Just want to be Debt Free..

JacobMale2

Hi All,

I've been a long term reader and only just thought of signing up as I am in drastic need of help.

I'm only 22 and I feel like I have debt which no one my age should have.

I mistakenly took a Pay Day loan when I was younger and just ignored paying it back, massing massive issues. I owe money left right and center, my ex who I was living with left me which caused my debts to get higher and higher.

I currently have no family, and just one friend who I don't want to stress out with this.

I have no one to talk to about getting out of this, I look at all my work colleagues who are buying houses, cars and what not and then there's little me who can hardly afford to buy his weekly shop.

Any help is kindly appreciated, I have started to take steps already by making a finance spreadsheet and contacting the companies regarding me paying them back, but I just can't keep up with it..

Thanks,
Jake.

123rottie

Hi Jake,

I don't imagine I can help much - I'm struggling to understand all of this too but I just wanted to say you're already doing the right thing by doing what you're doing.

Take a read of some of the pinned topics in this forum, it's made me feel so much better about my situation. People have been able to proactively help themselves out of some really tricky financial spots and they're in such good positions now, it's very inspiring and nice to know you're not alone.

Good luck!

teekay_tk

Hi Jake
Many people here have been in similar position. You are still young, so it is very good that you are here looking for help. I think the first thing to do is to have a look at this
http://www.moneysavingexpert.com/loans/debt-help-plan
Depending on how big your debt is there are several options like taking 0% credit cards and moving on to them ( I dont like this option at all). Other is going on to a free Debt Management Plan from step change, or to go insolvent by IVA or Bankruptcy.

Best thing to do would be to give step change a call. When I called step change I was almost in tears trying to explain to them how much debt I had and how tied up I was with it. That was the best day of my life. They are excellent and always listen kindly. Then they will go through with you on options from that point onwards.
Be very open to them. Discuss freely.

Best of luck

JacobMale2

If I explain what type of debt I'm in at the moment;

£1500 with the Estate Agent Company

£672 with the dreaded Quick Quid (So young and so God damn stupid)

£110 with O2, which literally popped up in my emails on Christmas Eve.

£300 with Council tax which the ex left me, and yes I will be paying off. I don't believe in being bitter and forcing them too.

Only £30 which the Credit Card company, which isn't bad...

This is what I know of, I literally don't know of anyone else I owe money too. I just know it's going to be a very long journey, but I want to be a successful adult, so when I'm a dad in the future my kids can look up to me for help unlike my own father.

Sanctioned_Parts_List

Hi Jake and welcome. You'll never meet a finer bunch of debt busters than here

You can do one of two things (or both - it's all the same)
1) Go to http://stoozing.com/calculator/soa.php and fill in a full statement of accounts. It's not so bad - income, living costs, budgets and debts. It's just a format we're all familiar with. Post it up here and people far wiser than me will help.

2) Phone National Debtline on 0808 808 4000 or go to www.nationaldebtline.org and speak to a professional adviser for free (phone or online).

You can also check your credit file from either Experian or Equifax for a mere £2 from their websites. Ignore all the big flashy banners and look for the little buttons in the corner for "statutory report". These will list all your known debts. Noddle does the same for free, but occasionally misses a few as they lack the commercial clout.

anna_1977

Hi Jacob,
Well done on thinking about it, I know it feels daunting to you but it's not a huge amount and hopefully this now will stop you getting into more debt on a much larger school when you're older!!

What is your income and completed monthly outgoings?

Sanctioned_Parts_List

JacobMale2 wrote: »

I look at all my work colleagues who are buying houses,

Mortgaged

JacobMale2 wrote: »

cars

Finance.

JacobMale2 wrote: »

and what not

48 affordable monthly payments.

Most of your colleagues will be a far worse state than you. I wish I'd worried about my position at 22, instead of cracking open the beer and ordering a curry. I'd be retired by now

EDIT:: This is to say you have time on your side, you've caught it while your debt's comparatively small and you've come here before you get on the "ooh, shiny" escalator that some of your colleagues will be on. :thumbsup:

JacobMale2

Many thanks for the help.

After totting up everything completely, going through statements what not. I realized I am £3500 in debt altogether.

My monthly income is £1400, my overall monthly outcome is £800-£900 depending on my Water Bill Quarter.

I have been told in the past that may employers offer a loan within the company, is this still true? If so, that would mean I can consolidate all my loans into one interest free payment per month.




[tt]Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1400

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 575
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 49
Gas..................................... 0
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 24
Satellite/Cable TV...................... 55
Internet Services....................... 0
Groceries etc. ......................... 70
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 953


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
Rent...........................1600......0.........0
Vanquis........................160.......34........0
Council........................300.......0.........0
O2.............................110.......0.........0
Quick Quid.....................672.......0.........0
Total unsecured debts..........2842......34........-


Monthly Budget Summary
Total monthly income.................... 1,400
Expenses (including HP & secured debts). 953
Available for debt repayments........... 447
Monthly UNsecured debt repayments....... 34
Amount left after debt repayments....... 413

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -2,842
Net Assets.............................. -2,842

[/tt]

user1168934

That does not look too bad mate.
Try to reduce your monthly spendings as much as you can and throw every penny you save at the loan with the highest interest.

Regarding council tax if you speak to your council and tell them that you need a couple of months to pay it off they can reduce your monthly payments to very low something like a fiver a month or so. Of course you will have to pay it eventually but it might give you a couple of months to sort things out.

user1168934

Your SOA says you save £413 each month after paying for everything. Why are you not using this money to repay the loans? something does not add up here.

By the way "Satellite/Cable TV...................... 55" that's £55 which should be going toward your debt repayment every month IMHO.

Sanctioned_Parts_List

Ok this bit's wrong:

Unsecured Debts
Description....................Debt......Monthly.. .APR
Rent...........................1600......0........ .0
Vanquis........................160.......34....... .0
Council........................300.......0........ .0
O2.............................110.......0........ .0
Quick Quid.....................672.......0.........0
Total unsecured debts..........2842......34........-

You're paying no rent, no council, no O2 and no quickquid... at all? Just a few bob on Vanquis?

Also you've budgeted nothing for life - no entertainment or travel, not even a haircut, you hippie!

Your SOA says you have £413 left over. I say you have £300 left over. Use next month's £300 to remove both Vanquis (close it) and O2, paying the remainder to your rent, along with a letter telling them you intend to pay them back in full. Tell the council you will start repaying them in 3 months time. Pay QuickQuid with March and April's salary, then the council in May, then work on your landlord's backlog.