Last place to turn, advice much apreciated!

Rburns_2

Hi guys and gals,
I am 20 and for 2 years now i have been struggling with a low income job, 1 capital one card in arrears and 2 bank account overdrafts that are maxed and eat up my wage alongside charges within a week of being paid. Lately i have had to use payday loans to get through the month and have paid all of them off without issue.

It has got to the point now where i have no money after 2 weeks of being paid and still have bills that cannot be paid, the charges are destroying me and i need to get out of this desperately.

I have been declined on debt consolidation loans for 4-5 thousand despite the fact I would have more than enough to make every monthly payment when my cards are paid off for as long as the loan time runs. Also i have no guarantors for loans as all my family members have terrible credit history.

I see no way out of this and it is affecting my already down mental state and my effectiveness to concentrate at work now.
Any and all advice is welcomed and beyond appreciated.
Thanks so much for reading.

greensalad

Can you post the card amounts, interest rates, and an SOA so people can help you out with the numbers?

Rburns_2

Sure, capital one is -700 with a 500 limit, Halifax is -670 overdraft with roughly a £30 charge each month, santander is -100 but they slap on a £60 aranged OD charge and a £109 charge every month. I dont know the rates or what a SOA is though.

The extra money needed on a loan is because my motorbike has recently fully broken and will cost more to fix than replace aswell as money for an insurance claim on me for an accident on ice.

greensalad

Rburns wrote: »

I dont know the rates or what a SOA is though.

You will be able to find the APR either on the online banking or any statements you have, or call your bank and ask. It is very important you know this (and people might not be able to offer the best advice without it).

An SOA is a statement of affairs, and it shows your monthly spending budget. This helps see where you are overspending and where you can cut away to start repaying your debt. You can do the calculations on this link and post the results here: http://www.stoozing.com/calculator/soa.php - make sure you accurately fill in the SOA, don't just guess. If you're not sure how much you spend on food, clothes, entertainment etc (which you should do if you're going to beat this debt!) then sign up to Money Dashboard. It will scrape your bank account statements and show you in a handy pie chart how much you are spending on each category which you can use to fill in the SOA (take a whole year and average things like holidays over the year, then divide by 12 to get a monthly spend).

rockm87

I agree get a statement of affairs together, and let the lovely forum people do their magic!

Paying off debt with debt isnt the best solution, and if you have applied for credit and been declined you may need to give it a rest for the time being.

Have you spoken to any of your banks regarding charges? they may cut them or reduce them.

I got rid of my overdraft by treating it as another debt, I opened a basic current account, and got my wages paid into that. I then paid a fixed amount each month to my overdraft to eventually pay it off.

Rburns_2

34% apr on capital one, cant seem to find anything on my bank accounts though.

SOA as follows
Income: 950
Out goings:
200 repayment on loan for my now broken motorbike
160 santander OD charges
30 halifax OD charge
80 insurance
60 petrol
100 food for month
60 phone contract though this month was 90 because my insurance company uses a ripoff number
250 rent to parents (no i cant get this lowered, i used to be on 300
100 payday loan every month.

And to be honest i really would like to get a consolidating loan to make it easier for me and releive my stress, even if its not the best way to go about it i just need a break from the depression and stress!

rockm87

try completing this one, i know its long winded, but honestly it is helpful in the long run.

http://www.stoozing.com/calculator/soa.php

joedenise

rockm87 has done the right thing by opening a basic account - this is an account with no overdraft arrangement. You need to make sure it is a bank which isn't connected with any of your debtors.

Also as others have said do an SOA and post it here and others may be able to see where you can save some money.

Denise

Rburns_2

I need help finding a consolidation loan for some instant releif however not money saving tips, there is literally no where i can save any money i have already went over where i could scrimp, for example i literally live on noodles as is to try and save some money.
apologies if i misinterpreted what this forum was for.

Candyapple

Rburns wrote: »

I need help finding a consolidation loan for some instant releif however not money saving tips, there is literally no where i can save any money i have already went over where i could scrimp, for example i literally live on noodles as is to try and save some money.
apologies if i misinterpreted what this forum was for.

The problem is there is no 'instant relief' and you won't get a consolidation loan as you have already found out when you said earlier you had applied and been declined.

You need to either 1. Increase your income or 2. Decrease your outgoings and live within your monthly budget, or ultimately a combination of the two.

Based on the list you posted earlier, you are £90 in deficit every month. The reason why people are asking you to post up a statement of affairs are so they can make recommendations on things you might have forgotten about or ways to cut back even further. Example, can you not lower your mobile bill? £60 is extremely high. As for call centre charges, use the WeQ4U app (free) so you don’t incur any charges.

Do you have anything you can sell on eBay?

greensalad

I'm guessing as your motorbike is now broken you won't be needing insurance or petrol costs any more. £60 is a ridiculous amount for a phone bill. I pay £7, and get 0800 numbers included in my minutes.

If you can drop your phone contract in the near future, and with the travel costs removed (I expect you'll need some for public transport) you can save almost £190 a month.