Please help me turn my life around, 24 year old with 15k debts

BWZN93

Have you thought about arranging a meeting with your manager with regards to getting a payrise? You do a lot of hours at work, and clearly must be quite good at what you do - otherwise they wouldnt let you do it.

If you go ahead and get a bar job in the evenings, try and avoid working in really busy places, I just graduated and have been working in bars on and off - usually only minimum wage and the busier a place, the more annoying it is to bust your a$$, However, I worked in a local bar that was never excessively busy, and I really enjoyed it, and got paid more than minimum wage, and managed to make quite a few friends as I was able to actually talk to customers, as opposed to shoving drinks at them and shouting NEXT!!

As mentioned above - maybe work for Pizza delivery place? you will be out and about driving, get a wage, and usually get £1 or so extra for every delivery for the petrol. However, If you use your car for work purposes, it must be declared, which will make your premiums higher.

Your insurance will be higher because of the crash - have you done pass plus? Might bring down the insurance... Alternatively, how about adding another driver who is experienced? Ive just re-insured my car with norwich direct, and it was £80 lower when I added my boyf who has been driving for 7years with no claims. I do drive an old Fiat Punto however, and tpft for me is £229 a year....

If you work a lot, there is no point in paying for broadband, when the time you are actually on the internet will probably make it cheaper to go on dial up, and just paying for the call time it uses.

Dont know if that helps, but if you really want to move out of home, then its time to cut out the socialising, or at least cut it down - im sure your freinds will understand when they realise you are working to get yourself a pad they can all hang out in!

Jo xx

debtbuster2K5

Hi LupoGTI,

Well.. It seems that many people are advising you to sell your car and to downgrade to free up some much needed cash to your budget, and I have to say I wholeheartedly agree with all of them.

Without wishing to sound patronising in any way, I wanted to share my experience with you.

I am 28 years old, married with 2 kids and up until January we ran a BMW 320ci Convertible and a 318ise saloon. Finding myself a bit "indebted" and a bit short of cash every month, I realised to make my plan happen, I could only do one thing and that was to downgrade my beautiful car. :eek:

In fact we downgraded both. I go to work in a 1.0 Vauxhall Corsa, whilst the family car is a diesel picasso. I now insure both cars for £400 per yr, where the convertible cost £600 itself. I get cheaper tax, better fuel economy, money back to pay off debts and more in my pocket every month. :j

I figured that at 28, I still had plenty of time for nice cars (When debt free) should I so wish, also the horrendous depreciation has put me off them for a fair while as I intend to keep both these cars as long as possible.

As I said earlier, I dont intend to patronise, this is not meant to be an " I am brilliant" style post, I just want to get accross that cars are really not the be all and end all.

Good luck

lupogti

Hello , thanks for all your great replies, much appreciated, seeing as you have taken the time to offer me advice I am going to try and answer some of the points you have made :

Loans
Yeah I have protection on these unfortuantely. They made it seem like they wouldn't give me a loan without it and that i would be putting myself at risk without it. A stupid error on my part. I will check the paperwork ring each lender up ask for a settlement figure and check the PP guidelines. I think with the loans i will just have to see out the remaining term? Concentrate on getting my Credit card down? The interest and PP will be calculated over the first period even if i was accepted for a 3 year loan and at a low rate to pay them off with similar or higher payments i would be worse off.

Credit Card
I got turned down for an egg card around 2 years ago and so I'm assuming my credit rating isn't very good. Would love to transfer balance to 0%. I have never missed a loan or CC repayment so that may have built my score up a bit but don't want to damage it aagin by getting refused? I'm on the electorial roll.

Going/out socializing
I understand that (pound sign playing up on my computer) $100 is alot of money and it could be cut but then that leaves me stuck in at home, the place where i don't like being so it's a bit of a viscious circle. This is where I thought the bar job would help, because aswell as not spending I would be earning and also i wouldn't be stuck at home getting depressed. But will deffinately look to cut this - not getting into rounds, taking my car out , go out midweek for cheap drinks as mentioned. all my mates seem to live for weekend and don't see them much midweek so when weekend comes round they are out rather than staying in watching dvd's n drinking cheap netto beer.

