22 years old and in serious debt.

Loubla

Hello,

I'd really appreciate some help if possible. Sorry if my post is a little lengthy.

When I was 18 I took out several store credit accounts and was never able to afford them over the next couple of years I made sparse small payments to moorcroft for one of the debts.

I was then mentally ill for the period of a year and was under the local mental health care team.

Over the next couple of years I took out some payday loans with the stupid idea of paying off parts of my debt - which never happened. Satsuma wrote one off that was in default for around £400 after they realised they'd added too many charges. I immediately took out another loan with them.

I lost the minimum wage job I had and last year developed a gambling problem. Just before the beginning of this year I took out more credit, ended up in a psychiatric in January (after a suicide attempt) and then took out even more credit when I left the hospital - at crazy interest rates. My mental health is still a daily struggle.

Since then I haven't taken out more credit - mostly because no one will ever lend to me. I don't need a lecture about gambling I'm fully aware of how stupid I've been and I've tried to self exclude myself from my accounts.

I've got my Noddle credit report and my Equifax report on which my credit score is 32

I live with my partner of 7 months (bad credit too) and am on Employment and Support Allowance.

These are the debts that are on my reports but I fear there's more I can't remember:


Next Directory: £80.00 - Sold previously but seems to be back with Next

Quidie: Loan for £100.00 Current Balance: £200.00

Lowell:(not sure of original company) £304.00

ActiveSecurities: Loan for £80 Current Balance: £147.00

GeorgeBanco (Seems to of been sold to various companies)
Original Loan: £7000.00 Current Balance: £15,437


Other Credit that is not on report/Hasn't been in contact for a while:

Oakbrook?: Original Loan: £3000? Current Balance: £7000?

Satsuma: (Last Known) £807.75

Unpaid Parking Ticket: (Last Known) £859.78

WageDayAdvance: (Estimate) £120.00

Owed to family: £30,000

I'm sure I have left out a couple. I have just cancelled all my direct debits as they bounce and I get overdraft charges of anywhere between £40-£120 a month which just makes it worse.

I really don't want to go to a debt charity as I've already spoken to the CAB and one charity when I left hospital and just ended up more confused.

I've tried to offer small repayments to some but they seem completely unflexible I don't know if there's any letter templates I can use. I've no idea where to start or which debt to try to pay first.

Again, Sorry for the colossal post. I don't know if I should post a SOA?

DorisTrousers

If you struggle to speak to a debt charity, then assuming you have no assets to lose like expensive car or property, you could petition for your own Bankruptcy.

The forms can be filled out by the individual and do not need professional help to complete, although I would be concerned re the issues you have mentioned re mental health etc.

The cost is £705, £525 as a deposit for the Official Receiver, and £180 court fee. It is possible to have some or all of the court fee waived, but everyone has to pay the £525.

It would definitely be a good idea, as far as I am concerned, to post a SOA on here, and also to ask any and all questions you feel you need to in order to get through this.

If there is some reason why BR may not be right, then the good folk on here will be able to come up with some good ideas for you.

National_Debtline

Hi Loubla and thanks for your post.


I'm sorry to hear that you felt more confused after speaking to a couple of the debt charities. That said I wouldn't rule it out completely - you may just need to find one whose approach is the right one for you.


When all is said and done, you owe in excess of £50,000 and are on a low benefit income. In these circumstances, is there any reason that you wouldn't want to simply declare yourself bankrupt and give yourself an opportunity to start afresh? It would also allow you to focus more fully on your mental health, which should be your number one priority here.


https://www.nationaldebtline.org/EW/factsheets/Pages/01%20EW%20Bankruptcy/Default.aspx


EDIT - cross-posted with Doris.


Dennis
@natdebtline

ratrace

Really sorry to hear about the health issues that you are going through, dont have much advice for that other than see a gp

regarding the debt - from the above ammount its seems a fair bit the only option is bankruptcy as your income is very low to service them debts

Having said that i dont know if there was any formal agreements with the £30,000 you own to your family and declering bankruptcy might not go down well with them (not trying to scare you but just making you aware of what could.might happen)

On the plus side if you do go for bankruptcy, then im sure this will have a positive effect on your overall health

good luck with what you decide is right for you

Loubla

Hello,

Thank you so much for your replies.
I suffer from social anxiety and find it even hard to make phone calls most of the time which is another reason I don't want to contact a charity. I did when I was in hospital previously.

