I just want to live

SadMary27

Hiya everyone,


27 years young female from Glasgow here needing some advice.


I have acquired large debts and since the turn of the year have been battling to control them and pay them down but I am going nowhere. I have seen very little change and it is absolutely soul destroying. Interest, and the payments I can make, mean my debts aren't falling at all.


Most debt were racked up during my student days, and now I have my spending under control, I am having to suffer for my foolish past.


I do plan to talk to a debt charity but I haven't had the courage to do so yet, and feel coming to a forum is a big step forward for me.


Currently I am living with a friend who is putting me up relatively cheaply.


Since graduating 2 years ago I have found myself having no life due to trying to pay back debts. I have very little friends because I just can't do anything. I just want to get a sense of life back, as I find myself falling into a more and more depressive state by the day.


Any suggestions of a solution to this nightmare would be great.


Please be gentle with me


My Statement of Affairs is below.


Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 1730
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1730
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 200
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 10
TV Licence.............................. 0
Satellite/Cable TV...................... 16
Internet Services....................... 6
Groceries etc. ......................... 140
Clothing................................ 30
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 20
Entertainment........................... 15
Holiday................................. 30
Emergency fund.......................... 30
Total monthly expenses.................. 557

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
RBS............................9000......232.......24
Tesco..........................10000.....385.5.....24
Clydesdale CC..................4500......100.......0
Argos..........................50........5.........0
Bamboo.........................2400......168.......0
Clydesdale OD..................4500......80........0
Nationwide CC..................1800......70........0
Natwest........................3100......90........0
Total unsecured debts..........35350.....1130.5....-

Monthly Budget Summary
Total monthly income.................... 1,730
Expenses (including HP & secured debts). 557
Available for debt repayments........... 1,173
Monthly UNsecured debt repayments....... 1,130.5
Amount left after debt repayments....... 42.5
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -35,350
Net Assets.............................. -35,350

rockm87

Hi and welcome!
well done for going through you SOA, but it is important to be accurate.

Do you really have money left over? you need to check this, as you could easily get rid of your Argos debt in one swoop of you do!

If youre unsure keep a little diary with you or every spend you make, youll be suprised where the money goes!.

I'd look to the snowball calculator for a good idea of how you can pay these off.

best of luck!

SadMary27

Thanks Rockm87.


I normally have between £20 & £40 left each month so it is pretty accurate. The Argos card has been receiving this most months. It was at around £500 at the beginning of the year.


The snowball idea is what I try to do just now, but it looks like it will take me a long long time to clear debts. All credit is at its limit so there isn't much space for movement

Another concern is the industry I work in is a bad way, with nearly every company already had the first round of redundancies in the past 6 months. Many have started the 2nd round now, with the rest likely to follow suit. I am certain I would be one to go if the next round was to come here. My job pays me better than most other companies pay the role, so I would more than likely going to a pay drop in a new job, if I was made redundant.

rockm87

How much have you saved in your emergency fund?

Definitely look into the snowball, I'd knock off what you can while you have an income. You can always try and get a second job (shelf stacker ANYTHING) and sell whatever you can. I know its not ideal, but you've got a fair bit of mess to clear up.

But you can get there! :-)

SadMary27

If I am honest, very little in the emergency fund. Whilst I have budgeted there for some, it was always being put towards debt.


A second job isn't really an option at the minute. I find myself working most weekends, which unfortunately is unpaid (as per the contract I signed when I got the job).


If I did lose my job, and got one elsewhere, then a part time job is definitely something I would look into.

AspiringButAnxious

Real friends will understand that you can't do expensive things. My friends and I socialise at each other's homes, with everyone pitching in for food and drink for a big night, and go for picnics or to the beach (weather permitting). When we go out, we go to Wetherspoons and I tend to stick to diet coke because my spending suffers after a couple of pints... If we have a meal, I will often have a bowl of chips and fill up at home. That way, I'm joining in but not spending loads. But if we got to Wetherspoons, the food is pretty good value anyway so I might have a full meal.

My friends and I like chatting more than anything, with some food and drink thrown in, but there are other activities which can be done cheaply. Keep an eye out for free events in your area. A town near me has a folk festival and my best friend and I had fun wandering through market stalls and listening to various musicians along the seafront. We even got free parking because a nice lady gave us a ticket!

Looking at your SOA, a couple of things stand out. £20 a month on haircuts is a lot. You could cut that by having a low maintenance style that just needs trimming every 10 weeks or so. You could also try going to a trainee, who will charge a lot less — a lot of colleges organise cut price hairdressing sessions or take to social media to find a local hairdresser who wants some practice. Hairdressers who come to your home are cheaper too, even when fully qualified.

I know it's a contentious issue, but cutting out your holiday will let you pay off your debt quicker. A few years of staying at home will save you over £1000. It's a personal decision: some people value the holiday more than the money, some people prefer to pay more off their debt.

