Going Bankrupt - 26 & Scared

Zero_Sum

Is getting the train that much of a quick win?
Getting out of a the car lease could be costly as there are additional fees for early hand back. The cost of trains arent cheap either. And theres your time, whilst not a direct financial cost you could be doubling your travel time.

warby68

Zero_Sum wrote: »

Is getting the train that much of a quick win?
Getting out of a the car lease could be costly as there are additional fees for early hand back. The cost of trains arent cheap either. And theres your time, whilst not a direct financial cost you could be doubling your travel time.

No, not what I meant.

I posted earlier about just swapping travel method for the time being to save fuel, parking and some maintenance NOT exiting the finance deal.

OP had £100 pm train v £335 fuel and parking

Zero_Sum

warby68 wrote: »

No, not what I meant.

I posted earlier about just swapping travel method for the time being to save fuel, parking and some maintenance NOT exiting the finance deal.

OP had £100 pm train v £335 fuel and parking

This is where it gets confusing. What maintenance? Its on lease, maint costs are covered in the lease. Unless shes on about getting it cleaned? So just dont get it cleaned.

Also doesnt seem to split out how much is getting to & from work, and how much is business related. The business related costs should be recovered by car milage claims.

She says she works in fostering & adoption, so local government so car milage claims shouldnt be an issue.

warby68

Zero_Sum wrote: »

This is where it gets confusing. What maintenance? Its on lease, maint costs are covered in the lease. Unless shes on about getting it cleaned? So just dont get it cleaned.

Also doesnt seem to split out how much is getting to & from work, and how much is business related. The business related costs should be recovered by car milage claims.

She says she works in fostering & adoption, so local government so car milage claims shouldnt be an issue.

I don't mean to be picky but she covered all this in earlier posts. The thread has got quite long and not all the information is in one place.

She allowed for extra maintenance of £60/70 for costs over and above the deal and, based on her last service costing £400, I don't think her costs are included anyway. The consumables bit and wear and tear would reduce if she used the car minimally - I haven't really allowed for this as an amount in any case.

She also explained that the petrol cost is purely getting to work and back - she hasn't included the business cost for which she gets some reimbursement which is not included either. She hasn't said, as far as I recall, exactly what rate she is paid at.

The 'quick win' savings I guesstimated were just roughly £200 fuel/parking out of current total £325 and £100 food pm.

BoGoF

Zero_Sum wrote: »

This is where it gets confusing. What maintenance? Its on lease, maint costs are covered in the lease.

Not all lease deals include maintenance. I have had 2 lease cars neither of which included it.

SusieT

Please talk to your parents, they will in all probability hate the thought of you going bankrupt and will be upset that you did not talk to them first.
While you cannot afford to return thr car yet, have you costed the idea of taking it offroad (possibly with reduced insurance?), and using public transport for a while? Yes you would need to keep paying but it could result in a big saving. You would need to start the engine every few weeks to keep it circulating, and park it in gear with the handbrake off, but it could give you a way of saving. If you have meetings use a pool car and if work and the meeting are in opposite directions to your house look at taking it home the night before to save time.
I know you need to look smart for meetings and clients, but accessories are a lot cheaper than new clothes especially if you get them from charity shops, and can totally change the look.
Again, please talk to your parents, they may well be able to reduce what you are paying for a while, and you can repay that when you are straight again.
Good luck, but please discount the bankrupt idea for now

Paulsandy

Hi Hannah
Why not do long hours job?
10 hours a day for 5-6 days in a week?
Reduce your expenses and increase your income.
Try to find an easy jobs perhaps a receptionist, if your speaking is good. You get @£11 per hour at least.

Paulsandy

Hi Hannah
Why not do long hours job?
10 hours a day for 5-6 days in a week?
Reduce your expenses and increase your income.
Try to find an easy jobs perhaps a receptionist, if your speaking is good. You get @£11 per hour at least.
Your income would go up £ 2000 plus if you work monday to friday.
First of all your income is too low, secondly see you expenses and try to cut down as suggested by other fellows.My concern is your income !!
Hope you find a way out.

DCFC79

Paulsandy wrote: »

Hi Hannah
Why not do long hours job?
10 hours a day for 5-6 days in a week?
Reduce your expenses and increase your income.
Try to find an easy jobs perhaps a receptionist, if your speaking is good. You get @£11 per hour at least.
Your income would go up £ 2000 plus if you work monday to friday.
First of all your income is too low, secondly see you expenses and try to cut down as suggested by other fellows.My concern is your income !!
Hope you find a way out.

Hi Paulsandy

Instead of posting a second reply, why not edit the first 1 or instead of replicating the text from the first post why not just post the other part.

[Deleted User]

Hi Hannah,

I saw the title and just wanted to say that I was almost your age when I went bankrupt and never got advise and never really thought about all the issues it could cause.

I was lucky that I managed to get this job - to this day, I'm still not sure how.

Rentals are a nightmare. Mortgages are hard but not impossible.

What I have found is that Bankruptcy keeps cropping up - years and years into the future. Say 20 years time, you've put all your issues behind you and got a partner. You go to apply for a mortgage - certain companies ask if you've ever been bankrupt and will decline you. Imagine then having to explain that. Same for insurances.

It certainly is a 'fresh start' but I have found you keep getting dragged back to that point in your life, even when it's gone from your credit file. So that's something else to think about - do you want to be continually reminded of 2019/2020 in future?

Trying to avoid repeating everyone else and the good advise you've been given on here - but in your situation, I just can't see how it would be the best option for you.

Is that APR (4.2%) correct for your car? The only advise I can think of - and I'm not sure if this would be right for you, or how much you'd actually save - would be perhaps approaching your main bank (TSB?) and looking to take out a loan to clear the car finance now?

Taking it over a longer term, may be less per month than the £230 you pay now. I doubt the APR would be as cheap though.

Another option would be Halifax, as you have one of their cards, you should be able to see on online banking an indicative rate if they'd offer you a loan.

With debt consolidation, the only thing you would need to be aware of is that ultimately you'd pay more in interest - but if you cut the cost and take other advise (reducing spend on food etc.) then you could move on from this and do very well.

If either of those two say you're "likely" to get a loan for the amount to cover the car finance, that could be something to discuss with StepChange/CAB. Your amount of outstanding debt might prevent that being a possibility though.

Best of luck though, whatever you decide to do