My mental health problems started before I was old enough to take credit, but I'm sure the debt is not helping. With regards to going to the GP. I feel like I've tried everything and I'm on the highest dose possible of my anti-depressant. I've got to accept that I have to try to make myself better. I did try to see a Doctor last week, I'm in a new area. My partner was with me speaking on my behalf and acknowledged that I'm overweight to which the doctor repled "Well, she's not exactly small is she?" With regards to anything his answer was just stop eating. He doesn't understand that I struggle just to find the will to get up each day. Completely destroyed what little faith I have left in doctors, It took me so much just to get there and I left embarrassed and ashamed.

The reason why I'm not keen on bankruptcy is because my father is guarantor on one of the loans and I do not want them to take his house. Also there is no formal agreement with family but I'd like to start paying back little by little which I won't be able to do while bankrupt. This is actually really hard for me to type, first time I've externalised these things.

I will post a SOA shortly.

glentoran99

Loubla wrote: »

Hello,

Thank you so much for your replies.
I suffer from social anxiety and find it even hard to make phone calls most of the time which is another reason I don't want to contact a charity. I did when I was in hospital previously.

My mental health problems started before I was old enough to take credit, but I'm sure the debt is not helping. With regards to going to the GP. I feel like I've tried everything and I'm on the highest dose possible of my anti-depressant. I've got to accept that I have to try to make myself better. I did try to see a Doctor last week, I'm in a new area. My partner was with me speaking on my behalf and acknowledged that I'm overweight to which the doctor repled "Well, she's not exactly small is she?" With regards to anything his answer was just stop eating. He doesn't understand that I struggle just to find the will to get up each day. Completely destroyed what little faith I have left in doctors, It took me so much just to get there and I left embarrassed and ashamed.

The reason why I'm not keen on bankruptcy is because my father is guarantor on one of the loans and I do not want them to take his house. Also there is no formal agreement with family but I'd like to start paying back little by little which I won't be able to do while bankrupt. This is actually really hard for me to type, first time I've externalised these things.

I will post a SOA shortly.

the wont take his house, he would however be liable for the debt

Loubla

I will include my partners monthly earnings as we share our expenses.

Income

ESA: £694.60

Partners DLA: £304.00

Partners Earnings: £400

Online Surveys etc: £50.00

Partners Family: £100.00

Housing Benefit: £368.00

Total Income: £1916.60


Expenditure


Rent: £550

Petrol: £150

Car Insurance: £43.00

Partners Public Liability Ins: £33.00

Household Products: £30.00

Clothing/Personal Care: £30.00

Food/Drinks at home: £200

Eating out: £150

Cigarettes: £264.00 :eek:

Entertainment: £50.00

Other travel: £120.00

Coffees etc: £84.00

Mobile Phones: £40.00

Home phone + Broadband: £17.00 (Planning to cancel)

Pets: £40.00

Electric and Gas: £75.00

Total Expenditure: £1866.00

That leaves £50.60 each month, to be honest I don't have a clue where that goes as we usually have nothing left.

I can see the major problems are eating out and of course, cigarettes, we both smoke but mine are the more expensive. I've given up twice for six months but end up giving in.

In terms of increasing income, on my benefit I'm allowed to make £400 a month but currently make around £50.00 on surveys and such.

I believe I'm eligible for PIP but need to get around to applying for it, as laughable as it seems my mental health means I find phone calls extremely hard.

