23 years old with £1,600 debt. Wages going down. Help.

jonedwards1990

I'll keep this short. Basically my hours at work have been basically halved this year which obviously means I'm earning half the I was last year. I'm on a £7 an hour retail job.
I have £800 on a catalogue that's coming in at around £45 per month for my bill. I'm also living off my overdraft which is £800 and as good as empty every week. I've been like this since January. I've sold everything I have of value but it got me next to nothing.
I'm thinking a 0% credit card might be useful, just pay everything off and then just pay back the credit card asap.
Does this sound like a smart move or do you know of anything better?

Thanks in advance, you're all the experts haha.

Karonher

Would you pay off the debt if you did have the card, and would you then run up CC debt?

If you are sensible it can work, but you have to be realistic. If you get a 0% you might be best transferring overwhat you owe and then cutting it up.

tallyhoh

What are your circumstances? are you living with parents or independently. If you are living independently are you entitled to any help with rent or council tax? I think we need to know more.


Very few if any credit cards have a 0% rate for much longer than 6 months & then the rate rockets. What is the interest rate on the catalogue that you have?

getmore4less

Get a second job.

19lottie82

Are you looking for another job with more hours / pay?

Ilona

Forget juggling, the only way to get out of it is to stop spending on things you don't need. Cut right back, only pay for essentials, rent, food, utilities, and petrol for car to get to work/bus travel. Everything else is an optional extra. No going out, no eating out, no popping into a shop for newspaper/chocolate/coffee. Take a pack up from home and don't take any cash with you. If you don't nip your spending in the bud now your problems will escalate. It isn't a great amount of debt, if you are strict with yourself you can get rid of it. Get a bar job two or three nights a week. The choice is yours. Get savvy now or face a lifetime of debt. Good luck.
If you post up a S O A people can help with budgeting.
Ilona

dancingfairy

Why have your hours halved? What sort of contract are you on? 0 hours or is it a fixed amount but you have been doing lots of overtime? or has your work gone on to short working week? Obviously it will depend on your circumstances. If your company has gone on to a short working week or reduced your hours there are generally processes that have to be followed and you may find you are elegible for benefits.
You may find you are eligible for benefits anyway, just being on a lower wage. Go to either direct.gov website or entitled to and do a benefit check and it will give you an idea what you may be entiteld to.
df

dancingfairy

More credit to pay off credit is unlikely to be the answer. It also offers temptation to spend more as you have money available (you don't but many feel that way). It also may just prolong the agony. How are you going to pay this new debt back? Why do you think anyone is going to lend you money when your wgaes are lower and you owe money already? I'm not having a go but I feel your chances of getting a 0% deal (or other low deal) are fairly slim and you would need to have a realistic payment plan.
Have you spoken to any of the debt charities Martin recomends such as National Debtline or StepChange? You might need to come up with a payment plan to your catalogue.
df

NHS_worker_bee

Start applying for extra part time jobs you can work around your current job. And/or apply for a different full time job and if you're successful in getting a new full time job, change jobs and leave your current job. You can't survive on half your existing wages so you need to increase your income and cut your spending to clear the debt.

National_Debtline

Hello there,

Sorry to learn about your situation. I think the first thing you should consider doing is to have a go at completing a comprehensive personal budget sheet. The folks on here call it a 'statement of account'. The reason this is important is becuase it will help you calculate how much all your essential outgoings come to. This way you can see what might be left to offer your creditors. There is a MSE-friendly 'SOA Calulator' here.

We have a comprehensive budget which is designed to meet the industry standard. You can download, save and print the budget as often as you need; you can find it here.

We also have online software called My Money Steps which can help you choose the best route forward to tackle your debts.

As Dancingfairy has mentioned, consolidating seldom solves the underlying problem, you may find that your existing creditors will agree to freeze the interest and charges and to accept affordable payments to clear the debts.

Very best wishes,

David @natdebtline