Drowning in my Own Stupid Mistakes

iamkingy

Hi all.

From the day I turned 18 I have had a terrible relationship with spending and money. At the age of 27 I'm now desperately wanting to get married, have a mortgage and a baby. But none of those things come cheap!

I have a wide variety of debts now, old and new, amounting to approx £10,000. My credit score is absolutely appalling from missed payments and all sorts. I have two defaults, no CCJs as I've never let it get that far.

I am now on a reasonable income for my age, around £1,800 a month depending on overtime/enhancements. If I was able to consolidate my debts into one, I'd be able to get it all paid off in no time. Unfortunately I have a number of lenders with large minimum payments, which has lead to me using all sorts of dreaded payday loans, and as you all know it's a slippery slope.

I'm desperate to get one consolidation loan so I can put it into one affordable payment, whilst getting onto of my credit rating. But my credit score is too bad to qualify for even the most basic of lenders. I am considering a DMP but I'm worried this may effect my credit score further as it's not all of my accounts that I'm struggling with. As terrible as it sounds I would also like to be able to hold on to one credit card for absolute emergencies, as I do not have anything at all to fall back on.

All advice welcome. Happy to give more details if needed!

Thanks so much

Kitten868

Hello lovely,

Youve come to the right place not that I'm the queen of knowledge but ill try and smarter people will come along. When were your defaults? If recently I would go for a dmp, if years ago i would struggle through the hardest bit as you would start the clock again. Secondly i think you should make complaints to the pay day loan lenders as they obviously didn't assess you properly and try and get some interest refunded. There is a great thread on the debt free wannabe board for advice and stories so you know what to expect.
Last of all if you make up an SOA so people can help you see where to cut back for now so you can get a grip on the bulk at the beginning.
I would look at the boost your income board to get some extra cash for the big monthly costs. I sold all my stuff on eBay and despite not thinking i had Any thing worth anything i did and paid off a lot that way.

Keep going. It'll all work out xxx

sourcrates

Hi,

Consolidation is very rarely the answer, so it's a good thing you can't borrow more money.
It seems your credit file can't get much worse whatever you do, so that should not be your 1st priority.

Usually posting a statement of affairs is the way to start, see if any savings can be made from your budget.

You can find that here : http://www.stoozing.com/calculator/soa.php

Post it up, be honest, and we'll take it from there.

iamkingy

Thanks guys.

Done the SOA on that like but can't find a way to copy it into here using my mobile?

iamkingy

Oh, hope this makes sense. To explain the car, it's a PCP scheme that comes straight out of my wages. I'm meant to get tax discount but it doesn't work out that way. I've tried to get out of it but had no luck, got another two years left and won't even own it afterwards

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Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget Summary Amount(£)
Total monthly income 1,800
Monthly expenses (incl. HP & secured loans) 1,429
Available for debt repayments 371
UNsecured debt repayments 10,643
Amount short for making debt repayments -10,272
Personal Balance Sheet Summary Amount(£)
Total Assets (things you own) 0
Total Secured & HP Debt -0
Total Unsecured Debt -14,771
Net Assets -14,771
Household Information

Number of adults in household 2
Number of children in household 0
Number of cars owned 0
Income, Expense, Debt & Asset Details

