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

RAS

So, the first step is to stabilise your situation.

Can you pay your essential costs without reducing your payments to other creditors?

bcs7

It's easy to feel overwhelmed when you see how much you owe, but now you've written down what your incomings are you should be able to see it's not as bad as it maybe felt.

Just with the below items which are not necessarily essential:

Monthly costs

Clothing - 200

Presents (birthday, christmas etc) - 70

Entertainment - 60

Holiday - 250

Eating Out - 120

-------------------------------------------------------

TOTAL – 700 per month, 8400 per year

Even if you didn't want to cut those things out completely, you'd be able to half them and pay off your debt within a year. When you look at it like that it's not unsurmountable.

christmascookie24

So, just wanted to offer a little update. I managed to work a lot over christmas doing overtime etc and managed to make an extra £2000 on top of my usual salary. I've managed to pay off all of my debts other than my £2000 student overdraft, but I am out of my current account overdraft. I have deleted klarna and all of my other credit accounts and have closed the overdraft on my account. I have put £500 into a savings account to act as a cushion just in case any emergency comes up (car, dentist etc etc.). But overall, I feel relieved, massively. I have set myself a strict budget and have managed to stick to it, for the first time ever, and I have spoken to my mum and managed to incorporate into my budget paying her more money each month, as well as paying off my overdraft, and putting money away, and still have 'fun' money left over each month. It's only been a month and I know this is a long journey, I dont want to run before I can walk, but... thanks to realising I needed to change, and with the help of you lovely lot, I finally think change is going to happen and that I am going to manage my money better - my motivation = I never ever want to be in the position I was in before christmas. 

RAS

Wow, that is a huge turn around. All the best wishes for your future and hoping your new found skills help you.

teaselMay

Well done! You sound a lot more relaxed too.

Keep on top of it and keep paying your way at home. The stress of realising you were getting in a pickle will be worth it for the security of your finances in the coming years.

HampshireH

Well done! If the job is new and you have picked up loads of overtime you may want to check your tax is right. You don't want to get stung with a tax bill but on the flip side if you have been emergency taxed you may end up with an adjusted code or a refund

londoner2019

What a great update - congrats on the progress!

Now that Very/Klarna/the holiday is paid off, you could revisit your SOA (if you haven't done already) to get to grips with a budget for 2025. No need to post it on here unless you want advice, but just something to think about doing.

When I was a student, I went from having student loans, bursaries, and even a lump sum of inheritance money, to being 2k overdrawn when I got my own place and started working. I didn't deal with it then, and it took me 10 years to get back in the black. So pleased for you that you're getting control of it now to set yourself up.

EssexHebridean

That is such a brilliant update - well done you!

Keep that motivation too - the feeling of "never wanting to be there again" is a powerful driver to keep you focused on how you manage your money in the future, and you've just learned some life-lessons that you can take forwards and ensure that for the rest of your life you can hold your head high and think "Yes, I AM good with money, actually!" Learning to budget and live within your means is probably one of the best and most useful lessons you ever will learn.

Next steps - start ensuring that you save money for annual costs on a monthly basis. I have savings accounts for things like holiday costs, car costs, clothing etc. We budget an amount monthly to cover things like car insurance, tyres and other consumables, and servicing/MoT test costs - that means when those things come along we know the money is there waiting - a really reassuring feeling!