I need help with debt

tomorrow82

Hi, I have not posted on here completely silly in my situation but here I go.

When I was 19 I took out a payday loan in order to pay my rent whilst at university of £400 (silliest thing I have EVER done) - I eventually owed £30000 I now owe £20000 all on trying to pay back that original £400. Sometimes makes me want to cry.

I have now finally finished university and all of my training and I have my first full time job whoop. I have a salary of £22000. I am so happy, after tax I receive £1475. Fantastic, I am over the moon however I have a few issues.

- Firstly is the issue of paying back the debts, simple I think, write a budget and contact each company and arrange a payment and I think it will be paid back in 2 years.
- Second issue, I need to buy a car for work public transport is not practical to how much I need to take with me every day.
- Third issue is the electoral roll, should I register or will I be bombarded with letters and bailiffs and CCJs I have never received because they dont know my address. (sorry if it does not work like this I do not know). Will bailiffs just show up or will someone write to me first?

I am going to include my monthly outlay here:
Salary £1475
Rent - £400 (this includes gas and electricity)
Council tax - £50
Water - £30
Mobile - £26
TV license - £7
Internet £10
Food - £50
Transport - £92
Insurance - £11
Parents - £241

This seems weird I just need advice please. Im getting sooooo depressed and panicking.

HappyMJ

Stop paying them. Tell them to take you to court for the money. That's unbelievable that such a small debt escalated so high. Most PDL's don't have it in their agreements that the debt owing can increase so much. Have you got a copy of the agreement?

rockm87

Hi
Id totally get a budget together, try using the statement of affairs to ensure you have everything covered.

http://www.stoozing.com/calculator/soa.php

I'd put yourself onto the electoral roll, and sign up free to noddle to make sure all your accounts/debt are correct.

I would check as suggested about the payday loan, it seems outrageous, and I'd definately look into that. Seems a little wrong somewhere.

Dont take on any more debt (even for a car!!!), i think you need to grin and bear it til you can sort out this mess!!

best of luck

tomorrow82

It wasnt that that one debt escalated, I end up taking out others in order to pay that one back. Then I was paying those back and couldnt pay back overdraft and all those things. It was the usual escalation of taking out another in order to pay back last.

FBaby

Considering how you feel about it, I would put absolutely everything but the absolute essential into repaying it asap. According to the above, if you stick to it, you should repay it within a few months. Forget about the car right now, if you take public transport right now, you can do it. It might not be ideal, but it's feasable. Look at it as an incentive, get rid of the debts as fast as you can and the quicker you'll be able to start looking for a car (at a reasonable price) and doing so without the weight of knowing you still have all the debts to pay making it a much more pleasurable experience.

tomorrow82

Fbaby I have worked out the repayments to take a minimum of 3 years to repay.

I currently havent taken public transport to work as I do not start until September however it is anhour and a half journey on train and bus.

sourcrates

Hi,
From october the limit for a debt relief order (DRO) increases to £20000, as you rent, you may qualify.

Do yourself a favour and do some research on your options, Google is your friend here, look up how the debt collection process works, as a little knowledge can go a long way.

National debtline is the place to start, lots of info and advice on your options :

https://www.nationaldebtline.org

rockm87

There is no magic solution, it takes sacrifice and perseverance to sort these messes out!!

cakeforbrains

The first thing - cliched as it is - is admitting that you are in debt.

The second thing is to work out exactly how much debt, down to the penny. You need to sit down and work out what you owe and to whom. You can't really proceed without that information, so make that your priority now.

tomorrow82

Down to the penny I owe £19995.56. I dont like to admit it but I have been reckless. Over the last year I have tried to pay some off but it seems to still get to much for me. I was not on a salary but instead earning student finance and therefore at the end of term I could not afford the payments. Now im on a salary I want to get myself into a more stable position.

rockm87

That's ok, dont beat yourself up, we've all made mistakes which is why we're here! (some of us anyway)

It's now about making sure you tell your money where to go instead of watching it as it rolls out the door!

put together your statement of affairs, and let's see where we can make progress.