up to my £40,000 eyeballs in debt

freegan_2

HELP! BELIEVE IT OR NOT I'M NOT A BIG SPENDER! :j After 4 years at uni, working & travelling abroad & 6 months unemployment on return to the UK:eek:, I was faced with a HUGE amount of debt which I managed to consolidate with an HSBC graduate loan :T (low interest fixed over 6 years) but was stupid and paniced and signed up for the payment protection plan (and yes I DID know what i was signing for and now I wish i hadnt!!):mad: . They only agreed to consolidate 90% of my debt so I did a 0% balance transfers on the rest. I got a job :j (not as much as I should be earning but money is money right!), and I've been JUST surviving each month and hitting zero the day before payday. Then I hit wedding season (4 best mates and my sister in one summer) and everything i'd managed to pay off over 2 years suddenly meant nothing! For the first time in 10 years I have been declined for a balance transfer (presumably due to the state of the economy and NOT my credit score as this is still good) . Now I will not be able to make the monthly payment and thus my credit score will be ruined. I am a Freegan :rotfl: (anything I find I can legally get for free I will, and therefore spend very little to survive) but my current debt & expenditure is this:

£32,000 remaining on Graduate Loan, repayments £420 pm inc interest
£7,000 Virgin Credit Card, no longer interest free so now £90 interest pm
£1,900 HSBC Credit Card @ 22.9% APR :mad: have asked why so high and requested it to be lowered to 15%
£4,000 Old style student loans only repayable once earning over 24k pa

Net Income £1100 (do overtime & odd jobs where poss)
Loan - £420
Virgin - £110 (increasing with interest)
HSBC - £50 (increasing with interest)
Rent - £297.50 (looking for somewhere cheaper)
All Utilities - £90
Mobile - £25
Food etc - £50 (supermarkets own brand only)

= £57.70 after bills & food. I walk to work, take my own lunches, buy no clothes and have no social life. As you can see with next months interest added on I will not make the repayments.

I have spoken to the National Debt Helpline and my mind is spinning with all this IVA, DMP etc... If I did a DMP I'd be paying out what I am now for as long as I agreed to pay the loan installments for, but at least the credit card interest would be frozen. Is there a better option as I dont want to declare myself bankrupt! PLEASE HELP!!!

HairyHandofDartmoor

First of all don't panic you will get lots of advice on here.

Next give us a more detailed statement of affairs. We need to know EVERYTHING you spend money on so that we can help you better. See the sticky at the top for guidance on doing SOAs. For example you need to seperate out the amounts for utilities, and include travel, birthdays, etc, in your SOA.

We need to know what your credit limits are on each debt or card, what the APRs are on the debts, as well as the minimum repayments.

Ringing the National Debt Helpline was a good idea. You may need a while for all the information to sink in. You could also try contacting the Consumer Credit Counselling Service as they give free debt help.

Gemmzie

Could you get a lodger if you can't find anywhere cheaper to rent?

Could you boost your income in any other way? Mystery shopping or something?

masterkay

You've come to the right place.

I feel your pain about the weddings. Spending £100s on extravagant weddings is one of my major annoyances in life.

You said in your post you are earning below what you could as a graduate. Apply for jobs in your field, apply for jobs with better money. I really think this is a case of upping your income ASAP and boosting it on top of that with ebay, mystery shopping etc.

freegan_2

Thanks, have been applying none stop for better jobs but all say i came a close 2nd due to lack of experience-how do you get it-vicious circle! Already do Avon rep, sell stuff at car boots, pick up free stuff on classifieds and sell on, overtime... I'n gonna have to go for DMP but gutted as dont want credit rating ruined and desperate for a mortgage (yes-more debt!!!)

freegan_2

That IS everything!!! I cant afford birthdays and I walk or cycle everywhere or blag lifts. The bills are all the lowest possible we could find split between 2 of us and are essentials only (ie no internet, landline phone, sky or cable TV)

masterkay

What kind of field are you in? Can you voulunteer anywhere for experience? If you apply for graduate jobs (I think you have to apply within a certain time of graduating for most e.g. 3 years) they don't expect you to have experience and you start on a lower pay, they train you and your salary will normally make a big jump. Also once you get into a graduate job it will be easier to get the non-graduate jobs or better paid ones.

I know nothing about DMPs but if you go on one of those won't it hurt your credit rating anyway?

stevo2_2

Speak to Payplan about a debt management plan. They are great at talking to your creditors and arrange a one-off payment each month which you can afford to pay. All interest is not frozen but can be and usually is.

freegan_2

I work in International Higher Education and I've got more experience than most in my field in what SHOULD actually count (reason I went abroad to work and travel) and am doing a s*&£%y job to gain experience in what SHOULDNT but DOES count (photocopying & making tea!) There's a lot of unhealthy politics making things extremely unfair and that's in the public sector! It's too long since I graduated (2001) but I volunteer on a weekly basis for extra events which come up to show willing, get noticed, network, gain MORE experience and earn overtime-yippee!!

masterkay

freegan wrote: »

I work in International Higher Education and I've got more experience than most in my field in what SHOULD actually count (reason I went abroad to work and travel) and am doing a s*&£%y job to gain experience in what SHOULDNT but DOES count (photocopying & making tea!) There's a lot of unhealthy politics making things extremely unfair and that's in the public sector! It's too long since I graduated (2001) but I volunteer on a weekly basis for extra events which come up to show willing, get noticed, network, gain MORE experience and earn overtime-yippee!!

You are in the right track then. I'd consider taking a weekend part-time job to up your income as well. I know many graduates who keep on their university part-time job until they get higher up the pay-scale. All I can say is keep applying.

I know this sounds like a stupid question but does it say on the advert for your jobs
Relevant experience: making tea and photocopying?

Normally job criteria are formed so that people with relevant experience but don't fit the criteria can get a chance anyway.

It just seems odd that a job would want you to do task unrelated to the job to gain experience. I'm not saying this isn't true it just sounds like you are working in the film industry starting as a tea maker and working your way up. I didn't think anything to do with education would want that or work like that. Just a point saying check around, ask people in the job and make sure you are in really on the right path and they do want you to make tea before giving you a real job.

neverdespairgirl

freegan wrote: »

Net Income £1100 (do overtime & odd jobs where poss)


= £57.70 after bills & food. I walk to work, take my own lunches, buy no clothes and have no social life. As you can see with next months interest added on I will not make the repayments.

Hi - does the £1,000 include the extra from overtime and odd jobs? Or is that on top, and if so, what's the average?

Could you consider getting a weekend (Sat) job? An extra £160 a month would come in very handy.