£46k in debt.....at 24.

YoungBusinessman

I know, right....:eek::eek: What a way to spend my birthday.

Had final court case and ruling today, i have got £46k to pay back and been given 3 years to do so or will have assets seized(House value is £125k, owe £90k, joint with OH though). I have paid my outstanding solicitor fees of £1,900 and a fine so i now have £1,000 in my account(payday tomorrow, thank god) and have entered an agreement to pay back £1700 a month at 18% apr(is it just me or this extremely high?)

Iv also got about £400 on a credit card. So quite a wake up call today, again. I do, however, feel positive now court is over.

Seasonal job so hopefully can at least cover expenses between now and when clocks change again*March isnt it?* and work picks up again and get longer days.

I need a new SOA put up so away to do that now. Cannot thank this forums enough for the support iv recieved since i posted my troubles back in June :beer:

Just got that niggly feeling at the back of my mind now, what happens if one month i just cant afford to pay the debt? Would my house be at risk? Mortgage is fixed till Jan 2018 but was planning an upgrade by then, really dont want to miss any payments as the effect on my credit rating could jepordise the next move? Any help/advice(dont hold back) appreciated.

Gaz83

I think remortgaging is out of the question.

Re: the 18% APR, what makes this up? Have you taken out a consolodation loan to pay for everything?

YoungBusinessman

I havnt even considered remortgaging as its my mess, not the GFs.

The 18% is interest rate on the money determined by the sheriff, assuming it takes 3 years. I was offered lower rates at 24 or 30 months however the payments seemed sky high.

For the SOA it kinda makes false reading as i have a seasonal job,in summer pay can be as much as twice the amount as it is in winter, either way the SOA is now very grim reading.

in_need_of_direction

I'd say just focus on clearing the debt and worry about the mortgage rates afterwards. Head down and you will do it. Also, it means this will all be behind you by the time you are 27 and you'll have your whole life in front of you.

dawnybabes

Happy birthday, at least now you know what you are dealing with.

YoungBusinessman

Thanks, Dawnybabes. Exactly, i know what i need to achieve month to month to keep my head above water, just need to see out this winter as frugal as possible.

boredofbeingathome

Would it help if you posted your SOA here? Many folk can help pare your budget down and get the most out of your money for you.

Happy Birthday-Remember it is only today, you have lot's of tomorrows to sort out everything and it is doable.

gothrockchic1

Hi YB happy new shiny thread

I have worked out 36 months of your monthly payment and the interest is eye watering. Is there a option to overpay? If there isn't then I would build up an emergency fund.

At least the court case is over and the focus is away from the case and onto repaying the debt. :j

Happy Birthday enjoy it xxx

YoungBusinessman

Yeh, i plan to do so. Check back tomorrow night il post up an SOA, will post up what i tend to make as a minimum in winter so any extra income(can be as much as double) in summer can be used to feed the £200 emergency fund i have/pay straight to debts.

Thanks, i guess the court date could have come on a better day but obviously was out of my hands. Looking forward to a beer or two Saturday night and Sunday morning walking my parents dog then back for rest of the morning in bed. Cheap and cheerful. Thanks for the replies this far.

YoungBusinessman

gothrockchic1 wrote: »

Hi YB happy new shiny thread

I have worked out 36 months of your monthly payment and the interest is eye watering. Is there a option to overpay? If there isn't then I would build up an emergency fund.

At least the court case is over and the focus is away from the case and onto repaying the debt. :j

Happy Birthday enjoy it xxx

Hey GRC Glad your following me about!! :j

Worked it out myself this evening, it is brutal reading. Can overpay but been told its better if do it in lump sums? Will be building up emergency fund straight away, £200 is just too low now my monthly expenses total £2,600ish a month.....if nothing crops up!!! :eek:

Like you say, i can now focus my energies on repaying the debt and hopefully my next birthday im in a much better position than i am today, thank you :A

gallygirl

Right, well first of all, congratulations on not posting this from a prison cell :T. Glad it's over as it must have been very stressful. Am sure you've well and truly learnt your lesson!

An 18% interest rate is a great incentive to overpay :eek:, get some savings behind it then find out why they said to overpay in lump sums etc and get cracking. A few months to get an emergency fund and we'll be into your best earnings period.

As INOD has said, this will be gone by the time you're 27, look to the future and a belated happy birthday :beer:.