You could also try cutting your present budget by joining survay sites and using rewards vouchers to pay for gifts. I've challenged myself to pay for all Xmas presents and the remaining birthdays of the year by doing this — it's great motivation when I order a present and tick it off my list! You could also try cutting the amount you spend — the people who love you will understand that you need to prioritise paying your debts. I give homemade food gifts to a couple of friends who have tight budgets themselves — it shows you're thinking of them without jeopardising your finances.

Lastly, hold on: you will not be in debt forever if you continue to address the issue. You can find ways to be frugal and still have fun. You can find ways to earn a little extra money. You can pay off every penny you owe and gain a lot of satisfaction from being debt-free.

owlet

Have you considered bankruptcy (if your field of employment allows it).
You do have considerable debt & only £20/40 a month left after paying the minimum. I'm not saying it's an impossible situation at all but if you are unable to take on a second job it makes it harder to throw money at the debts.

It's not for everyone & not to be taken lightly but if you have no assets then it might be worth considering.

submarine76

Good luck Mary, there's some great advice on this thread already. I really find it helps me to keep visiting this forum regularly to keep me motivated and to take inspiration from other people who are winning their battles. I think the most important first step is to 'stop the bleeding', my problems all came about because I was in an abusive relationship with my personal finances that was entirely self-inflicted. It gets less daunting with every small payment you make back, and you will feel much better now you are back in control.

SadMary27

AspiringButAnxious wrote: »

Real friends will understand that you can't do expensive things. My friends and I socialise at each other's homes, with everyone pitching in for food and drink for a big night, and go for picnics or to the beach (weather permitting). When we go out, we go to Wetherspoons and I tend to stick to diet coke because my spending suffers after a couple of pints... If we have a meal, I will often have a bowl of chips and fill up at home. That way, I'm joining in but not spending loads. But if we got to Wetherspoons, the food is pretty good value anyway so I might have a full meal.

My friends and I like chatting more than anything, with some food and drink thrown in, but there are other activities which can be done cheaply. Keep an eye out for free events in your area. A town near me has a folk festival and my best friend and I had fun wandering through market stalls and listening to various musicians along the seafront. We even got free parking because a nice lady gave us a ticket!

Looking at your SOA, a couple of things stand out. £20 a month on haircuts is a lot. You could cut that by having a low maintenance style that just needs trimming every 10 weeks or so. You could also try going to a trainee, who will charge a lot less — a lot of colleges organise cut price hairdressing sessions or take to social media to find a local hairdresser who wants some practice. Hairdressers who come to your home are cheaper too, even when fully qualified.

I know it's a contentious issue, but cutting out your holiday will let you pay off your debt quicker. A few years of staying at home will save you over £1000. It's a personal decision: some people value the holiday more than the money, some people prefer to pay more off their debt.

You could also try cutting your present budget by joining survay sites and using rewards vouchers to pay for gifts. I've challenged myself to pay for all Xmas presents and the remaining birthdays of the year by doing this — it's great motivation when I order a present and tick it off my list! You could also try cutting the amount you spend — the people who love you will understand that you need to prioritise paying your debts. I give homemade food gifts to a couple of friends who have tight budgets themselves — it shows you're thinking of them without jeopardising your finances.

Lastly, hold on: you will not be in debt forever if you continue to address the issue. You can find ways to be frugal and still have fun. You can find ways to earn a little extra money. You can pay off every penny you owe and gain a lot of satisfaction from being debt-free.

I completely agree. It has shown who my real friends are in these tough times.

SadMary27

owlet wrote: »

Have you considered bankruptcy (if your field of employment allows it).
You do have considerable debt & only £20/40 a month left after paying the minimum. I'm not saying it's an impossible situation at all but if you are unable to take on a second job it makes it harder to throw money at the debts.

It's not for everyone & not to be taken lightly but if you have no assets then it might be worth considering.

Owlet - I have been thinking about this. From all the options it looks like being one of the best ones. A debt plan could last way beyond 6 years depending on circumstance.


And while the bankruptcy would last 6 years on my file, I am still relatively young and it would allow me to save up a lot for that 6 years to buy my own place outright.


I agree about it not being an impossible situation, but I don't know if I could live with such tight restraints for another few years. I feel as if I am missing out on what could possibly be the best times of my life in my youth

SadMary27

submarine76 wrote: »

Good luck Mary, there's some great advice on this thread already. I really find it helps me to keep visiting this forum regularly to keep me motivated and to take inspiration from other people who are winning their battles. I think the most important first step is to 'stop the bleeding', my problems all came about because I was in an abusive relationship with my personal finances that was entirely self-inflicted. It gets less daunting with every small payment you make back, and you will feel much better now you are back in control.

Thank you


I have spent the last week reading around this forum, and it is definitely filled with informative information. I feel as if I can relate to so many people here.