20 and very much in debt =(

runmichellerun

I know how you feel - I have a loan with Natwest which was £10k before and, over the years I have got it down to just over £5k. However, I phoned them up on a completely different matter the other day and they offered me an extention to the loan and the guy on the phone said 'you can go on a shopping spree with that'.

Thankfully, like you, I have figured out that there's no such thing as free money and I politely turned them down. I can see why anyone who's offered that kind of money will find it difficult to turn it down. Soooo tempting...

sidnee

That's a big lightbulb moment if I've ever seen one! It seems like you're in a rut, unsure what to do, what to pay off, what to reduce etc.

I'd start by looking at what you have and asking yourself whether you need it. An Audi, Subaru and BMW before your 21st is like living the dream! And yes, you may be paying for it now, but at least you can fall back on the advice of everyone here!

The first thing I would do is simply do everything in my power to sell the car and buy a cheaper and more affordable runaround. It is crippling you in insurance payments and upkeep. It's time to downsize.... How much would get for your motor?

Secondly, from your SOA you are paying £800 a month in bills/debt. Do you pay rent to your folks? Do they know about your troubles? Can they help you to sell your car?

Thirdly - eBay is great from making money - get signed up. Selling unwanted DVD's/CD's/Book/Clothes etc - I suggest you have a big clearout and see what you don't use and are willing to sell.

To get your situation moving in the right direction it is going to take some huge dedication from yourself. Congrats for recognising your situation amd LBM, second part is to act! Remember, we are all here, so keep the thread moving and us updated!

sidnee

P.S. I know how you feel. The magnitude of my debt wasn't that great to begin with but it does seem like there is no light - just thinking that most of your wages are going straight on debt/interest is tough - keep your chin up and fight through it! :-)

Johnrock

I genuinely feel good when my salary goes on debt, I feel happy that it is happening.

My BMW is 50/50 owned with my Mum, who pays off the finance on it which is £335 a month because she owns half of it, and I paid £10k cash + rest on finance. So when I sell the car, I will have around 8k at most I think, which I will most likely clear off my credit card and over drafts because they are what cost me the most.

I also bought a custom pc for about £1900, which i will sell and hopefully get about £1200 back maybe!

I do not pay any rent to my parents because of my situation, they dont know the half of it, but they understand I am in debt and despite all they've told me, I still bought things.

I have to buy petrol each month but I only live 2 miles from work, so its not too much. But I do sometimes go out and It costs a fair bit. Luckily, I have a really nice girlfriend of 1 year, who enjoys staying in with a cosy dvd just as much as me, and she is so supportive of me which I am really lucky for.

What doesn't go on debts each month, goes on food/going out(not into town for drinking etc. but little things like the cinema once a fortnight).

My debt is so bad that just only a few days ago I tried to finance another TV, when I already have a 40" hdtv, but this one was better so I convinced myself I needed it!! How stupid?!?! And I know its stupid, but yet I still crave another tv to replace mine... I must have an addiction or something but my girlfriend stopped me doing it.

MrsTinks

Why do we have sympathy for you? Because most of us have been there done that and you have stepped up and admitted that this is YOUR doing and yours alone And once you admit that you'll find a lot of people will help you who might not otherwise have helped
Right... Sky... GOTTA go... live without it
If your GF is a stay at home type with DVDs then why not join pigsback and use your points for blockbuster vouchers? That would give you free nights in
Prepping a car for sale ain't that hard... unless it needs some work? £20 valet and stick it on Ebay or in Autotraders online... If yo uEbay then wait till they have an offer on for selling vehicles they come up regularly!
Ok so you want a bigger HD tv? Check this tool before you buy anything else... Bet you it says NO!
Seriously tho... £1000 on a new TV... with apr of say 19.9% which with your current state of affairs I think is realistic... Means if you had £50 spare a month you could pay it off in 2 years (YEARS!) and the REAL cost would be £1220... that's pretty much 25% more than the advertised price... quite a price hike huh?
Your GF stopped you this time and good on her! But you have to learn to stop yourself

sidnee

You'd feel tonnes better if you knew your salary was paying on the right kind of debt, not interest! Just think, all those charges being paid for the CC's, 2 overdafts and HFC... One solution is £8k from the sale of your car, IMO, would see you payi off completely the higher interest accounts - 2 Overdrafts (£4,500), HFC (£1,500), and most of the MBNA (say £2,000).

This could see your monthly interest charges drop by over £150, and the debts disappear, freeing up money to throw at other places... such as the loan and smaller credit card.

mrsclecoco_2

hi I wish i realised when I was 20, i wouldn't be hitting nearly 30 with the maahooosssivveeeee debt Ihave now. Listen to all these good people their advice is fab and really helps
good luck x

MissEyre

Me too, my debt was probably about £4000 when I was 20...where did it all go?! Ah well, at least we realised eventually...

mcrfan

Just want to say that I can completely empathise with you Johnrock.

I also live with my parents and now at 23 I have racked up £26k of debt through reckless spending. Just be glad that you have had your lightbulb moment now, with a lot of work you can get yourself out of it and have a bright future ahead! (my parents also do not know about all my debt)

Only thing is I wish I had bought a new car when I was spending away as my car is crap and so unreliable!! Will now have to wait till I've got myself organised before I can get a new car...althought won't be going for the prestige models like yourself! (sadly?)

Xeno

Is the BMW an e46? Is your mum not the main driver seeing as she owns half? I know people will comment you should shop around, but £200 is a good quote if your the 1st driver.