Income Amount(£)
Monthly income after tax 1800
Partners monthly income 0
Benefits 0
Other income 0
Total monthly income 1800
Expenses Amount(£)
Mortgage 0
Secured/HP loan payments 0
Rent 340
Management charge (leasehold property) 0
Council tax 60
Electricity 18
Gas 19
Oil 0
Water Rates 15
Telephone (land line) 10
Mobile phone 20
TV Licence 17
Satellite/Cable TV 35
Internet services 35
Groceries etc. 150
Clothing 20
Petrol/diesel 150
Road tax 0
Car Insurance 0
Car maintenance (including MOT) 450
Car Parking 0
Other travel 0
Childcare/nursery 0
Other child related expenses 0
Medical (prescriptions, dentists, opticians etc.) 20
Pet Insurance/Vet bills 25
Buildings Insurance 0
Contents Insurance 0
Life Assurance 0
Other Insurance 0
Presents (birthday, christmas etc.) 30
Haircuts 0
Entertainment 15
Holiday 0
Emergency Fund 0
Total monthly expenses 1429
Secured & HP Debt Description Debt(£) Monthly(£) APR(%)
Mortgage 0 (0) 0
Secured & HP Debt totals 0 - -
Unsecured Debt Description Debt(£) Monthly(£) APR(%)
Littlewoods 1425 230 0
Fashionworld 1740 80 58.7
Luma Credit Card 220 10 35.9
Mr Lender 160 80 0
Safety Net Credit 900 900 68.7
Lending Stream 876 320 1272
Vanquis (D) 1500 1500 0
NatWest Loan (D) 7500 7500 0
Cashcard Overdraft 250 15 0
Very Credit Card 200 8 35.9
Unsecured Debt totals 14771 10643 -
Asset Description Value (£)
Cash 0
House Value (Gross) 0
Shares and bonds 0
Car(s) 0
Other assets (e.g. endowments, jewellery etc) 0
Total Assets 0

enthusiasticsaver

Consolidation loans never work so may be best you can't borrow any more. as you say the problem is you are heavily overcommitted and your car and fuel seems to be taking 33% of your income. you say there are 2 of you but only one income. Presumably these are just your debts? Are expenses shared?

Cable tv, groceries can be cut back a bit but to be honest your outgoings on debts are so high I think a dmp may need to be considered. I would suggest you ring stepchange and see what they would advise. You will need a new bank account with no overdraft and it will trash your credit record but as you say it is already bad. Priority debts are rent and council tax. You have not put repayments on loan and vanquis credit card which is why soa is showing incorrectly.

determined_new_ms

Hi I think there must be a mistake on your car maintenance? That is nearly 5k a year on kain tainting your car?

It's hard for me to see in this format but you could cut back on groceries, get rid of package TV and reduce your bb cost and save £100.

That wod give you over £400 extra to throw at debts each months. Can you do more overtime? Also definitely look at the thread about reclaiming payday loan charges.

I'm not an expert but I think dmps are for people who can't afford to service their debts. I may be wrong. I think you could clear this debt with a bit of hard work. Try the snowball calculator, pay off the highest interest debt first

FinallyDebtfree2017

Don't worry we have all been here, at least you are sorting it out before you are 30!

It sounds like you need have a good look at why you are getting into debt in the first place. How are yiu going to stop yourself from getting into debt again???

roxy7699

Hiya,

Well done for getting this far.
As others have said it would be good to see how recently the defaults are, you can check on some of the free credit checkers like clearscore to see what you are dealing with in terms of blemishes.

- Do you feel that you have money left over at the end of the month? It may be worth keeping a spending diary or using a budgeting tool like YNAB where you allocate money to your categories each month.

The internet charges feel a bit high, is this in a contract?

Are any of the bills shared with the other person, eg the tv licence could be split between both, it may feel small but any extra will help.

Again petrol sounds like you travel a far bit, is this for work do you get any back in expenses?

I second using a snowball calculator to pay off extra into the debts that have the highest interest first.

The only other area I see is to cut back on groceries, shopping cheaper, bulk cooking etc having a browse on some of the other boards can give inspiration on how to cut back on groceries.

