£228,000 debt at the age of 23

-taff

Look at your credit report with all three companies, Noddle, Experian and Equifax.
Any credit you have will show up on all of them [ some might have have one the others don't hence checking all three]
Once you've defaulted on a credit line, that default will stay on your credit record for 6 years, however, if you're not asking for credit, no one will see it.
You should sit down with your bank staement from last month [and maybe a couple more] to see exactly where your money is going.


Edited - Just realised you're someone different
You should start your own thread as you've hijacked this one

marliepanda

prodigalson wrote: »

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

Either remortgage the house (Should be easy on your 160k salary.) or go back to being an investment banker for a year. If you managed to build up that in less than 5 years, then I'm sure another year should get you back in the black...

enthusiasticsaver

I would urge you not to remortgage your house to put money into your business as that is a sure fire way to get into problems and your home is at risk if your business fails. I wonder if you have set up your business finance correctly. It is very rare that a self employed business owner gets regular income and £8000 is very high. Is that pre or post tax? Do you have business costs which come out of that like a vehicle, tools, exams or premises rental costs? This might explain why you are incurring debt if you are spending as if you are earning £8000 gross but actually only earning £5000 net.

You have some positives in that you have a relatively small mortgage in comparison to the value and if the income is correct you should be able to sort out the debt quickly. I strongly suspect your figures are out though as no one would incur that debt with such a high disposable income unless you really are spending without thought. Working long hours does not mean you cannot prepare food at home. Learn to cook and batch cook and take meals with you. You can easily heat up pasta bolognese etc in a microwave at work.

I wonder if you are still spending as if you are an investment banker but don't have the regular income and bonuses to sustain it now you are self employed.

kazwookie

Do you really smoke 20 packets of cigs a DAY? if so your poor lungs.

You need to cut this NOW or you won't live to make 30.

prodigalson

marliepanda wrote: »

Either remortgage the house (Should be easy on your 160k salary.) or go back to being an investment banker for a year. If you managed to build up that in less than 5 years, then I'm sure another year should get you back in the black...

I don't want to go back to my job as my business has just started taking off. And would prefer not to remortgage my house. Another year will definitely get me in the black working in banking again but I hate the life (long hours 6 days a week) as I worked in Emerging Markets.

prodigalson

enthusiasticsaver wrote: »

I would urge you not to remortgage your house to put money into your business as that is a sure fire way to get into problems and your home is at risk if your business fails. I wonder if you have set up your business finance correctly. It is very rare that a self employed business owner gets regular income and £8000 is very high. Is that pre or post tax? Do you have business costs which come out of that like a vehicle, tools, exams or premises rental costs? This might explain why you are incurring debt if you are spending as if you are earning £8000 gross but actually only earning £5000 net.

You have some positives in that you have a relatively small mortgage in comparison to the value and if the income is correct you should be able to sort out the debt quickly. I strongly suspect your figures are out though as no one would incur that debt with such a high disposable income unless you really are spending without thought. Working long hours does not mean you cannot prepare food at home. Learn to cook and batch cook and take meals with you. You can easily heat up pasta bolognese etc in a microwave at work.

I wonder if you are still spending as if you are an investment banker but don't have the regular income and bonuses to sustain it now you are self employed.

Post tax I make £8k per month, have been making this amount for the last 4 months, but recently the business as required an influx of cash due to the requirement of new servers costing over £1,200 per month with all the extras required.

I think I am spending as I was working as a banker so definitely need to change my lifestyle in that regard, if I ever meet an old friend anywhere, the next days plan is always going out and ordering bottles at the club. So definitely need to cut down.

prodigalson

kazwookie wrote: »

Do you really smoke 20 packets of cigs a DAY? if so your poor lungs.

You need to cut this NOW or you won't live to make 30.

Unfortunately I have been smoking since I was 12 and haven't stopped since. So needed more and more due to stress when I started working. I am definitely looking to cut back and have tried to quit many times. I've tried nicotine gum but it makes me feel sick.

Hoping to live till 30! :j

happyandcontented

kazwookie wrote: »

Do you really smoke 20 packets of cigs a DAY? if so your poor lungs.

You need to cut this NOW or you won't live to make 30.

I read it as one packet of 20 per day not 20 packets per day!

jimbo747

prodigalson wrote: »

Post tax I make £8k per month, have been making this amount for the last 4 months, but recently the business as required an influx of cash due to the requirement of new servers costing over £1,200 per month with all the extras required.

I think I am spending as I was working as a banker so definitely need to change my lifestyle in that regard, if I ever meet an old friend anywhere, the next days plan is always going out and ordering bottles at the club. So definitely need to cut down.

Are you using azure? My company is self hosting part of the business at just over £1k a month, and we own our own servers but for some of our international clients we've moved to the azure platform, far more cost effective and scalable imo.

Also how are you paying yourself and how is your company set up, ie sole trader, ltd etc. You don't seem to have put anything aside for tax each month, so although you state £8000 post tax, I'm presuming this is after VAT is paid, not your personal. And is that your wage out of the business or is that what the business makes?

prodigalson

jimbo747 wrote: »

Are you using azure? My company is self hosting part of the business at just over £1k a month, and we own our own servers but for some of our international clients we've moved to the azure platform, far more cost effective and scalable imo.

Also how are you paying yourself and how is your company set up, ie sole trader, ltd etc. You don't seem to have put anything aside for tax each month, so although you state £8000 post tax, I'm presuming this is after VAT is paid, not your personal. And is that your wage out of the business or is that what the business makes?

So I was a sole trader early this year, recently just incorporated as a Limited company, the business is based around AI and programming.

I put aside money for tax each month is a separate account, my accountant sends me an email every month on how much money to put aside for tax and that's the amount I put in a separate account.

£8k is the wage I take from the business each month it makes more, the issue is the amount of capital required for equipment renting. So I have had to put money back into the business twice in the last 4 months.

Will check out the azure platform today, hopefully it saves me some money!