In a mess.

woollisox

Hi all, This is the post I have just copied over from another board on this forum.


I just need some advice on how to sort out this mess I seem to have got myself into.
When I was 18 I took out two catalogues with Littlewoods and 24studio. I, being the irresponsible idiot I was back then, neglected to pay them and I forgot about them until 2 years ago. Unfortunately, I was at university by this time and I have only been able to make the smallest payments (currently £5 each per month). There is also a Halifax overdraft I took out at this time which was £200. I thought I had closed the account down as I had sorted the overdraft and then returned 2 days later and was told the account was closed. I think I only had the account about 2 months. Unfortunately, the morning I went in to close the account, the £5 monthly fee had been taken out. Two years down the line, I start getting letters asking for over £900, which I argued with Halifax, eventually accepting to settle at £650 in order to avoid court proceedings.
Now, I am at the point of graduating university, I have managed to stick to a £600 overdraft the entire 3 years with minimal student loan and no other credit being used during this time.
However, I recently discovered a debt to my university of nearly £400 (from a fine in my first year for leaving accommodation early) and have been told that I am unable to graduate unless I can pay for the fine. I have spent the past two days trying to sort some kind of credit as I figured that now that I have left university and have a job (part-time for now, but will be full-time come September) that I would take out a loan of some kind and pay off my overdraft (£600), university debt (£400), my Halifax account (£550), Littlewoods (£190) and Studio account (£260) at the same time. The total is exactly £2000 and I was hoping to take out a loan that would enable to pay all of these off and then have one repayment to make per month which would be more manageable.
However due to Studio constantly changing my creditor, I have defaults on my file. My "credit agreements" on Equifax is in red and I have been able to secure any sort of financial help. I have been told by stepchange that I do not have enough debt to be considered as needing a consolidation loan and I apparently am also too young (I'm 22). I already realise that it is unrealistic that I will be able to get a mortgage until I'm at least 27, and I'm hoping to have sorted this mess out and saved a decent deposit by then.


I have no incomings until late July/early August due to the payment system with the job I'm starting in two weeks time and my graduation is the 11th July (and the £400 has to be paid before this point). I am in a mess, and there is no one in my family/friend group financially able to help me. What I need is some kind of loan/credit card/anything that can pay off my university debt and keep me going until payday (without turning to Wonga or such!)



I'm hoping someone has some advice, or a suggestion on where to turn at the moment.
Thanks

sourcrates

No quick fixes here im afraid, you cant get any credit as your credit file is trashed, do not go to a payday lender as this will just compound your problems, your best option is to agree a payment arrangement with whoever has fined you at uni, and graduate after that is repaid.
Consolidation loans are NEVER the answer as there will always be some crisis that will arise, you wont be able to pay, and you will be back to square one, only with twice as much debt, believe me its very easy, I have been there, never take out further credit to repay credit, its a very slippery slope and I would advise you very strongly not to do it. !!!!!!

whitewing

Have you tried speaking to the Student Union or a welfare person at the Uni? Perhaps they can help you sort something out with the uni.

Could you resale some of your textbooks? Have you got anything else you can sell?

Karonher

if you are working part time, could you take on some other work for a few weeks or months? It may give you the full £400 or at least a big enough part of it to allow you to graduate.

Hillbilly1

Could you possibly post a budget/SOA for the next 3-4 months?


You have money to live off until the payment from your new job - is there any way to juggle that and get the £400.


Its horrible to think you could not make graduation but universities are 100% sticking to the rule to prevent bad debts.

woollisox

Thanks for the repliees!

I think my best option is to speak to the su, and maybe try and work aomwthing out. As for juggling money to get £400, there is no way possible. I have less than £250 right now, of which I somehow have to pull £360 rent out of. I'm considering asking Barclays to extend my student overdraft, but I don't know how willing they will be considering how close I am to graduation and the fact that it should soon be switching to a graduate account. It is interest free and I think the maximum limit for it is about £2000. I am planning tocontinue using Barclays as my bank for many years to come so hopefully they can understand!
Do you think this is a viable option?

Desperate_to_be_debt_free

Hi woollisox does your university have a financial contingency fund? Some universities offer financial help to students who are experiencing financial difficulties. You can usually get information on whether they do on their web page.

Good luck x

whitewing

Look on the main site for info about graduate accounts as it seems that some have int free overdrafts.

You can actually sometimes change accounts even with an overdraft so if your bank won't help, another may (I don't know how your debts will affect that though but you should be able to get advice from the bank about that).

You do need a bit of a longer term strategy though, even if you manage to sort out the next few days. You may be earning in your new job but you will still have bills to pay and you will probably want to socialise too to get the most out of being young and building a career.