
I sold my mobile phone and got more for it than I paid at Argos. People seem to get carried away when bidding!
I think all young people are in the same boat. They've got little chance on the property market at present.
And to savvysaver - Gyms are not rip offs. My gym has equipment worth £60,000+. Where else could you have unlimited use for approx £1 a day.( we charge £26 per month). Try hiring a car for that!