I'm new and want to admit my debt!

KerryH

I'm new to the sites, but it's time I admit to my financial problems.

I'm 25 years old...I have a £3000 loan with The Co-operative bank (my current account holder), a £3000 loan with Virgin Money, £500 credit card, my phone bill (average £100) and a £600 overdraft.

Perhaps it doesn't seem too much...I'm still living at home, and my monthly income is about £800. Between my repayments and the money I currently pay my parents in rent, my monthly OUTGOING is £543 (approx).

I am finding that when I get paid, it brings me out of my overdraft for a week, then I'm right back into it! I've recently had a £70 and a £35 bank charge from the Co-operative bank for being out of my overdraft limit.

At times, I am not being able to meet my repayments and on one occasion I did not have any money to get me to work and back. I literally had NOTHING.

This is something I'm too embarassed to talk to my family about, simply because they are very disciplined when it comes to money...if you don't have the cash in the bank, you don't get the goods. Simple as.

But I don't know where to start and it's worrying me!! I don't know what to do first!

LJD1_2

Hiya and welcome, you've come to the right place. The first thing you need to do is sort out a SOA - click on the link here and it'll give you more information about it. This will enable people to show you where you can save money and hopefully help you our of your situation. Good luck xx

http://forums.moneysavingexpert.com/showthread.html?t=107280

lee8040

also claim your bank charges back, add them up over the last 6 years that wil give you some extra money

hypno06

Hi there :hello: As LHJ has said above, have a look at the post for first timers and gather all your information. Post it up here and we will be able to come up with ways of helping you through this.

Also, start a spending diary - write down in a notebook every single penny you spend from today onwards. It may seem a bit tedious, but it will really show you where you are spending unnecessarily, and therefore where you can cut back with least pain!

Plus, have a look at the snowball calculator on www.whatsthecost.com it is a nifty little tool that will give you a Debt Free Date to start working to. In my opinion, it is a great motivator, and you may find it helps to focus your mind in all this.

Keep on posting, you have taken the first, and hardest, step, and you WILL get there!

Shineyhappy

Hello and welcome!!

Dont worry you are in good company on here! Keep reading on all the boards on this site and you will pick up some excellent tips.

lindens

WElcome to DFW!
A good thing to do would be to open a new basic bank account with no overdraft on it. Then get your wages paid into the new account, transfer enough over to the old one to pay any DD's or SO's and a bit towards your OD, then whats left in your new bank account has to last you til next payday.
If you also use a spending diary as the above poster suggested, you can see where this leftover money is ACTUALLY going, and maybe cut back and pay more off your debts.
You have done the right thing in tackling this now whilst you still live at home.Get into some good habits now and take them with you when you eventually leave home. I wish I had done this!!
Good luck

Cazzdevil

KerryH wrote: »

my monthly OUTGOING is £543 (approx).

At times, I am not being able to meet my repayments and on one occasion I literally had NOTHING.

In this case, you need to find out where the difference between your outgoings and your salary are going (£257 a month). Something's obviously going amiss and you're spending beyond your means so try keeping a note of everything you spend on a day to day basis - EVERYTHING! It might help highlight areas you could make cutbacks in.

KerryH

Thanks for all your advice. I had considered opening another bank account actually and seeing how that goes...it makes sense.
It really helps being able to search this site...I feel out of control and I need to get myself sorted before, as someone has said, I have more debts to deal with!

Madnessa

Also check all your bank account statement and make sure you don't have any DDs or standing orders going out thatyou forgot to cancel. Lots of people pay for memberships to certain things and then never cancel wasting hundreds of £££s.

And like the others said a spending diary is the way to go! Will point out ways that you waste your money on things like coffee and mags.

Good luck, it's great that you facing up to your problems and not just applying for more debts to delay having to solve your problems!

Also your family love you! Everyone makes mistakes and you might find that telling them takes a lot of the pressure off you. Even if they can't help financially they can be there to support you.