21 and in a mess! please help

hooty2001uk

Hi there, OK I seriously dont know where to start, but will give it a good go...

I am 21 living in a rented house, I have a salary of £17,654 and bank with the HSBC where I have an overdraft of £1000 which they have sent me a letter to say they are taking it off me on the 22nd Feb and want the amount in full..

I also have a loan with HSBC where I still have around £2200 left to pay and pay monthly £85 working out at about 16.3% APR.

I have a welcome loan where took out £1000 in Nov 07 and pay £101 a month for 2 years.

I also have a car on finance and have around £3500 left to pay..

I have got behind with some payments for other things like car insurance, littlewoods, parents etc and already its the 3rd of Feb and have no money left and only got paid 2 days ago... I dont sleep at night and always worrying..

My intention is to get a £10k loan and pay off welcome loan, HSBC loan and HSBC overdraft, finance on car and car insurance till Aug 08. But where will I get a loan from with such a poor credit score.. Any questions please ask...feeling sick with worry all the time, Im just a mess!!!

Andrew x

Sue-UU

Hi Andrew,

In reply to your response on the other thread. Just a quick tip with regards you feeling physically sick from all the worry of it all. Whenever you're feeling that way take 10 really deep breaths slowly, you'll be surprised how much it helps if you keep it up whenever you're panicked and worried by it all. My husband and I are down to the final 3 years to being debt free, it's been a long, hard journey, but it was never worth all the worrying we did, I promise you!.

Ask yourself - "what's the worst that can happen?" It never seems quite so bad once you then answer the question. Once you put it all into perspective you'll find it all so much easier to deal with and not worry about, after all you CAN'T change it - NOT YET, but you'll get there! Do you watch Martin's "It Pays To Watch" programme on Wednesdays at 7.30 on channel 5? If not please do so, or better still tape it as well as there's so much for him to cram in that he talks a little fast at times. He's a great guy though and can learn us all so much!

I hope you now get a great deal of advice here from those best able to give it than me.

All the very best, Sue.

ms_london

hooty2001uk wrote: »

Incomings: £17,654

HSBC OD £1000
HSBC Loan £2200 £85 16.3%
Welcome Loan £1000 £101 (Nov 07, 24 months)
Car Finance £3500

Hi Andrew

Welcome to MSE!!

You can sort this out, so try not to lose sleep over it!

Could you post a full SOA, listing all of your outgoings ranging from the basics, rent, petrol, car insurance, travel etc etc - have I missed any other debts? What about arrears etc that you mentioned?

What are the APR's for the Welcome Loan & Car Finance? What is the monthly repayment for the Car Finance? What money do you owe your parents?

Sorry about all the questions, just trying to make sure you have all of the details in front of you.

If your credit rating is as bad as you think, then you will have to manage without a consolidation loan (I had no choice, and I had 11 creditors or thereabouts!!). Also, people are wary of consolidation loans - if you were to go down this route, make sure you only get a loan for the exact amount you need, and to cut up and cancel your current cards, overdraft etc so you dont run them up again.

How much is rent? Do you have flat bills? How much do you spend on food?

Are there still payments to come out of your account? If so, and they will make you overdrawn further, cancel the Direct Debits - then call every single creditor, tell them you are having financial difficulties and ask if they can lower the repayment/freeze interest/lower APR to help you out. You need to make sure that after all of your basic outgoings (so everything before debt), you know what you have left over, and then you need to proportion that individually to each creditor. I cant remember if the 'whats the cost' calculator has this function on it.

In terms of seeing you through until the next payday, how much do you need, bare minimum to see you through? Could you borrow it from a friend or family? Not wanting to see you get into more debt, but you need money somehow (and I am not advising to put it on your credit cards etc!!).

Post back with some more information and we'll see how else we can help xx

hooty2001uk

OK, cheers guys...thanks for everything..

