Help Required ASAP

Hi, I have only just joined upto the forum but have been receiving the mailing lists for a while now.

I am in urgent help, I have gradually over the last 2 years found myself in MORE and MORE debt, and would seek some advice.

Basically I have a £10,000 left on a personal loan to pay off, and £500 on a credit card, and my Overdraft is at its limit of £770. The whole loan mess started when I got a small loan, and then realised I had spent all the money and ended up getting another loan to pay off another loan, then another etc. till finally I have ended up in this mess. I cannot believe it, I am only 21, and have an income of little over £700 per month after tax (if lucky!)

I also have direct debits each month of £100 mobile phone, £35 to Dell and £45 to my Car Insurance.

I pay roughly £160 per month on my loan. I am really worried this month as I also have to fork out for my car tax this month.

I have tried to get loans from Barclays (my bank) and Alliance & Leicester in order to pay off this debt. I also have contacted Nationwide who I have the loan with to see if I could get an extra amount but no lucky with ANY of these. Reason given is "bad credit scoring". As far as I know I have only forgot to pay my Barclaycard bill once or twice and it was paid the following month, and never really gone over my overdraft for anymore than a day!

Basically I am looking for some help here. I have all these bills to pay, a girlfriend to please and also need to get to and from work. PLEASE HELP...!


  • Nelski
    Nelski Posts: 15,197 Forumite
    Name Dropper First Post First Anniversary Photogenic
    Well done for taking this step MW - sure you will get loads of great advice.

    My first thought was your mobile phone bill - thats 15% of your monthly income:eek: I run a business and therefore am constantly on the phone and pay considerably less than that. Get rid? £100 extra on your debts is a lot of money.

    Anyway good luck and hope you get some advice from the fab bods on here.

  • delboypass
    delboypass Posts: 229 Forumite
    can you post a detailed incomings and outgoings chart so we can clearly see whats happening.

  • MW84
    MW84 Posts: 35 Forumite
    Right, got paid yesterday only £654.49 - without my expenses (so won't get them till next months pay, but still looking at only an extra £50 or so, but still!)

    Anyways, bank balance is -£184.36. I have £10,000 loan, £500 (roughly) on my Barclaycard.


    £27.99 - Dell (Direct Debit)

    £137.99 - Last Orange Bill! (Contract runs up this month, will be changing contract, only worried that will not be able to get another phone as I have a bad credit scoring...maybes if I stay with Orange and change my tarrif!) (Direct Debit)

    £53.27 - Direct Line Car Insurance (Direct Debit)

    £148.51 - Nationwide Loan (Direct Debit)

    £100 - Roughly on petrol

    £70 - Food and drink

    I also go out alot, but for obvious reasons this will have to stop; to be honest I seem to waste my money! You also need to understand buts of money here and there, plus I also smoke about 20 a day!

    Other expenses are that I goto Uni one day a week (during term time) and this costs alot in petrol, 20 mile there and back, plus £10 parking a day.

    So grand total of - £537.76 - of Direct Debits and Food and drink


    Well going off this months earnings £654.49 - which is quite shocking, the reason for this is I am a Trainee. Although I am only on £9,000 other people who do similar work to me are on £12,000 - £16,000 - although I have a meeting next week to discuss wage with my boss where I will be asking for around £12,000 at least! But knowing my boss I will be lucky to get £500 a year, it might be worth looking for a job elsewhere, as where I am at I am not learning my trade, although if I did go elsewhere they would wonder why I don't know much about my trade although I have passed (nearly) my 1st year at Uni (Part-Time)! But I am not going to make excuses.
  • Willsnarf1983
    Willsnarf1983 Posts: 1,928 Forumite
    your phone bill is astronomical, i am on contract and spend about£35 a month and i bet u i still get mocked for spending that much, if u can't control ur spending ont he phone i suggest u go to a PAYG phone where u can limit urself to a set amout of money per month...for eg if u put £40 a month in credit on which is still loads u will be saving an extra £100

  • Willsnarf1983
    Willsnarf1983 Posts: 1,928 Forumite
    also at uni can u not park down a nearby road if there are any, or do park and ride so u don't have to spend the £10 a day parking....

    best thing u can do is budget urself for the next month and stick by it and be strict with yourself, u need to be the tightest most frugal person u can now!!!

  • MW84
    MW84 Posts: 35 Forumite
    Yeah my phone bill is quite high because of the contract, I got a contract with loads of free minutes in order to keep my bill down, but now I think I need a phone with quite a few free minutes maybe 200+ and as many free texts as possible. Another reason for my phone bill is that my girlfriends phone is also added onto my bill, I think its her that bumps the price of the bill up each month, but don't worry I have already made steps to get her off the phone by calling up Orange and they are sending out a SIM so she can go on Pay As You Go which will take roughly £50 (thats the standard contract) off my phone. Reccomendations for good tariffs would be good...

