Need some serious money help!

jonesygtfc

Im 19 years old and in some seriously money debt,

I have a full time job now with a decent wage pH, problem is i have built up debt due to Gambling problem (which is now taken care off)
I want to change my life around and need help.

I have a £2k loan with bank, a £1k overdraft used and a few payday loans of like £200 each.
No credit cards and a poor credit score like 290/1000
Need some money for car insurance as my policy just been cancelled due to a modification even tho i can unmodify by putting factory wheels on only had car 7 days brought with mods on.

Whats best options. I was looking to get a £5k loan to wipe everything...

Thanks

Voyager2002

No: borrowing more is likely to mean you end up paying even more interest.

Since your car insurance was cancelled within such a short space of time you should be able to get a full refund. Consider using that money to pay down some of your debt to reduce the interest you pay.

ColoredSands

jonesygtfc wrote: »

Whats best options. I was looking to get a £5k loan to wipe everything...

Thanks

I'm not sure if that would be the best option. If you already have debts you are unlikely to get a decent loan deal.

I would take a total look at your finances and see where you can make savings.

With regards to the insurance on your car, is there any possibility to ask your family to borrow the money?

dresdendave

Welcome to the forum, I'm a bit confused as to how a £5k loan will "wipe everything."


Surely it will mean you still owe lots of money but just to a different lender?


Far better to try and find ways to increase your income and/or reduce your outgoings, thus allowing you to increase your debt repayments.

meer53

Can you sell the car ? It sounds as though it's an expense you can't really afford.

andyfromotley

Hi Jonesey,

with your credit history you are very unlikely to get a loan except at suicidal rates.

But thats no bad thing, for most of us borrowing our way out of debt didnt really work.

You can pay yr insurance monthly or use the refund that you will get from your old insurance company.

Next start using a budget to deal with your wages. Dont spend much and throw everything you have got at the debt. Pay the ones with the highest APR first. Assuming you have under 4k of debt and hopefully low overheads you could kill this debt pretty quickly.

Check out the DFW section for how to make the most of your wages.

I hope the gambling thing is in the past, if you want to keep it there get yourself to GA, where you will find a warm welcome and a friendly ear.

DCFC79

Is getting a loan a good decision ?

Can you trust yourself to use the loan for the reason you suggest ?

dealer_wins

You wont get a £5000 loan, so make financial plans for your current situation.

Caz3121

what do you have that you can sell?
look at paying off the highest interest rate debts first...I assume these will be the payday loans
Many lenders will not consider you for more debt due to having used payday loans and those that would will be crazy interest rates that will make the situation even worse
Concentrate on cutting back to the bare bone
You mention having a decent wage, how much do you have each month to put towards debt repayments? Your total debt is not huge and if you concentrate on paying as much off as possible you could be debt free by this time next year maybe

enthusiasticsaver

I am another one who would say don't go for another loan. You are increasing your borrowing, you will not get a good rate due to your credit history and without addressing the reasons why you are in debt you will end up in a much worse position.


The only way to sort out money problems is to look at your income and expenditure and budget and keep to it. You are young and the debts are relatively small at the moment and if you can live at home and have low outgoings you should have the debts paid off in no time.


Do you need the car for work? If not you might be better selling it to pay off the debts and then saving up for a non modified more sensible car for a 19 year old which does not cost a fortune to insure.

DCFC79

I'd sell the car, use some of the money to pay off some of the debts and use the rest for cheap run around.