Last place to turn, advice much apreciated!

Rburns_2

Thats a incredibly good point, im going to be cancelling that later in that case.

I will sort one out when i am home, sorry if i came across rude, was just expecting something that does not exist.

5erge

Honestly matey the SOA will really help. I've only been on here a few days but by looking at peoples SOA it is easy for others to look for savings for you, many you won't even consider.

You've done the right thing by registering here.

You also said you live with your parents, so are you paying £250 for accomodation/food or do you also pay another £100 that contributes to the food bill for the month?

Tixy

Hi

It will be worth going in to some more detail on a statement of affairs.

However the options really are to either increase your income/ reduce your outgoings or to consider some sort of debt management plan to reduce what you pay to your debts each month.

A debt management plan is where you default on the agreements with all your creditors and work with a debt advice charitiy to calculate an amount you can afford towards debts after basic living costs. It does have a serious impact on your credit file, but may be an option if you are cannot keep up with repayments, and is better than borrowing on payday loans continually.

Rburns_2

For sure i will be sorting out an SOA to post here with my GF later.
And would rather not have to use them, my credit is trashed already.

Tixy

If you credit file is already badly affected them a debt management plan may well not make it any worse.

The advantage of a debt management plan is that your creditors will be asked to consider freezing interest on the debts, which will help you get them paid off quicker.

enthusiasticsaver

A consolidation loan will not help you in the long run and as you have said you have a poor credit history so you wont get one anyway. Sign up to stepchange or go on to national debtline to get a Debt Management Plan sorted out. As you say your biggest problem is your low income and overspending has caused you to go into debt which is snowballing to an extent where you cannot now keep up with it. Is there a possibility of moving to a better paying job or taking on a second job?


The interest rate on the Capital 1 card is horrific so if you sign up to a DMP they may agree to freeze the interest to stop the debt increasing any further. As others have suggested cancel the insurance for the bike, look at when you can cancel that phone contract which is very expensive, can you sell the bike and pay that off your debts?


You have done the right thing by signing up here before getting any further into debt. Read some of the diaries on here for tips on how to save and deal with your creditors. This is a hard lesson to learn but you are young and better to learn it now.


Credit cards are no friend to anyone on a low income unless they are disciplined and can learn to live within a budget.

greensalad

Personally I think your outgoings are not too bad so I don't think a DMP is necessary, but that's just me.

Once you've worked out your priority outgoings (rent, transport, food, utility bills) then you can see how much you have left to spread across your debts, entertainment, alcohol money etc. Lots of people here use YNAB.

I'd recommend getting a basic bank account at another branch from your current debts and use this to give yourself a basic "allowance" monthly. For example £250 a month to pay for food and entertainment.

Get a grip of the monthly outgoings you have that are absolutely must-dos. Anything leftover goes into debt repayments. I would call the bank (or drop in) and ask to get an overview of the charges for your overdrafts. You need to know exactly what you're being charged for. You can then ask them if they will allow you to halt the charges if you pay off a certain amount each month. Basically asking them to freeze interest while you sort things out.

Once you know which debt is costing you the most you can start paying that off with the leftover money.

It's really a case of switching the priority for your money around. 1) Priority bills 2) Debt repayment 3) Fun stuff. I think this is a big mistake people make. Debt repayment doesn't come after you've spent all your money on fun stuff, it needs to come before.

enthusiasticsaver

Rburns wrote: »

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.

Are you really saying that Santander charge £169 on a £100 overdraft limit? That cannot be correct. How much is outstanding on the loan and when is it due to be repaid?

Chas47

I know exactly where your coming from,and I can recommend one company worth trying,they are Ecredit union.
They are a peer to peer lender who will look at all cases on a personnel level,and will classify you according to your risk as a borrower and then lenders will decide wether they wish to lend,please give it a go,hopefully these companies will drive the payday lenders out of business.

dealer_wins

Chas47 wrote: »

I know exactly where your coming from,and I can recommend one company worth trying,they are Ecredit union.
They are a peer to peer lender who will look at all cases on a personnel level,and will classify you according to your risk as a borrower and then lenders will decide wether they wish to lend,please give it a go,hopefully these companies will drive the payday lenders out of business.

Seriously spammer just go away!