Going Bankrupt - 26 & Scared

onwards&upwards

sourcrates wrote: »

I`m with Fatbelly on this one, i`ve never seen a thread so active on this particular board,

I think it’s the title, 26 and scared, it really made me want to help if I could, who hasn’t been scared in their twenties? I know spent a lot of mine a bit overwhelmed by managing as an adult, and I ended up with a gambling problem and a ton of debt myself in my efforts to cope.

Hannah I hope some of it has been helpful, I frequent the debt free wannabe boards more often, you might find it useful to post there too for some detailed budgeting help when you feel ready.

Good luck and may 2020 be the best year yet. X

Zero_Sum

The car isnt the issue. Its the £400 contribution to parents & £230 for food.

Just to put it into context, for the 2 of us the total council tax/utilities/insurances/subscription tv comes to around £300. And groceries about £200. You're paying a.lot more just for you.

And as OP seems completely unwilling to budge on it, then as harsh as it is theres little point trying to help.

Hannah232

The £400 is including a house to live in ( not just a room ) a nice garden and a parking space. It includes water, electric, heating,broadband etc). This is way cheaper than what it would cost to move out and live on my own. The board is what I agreed to pay. You probably think it is expensive because most people when they live with parents pay a much lower rate, for example I used to pay £200 but this was a few years ago when I was on a much lower wage. The going rate in my area for a room in a shared house is £400-450 a month. 8/10 this does not include parking.

Food is something I can look into and try to decrease which is what I am planning to do by batch cooking and looking for deals.

I am not unwilling, I am looking at everyones advice as logically as possible, where I can budge I most certainly will and that is why I came to this site.

Zero_Sum

And my house includes all that. If you did move out your parents would be about £375 a month out of pocket. £200 is more reasonable, although given that you buy all own food £100 would be sensible

BoGoF

I fear you are not listening to the advice. £400 is not sustainable for you. If I were your parents reading this I would be ashamed the £400 rent is making you consider bankruptcy.

Willing2Learn

@ Hannah :hello:

I also agree with Fatbelly and sourcrates. You are being absolutely bombarded with information. I think you need to take a step back from this thread, just to catch your breath. It must be so confusing for you.

You need advice from professionals who are well-versed in the applicable legislation, regulatory framework and applicable guidance. Please contact National Debtline or StepChange on the phone tomorrow, so that you can speak to professional debt counsellors. And will you please return afterward and update us? I think we all want you to chose the best options and would love to hear your plans.

Bonniepurple

Hannah, while you do have access to a nice house, not just a room for your £400, it is not what you can afford. You say your parents are going through a tough time- well, so are you. My parents (and I include my in-laws in this) have reduced rent for us when we lived at home when it helped us out. It wasn’t all the time. It was the odd month here and there - if things were very tight, or an unexpected bill. That’s what parents do - and, in the future, once things are straight, I’m sure you will do for them - but, right now, you can’t.

The best things I can suggest (from the ripe old age of 38!) are:

Talk to your parents. See if between you you can all juggle stuff around.

Cut down your car usage. Walk more. Take the train sometimes. If work want you to drive to see clients, ask if you can use a pool car. My workplace (civil service) books hire cars for people when they need them for visits.

Learn some basic car maintenance and learn how a car should “feel”, and what it means if it doesn’t “feel” right. I’m tuned into my cars so I know when the oil is low, or when something just feels off. It will save you a fortune. FWIW, I’m female, married- and I do all our car maintenance checks. I’d love to do more to be honest.

You want to get on at work. Brilliant- kudos to you. Right now, however, you need to put your foot down firmly and say that you will do stuff for your grade as the rest is too much.

While bankruptcy isn’t the end of the world, it’s not right for someone at the start of their adult life. I also suspect that it will impact your future job prospects more than you think.

Jox

You'll get through this Hannah, you don't need to go bankrupt, after 6 months, cancel the gym, after a year get a cheaper phone rate, cut your groceries, give yourself a budget and stick to it.

You might even get a pay rise at work this year. See if there is a promotion you can go for as well.

Good luck

[Deleted User]

Hannah232 wrote: »

The £400 is including a house to live in ( not just a room ) a nice garden and a parking space. It includes water, electric, heating,broadband etc). This is way cheaper than what it would cost to move out and live on my own. The board is what I agreed to pay. You probably think it is expensive because most people when they live with parents pay a much lower rate, for example I used to pay £200 but this was a few years ago when I was on a much lower wage. The going rate in my area for a room in a shared house is £400-450 a month. 8/10 this does not include parking.

.

Have you asked to drop back to £200? I would come clean about the mess before going bankrupt. You are planning to tell them? Sure they might be upset that you've racked up more card debt (just an example) then you should, but hiding bankruptcy isn't going to be easy and this is no private landlord you are dealing with. My parents hated that £450 odd for a one bed flat back in the day lined some stranger of a landlord pocket for rent alone; 10 years later they took their own action when an option arose... (which is where I'll fear for you)

Imagine you file for it, half way through, inheritance happens or it turns out your parents have been saving some of the board payments that you are currently stretching against with - that is why I recommend you speak them, especially for someone living at home.

Bankruptcy isn't the easiest thing to cover up/gloss over/hide and deny. Another situation, you go bankrupt and decide on moving out a few months down the line - you have checks run on you and subsequently are then subject to paying in advance and whatever else - these things can happen.

warby68

Good luck Hannah

The best advice right now, given how much there is to think about and, to be fair, how far you are in mindset from most of the advice given, is to take your time and combine this advice with what the professionals say.

There are some 'quick wins' available such as your food and taking the train (while leaving car at home for time being) and the £300 or so per month you could have from doing these straight away seems really useful and could give you a great morale boost.

Your thread title '26 and scared' got to me also. I've never been in debt but I do have sons and the protective instincts are strong so I'd also echo talking to your parents before committing to anything drastic. Your line manager too about managing without a car some of the time.

Please remember your income isn't being slated - you're on a path and that's fine. Its just in the context of your expenses its too low. If you stick with the income (for very good reasons) you must address the expenses.

Take care - there IS a solution for you, 100%, you just need to find the best fit.