Drowning in debt - please help

happyhopes

I was a student from September 2021 until June 2024, receiving tax credits and student loans. I was accepted for a £10,000 loan which was £15k with interest and another loan of £15,000 which is £25k with interest. I was also accepted for a credit card with an £11,500 credit limit. All whilst being a student, on child tax credits and no job. 

I’ve now finished university and work part time in a supermarket. My hours vary so my wage varies each month. I am looking for a better paid job but most only pay minimum wage and surprisingly, my supermarket job pays more. I have 2 children, but my oldest is no longer in education, therefore I am no longer entitled to tax credits for him. My partner will be moving in at the end of the month and with his wage and my fluctuating wage, we will not be entitled to universal credit. I have played around with numbers on the benefit calculators and I wouldn’t be entitled to any, or barely anything. 

My income varies from £866 a month to £1200 a month. The tax credits I receive currently is £262 a week. My debts include:

Lloyds CC1 - £3729.16 (min payment of £40 a month)

Lloyds CC2 - £1212.46 (min payment of £35 a month)

Lloyds personal loan - £14.598.91 (min payment of £377.70)

Barclaycard - £227.10 (min payment of £20) currently on a 0% offer until sept 25

Zopa - £9033.47 (min payment pf £376.40)

Very - £1204.38 (min payment of £100 a month) currently on BNPL so no interest.

Next - £415.90 (min payment of £35 a month) not including interest which is at 24.9%

Housing benefit overpayment - £930 - no minimum payment as yet as I'm still waiting for a letter. 

In total – I owe £31,351.38 – Min payments are coming in at: £984.10

I have done an expenditure form. I don’t know what to do. I cant afford to pay these outgoings. I feel like I am drowning. The payments aren’t due until the end of the month so iv put off asking for breathing space until a few days before they are due, but then what? 

Any help and advice is much appreciated. 

Grumpelstiltskin

OK You are in the right place.

Start by reading this thread.

In Debt and Wannabe Debt Free? first Steps to take are here, please read, then ask questions. — MoneySavingExpert Forum

Forget Breathing Space, it's a waste of time.

If you can't afford to pay your unsecured debts don't pay them this month, nothing terrible will happen if you don't pay.

Completing a SOA once your partner has moved in as you should be treated as a couple will be the way to go.

The main thing is not to panic, it is only money and there will be a way forward.

Mark_d

That is a massive amount of borrowing.  Aside from credit card debts, you borrowed £25k on loans.  What's happened to all the money your borrowed?  Are you someone who spends more than they earn?

happyhopes

Mark_d said:

That is a massive amount of borrowing.  Aside from credit card debts, you borrowed £25k on loans.  What's happened to all the money your borrowed?  Are you someone who spends more than they earn?

I was consolidating, but it just spiralled. It's mostly gone on living expenses. 

Grumpelstiltskin

I hope you don't mind me saying this but in view of you working part time in a supermarket do you think your 3 years at university was worth it?

Were you claiming all the benefits you were entitled to whilst you were at university?

happyhopes

I've done an SOA for myself as I need to sort these out before he comes, assuming he still wants to when he finds out the financial mess I am in. 

My total monthly income: £2101.33
Expenses: £2270.80
Available for debt repayments: -£169.47
Unsecured debt repayments: £969.10
Surplus (shortfall if negative: -£1138.57

happyhopes

Grumpelstiltskin said:

I hope you don't mind me saying this but in view of you working part time in a supermarket do you think your 3 years at university was worth it?

Were you claiming all the benefits you were entitled to whilst you were at university?

I have learnt many transferable skills from being at university, it's just being able to find the right job that is recruiting to put them to use. Many jobs these days pay the bare minimum but want you to be degree educated.I had an interview the other week working for a well-known insurance company and they paid less than what I'm on now. I don't regret it, I enjoy learning and feel I learnt alot being there. 

I'm still on legacy benefits and whilst I was at university, it was best for me to stay on legacy as if I moved to UC, I would have been worse off financially as they account your student loans as income. Whilst at uni, I just lived on student loans and child tax credits. I received housing benefit but not much, about £10 or so a week. 

Grumpelstiltskin

happyhopes said:

Grumpelstiltskin said:

I hope you don't mind me saying this but in view of you working part time in a supermarket do you think your 3 years at university was worth it?

Were you claiming all the benefits you were entitled to whilst you were at university?

I have learnt many transferable skills from being at university, it's just being able to find the right job that is recruiting to put them to use. Many jobs these days pay the bare minimum but want you to be degree educated.I had an interview the other week working for a well-known insurance company and they paid less than what I'm on now. I don't regret it, I enjoy learning and feel I learnt alot being there. 

I'm still on legacy benefits and whilst I was at university, it was best for me to stay on legacy as if I moved to UC, I would have been worse off financially as they account your student loans as income. Whilst at uni, I just lived on student loans and child tax credits. I received housing benefit but not much, about £10 or so a week. 

Unfortunately it looks like you didn't live on student loans and child tax credits if you built up such a large amount of debt.

You must tell your partner about your debt, if you  are not honest with him from the beginning do you think it is the best way to start a relationship?

happyhopes

Grumpelstiltskin said:

happyhopes said:

'Grumpelstiltskin said:

I hope you don't mind me saying this but in view of you working part time in a supermarket do you think your 3 years at university was worth it?

Were you claiming all the benefits you were entitled to whilst you were at university?

I have learnt many transferable skills from being at university, it's just being able to find the right job that is recruiting to put them to use. Many jobs these days pay the bare minimum but want you to be degree educated.I had an interview the other week working for a well-known insurance company and they paid less than what I'm on now. I don't regret it, I enjoy learning and feel I learnt alot being there. 

I'm still on legacy benefits and whilst I was at university, it was best for me to stay on legacy as if I moved to UC, I would have been worse off financially as they account your student loans as income. Whilst at uni, I just lived on student loans and child tax credits. I received housing benefit but not much, about £10 or so a week. 

Unfortunately it looks like you didn't live on student loans and child tax credits if you built up such a large amount of debt.

You must tell your partner about your debt, if you  are not honest with him from the beginning do you think it is the best way to start a relationship?

He knows im in debt. Just not the amount, same i dont know about all his outgoings. 

I need help on how to get my debt down rather than talking about uni and my relationship tho tbh. 

Grumpelstiltskin

Once  your partner moves in it will all depend on how you sort your finances out, he must pay his full share of the costs and if he has much bigger wages than you he should pay more, otherwise you only choice may be to increase your income as there probably won't be much room to juggle with what you have got.

I still think you both should be completely honest with each other about you finances.

happyhopes

I grew up watching my mom take out loans, credit cards and store cards and I would tell myself that that would never be me. But then, life happened, kids, uni, the cost of living went up and iv been trying to not spend, then going in my overdraft so thought id consolidate which was great to begin with but obviously i am where i am now because i have been financially irresponsible and I hold my hand up to it. I am trying to reduce the debt but we still need to eat. Im working more hours, which then reduces my entitlement to benefit. When my partner moves in, I wont be entitled to anything which is fine. Its the loan payments that are crippling me. £755 on 2 loans alone without everything else included and like you say, breathing space is just for 30 days so il be in the same predicament next month.