Very poor credit history, need a loan to consolidate

tnel15

I'm 21, I'm in a mess with payday loans and maxed our credit cards. It's starting to depress me. I got into this mess before and ended up on a debt management plan which I cleared in 2013. But I slowly racked up more debts.
In total I owe around £4500.
I have an income of £1200 per month and could afford to pay around £200 max per month...Ideally I'd like to pay £150.

I've obviously been refused by banks and it seems the only loans I can get a guarantor loans which is not an option for me as I have no one to guarantee for me. I live with parents but can't tell them about the mess as I don't want to worry them.

I just want to start getting sorted, start saving. I've got friends moving abroad and I'd love to be able to afford to see them some day.

I need a way out. I'm worried.
A company called Aspire money are going to contact me tomorrow but I'm not sure if I trust them.

Advice please

Voltaire7

Nope, you're not getting a loan from anyone.

£4500 isn't a lot of money. You're earning £1,200, you still live at home. You should be looking to pay that off in full in 12 months.

Gaz83

What are you spending £1,000 on if you still live at home?

tnel15

I pay 250 in board, 100 in transport, 60 for phone, 20 on credit cards, 185 to repay money I owe parents, then around 300 in loan repayments.

Voltaire7

tnel15 wrote: »

I just want to start getting sorted, start saving. I've got friends moving abroad and I'd love to be able to afford to see them some day.

I need a way out. I'm worried.

Getting a loan isn't a way out.

You're not in a position to start saving. That's ridiculous and only shows you're looking for an easy option of which there is none.

And quit being so melodramatic - you'll get to go abroad one day. You're only 21.

Stop wasting your money on rubbish and pay your debts. Time to act like an adult.

tnel15

Don't care for your tone. You don't know my full personal situation, you only know my finances.Time for you to start being more supportive I think...

fwor

tnel15 wrote: »

A company called Aspire money are going to contact me tomorrow

They don't lend money - they are just a broker, and they want your details so that they can sell them on and make money out of you. I wouldn't waste my time talking to them.

Generali

tnel15 wrote: »

I pay 250 in board, 100 in transport, 60 for phone, 20 on credit cards, 185 to repay money I owe parents, then around 300 in loan repayments.

That leaves you with the best part of £300/month to reduce your debt with! You need to take some responsibility not get a consolidation loan.

Voltaire7

tnel15 wrote: »

Don't care for your tone. You don't know my full personal situation, you only know my finances.Time for you to start being more supportive I think...

You say you're paying £300 a month. Your debts are £4,500. You will be debt free in 15 months. Overpay a little and you'll be debt free in 12 months.

What's the problem?

Your personal situation doesn't matter. You have money to pay your debt. That's it.

20aday

tnel15 wrote: »

I'm 21, I'm in a mess with payday loans and maxed our credit cards. It's starting to depress me. I got into this mess before and ended up on a debt management plan which I cleared in 2013. But I slowly racked up more debts.
In total I owe around £4500.
I have an income of £1200 per month and could afford to pay around £200 max per month...Ideally I'd like to pay £150.

I've obviously been refused by banks and it seems the only loans I can get a guarantor loans which is not an option for me as I have no one to guarantee for me. I live with parents but can't tell them about the mess as I don't want to worry them.

I just want to start getting sorted, start saving. I've got friends moving abroad and I'd love to be able to afford to see them some day.

I need a way out. I'm worried.
A company called Aspire money are going to contact me tomorrow but I'm not sure if I trust them.

Advice please

Hello there,

It's easy for me to say "don't worry" but as someone who was once 21 and also in a financial mess there is light at the end of the tunnel.

First and foremost I'd check out the Debt Free Wannabe thread(s) here:

http://forums.moneysavingexpert.com/forumdisplay.php?f=76

1) Is there anything you could consider selling via eBay etc to put towards your debts?

2) On your credit cards, which holds the highest interest rate? If you can, focus on paying that card first and then making the minimum payment plus a £1 to the others.

3) How much do you owe on PayDay loans? Guarantor Loans are NOT the answer. Nor are Aspire Money, I'm afraid. As you've already found out previously you been on a Debt Management Programme and yet you've run up further debts of £4,500. Before you know it you'd be back to square one.

4) I'd check out the charity Stepchange, too: http://www.stepchange.org as there is plenty of (free) help and advice on there also.

5) My sister lives abroad. I also need a newer (but not brand new) car. I'd like to have both but I've also got a loan that's charging 19% interest per month. Until that's cleared they'll have to wait. So will going out to see your mates abroad.

Lastly.... you could afford £200 a month towards chipping away at your debts... why would you ideally only like to service £150 towards them? The more you can afford to throw at them, the better. As Voltaire7 says you live at home, earn £1,200 a month and should look to have that cleared (in full) in 12 months time.

Plenty of responses here to think on....

19lottie82

I think you should speak to your parents. They might offer a bit of leniency with your rent / loan repayment if they know how much stress you're under.

Apart from that would a second job (dedicating your wages to paying off your debts) be an option? Bar work can slot in easily during evening and weekends. A lot of places will also take on staff with no experience.