Dobbibill

iamkingy wrote: »

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Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget Summary Amount(£)
Total monthly income 1,800
Monthly expenses (incl. HP & secured loans) 1,429
Available for debt repayments 371
UNsecured debt repayments 10,643
Amount short for making debt repayments -10,272
Personal Balance Sheet Summary Amount(£)
Total Assets (things you own) 0
Total Secured & HP Debt -0
Total Unsecured Debt -14,771
Net Assets -14,771
Household Information

Number of adults in household 2
Number of children in household 0
Number of cars owned 0
Income, Expense, Debt & Asset Details

Income Amount(£)
Monthly income after tax 1800
Partners monthly income 0 - Where is OH income?
Benefits 0
Other income 0
Total monthly income 1800
Expenses Amount(£)
Mortgage 0
Secured/HP loan payments 0
Rent 340
Management charge (leasehold property) 0
Council tax 60
Electricity 18
Gas 19
Oil 0
Water Rates 15
Telephone (land line) 10
Mobile phone 20
TV Licence 17
Satellite/Cable TV 35 - this is a luxury, move to freesat/freeview for the moment.
Internet services 35 - this is expensive, reduce/remove
Groceries etc. 150
Clothing 20
Petrol/diesel 150
Road tax 0
Car Insurance 0
Car maintenance (including MOT) 450 - does this include the PCP payment?
Car Parking 0
Other travel 0
Childcare/nursery 0
Other child related expenses 0
Medical (prescriptions, dentists, opticians etc.) 20
Pet Insurance/Vet bills 25
Buildings Insurance 0
Contents Insurance 0 - none?
Life Assurance 0
Other Insurance 0
Presents (birthday, christmas etc.) 30 - who do you buy for? this is £360 a year
Haircuts 0 - never?
Entertainment 15
Holiday 0
Emergency Fund 0 - you really should put something in here
Total monthly expenses 1429
Secured & HP Debt Description Debt(£) Monthly(£) APR(%)
Mortgage 0 (0) 0
Secured & HP Debt totals 0 - -
Unsecured Debt Description Debt(£) Monthly(£) APR(%)
Littlewoods 1425 230 0
Fashionworld 1740 80 58.7
Luma Credit Card 220 10 35.9
Mr Lender 160 80 0 - no interest being charged?
Safety Net Credit 900 900 68.7
Lending Stream 876 320 1272
Vanquis (D) 1500 1500 0 - no interest here either?
NatWest Loan (D) 7500 7500 0 - or here?
Cashcard Overdraft 250 15 0 - or here?
Very Credit Card 200 8 35.9
Unsecured Debt totals 14771 10643 -
Asset Description Value (£)
Cash 0
House Value (Gross) 0
Shares and bonds 0
Car(s) 0
Other assets (e.g. endowments, jewellery etc) 0
Total Assets 0

Hi iamkingy,

Welcome to the forum.

Well done on taking the first step of posting for help. You aren't the first, nor will you be the last to get yourself into a pickle so don't beat yourself up about it.

Can you explain your SOA in a little more detail please?

It looks at first glance like you have split the bills in half which is why you haven't added in your OHs income, (eg - your gas and electric costs) but then other bills look like you are paying all yourself (eg - TV licence, BB and cable TV).
Can you confirm what the split is? Your answer may explain some of my thoughts in red above.

Being unable to consolidate has probably been the best thing that could happen to you at the moment. You wouldn't have paid it off, you would have moved the debt, possibly committing to 5 yrs of repayments. It rarely works, even with the best intentions.

EssexHebridean

Lots of good points mentioned on your SOA already.

On the debts themselves, the one that leaps out at me is

Lending Stream 876 320 1272

With that interest rate, getting rid of that one is almost key to getting movement on everything else.

As a first suggestion, I'd say take every penny of your income prisoner for the next month, make all the savings that have been suggested, and then throw every spare penny at that debt to get it gone ASAP. Once you've done that, you have a sizeable chunk of money to throw at the next most expensive in a snowball. That one is just SO horrendous though I think you have to tackle it first.

I take it Vanquis and Natwest are the two that have already defaulted? It may be that your best bet is to simply take those out of the equation for now, but someone with more expertise in that area will be able to advice on that.

Agree totally with those who have said that lack of consolidation has saved you, by the way. In real terms, lumping it all together really wouldn't mean you would have it paid off in not time. Have a read about on the boards and you'll start to see what we mean...