HELP! i’m a student in debt and im overwhelmed!

christmascookie24

Hi guys,. i’m wondering if someone could help me please or give me some advice.  

i’m 22 from the UK and a full time uni student. I come from quite a low income background, my mum is a single parent who has only ever worked in jobs that don’t require qualifications, so when i got access to my own money i went a bit wild with spoiling myself with everything i missed out on and have seemed to develop some really bad habits.

My current debts are:
- student overdraft £2500 - i’m currently not paying any interest on this and am aiming to pay this off
- £600 on a very account as a buy now pay later as my laptop broke and i needed a new one
- £718 altogether on klarna

I also pay monthly for:
- gym membership
- car
- car insurance
- phone

which i would like to aim to pay off in the next few years if I can, so that I am completely debt free. I’m really overwhelmed with my finances at the minute and really want to get back on track. My main aims are paying my debts off and improving my credit score. My credit score has now dropped to the ‘poor’ zone which has worried me as my partner and myself want to move in together in the next few years and i’m worry this is going to have a negative impact. Ireally really want to build my credit score so i can look at getting a house with my partner in the next few years. 

I currently don’t have a credit card as my aim is to pay my debts off before i get one but my credit score just seems to be getting lower and lower each month. 

Does anyone have any advice to paying my debts back and building my score at the same time? I’m really at a loss with it at the moment and it’s gone down so much in the last few months it’s really disheartening. I just don’t know where to start. 

thanks so much 💘

Emmia

christmascookie24 said:

Hi guys,. i’m wondering if someone could help me please or give me some advice.  

i’m 22 from the UK and a full time uni student. I come from quite a low income background, my mum is a single parent who has only ever worked in jobs that don’t require qualifications, so when i got access to my own money i went a bit wild with spoiling myself with everything i missed out on and have seemed to develop some really bad habits.

My current debts are:
- student overdraft £2500 - i’m currently not paying any interest on this and am aiming to pay this off
- £600 on a very account as a buy now pay later as my laptop broke and i needed a new one
- £718 altogether on klarna

I also pay monthly for:
- gym membership
- car
- car insurance
- phone

which i would like to aim to pay off in the next few years if I can, so that I am completely debt free. I’m really overwhelmed with my finances at the minute and really want to get back on track. My main aims are paying my debts off and improving my credit score. My credit score has now dropped to the ‘poor’ zone which has worried me as my partner and myself want to move in together in the next few years and i’m worry this is going to have a negative impact. Ireally really want to build my credit score so i can look at getting a house with my partner in the next few years. 

I currently don’t have a credit card as my aim is to pay my debts off before i get one but my credit score just seems to be getting lower and lower each month. 

Does anyone have any advice to paying my debts back and building my score at the same time? I’m really at a loss with it at the moment and it’s gone down so much in the last few months it’s really disheartening. I just don’t know where to start. 

thanks so much 💘

You need to consider your budget as a whole, for example can you stop your gym membership or get rid of your car?  I didn't have a car at uni, I walked or got the bus...

A statement of affairs (SOA) will help those on here to identify where your money could be better spent or obvious savings in your budget 

https://www.lemonfool.co.uk/financecalculators/soa.php

Fill it in and then format for MSE before posting it up.

Also, your credit score is a made up fairy number only you see. What matters is the underlying data on your file, e.g. late or minimum payments, high credit access or utilisation...

christmascookie24

Emmia said:

christmascookie24 said:

Hi guys,. i’m wondering if someone could help me please or give me some advice.  

i’m 22 from the UK and a full time uni student. I come from quite a low income background, my mum is a single parent who has only ever worked in jobs that don’t require qualifications, so when i got access to my own money i went a bit wild with spoiling myself with everything i missed out on and have seemed to develop some really bad habits.

My current debts are:
- student overdraft £2500 - i’m currently not paying any interest on this and am aiming to pay this off
- £600 on a very account as a buy now pay later as my laptop broke and i needed a new one
- £718 altogether on klarna

I also pay monthly for:
- gym membership
- car
- car insurance
- phone

which i would like to aim to pay off in the next few years if I can, so that I am completely debt free. I’m really overwhelmed with my finances at the minute and really want to get back on track. My main aims are paying my debts off and improving my credit score. My credit score has now dropped to the ‘poor’ zone which has worried me as my partner and myself want to move in together in the next few years and i’m worry this is going to have a negative impact. Ireally really want to build my credit score so i can look at getting a house with my partner in the next few years. 

I currently don’t have a credit card as my aim is to pay my debts off before i get one but my credit score just seems to be getting lower and lower each month. 

