Had my light bulb moment

Tino_2

Probably about £145k-£150k, but as I said before, it's really not an option, it wouldn't just be me on the street, it would be my brother. And the cost of renting is so high I'd end up needing as much if not more for it.

spendthrift66

I don't think poppy10 was suggesting you give up but by not getting a full time job, in any field - even admin or something, you just cannot afford to live and get rid of the debts. You could get a job in admin or whatever, still pursue your dream of having your own webdesign company and make a dent in those horrid debts. Believe me, they will begin to cripple you. They may seem manageable at the moment but you don't have any choice other than to keep running them up and before you know it - they just aren't manageable any more.

Tino_2

Yeah, I know things are bad, and I need to do something about it now, which is why I'm here. But I came for support, advice, and a constructive kick up the backside, which is what I've had from all but 1, and I appreciate it.

Being told what I already know in such a negative way, and making it sound like its a lost cause, in no way helps me.

spendthrift66

Well it's great that you are facing up to it. I know the conventional wisdom is not to borrow more but do you have any equity in your house? Could you move your debt onto that? Having said that - I think it's probably true that you'd find it hard to borrow anything with no steady income. Especially now ....
I'm afraid it does all point to getting that job ... where do you live?

It's not a lost cause.

Tino_2

Thanks. No, I only bought the flat in August, which was the main cause of the majority of my personal debt, and my inability to pay off very much of my other debt. My mortgage is also fixed for 2 years, so I can't make any changes to it.

Yeah, the more I think about it, the more I'm realising it's pretty much my only option. I live in Aberdeen.

Thanks for the encouragement

poppy10_2

Sorry Tino, didn't mean to be harsh. It's just that I'm sure you'd prefer your friends and family to get whatever money you have left, rather than the banks.

wyebird

Trouble is with web design as a sole trader is the falling between two stools. You are not really big enough to get lucrative contracts from larger businesses as they want a bigger support network, and nowadays, design software is so user friendly that a lot of smaller businessess are happy to have a go at it themselves.
Can you diversify? I subcontract for a larger company as well as doing stuff on my own. You could try signing on with an agency, and look for broader based work. Good luck!

Homework

It's not a lost cause as all is not yet lost. S1 jobs now has 16 IT jobs (don't know if they are all suitable but one is for a web editor). Agency work would normally give you a wage at the end of the second week of work which is quick and you would have time at nights and weekends to be self employed. There is also 97 admin jobs you could perhaps have a go at.

It would give you a regular income which you would then be able to use to target your debts either by yourself or through a debt management plan.

It may appear that people are being a bit harsh but sometimes you don't see things until the obvious is pointed out. You stated your priority to change your bank account and pay off a friend. The priority is the income. Once it is there you can plan what to do with what you have. It stops being something to think about and starts to be something to actually do and make a difference.

Don't feel bad about it as you are doing the best thing by realising that you are not in a great position - because now you can start doing something about it.

Getting a job or temp post is part 1 to being responsible for just now and starting to move on, also keep your self employment and do it at nights and weekends and you are building something for your future. You then have 2 sources of income. This improves your position at the bank and to pay your debts. It also gives you hope of being able to pay family back and it shows them that you are making the effort to do so.

People who are giving you advice have mainly been through problems and are still working through them. They can perhaps see what is coming if you do nothing to improve this situation.

DizzyMum_2

Having spent a few years consolidating credit cards and then running them up again without really addressing my spending habits (they were very naughty - now they're just a bit naughty) I'd say don't consolidate ever - there's nothing like reformed consolidation addict.

You think it's a way out and it makes perfect sense but, actually it doesn't. If I'd have realised that a few years ago I'd have no debt now but, heigh ho onwards and upwards.

I'm also an IT type person and fortunately I'm in a good job but, in my time I've done whatever's around that pays me cold hard cash whether that be bar work, temping and I've even spent time filing at eight and half months pregnant to tide us over a lean period cos we needed the money.

With Christmas being so near would it be possible to get some regular work to tide you over - it may not be what you want to do long term but, it would give you some breathing space and then things wouldn't feel quite so grim.

Seaxwyn

HI Tino

A&L will match your existing overdraft so long as you have been in credit at some point in the last 3 months (or maybe 2 - I can't remember).

As others have said, the thing that leaps out from your posts is that you are struggling away with very small and unpredictable income. You are young and have plenty of time to run your own business - but for now it seems obvious you need to get a job with reliable income until your debts are under control.

I suggest you take a full time job and carry on doing freelance web design in your free time. You may also find that working opens other doors, and teaches you stuff that will be useful when you do come to run your own business.

It's very hard to see how you can get sorted without seriously increasing your income.

Best of luck with it