Young and naive

rossguk

Hi.
When I was 18 I received a letter from my bank inviting me to apply for a credit card, which I did.
Shortly after I applied for a £5k loan to get me through my driving test and buy a car, which I did.

A year later I thought it a good idea to increase the loan amount to £10k for various reasons, and just before Xmas of 2005 got a car on HP for £9k.
Im now 23 and regret every one of those choices.

My loan repayments are £232pcm, HP £211 and my credit card is constantly on the limit but I now have rent and all the other joys growing up brings.

I earn a decent wage (approx £20800), and Im not afraid of working hard but with unexpected bills such as car trouble ive missed payments and am falling behind. I rent and have a poor credit rating so a consolidation loan is out of the question, although I feel that would have been the best option in order to lower the payments with a better rate. I cant sell the car as it wouldnt bring enough to clear the HP, plus its currently off the road anyway.

My Fiancée any I are now worried sick and don’t know what to do, we had always planned on buying a house getting married and starting a family in the near future but there doesn’t seem to be any way forward.

I know ive brought it all upon myself and I accept all the blame, so any advice what so ever would be greatly appreciated.
Thanks,
Ross

iwanttobreakfree

Hi rossguk - dont worry I know EXACTLY how you feel - i am in the exact same situation as you (though not falling behind at this moment but did a number of years ago) I made a really really stupid choice in addition to the others too - I missed 1 payment on a loan due to difficulties and I accepted the banks offer of a managed loan BIG BIG mistake. Regretted it ever since.

as for the wanting a mortgage part i cant help you there - nothing has seemed to have worked for me and my fiance but I'm now trying to focus on paying off as much as i can by working a 2nd job and selling stuff etc.

Just try to think positive thats all i can say - how badly are you falling behind? If it is really dire straits I'd go to CAB before it gets worse and try and salvage the situation before it becomes even messier (though I know you probably think it cant!).

Perhaps a good way to look at it which is how I do now is that where is the unwritten law that you have to own property as soon as possible? they dont in the US or Europe (i got this fact from Alvin Hall another financial guru I think is wicked aside from Martin of course!). Keep renting until you can sort yourself out and get a sizeable deposit which may well be a few years from now. I'm sorry if I've not been a great help but I just wanted to let you know that your situation is common - I'm in it!!! Just be positive!

Helonearth

Hi Ross,

I think you need to follow the advice given to so many people when they first post on this site. Draw up your SOA to post on here (See http://forums.moneysavingexpert.com/showthread.html?t=107280 ) and I will guarantee that people on this forum will be able to help you make cuts in your outgoings that will make the outgoings match the incomings or if not then help you find a way through this situation.

Don't worry, there is and end to the tunnel, you just can't see the light yet!

Hel
x

Whatnodosh?

First you need to get help from one of the organisations ie CAB, or CCSA. They will give you fantastic advise (as do the people on this site). You also need to post your SOA (statement of Affairs). I am fairly new here but I got real help on cutting costs that I didnt believe. Everyone on this site, has been there done that and got the tee-shirt when it comes to debt. You will get thru this and with support. Good Luck