Very poor credit history, need a loan to consolidate

Gaz83

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.

250+100+60(!?)+185 = £595.

You earn £1,200.

You could be throwing £600 a month at this debt.

You could have it paid off within eight months.

If you have the willpower.

When is your phone contract up? £60 is extortionate.

OhhToria

20aday hit the nail on the head.

Now, putting current debts to one side. You need to mature mentally when it comes to your money. No, we don't know your circumstances, but I can tell you this - how you are currently day dreaming about trips abroad, you're going to find yourself in debt crisis 3 in no time. And believe me, the third time around isn't going to get any easier for you. In fact, it gets tougher with age, when you move out, have own family, etc.

Time to start stocking up on backed beans & moldy bread from Aldi and get cracking with creating a firm budget and sticking to it. Then, start planning your financial future and getting some good ol! fashioned cash in the bank. Then and only then, you should start pondering the idea of visiting friends abroad.

20aday

Thanks OhhToria.

OP, are you out of the minimum contract term with your mobile phone provider? If you are I'd consider ditching the PAYM plan and going SIMO or even PAYG.

DCFC79

You owe a small amount and are living with your parents this is your best chance to get the loan paid off. Your paying £60 for a phone contract, you could get the debt paid off quicker if you weren't paying £60 for a phone contract.

You will get to see your friends, use that as a motivation to see them abroad, if you want to go you will do what you can to get this paid off.

Oh and whatever you do do not agree to anything aspire money say, I can bet you will end up paying double or even triple what you actually owe.

RuthnJasper

Definitely echo advice re. Stepchange. PLEASE get onto them ASAP Tnel, and anyone else in this situation.

https://www.stepchange.org

They are free, non-judgmental and genuinely helpful.

Things are spiralling out of control and you need to stop this and get it sorted before it gets any worse (because it will, and quickly). Everyone makes mistakes and choices they regret - the key thing is how you face up to and deal with your situation.

Do your parents know how bad your situation is? I am sure that they would be very concerned if they knew that you are struggling. Are you able to have a chat with them? I know it is awful and very difficult - I had to do it myself - but I am sure that they love you and will want to help you out of this mess and towards a more secure future.

You can also try Citizens Advice: http://www.adviceguide.org.uk/
and Christians Against Poverty (they aren't out to convert you or preach at you): https://capuk.org/. But PLEASE don't go any further down the Payday Loan/Broker route. It WILL make things worse in the longer term.

You CAN stop this now. Please take the advice and act on it. If my written words do not convince you, here is a clip of me on the Jeremy Vine show on Radio 2, back in October 2013. I did NOT post it on Youtube, but someone who knew it was me sent me a link to it. I have great reservations about identifying myself as the caller, but I hope it helps in some small way to illustrate the sort of state you'll be in if you continue down your present path.

https://www.youtube.com/watch?v=h8r5zcbVrZ8

There was quite a bit of "fall-out" for me personally as a result of this call - but I did not take any money at all, from anyone, following the various consequences (which I won't go into). I now work two jobs; it's hard, but I am really back on track.

Please, Tnel, do not let yourself get further into the financial abyss. For your own sake now and for the future, please take the advice offered with the best intentions. Get onto an organisation that can offer practical help and get this sorted. You can do it.

Good luck and best wishes to you. x

melloecastro

Please please listen to RuthnJasper. I wish that I had been able to use this forum at 21 and listen to that call and hear that advice. I am getting out of debt now at 37 but I could have done so much earlier with hindsight. You need to be brave and honest with yourself and your family.

Thrugelmir

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...

Unless you learn to take responsibility for your own actions then no one else will. You've already had one DMP. So your problems lie far and squarely with you, and the way that you manage your personal financial affairs. Take the comments on the chin. Ignore the stick from your mates. And do what's right for you.

Caz3121

tnel15 wrote: »

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.

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.

I assume you do not have the £285 left over each month?
Are you looking to reduce the £320 (£300 loan + £20 cc) to £150 - why?...that would then give you £455 spare each month - what for?
If you are using payday loans etc and have built up £4,500 in debts in less than 2 years you need to look closely at what you are spending your money on.
When you cleared your debts previously, assuming your income and other outgoings were the same, you would have had almost £800 per month spare to spend/save but still ended up accruing further debt
You need to address the spending or this will end up being a repeating process until such time that nobody will lend you anything (which may not be a bad thing)

PeacefulWaters

tnel15 wrote: »

I pay 250 in board

Cheaper than most alternatives. I have NEVER been better off than when I lived at home with my parents. This is a short window in your life to clear your debts and then get saving. Utilise it. Once you have real responsibilities the opportunity can vanish.

100 in transport

Could more walking or the purchase of a bicycle reduce this? Are there any car share options where splitting fuel costs would benefit?

60 for phone

When your contract is up seek out a SIM only deal. In the meantime practice making fewer calls and using less data. I pay less the £8 a month for unlimited texts, 150 mins of calls and 500MB of data. I cope.

20 on credit cards, 185 to repay money I owe parents, then around 300 in loan repayments.

£915 a month. Where does the other £285 go? I spend around £1 a day on lunch (made at home).

If you owe £4,500, currently pay £500 a month and have a spare £250 being frittered away you could, if you really want to, be out of this mess long before Christmas.

Forget consolidation loans. Stop wasting money and throw every spare penny at the most expensive debt.

I know it's stating the obvious, but spending less than you earn is the only approach that will ever bring you financial happiness.

poppasmurf_bewdley

If you have already talked to Aspire Money, hopefully you have not given them your bank card details 'for verification'. If you have, ring your bank straight away and empty your account so they cannot draw out any money. Then follow the advice on these pages to ensure they can't take any money out of your account in the future.