    So what should I do consolidate my debt? But where to? I have no options! Any loan people who accept people with bad credit scoring for Personal Loans? Or should I just try and pay it off without consolidating?

    In November my Car Insurance will probably be dropping quite abit as I am now 21, so there should be less Direct Debit there! Get my Orange bill down to maybes £50 a month, and the other two I really cannot do much about!

    How should I go about paying my Credit Card the minimum a month? What if I don't have the money?

    Also at Uni, as I say I pay £10 per day parking, unfortunatly where I go (Newcastle) there is hardly anywhere to park cheap. Everywhere is at least £1 an hour and I am there from 8:30 to 18:00 - obviousally not there till Sep now tho!
  • Turning_into_scrooge
    As far as the mobile goes i pay £10 per month on a free O2 sim card which gives me 300 text messages a month. Do you need to stay with Orange or keep the same number? a pay as u go sim card may be a better option.
  • James240
    James240 Posts: 16,387 Forumite
    Name Dropper Photogenic First Post First Anniversary
    hi MW

    glad u have posted on here as there are so many helpful people on here and they will help you in so many ways. With your mobile phone i believe that o2 do a good deal by were if u get one of there pay as u go sim cards and top it up by £10 a month u get free text messages all month (the offer may have slightly changed possibley on 300 now but if u go on to there website it will be able to tell u) this will eliminate a lot of the bill that your paying at the moment but realistically u certainly need to cut down on the phne calls.

    Im not a smoker but can you not cut down to 10 a day? at least there will be a saving of half the money u are spending a day at the moment. Im not smoker as i said, so i dont want to be hung out to dry by the smokers here :D But if u did cut down thats a saving of at least half the money u are spending every day.

    Can you not sell the car as the potential savings there will be quite a bit, Can u get public transport to were u work i.e. train or bus. Because u will be saving yourself the £100 in petrol you are spending plus the parking, insurance road tax, etc. Or can u not down grade to a smaller engined car? i.e a 1.1 instead of a 1.4 or 1.6.

    Plus and i know this is hard as i love driving fast, have you tried to drive slower as again this will give u some savings in petrol. I say this as i own a Saxo Vtr and it has a 1.6i 8v engine, now if i cane it about i only get about 50 miles on £10 worth of petrol, if i drive it sensibly i can get nearly 70 miles out of £10. So the savings are there to be made by driving slower.

    Hope this helps you out a little bit as i said there are some fantastic people on this site who have helped me save thousands of what i owe. So im sure they will be able to suggest even more ways for u to save money.

    All the best mate

    Savings Total so far for 2023: £8,062.58
  • roversbabe
    roversbabe Posts: 1,008 Forumite
    Debt-free and Proud! Mortgage-free Glee!
    As a fellow smoker, have you tried rolling your own. When I swopped tailor made cigs to roll ups, I saved £15-£20 per month.



    Edited to say £15 - £20 per week, not month

    Official DFW Nerd Club - Member no. 027

    Debt free: 6th April 06 :T Proud to have dealt with my debts
  • MW84
    MW84 Posts: 35 Forumite
    Cheers for the advice guys and gals. Regarding the smoking i am going to try and cut down, I have tried smoking rollies but they just don't do it for me. Alot of my money also seems to be wasted on junk food etc. and not eating in the house. I have now started taking bait to work and buying fizzy drink in bulk to cut down expenses. I would probably say this is where alot of my money goes to be honest, by looking at my online seems alot of my out goings are me withdrawing £10 here and £30 here, and just wasting it.

    Regarding the car, my car is required for my work. Although as mentioned before I am sitting down with my boss either tommorow or sometime next week to discuss my wage etc. as I have been there a year, he is a canny enough fella but when it comes down to money he is tight fisted as hell. At the moment I am on £9,000 as a trainee but they do pay my Uni Bills. Although this is all well and good there is a company about 20miles away which pay at least £12,000 plus bonus and sometimes company car, for the job I do. I have been thinking about leaving for a while because of wage etc. and not getting the right training so will just have to wait and see what I'm offered at my meeting. I am hoping for something between £12,000 - £16,000 but I know deep down he will probably only give £9,500 - £10,000.

    This afternoon I felt awful, got 2 rejections for a new loan threw the post and then when I was rejected on the phone I didn't know what to do. I felt awful, but its finally good to be able to speak to someone about this. I couldn't speak to my Mam or my Dad as they would kill me for being so stupid, and rightly so, and my girlfriend knows I am in debt but not this much.

    Other ways I am hoping to clear the debt is selling a few items on Ebay, have alot of CD's from the last 2 years and hopefully as a job lot they should fetch roughly £75. A friend still owes me £90, and my Mam and Dad still haven't given me anything for my birthday so hopefully I could convince them just to give me money, and that would clear abit of debt on my Barclaycard.

    Thanks for the help, and being able to speak to someone. Please post more ideas, or people who have had similar problems and how they have solved it.
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