Car
Options:
Not only have i a potential 6k sale figure - pay off credit card first unless i transferred it to 0% or in that scenario the HSBC Loan if it covers it?
*If i could get a old diesel cheap run around i would save on insurance and petrol and thus free up more income.
* keep a similar standrd of age car 2001 - (better for running costs and repairs) but get a smaller engine and a diesel - at the minute my car is insurance group 12. - although in this route i would have as much money left over from buying a similar aged car i would free up more monthly.
* I can put the car in my Dad's name , insurance would be halved but could only drive it socially - weekends and evenings! so that would save on petrol aswell.
I know that selling it is the best option for me to get out of my debt quicker but it would really gut me, I can't afford to let things get any worse so it may be my only option.


Job[/B
I have just had a payrise of $60.00 a month after tax , and 27th june will be first pay with that rise in which means that will go on CC. The way the comapny works, they dont reward on hours put in, with all the people there that do the bare minimum, work till 5 and race out of the door Im still at work at 7p.m sometimes but it's the mess iv'e got myself into that keeps me going.
Thanks for the tip about the 10 week course but i dont want to put the foundation course off for another year unfortunately it's a case learning a trade and getting on with it. I'm not getting any job satisfaction at the moment so if I didn't while plastering at least i'd be on decent money.
Office admin jobs are becoming one of the lowest paid sectors but I have 3 and a half years experience and probably need to use that experience and try for another job with a different company - ideally a 2 to 3 k pay rise would make all the difference. that is what i'm earning including overtime but i'm work 40 to 60 hours a month for that.

Internet - again it is a luxury, but it passes the lonley hours i spend in my room and if i am gonna go out less need things to distract me.

Gym - A good point made. I go to a bodybuilding gym and there is no focus on cardio work , but i suppose I could take running up, something else to occupy the days that go so slow. I go 4 times a week and when i stay at work till 6.30pm i go to gym and dont get home till 8.30 - 9.00 which suits me because its less time festering in my bedroom. The gym is like a second home to me and i have alot of friends there and really enjoy it. The $18 a month isnt as bad as the fitness firsts and virgin actives of this world and the body building is my major hobby.

Food: That is extra's i buy for the month , pasta, cerials, fruit - none of it is top brands. I do take pack lunches everyday - the canteen is well overpriced $1.50 for a plain bake potato! Some at work spend $20 a week buying food at work or nearby shops. I also don't drink at lunchtimes or buy pub lunches - this is very much office culture. Basically My mum and dad are not that well off and so i try and contribute to food more. Its not for snacks and treats - chocolate and crisps more esentials.

Board: I didnt start paying board until 3 moths agao and i knew it was time to start paying when the cupboards started going bare and hardly anything in the fridge. I'd pay more if I could. The fact that i didn't pay board till i'm 24 just shows how much of an easy ride i have had but still managed to accumalate 15k of debt. I cant really cut my board it wouldn't be right.

I know it seems like I'm trying to avoid any sort of sacrifice but I am taking all this advice on board. It's just the debt arised because I was unhappy at home and wanted to be out all the time and in the end it has caught up with me and the ironic thing is the debt has kept me at home for longer and there more frequently.

If I keep on meeting all the payments, living the life i'm living now , if I see out the terms of my loan, that means i will still be living at home till i'm 27 and that is 3 scary years away. Even then I will still have my credit card bill etc I just want to get into a new routine, see light at the end of the tunnell. If i'm still gonna be at home for another 2 to 3 years I just wanna make sure that when I get there I am debt free.

A good friend of mine suggested (as many on here/other threads ) to open another bank account where on payday every DD know will be taken out is transferred and I know exactly how much disposable income I have to spend on things. Then I have a conscious decision to make and put extra payment on the credit card , set myself to a spending money of $10 a week whatever it may be, need to get my .
The bar job is gonna happen me thinks, at least for a trial period. The delivery job is also a good idea which i will look into.

The debt is affecting my whole life and there is a crossover with my home life which makes it a lot harder to stay at home. Again the car issue is a very last resort and when i sit down and budget , put things in writing how much saved per month car insurance, petrol , paying credit card off with the sale of it , it may be the push I need. I think the car is the only thing Ive got to show for my debt and if i sold it for an old wreck I would be in debt but nothing to show. although logic states I would be free from debt much faster. The post from the guy with the BMW (by the way a wicked car) wasn't patronising, it was nice to hear that you found it difficult but you can see a positive from its sale.

