Small Debt Advice Needed

DaveBrup

Hi,

I'm a long time visitor of the forum and recently found myself in a bit of a pickle. So thought it would be a good idea to ask here for advice :cool:

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Background Info:

19 Years Old
Earn = £185 a week
Outgoings = £80 a month house rent, £80 a month train fare, £15 a month DVD rental service, £50 a month payment to parents (Holiday). £20 a week Cigarettes.

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I'm currently overdrawn £135 on my Llyods Account, and haven't the cash to bring myself back into credit.

I get paid in cash so i have basically no credit rating at Llyods and i'm pretty sure i would get rejected for an overdraft to temporarily clear it.

So what would be the best thing for me to do?

backontrack_2

Lloyds also do a Silver account for which you pay £2 a month at first which gives you a £100 overdraft automatically, if they'd let you. Can't mum and dad let you postpone payment temporarily while you get sorted. £80 a month on cigs could be sorted if you'd cut back and do you need to spend £15 on DVD's - maybe you could borrow from friends. Otherwise you get a part time job and clear it bit by bit. Have Lloyds ok'd this overdraft or are they charging you for it?

lynzpower

hi there dave


An overdraft wouldnt clear it, it would only allow it to be acceptable for you to owe, when at the mo, I expect its not if you dont have an OD.

Do you go and pay your wages into the bank when you get paid?

Is it the film subs thats made your acc od?

DaveBrup

It's not currently an overdraft, its how much i'm overdrawn

I understand i can cut back on cigs and dvd's ect. . . but it's all within my means.

It's just at the current moment i can't afford to clear this and i'm seriously worried there going to keep charging me

CLAPTON

your income is £801 (averaged over a month)
and your stated spending is £305 per month.

So where does the other 500 go?

You need to write out a proper budget and find out where your money really goes.

keep a spending diary and write down everything you spend so include socialising, takeaways, magazines/newpapers, haircuts, lunches etc. Plus also, work out all your yearly and one off spending.. that is everything you think you will spend over the next 12 months and divide by 12 to give a monthly budget figure (so include, holiday spending, clothes, xmas costs, presents or whatever you spend money on.)

boo2905

Hi Dave

Your cigarettes and DVD's may normally be within your means but while you have got a debt they are not as technically you are living beyond your means with a debt there.

As clapton says you have about £500 a month which you need to look at where it goes. Keep a spending diary to find out the answer to this.

Also you mention you don't want them to keep charging you. Does that mean they are charging you now? If so then you should try and claim it back and it might clear some of the overdraft amount

RAS

DaveBrup wrote: »

Hi,


Background Info:

19 Years Old
Earn = £185 a week = £740

Outgoings =
£80 a month house rent,
£80 a month train fare,
£15 a month DVD rental service,
£50 a month payment to parents (Holiday).
£83 Cigarettes.

308 expenditure

Debts

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I'm currently overdrawn £135 on my Llyods Account, and haven't the cash to bring myself back into credit.

What are you spending the other £472 per month on?

You need to keep a spending diary and find out where the money that you do not have is going asap.

DaveBrup

I don't save any money at all.

To be honest i would say £30 a week on clothes, £60 a week on weekend socialising.
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The expenditure diary sounds like an excellent idea, and something i think i would benefit from.

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Also i know i can reclaim my bank charges but would need to read up on it a little more as the last couple of times i have and get a little confused

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Yeah i'm currently getting charged for being overdrawn and its worrying me, as the debt is getting bigger and bigger. Thats why i thought i would ask about maybe getting a personal loan or overdraft to clear the debt, so i can pay it back easier and in my own time.

RAS

Dave

Oh there are so many people here who thought like you and now have thousands and thousands of debt!!!!!!!!!!!

if you rein in the clothes and the socialising for a month you can pay this off easily.

What you might need to do once you have this clear is put £20 a week into an ISA so that you have a bit of spare if you are off sick, need something more expensive, even a quarterly train ticket if that is cheaper.

DaveBrup

I planned to save up for a car, when i passed in January but i find it really hard to save money as i'm out all the time.

I agree i need to cut back, but find it difficult as i get bored very easily.
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Do you think a temporary overdraft with Llyods would be a good idea?
Or maybe a personal Loan?

I really don't want to lend money off my parent's, as they have enough thngs to worry about

RAS

DaveBrup wrote: »

I planned to save up for a car, when i passed in January but i find it really hard to save money as i'm out all the time.

I agree i need to cut back, but find it difficult as i get bored very easily. What do you enjoy doing?
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Do you think a temporary overdraft with Llyods would be a good idea? NO
Or maybe a personal Loan? No

I really don't want to lend money off my parent's, as they have enough thngs to worry about Agreed

you are trying to solve a small short term by acquiring a large long term problem.

If you want to save for a car, you need to cut you other expenses anyway.

Right now forget about loans. On your income, even if you are offered one, you will get into trouble as the APR will keep going up.

Over the next two weeks, keep the spending diary and try to reduce your spends on clothes and going out a bit. Then we can help you more.