My partner is allowed to work up to 16 hours a week and is qualified as a tree surgeon.

crazy_cat_lady

Have you had any kind of talking therapy to deal with your issues? The thing about mental health is that you have to find the right person to help you - and that's not any doctor, or any therapist. I had four rounds of talking therapy before I found the right person to help me, and it's honestly changed my life.

luhrmann

the NHS offer free stop smoking services, especially for the unemployed.

i completely agree with crazy_cat_lady, my mum had so many different therapists for her depression before she found one that worked for her. therapy is a case of when it doesn't work, it doesn't work, but when it does it REALLY does. you need to persevere and find a therapist that is the right person for you. it's like any relationship.

also coffees are a money sucker. i spent so much in starbucks when i worked down the road from it. i switched to peppermint and green tea which, while they don't taste as great, are better for you and give you the same kind of energy boost. plus you can get a box of 20 teabags for around 1.50 as opposed to 2.50 or more on a coffee!

lessonlearned

Loubla wrote: »

I will include my partners monthly earnings as we share our expenses.

Income

ESA: £694.60

Partners DLA: £304.00

Partners Earnings: £400

Online Surveys etc: £50.00

Partners Family: £100.00

Housing Benefit: £368.00

Total Income: £1916.60


Expenditure


Rent: £550

Petrol: £150

Car Insurance: £43.00

Partners Public Liability Ins: £33.00

Household Products: £30.00 WHAT IS THIS FOR

Clothing/Personal Care: £30.00

Food/Drinks at home: £200 YOU COULD REDUCE THIS

Eating out: £150 YOU CANT AFFORD THIS

Cigarettes: £264.00 :eek: YOU KNOW WHAT YOU NEED TO DO

Entertainment: £50.00

Other travel: £120.00. WHATS THIS FOR

Coffees etc: £84.00 A COMPLETE WASTE

Mobile Phones: £40.00

Home phone + Broadband: £17.00 (Planning to cancel)

Pets: £40.00. IS THIS JUST FOOD, DO YOU HAVE PET INSURANCE

Electric and Gas: £75.00

Total Expenditure: £1866.00

That leaves £50.60 each month, to be honest I don't have a clue where that goes as we usually have nothing left.

I can see the major problems are eating out and of course, cigarettes, we both smoke but mine are the more expensive. I've given up twice for six months but end up giving in.

In terms of increasing income, on my benefit I'm allowed to make £400 a month but currently make around £50.00 on surveys and such.

I believe I'm eligible for PIP but need to get around to applying for it, as laughable as it seems my mental health means I find phone calls extremely hard.

My partner is allowed to work up to 16 hours a week and is qualified as a tree surgeon.



I think the immediate savings are pretty obvious. Stop smoking, £264

reduce your eating out budget to a once a month treat, save £100, stop the extra coffees save £84 reduce your food bill by £50.

At a stroke you will add £498 to your budget.

Then re-examine those other "extras, ie £30 household, £120 additional travel...can these be cut back.

Re the pets if this is just for food the you really should get some pet insurance - vets don't come cheap.....

Even with the cut backs you will still have £100 for entertainment. There are plenty of free and low cost options.

I cannot advise on mental issues but I would imagine financial worries aren't helping. If you are well enough to work perhaps that would also help improve your mental health, not just easing the financial pressure but also getting you out of the house.

Well done on grasping the nettle and good luck.

northerner999

if bankruptcy is not for you, take heart that your debt is not the highest that I have seen on here. It can be cleared with a lot of hard work, from you, your partner and family.

You need to try and cut back spending in areas outlined above - you spend £700 PCM on food, coffee and cigarettes. Even without stopping smoking, you can definitely cut back on this total figure. I have quit smoking more times than I can count on my hands, but eventually I made it stick (about 15 months now). If I am honest the financial situation helped me - I was on Bensons and a pack doesn't leave you much change from a tenner. Try and skip a coffee when out and wait til you get home, have a nice meal at home rather than going out etc. Wouldn't it be a good step if this £700 total became £600 then £500 then £400? Then maybe even less?

But of course the most important is your mental health. Although you need to make cutbacks, it is ok if you are stressed and have a smoke. Just try and space them out a bit more each time. It is ok if you can't go from spending so much straight away, so long as you make progress and are on the right track. Finding the right person to talk to in order to help you through your anxiety is no.1 priority. That may be a charity, GP, or family member - I am sure it is different for everyone and you just have to keep looking. Posters on here can be your first line of support while you find this person.