My first Debt Diary

KerryH

7th August 2007

Well, I've admitted I have debts now. And I have admitted that it was through simply wanting the "student" life through university. Loans for foreign travel, nights out etc...living beyond my means. Now I'm 25 and am paying for it. In total I owe approximately £7000.

So, what have I done? I've decided to take control. Keeping a "debt diary" on here will help me to track how I'm doing.

Today I posted a letter to The Cooperative Bank requesting my bank charges be repaid into my account. They add up to just under £800 so fingers crossed and wish me luck!

I have also found a second job. Ok, so it doesn't guarantee me regular work...maybe a couple of nights a week. But my friend has kindly offered to train me to work in her shop. Even an extra £100 per week would be a huge relief to me. Just two nights work would pay my monthly debt to Virgin Money! It is also a "cash in hand" job so I won't be stung for tax twice.

Virgin Money sent me a nasty letter today; I owe them £112 and they will call for it again in 10 days time. It's not there to be paid...I don't have the money. I'm also a bit annoyed because I have already called them about this. The arrangement is they are going to take it on the 30th of this month instead! I think I need to call them.

I'm really worried...and now and again it's like I'm drowning in letters from this and that company. But I'm doing my best to get on track...I can't ask for more. Except for the Co-Op to pay up that £800 quid they owe me! I'd split in in half and pay of a chunk of my debt to the two companies.

I was speaking to a friend down in London last night. In total he owes £56,000 and that is NOT a mortgage. That is in various loans. You know, he's not even bothered? He just lets them pile up without a second thought. He said "Money is just numbers...nothing more". He's on the "credit black list" now...can't get a mortgage, can't get a thing! How can he sleep at night? I'd be running in circles with worry!

I'll phone Virgin Money tomorrow. See what they say. :huh:

scottishsuz

Good luck. I've just started a Debt Diary too, its really good motivation for keeping going

*zippy*

Good luck kerry, hope you enjoy the new job.

jo1972

Good luck and well done with getting as far as you have

I hope that once you see things written down you will start to see the wood for the trees. I also hope that the people you owe money to start to take you seriously, sometimes that's the hardest part!

KerryH

16th August 2007


MBNA are harassing me to hell and back...phonecalls, letters etc. I called them half an hour ago to ask AGAIN if I can have my number removed. The man I spoke to was soooo abrupt and rude! Almost lectured me! Told me the number had already been removed and that my account was on hold for the next 14 days so I should not have any calls or letters. I'm a bit confused by that...what was with the phonecalls yesterday? The usual "automated system" that generates these evil letters I guess. The vulture God that spits threats out.
I'm sure the people at home are starting to realise I'm in trouble...I'd love to tell them so much, but I'm so bloody ashamed of myself and I know they wouldn't be understanding...which is quite right...a 25 year old girl, living at home on a full time wage should NOT have £7000 of debt. They'd be right not to understand.

I asked my friends for a job in their shop...they kindly agreed to train me up! I'm so appreciative. My only concern is that they are fully staffed so I would just be their back up. I think I really need something consisent so I KNOW I have the extra coming in. I've had no hours yet. I'm not sure it's going to work.

It's been 14 days since I posted my letter to the Co Op requesting they repay my bank charges. They've ignored me so far so I've got my next one ready to post tomorrow! I don't know if I should send it recorded or not...it's not exactly "money saving" but at least I know it will get there....I'm not sure.

I'm also wondering about a second bank account for my wages...It will be excellent for budgeting. But my finances have been so appaulling I get the feeling I'll be turned down...I wonder what it will do to my credit rating if they say no???

My next step...an action plan! I can't focus on everything at the same time. I want to set goals to keep me focused. E.g...by X date I will apply for a bank account. By X date I will call about having loans reduced...etc etc.
Once it's in writing, I think it will be easier to sort through! Finger's crossed!

Lucy1982_2

Hi Kerry.

I just wanted to post and explain my situation.

Like you I am 25 and in debt (£9,500 worth) I still live with my Mum as I can't afford to move out. Until recently she knew nothing about my debt. Then I told her. She wasn't angry or upset, just thankful that I had been able to tell her.

She can't help me financially but offers all the moral support I need. Although she did make me laugh when she looked up and said 'I thought something had to be up, I know what you earn and couldn't work out why you had no money!!' They are not as stupid as we think.

Deciding to tell you family is a big decison, and one only you can make. But I felt so much better and I am no longer alone.

I hope that things start sorting themselves out soon x

KerryH

What happened Lucy? How did you rake up your debts? Was it the same as me? Just taking out loans for no real reason other than a spend? That's what's made me so ashamed.
Even more so because my Dad actually PAID my student loan off for me so it wasn't hanging over me...£10k. If he found out about this...god...I just feel so bad.

benbenandme

Kerry have you checked out the mysteru shopping thread? Again its not a guaranteed regular income but it is convienient and all the extra money will help! Have you posted up an soa? At least you've recognised the problem before it gets out of hand and you are young enough to get it sorted still.
Do you have anything you could ebay to make some money? Good luck and keep posting it will help you stay on track x

Lucy1982_2

Mine were built up by nearly getting married. I took a loan out with my ex to pay for it. We then split 3 months before the big day (he left me with the loan)

I then increased it to cover my Student OD. Got another one to buy a car. I eventually consolidated into on big loan (which SO didn't work) then I fell into the store card trap.

All my own fault, I still have my student loan, but will worry about that one another time.

Mum was sad that I hadn't gone to her, but understood why I had found it so hard. I was so worried she would be disappointed in me, but she wasn't. She told me she would love me no matter what I did, but hoped that I had learnt something from it....

I think I have. Never do it again!!