Does anyone have any advice to paying my debts back and building my score at the same time? I’m really at a loss with it at the moment and it’s gone down so much in the last few months it’s really disheartening. I just don’t know where to start. 

thanks so much 💘

You need to consider your budget as a whole, for example can you stop your gym membership or get rid of your car?  I didn't have a car at uni, I walked or got the bus...

A statement of affairs (SOA) will help those on here to identify where your money could be better spent or obvious savings in your budget 


Fill it in and then format for MSE before posting it up.

Also, your credit score is a made up fairy number only you see. What matters is the underlying data on your file, e.g. late or minimum payments, high credit access or utilisation...

Hi, firstly, thanks so much for this, I will definitely look into this. Unfortunately due to my health condition I really struggle to travel on public transport, so thats the only reason I got my car. But I can definitely look at other places I can cut back. 

Also, in regards to the credit score, should i be fretting over improving it so much then if it isnt actually a real number?? And should I focus on building my credit whilst paying my debts off, or after? thanks again. 

Emmia

christmascookie24 said:

Emmia said:

christmascookie24 said:

Hi guys,. i’m wondering if someone could help me please or give me some advice.  

i’m 22 from the UK and a full time uni student. I come from quite a low income background, my mum is a single parent who has only ever worked in jobs that don’t require qualifications, so when i got access to my own money i went a bit wild with spoiling myself with everything i missed out on and have seemed to develop some really bad habits.

My current debts are:
- student overdraft £2500 - i’m currently not paying any interest on this and am aiming to pay this off
- £600 on a very account as a buy now pay later as my laptop broke and i needed a new one
- £718 altogether on klarna

I also pay monthly for:
- gym membership
- car
- car insurance
- phone

which i would like to aim to pay off in the next few years if I can, so that I am completely debt free. I’m really overwhelmed with my finances at the minute and really want to get back on track. My main aims are paying my debts off and improving my credit score. My credit score has now dropped to the ‘poor’ zone which has worried me as my partner and myself want to move in together in the next few years and i’m worry this is going to have a negative impact. Ireally really want to build my credit score so i can look at getting a house with my partner in the next few years. 

I currently don’t have a credit card as my aim is to pay my debts off before i get one but my credit score just seems to be getting lower and lower each month. 

Does anyone have any advice to paying my debts back and building my score at the same time? I’m really at a loss with it at the moment and it’s gone down so much in the last few months it’s really disheartening. I just don’t know where to start. 

thanks so much 💘

You need to consider your budget as a whole, for example can you stop your gym membership or get rid of your car?  I didn't have a car at uni, I walked or got the bus...

A statement of affairs (SOA) will help those on here to identify where your money could be better spent or obvious savings in your budget 


Fill it in and then format for MSE before posting it up.

Also, your credit score is a made up fairy number only you see. What matters is the underlying data on your file, e.g. late or minimum payments, high credit access or utilisation...

Hi, firstly, thanks so much for this, I will definitely look into this. Unfortunately due to my health condition I really struggle to travel on public transport, so thats the only reason I got my car. But I can definitely look at other places I can cut back. 

Also, in regards to the credit score, should i be fretting over improving it so much then if it isnt actually a real number?? And should I focus on building my credit whilst paying my debts off, or after? thanks again. 

Please do the SOA.

It's not worth fretting over your score, but work to make sure your payments are up to date, etc. paying off debt will help.

christmascookie24

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

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

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

Number of cars owned.................... 1[b]

Monthly Income Details[/b]

Monthly income after tax................ 1333

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

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

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

Total monthly income.................... 1333[/b][b]

Monthly Expense Details[/b]

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

Secured/HP loan repayments.............. 176.4

Rent.................................... 200

Management charge (leasehold property).. 0

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

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

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

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

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

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

Mobile phone............................ 78.24

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

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

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

Groceries etc. ......................... 0

Clothing................................ 0

Petrol/diesel........................... 100

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

Car Insurance........................... 64

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

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

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

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

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

Medical (prescriptions, dentist etc).... 11.45

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

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

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

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

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

Presents (birthday, christmas etc)...... 0

Haircuts................................ 0

Entertainment........................... 0

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

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

Gym..................................... 55[b]

Total monthly expenses.................. 685.09[/b]

[b]

Assets[/b]

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

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

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

Car(s).................................. 4000

Other assets............................ 0[b]

Total Assets............................ 4000[/b]

[b]

Secured & HP Debts[/b]

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

Mortgage...................... 0........(0)........0

Hire Purchase (HP) debt ...... 6176.....(176.4)....0[b]

Total secured & HP debts...... 6176......-.........-   [/b]

[b]Unsecured Debts[/b]

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

Overdraft .....................2500......0.........0

Klarna.........................718.87....0.........0

Very Pay.......................600.......0.........0[b]

Total unsecured debts..........3818.87...0.........-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 1,333

Expenses (including HP & secured debts). 685.09

Available for debt repayments........... 647.91

Monthly UNsecured debt repayments....... 0[b]

Amount left after debt repayments....... 647.91[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 4,000

Total HP & Secured debt................. -6,176

Total Unsecured debt.................... -3,818.87[b]

Net Assets.............................. -5,994.87[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

christmascookie24

Hi guys,. i’m wondering if someone could help me please or give me some advice.  

i’m 22 from the UK and a full time uni student. I come from quite a low income background, my mum is a single parent who has only ever worked in jobs that don’t require qualifications, so when i got access to my own money i went a bit wild with spoiling myself with everything i missed out on and have seemed to develop some really bad habits.