Your thoughts are very much welcomed as I'm sure I will be on here alot with updates, G

Malestrom

Look at it this way, you have at least had a nice car and the chance to drive it, now its time to move on, buy something thats boringly sensible and start hitting those debts into touch. I wouldn't necessarily recommend a diesel either, the fuel costs more and a lot of diesels dont have a much better MPG than many of the small petrol cars that are around. My Toyota Yaris 1.0L will give nearly 50MPG and is a lot nicer to drive than a clunky diesel. Your choice of course but just wanted to say that diesels aren't the be-all and end-all.

I understand a lot of what you've written and can sympathise, but you need to stop making excuses for why you can't cut back and look at the savings and how they will shorten both your debt and the length of time before you can leave home. Sorry if that sounds a little harsh.

Putting in maximum effort now, no matter how hard it is to face, will reap maximum rewards sooner rather than later. Let us know how you get on with the PPI.

newfunk

have to agree with everyone, you HAVE to get rid of your car!! You have no choice!! The money you will save will soon pay off your debts...trust me, Ive had nice cars, and have had to sell my pride and joy in the past to clear debts!! But I got an even better one when my job prospects and debst ahd been sorted...You have your whole life to drive nice cars

youngandreckless

Hi LupoGTI,

As my board name suggests we have a fair bit in common! Ok here is what I think, I have to say that I wholeheartedly agree with everything the others have said.
However, reading your posts there is quite alot going on for you at the moment and I understand how you feel about the car (my car could pay my loan off if I sold it but I rely on it heavily). So what I have to say may not be agreed with by the others, but may help you with what you're going to do.
My budget that I have devised for myself could be tighter. I have changed my ways dramatically, but I know I could do more if I was tougher. However I made an agreement with myself, that I would allow myself to keep a few luxuries (the odd takeaway, couple of treats etc), but I would have to accept that my debt free date would be slightly further away. This works for me as it is realistic, I don't go mad (moneywise or mentally), and therefore I have made excellent progress. What I'm trying to say is, if you keep the car, you will have to accept you will be in debt for longer and potentially living at home longer. Only you can make this choice and if you decide you can't be without the car, then cut back everything else to the bare minimum - you have to be ruthless.
I think the college course is excellent and you should gain some self esteem back as it seems like you're really beating yourself up for getting into debt (I did exactly the same). You should feel proud that you're facing this head on, loads of people our age are quite happily spending like the clappers without any worries whatsoever! I'm starting hairdressing in september for exactly the same reason you're doing plastering, I'm looking forward to earning a decent wage with a decent skill, my office job certainly won't make me a millionaire!
You mention that Egg turned you down a couple of years ago, but I'd give them another try and try all the 0% deals you can - they may say no again, but you have nothing to lose by trying and it could save a fair bit if one accepts you (just make sure you don't spend on it).
Someone mentioned housing associations and the council - are you registered? My friend has a housing association flat and it is lovely (aswell as reasonable), you may be on a waiting list for a while anyway so you should put your name down.
You're in excellent hands on this board, I'd have lost the plot without it and there are some amazing people to learn from.
Keep posting and let us know how you're doing
Y&R x

debtbuster2K5

youngandreckless wrote:

You mention that Egg turned you down a couple of years ago, but I'd give them another try and try all the 0% deals you can - they may say no again, but you have nothing to lose by trying and it could save a fair bit if one accepts you (just make sure you don't spend on it).

A word of warning. If you continue to apply for credit cards, loans etc and continue to get refused, it will have a negative effect on your credit rating, and make you look desparate for money. If you have been declined recently, it would be better to apply for you credit history using Equifax or Experian to see why you are being refused.

Regards

Maddie

lupogti,

You say that your car insurance is £125 a month, does this mean that you are also paying a fortune in interest to pay over the year?

If you decide to keep the car then consider other ways to pay for the insurance or try to haggle down the interest rate (i am presuming here that it is a high APR, they usually are). One year I got 0% interest over 10 months, all i did was ask!

Good luck and keep posting!

youngandreckless

Hi LupoGTI,

I didn't realise that applying for credit cards could affect your rating so follow the advice of debtbuster and ignore my comment on the 0% cards above.

Y&R

deemy2004

Start a part-time course this September

Since you work at finance why not look at the Accounting technicians certificate ?

Or the theres always becoming a financial advisor - easier than you think - about 6 months studying.