I need help.

matt989_2

Hi all, new to the forum and just looking for advice on where to start!

My current situation is:

27 - Living back at home with parents with my girlfriend. Work full time and bring home £310 per week after tax. Things are getting harder between my girlfriend and I - she want us to move out but I can't even contemplate this due to debts. This is seriously bringing me down and destroying our relationship. I hardly go out and its constantly on my mind.

I have several debts, but the two large ones are from trying to help my Dad out when his business was failing (which has now gone under anyway...). My dad is unable to pay these debts back to me as he also had to sell the house to pay for company debts, and can not get a loan from anywhere. !!!!!! I know, but family is family.

My debts:

£7500 loan from Lloyds bank - current balance is at £6012. £185.05 payment per month - 18% APR - This was taken out to help Dad,

£7,705.96 Barclay card platinum debt - Again around £7K was from helping dad pay off dads business debts

£2138 on loan from hitachi - £71 per month

£1000 overdraft with Lloyds secondary account - Currently £900 into it

£588.85 on lloyds credit card - pay about £30 per month

£2069 left on car payment - £149 per month.

£764 on Argos card - pay £10 more than minimum payment each month

£417 on aqua credit card - £50 paid each month

£543 left on dell PC payment - pay £60 per month

£50 per month for phone contract - ends in may next year

I need help and have no idea what to do. I've tried getting a loan to consolidate this lot into a lower monthly payment but I can't get one. My credit score isn't awful (920 on Experian)

Where do I start, what are my options?!

Bobarella

I would come clean to your girlfriend. It sounds like much of your debt was from trying to do a good thing for your Dad. She may well see it that way too. As for practical advice I am sure one of the others will be along soon.

DCFC79

Look at your spending, cut back,

Other posters more knowledgeable will post what other options are available.

Fill in and post up an SOA.

Does your gf know about the debts and isn't happy because you can't move out or does she not know the reason why you can't move out ?

If she doesn't know then tell her and let her make her choice what to do next, there was a thread the other day where the OP had kept secret about some debts and the OH wasn't happy.

matt989_2

Bobarella wrote: »

I would come clean to your girlfriend. It sounds like much of your debt was from trying to do a good thing for your Dad. She may well see it that way too. As for practical advice I am sure one of the others will be along soon.

DCFC79 wrote: »

Look at your spending, cut back,

Other posters more knowledgeable will post what other options are available.

Fill in and post up an SOA.

Does your gf know about the debts and isn't happy because you can't move out or does she not know the reason why you can't move out ?

She knows the reason, but it's really getting to her now, which is understandable. I just don't know what to do.

Wimbrel

Get in touch with Step Change and talk this through with them. And, as others have said, post an SOA so that forum members can offer more advice . Your debt to income ratio seems quite high and I think that some professional advice may help you to find a way forwards.

Congratulations though on taking the first step towards sorting things out, lots of people here have been on similar journeys and will offer support and advice along the way..

sourcrates

Hi Matt,

It's probebly a good thing that you cannot get a consolodation loan, as they are rarely a good option.

Realistically I think you are looking at some kind of debt solution here, you have too much debt to qualify for a debt relief order, so your other options would either be a formal solution such as an IVA, or, a more informal DMP (debt management plan).

Have a look on the stepchange website : https://www.stepchange.org/

They have an online debt tool which works out the best solution for you, give that a go first, post up an SOA, and we'll take it from there.

DCFC79

matt989 wrote: »

She knows the reason, but it's really getting to her now, which is understandable. I just don't know what to do.

As i say cut back on spending.

Write down all your outgoings, use your bank statemento if need be.

Bobarella

matt989 wrote: »

She knows the reason, but it's really getting to her now, which is understandable. I just don't know what to do.

I wonder if you having a clearer idea of how you can pay back the funds would help her to get on board?

Moneyfordreams

fab you've supported your family,
look at whatsthecost.com (ish) they have a snowball calculator... this will help you choose which is the most beneficial to pay off first. Paying the smaller debt first can free up money for debt repayments (or girlfriend treats )

are your credit cards/ loans on 0% ? what about a CC transfer balance to include the smaller items. ?

Jamiesmum

Not an expert, but I feel bad for you. Not a great situation.

I'm assuming you're living rent/bill free at your parents - except your own listed bills and food shop?

Does your girlfriend work, do you share money?

I'd start small by grouping your lower debts up and making as high a payment on them as possible. Could you not suck it up and pay off the Aqua one month, then the dell PC one the second month whilst being very frugal and still making minimum payments on your other bills? Once the list is smaller, you'll feel loads better. Then you could make extra payments on too the Argos / Lloyds.

What is going to happen when your deal is up on your car? Is it a hire purchase?

I'd root around and sell anything and everything you have but do not need, even if you just get a couple hundred it'll pay off another bill. Old clothes/shoes/jewelry/brick a brack/DVDS ect..Anything you've got lying around, really.

Any overtime going at work?

It's a long run unfortunately, but you could sort the smaller ones out fairly quick by being frugal. Cheaper shampoo/deodorants/toiletries .. eating in, eating cheaper, making up and making do with clothes. Free days out instead of meals out and such. Walk more instead of driving to save on petrol. Can you walk/cycle to work?

Have you rang them to arrange repayment plans potentially freezing interest on long term ones?

Is your girlfriend helping you out or in a position to help you out?

Money_saving_maniac

sourcrates wrote: »

Hi Matt,

It's probebly a good thing that you cannot get a consolodation loan, as they are rarely a good option.

Realistically I think you are looking at some kind of debt solution here, you have too much debt to qualify for a debt relief order, so your other options would either be a formal solution such as an IVA, or, a more informal DMP (debt management plan).

Have a look on the stepchange website : https://www.stepchange.org/

They have an online debt tool which works out the best solution for you, give that a go first, post up an SOA, and we'll take it from there.

This.
You owe 22k on an income of 17k. It's just not sustainable and it is having a terrific impact on your life during an important decade.

You also perhaps should think about whether you can bring your debt to under 20k and then go for a debt relief order.

Of course these options will have an impact on your credit worthiness for the future, but let's face it, you dont need more credit do you!

Think about it and discuss with your girlfriend so you can show her you are making plans and can give her a timeline.