My current debts are:
- student overdraft £2500 - i’m currently not paying any interest on this and am aiming to pay this off
- £600 on a very account as a buy now pay later as my laptop broke and i needed a new one
- £718 altogether on klarna

I also pay monthly for:
- gym membership
- car
- car insurance
- phone

which i would like to aim to pay off in the next few years if I can, so that I am completely debt free. I’m really overwhelmed with my finances at the minute and really want to get back on track. My main aims are paying my debts off and improving my credit score. My credit score has now dropped to the ‘poor’ zone which has worried me as my partner and myself want to move in together in the next few years and i’m worry this is going to have a negative impact. Ireally really want to build my credit score so i can look at getting a house with my partner in the next few years. 

I currently don’t have a credit card as my aim is to pay my debts off before i get one but my credit score just seems to be getting lower and lower each month. 

Does anyone have any advice to paying my debts back and building my score at the same time? I’m really at a loss with it at the moment and it’s gone down so much in the last few months it’s really disheartening. I just don’t know where to start. 

thanks so much 💘

Please see my SOA below. 

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

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

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

Number of cars owned.................... 1[b]

Monthly Income Details[/b]

Monthly income after tax................ 1333

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

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

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

Total monthly income.................... 1333[/b][b]

Monthly Expense Details[/b]

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

Secured/HP loan repayments.............. 176.4

Rent.................................... 200

Management charge (leasehold property).. 0

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

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

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

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

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

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

Mobile phone............................ 78.24

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

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

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

Groceries etc. ......................... 0

Clothing................................ 0

Petrol/diesel........................... 100

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

Car Insurance........................... 64

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

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

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

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

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

Medical (prescriptions, dentist etc).... 11.45

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

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

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

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

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

Presents (birthday, christmas etc)...... 0

Haircuts................................ 0

Entertainment........................... 0

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

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

Gym..................................... 55[b]

Total monthly expenses.................. 685.09[/b]

[b]

Assets[/b]

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

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

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

Car(s).................................. 4000

Other assets............................ 0[b]

Total Assets............................ 4000[/b]

[b]

Secured & HP Debts[/b]

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

Mortgage...................... 0........(0)........0

Hire Purchase (HP) debt ...... 6176.....(176.4)....0[b]

Total secured & HP debts...... 6176......-.........-   [/b]

[b]Unsecured Debts[/b]

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

Overdraft .....................2500......0.........0

Klarna.........................718.87....0.........0

Very Pay.......................600.......0.........0[b]

Total unsecured debts..........3818.87...0.........-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 1,333

Expenses (including HP & secured debts). 685.09

Available for debt repayments........... 647.91

Monthly UNsecured debt repayments....... 0[b]

Amount left after debt repayments....... 647.91[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 4,000

Total HP & Secured debt................. -6,176

Total Unsecured debt.................... -3,818.87[b]

Net Assets.............................. -5,994.87[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

Grumpelstiltskin

Please stick to one thread and don't keep starting new ones.

christmascookie24

Grumpelstiltskin said:

Please stick to one thread and don't keep starting new ones.

sorry i am new to this and not sure how it all works didnt realise you didnt need a new thread for each thing as didn't see it in the forum rules. thanks for making me aware. 

christmascookie24

Grumpelstiltskin said:

Please stick to one thread and don't keep starting new ones.

have tried to delete my post but cannot seem to find the delete button... 

teaselMay

Are you not buying any food or paying any of the household bills? On the bare numbers there you've plenty to pay off the debts with. But it looks as though there are key things missing from your statement

theoretica

First thing to do is get a better handle on where your money has been going.  I bet you spend some on food, for instance, and your car will need an MOT.  With things like car maintenance that you don't pay every month you take the annual bill and divide by 12 for the SOA and save that amount each month so you have it when needed.  It is useful to start with what you have been spending, so look at card statements for the past months.  Then you can look at the spending and work out what is unavoidable, and what you may choose to cut.  To get out of debt you will need to cut the overspending that got you into debt, and then cut spending by a bit more to pay the debt back.

How long until your mobile is at the end of the contract?  Is there a cheaper university gym you can switch to?