MY SOA

Income - £17,654 (Annual Salary)
which works out at £1471.16 before Tax a month


Outgoings - Monthly

Rent - £300 (including c/tax, water,gas,electric,internet)
Sky - £21.50
Car Insurance - £73.30
Mobile Contract - £50
Specsavers - £22
HSBC Loan - £88.28
Welcome Loan - £101.61
Citroen Finance - £4851.25 - £97.42 a month
Policy Admin Services??? - £9.99
Petrol - £60.00
Food - £60
Littlwoods - £50
Magazine Sub - £15

Also owe Parents £200

Overdraft stands now at £1000 and is being taken off me on 22nd Feb and Bank Charges of £150 to be taken out on 9th Feb.

Spoke to Priviledge Insurance and they say I have missed payments on my car Insurance which i didnt realise I didnt have DD set up so they want the remaining £560 in full by 8th FEB...

Im in an absolute mess.. Please Please Help

Andrew x

Gemmzie

What's your take home pay? I make your outgoings £950 a month there, but you're missing car tax, presents. You need to work out where this extra is going. Start a spending diary and record every penny.

jammiejen

Hi Andrew,

Someone who can give more advice will be along in a minute. Just one thing though, do you have a recent payslip you can look at to get your actual take home pay? (I mean after your taxes have been taken off) This will help to work out how much actual money you have each month
Good luck and well done for posting
Jen
x

hooty2001uk

Yes got January pay slip right here..

OK.

I got £1386.46 after tax which includes 20 hours overtime at and 7 on call duties which are £30 a time..

I no I shouldnt but i just pay car tax every 6 months, I dont budget for anything...thats how im in such a mess

x

Gemmzie

That's the best place to start then, go back through your SOA and budget for everything. I'm only 20 myself and budget for everything, then you know that you can afford the odd treat without getting into trouble.

Shelley84

Hi,

I'm fairly new on here but a few things I can see are -

Cancel the magazine subscription - it's not a necessity.

Your mobile phone bill is VERY high. Call them and see exactly how many texts and mins you use and reduce your tariff accordingly.

Policy Admin Services is likely to be Phone insurance or something like that. I would cancel it, our phones are covered in the house insurance.

Your car insurance is £880 a year, thats a lot, shop around for when you renew it

Specsavers I'm assuming is contact lenses? Can you get them cheaper anywhere else?

Hope that helps a bit.

masterkay

hooty2001uk wrote: »

OK, cheers guys...thanks for everything..

MY SOA

Income - £17,654 (Annual Salary)
which works out at £1471.16 before Tax a month


Outgoings - Monthly

Rent - £300 (including c/tax, water,gas,electric,internet) Any chance of moving in with parents until you get yourself sorted?
Sky - £21.50 You'll have to get rid of this. It's a luxury
Car Insurance - £73.30 This is crazy high insurance. What kind of car do you have? Shop around or consider getting a car with a lower insurance group.
Mobile Contract - £50 Ditch the contract, if tied in move to a lower tarrif and eventually go PAYG
Specsavers - £22
HSBC Loan - £88.28
Welcome Loan - £101.61
Citroen Finance - £4851.25 - £97.42 a month
Policy Admin Services??? - £9.99 What exactly is this?
Petrol - £60.00 This is not that much petrol per month, do you need the car? Can you get rid of it and use public transport. You are paying a lot a month for a car in insurance and do just over half the average (not saying you must to hile mileage just means it may not be worth it).
What about car tax?
What about car servicing?
Food - £60 That's good.
Littlwoods - £50
Magazine Sub - £15 Ditch

Also owe Parents £200

Overdraft stands now at £1000 and is being taken off me on 22nd Feb and Bank Charges of £150 to be taken out on 9th Feb.

Spoke to Priviledge Insurance and they say I have missed payments on my car Insurance which i didnt realise I didnt have DD set up so they want the remaining £560 in full by 8th FEB...

Im in an absolute mess.. Please Please Help

Andrew x

The car is the one thing that really seems to be crippling you. Do you need it? Maybe sell and get something cheaper and lower insurance if you still want to have it.

Sell everything that you can on ebay to raise cash.
The idea is cut down as much as you can so extra money left over each month can be put towards the debt.

masterkay

You still don't mention nights out, eating out etc. No budgeting for Christmas, birthdays, no information on holiday spending etc. There's a lot missing. Sit down and really think about it. Start keeping a spending diary as well to see where all the money really goes.