£228,000 debt at the age of 23

pidge04

Does it work out any cheaper to vape?

fudgecat

It is a LOT cheaper to vape, as I have recently discovered. Quit smoking in 10 days through vaping and now only vape occasionally from a 60 a week habit. I have surprised myself!

Silver_Queen

Is your monthly income actually £8,000? That's more than £160k p/a! If it's correct, that's amazing, especially at your (our) age!

I think you've included your mortgage in the SOA, is that right? I think most people would not include the mortgage because it's 'good' debt.

Also, if you took out a significant loan to start your business, is your business a sole trader? If it's limited liability, is there a way you can shift the debt to be the company's debt? How did you get such a big loan anyway, is it secured?

fudgecat

Just a thought - if you are running your own business, having done so myself, how can you be sure of such a steady income stream of £8000.00pcm? Most businesses I know have a variable trading and therefore variable income. If you are a sole trader, your assets would be more than just the house?

marliepanda

prodigalson wrote: »

I took the personal loan out to start my business as I didn't have enough cash in the bank. Definitely trying to find out where exactly my money is going and be more organised with my finances.

I grew up with parents who would never give their children any money to spend on anything. They would buy me what I wanted for birthdays and Christmas but I never had the chance to learn how to manage money so I have been in debt since I was 18 since being a student given a huge overdraft. Trying to become responsible with money now.

In terms of expenses, I eat out a lot so groceries is typically takeout food, as I arrive quite late every night. Also I go through a 20 pack of cigarettes everyday which adds up to roughly £300 per month. Entertainment is mainly smoking hookah with friends, going out 1-2 times a week in London. A few drinks here and there.

In debt since 18 but you have almost 450k equity in your home 5 years later?

Mnd

If I was bringing home 8000a month, I wouldn't worry about 600 on food.

Just live within your means and you can pay this off easy

Hillwalker11

Sorry but this doesn't ring true. How can you possibly have credit card debt with a surplus in excess of £5,000 per month?Also your property has £450,000 equity over a very short time. How can you have run up overdrafts when you earn this amount of money?Everything could be paid off over a few months (CC) with that amount of disposable income. Something just doesn't add up here.

prodigalson

I have maxed out my overdrafts as my business required more money than expected. I have £450k in equity in my house due to 2 reasons:
1. Property prices have went up significantly in the area I live
2. I paid for most of my house and mortgage with bonuses I made while working as an Investment banker

Silver_Queen

You're 23 and already worked as an investment banker and then started your own business?

wombat1990

great post really helpful, I have one question as I've done the worse thing i could have done over the last few years I've berried my head in the sand and hid from all my debts. is the a resource available to help you find a list of all companies you are in debt with? As this is the first step and the fact that im not sure of all my debt its holding me back from making a start.
if anyone has any advice i would really appreciate it.
thank you