The start of (hopefully) a debt free life

20somethingindebt

Hi all, I am new here.

I wanted to start a diary after lurking here for a while. I've been in debt a few years now (since uni) and I'm finally ready to tackle it head on, and I need to, badly.
I am currently £3,866 in debt. It all began at uni when I took out an overdraft because I'd spent all my student loan within weeks. I had no idea about money and how to budget, what my costs should be or how to plan out my spending for each student loan payment. Since leaving home at 15 I have been in charge of my own money but never had an idea about finances and responsible spending.
After uni, I struggled with moving costs and took out a credit card (£800) which was spent fast and is now £1,100 and close to the limit. I then took a £500 increase on my overdraft, taking it to £1,500. At Christmas last year I stupidly ran up debt on pay later items on Very, as well as 2 new credit cards - both £500 credit limits.
So here I am, 24 years old and £2,100 credit card debt, a £1,500 overdraft and £266 left on Very to pay back. The interest free periods are running out (next month for the credit cards, next year for the overdraft) and I feel a bit like I'm drowning in debt and worry. Mental health issues aren't an excuse but spending really was an instant fix for so many years. I've now discovered it is part of my diagnosis (the impulsivity and overspending) and I am better understanding and managing it, I have made big changes. Not sure what to do next but I'm going to work hard reading these forums and making more posts, and more importantly, seeing what my options are. My credit score is "poor" (according to Experian) and no one will want to lend me money I guess. Maybe I'm wrong.

Anyway, that's enough rambling. Thank you for reading my post, I will update as I go.
B

ImpulseSpender

Welcome 20somethingindebt! I ran up alot of my debt just after leaving uni through credit cards almost £9K. I'm 26 now and have £250ish debt left so you can definitely work your way out of this.

It's good to hear that you are understanding your overspending better and have made some big changes, that's always quite difficult. Have you worked out your outgoings and where you may be able to trim back further? Many people complete a SOA to fully understand their outgoings and then if you feel like, you can post it in here for others to looks at and make suggestions on where you may be able to cut back further. You can do the SOA here https://www.stoozing.com/soa.php

Good luck on your journey, I'll be following along to see how you get on 

ryanm8655

Can empathise with this story, although my debt grew and grew and I carried it into my 30s, so you’re light years ahead of where I was.

Second the SOA. Once you’ve done that we can help you formulate a plan to clear the debt.

FOMO_overspender

Hey @20somethingindebt and welcome! Firstly, well done on starting your diary - it took me ages to pluck up the courage to post my own and it's been so helpful. Secondly, I think a lot of people are the same! My problem with debt also started at uni with a ridiculously large overdraft and an a credit card given when I opened my account, before I knew it I was 30 and still in the same overdraft and more credit card debt, so you've done great to start your journey now. 

Agree re: the SOA - even if you don't post it, it can help you really analyse your spending and look at where you need to make savings, what you definitely can't cut etc. I also recommend a spending diary, somehow I find I question my spending a lot more knowing I have to physically write it down! 

Wishing you good luck and know we'll all be here to cheer you on from the sidelines.

FOMO x

20somethingindebt

Thank you everyone for your replies! I really appreciate you taking the time to comment. I will do a SOA and update in the comments today 😊

20somethingindebt

Hi guys, sorry it's taken a while but here is my SOA. Fortunately I don't have many outgoings but saying that my income is low.
 I will add that I'm only paying interest on credit card 3 at the moment and it's only just started so I'm not sure how much I'll end up paying in the coming months. All amounts are based on previous averages (usually minimum amounts). Interest on credit cards 1 + 2 begin 02/07 and 16/07 this year, so it's creeping up 
Reading my SOA has been interesting, I definitely have money each month I can put towards debt but doesn't leave me with much and I wouldn't know what to pay first or how much. I do end up spending money on stuff I don't need too, so that needs to stop.
Unsure on next steps for me. I've looked at consolidation loans but they don't wanna accept me or I have a low chance of being accepted.
I am grateful for any advice of where to turn my research to help with this debt.
Thank you for reading
B

Statement of Affairs and Personal Balance Sheet

Household Information

Number of adults in household........... 1

Number of children in household......... 0

Number of cars owned.................... 0[b]

Monthly Income Details

Monthly income after tax................ 1096

Partners monthly income after tax....... 0

Benefits................................ 0

Other income............................ 0[b]

Total monthly income.................... 1096

Monthly Expense Details[/b]

Mortgage................................ 0

Secured/HP loan repayments.............. 0

Rent.................................... 390

Management charge (leasehold property).. 0

Council tax............................. 0

Electricity............................. 0

Gas..................................... 0

Oil..................................... 0

Water rates............................. 0

Telephone (land line)................... 0

Mobile phone............................ 52.94

TV Licence.............................. 0

Satellite/Cable TV...................... 0

Internet Services....................... 0

Groceries etc. ......................... 150

Clothing................................ 60

Petrol/diesel........................... 0

Road tax................................ 0

Car Insurance........................... 0

Car maintenance (including MOT)......... 0

Car parking............................. 0

Other travel............................ 0

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 10.4

Pet insurance/vet bills................. 0

Buildings insurance..................... 0

Contents insurance...................... 0

Life assurance ......................... 0

Other insurance......................... 0

Presents (birthday, christmas etc)...... 30

Haircuts................................ 40

Entertainment........................... 50

Holiday................................. 0

Emergency fund.......................... 0

Credit card 3........................... 25

Credit card 2........................... 5

Credit card 1........................... 11

Google play apps........................ 0.99

Google storage.......................... 1.59

Spotify + Headspace..................... 9.99

Amazon.................................. 4.99[b]

Total monthly expenses.................. 841.9

Assets

Cash.................................... 0

House value (Gross)..................... 0

Shares and bonds........................ 0

Car(s).................................. 0

Other assets............................ 0

Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts

Description....................Debt......Monthly...APR

Credit card 1..................1100......11........27.95

Credit card 2..................500.......5.........21.3

Credit card 3..................500.......25........30.34

Very...........................266.......0.........30.34

Overdraft......................1500......0.........0[b]

Total unsecured debts..........3866......41........- 

Monthly Budget Summary

Total monthly income.................... 1,096

Expenses (including HP & secured debts). 841.9

Available for debt repayments........... 254.1

Monthly UNsecured debt repayments....... 41

Amount left after debt repayments....... 213.1

Personal Balance Sheet Summary

Total assets (things you own)........... 20

Total HP & Secured debt................. -0

Total Unsecured debt.................... -3,866

Net Assets.............................. -3,866