Beyond help?

Mnemosyne74

Hi everyone,

I hope someone can offer me some advice. My financial situation is really dire, and I have no idea how to get myself out of it. I've got a loan for £5000 and an overdraft of £1500. I live in Edinburgh which is superbly expensive, and I am single to boot. I earn a good salary, but most of it gets sucked up by my overdraft. My job is very demanding so I can't take on a second one, and I have no other means of income. I am living on £100 per month and that has to buy groceries. I don't see how I can even budget on so little money.

To add insult to injury, I'm an American living here only a couple of years and feel as though I've been taken for a ride on several occasions. I already discovered I was wrongly sold insurance coverage on my loan, and I fear there may be more things out there!

Please help! I'm miserable!

RAS

Welcome

For a start see here http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance for advice on how to reclaim that insurance. Also note, it may be possible to recalim the charges (not the interest) on your bank account as well.

And if you are in the black for at least two days each month, you might be able to transfer your OD to the Alliance and Leicester, who will match your current OD but at 0% for a year.

freddy08

Have you considered moving to a cheaper area & commuting to work?
If you have a good salary then £6500 of debt shouldn't be a problem.

OberonSH

Hey there. Don't panic - nothing's ever beyond sorting. The first thing you should do is to make a list of everything you pay out. Straight away you might see where you can makea few savings. Post it up and we'll see where we can shave a bit here and there. Get out your bank statements out and see exactly what's going on.

What APR is your loan, and your overdraft?

Then you need to start writing down everything you spend. A coffee here, a paper there, it all adds up. a tenner out of the machine will disappear faster than you can blink if you're not careful.

And calm down! You're amongst friends, and we'll do our best to help out.

BTW has you had a look to see what Martin says about claiming back loan insurance?

**Amy**

:hello:

Welcome to DFW. Firstly would you be able to post up an SOA (statement of account - all your incomings and outgoings (monthly)). This will allow people to try and help you figure out where your money is going, and also if you can make any savings (changing suppliers etc.).

Also if you could note down your debts, their APRs and what you pay a month to them.

Dont worry, you have taken the first step to sorting everything out.

xxx

GeorgeUK

Hi M

Currently typing from Edinburgh, but don't live here.
As suggested, it may help us to see some areas to make savings if you post up a SOA. This calculator should help. http://www.makesenseofcards.com/soacalc.html

Do you have credit cards too? Are you able to get them? (would have thought so if you could get a loan)

You may be able to apply for a 0% 'super' balance transfer card which may help pay off the overdraft, and depending on the credit limit possibly the loan. If you give us some more info i'm sure we can vome up with something.

CAPSimon

You really shouldn't worry too much £6500 may seem like a lot but shouldn't take too much sorting out. The first step is to get an idea of your situation and work a budget out as suggested in the above posts. If you don't feel up to doing it yourself Christians Against Poverty have a centre in Edinburgh and are 100% free give them a call even thats free 0800 328 0006, good luck

SunderlandBlackCat

Hi Mnemosyne74 & welcome to the board

RAS wrote: »

And if you are in the red for at least two days each month, you might be able to transfer your OD to the Alliance and Leicester, who will match your current OD but at 0% for a year.

I'd second that as it was transferring my overdraft to an new A&L account then treating it as a separate loan that allowed me to get it under control.

That it just happened to be at 0% for a year was a bonus.

poppyg_2

Hiya

Welcome to DFW. I think if you earn a good income your amount of debt shouldn't take too long to clear. Do you fancy posting up a statement of affairs (SOA) so people can advise on possible savings etc you could make?

X

Mnemosyne74

Thanks guys. Sorry it's taken me so long to reply. This is what a typical month looks like for me. I am currently renting with a friend of mine, and have already looked into changing providers for my area but because it is a new build it's not possible to do so (or so they tell me).

Salary - 1,215
Overdraft 1,500

Loan - 163.42
Rent - 310
Bus Pass - 35
Gas/Leccie - (approx) 35
Debit Interest - 13
Groceries - 100
Mobile - 30
Sky - 15
Lovefilm - 13

I tend to spend a lot of money on food, transport (to Glasgow where my partner lives) and impulse buys.

Naomim

Hi :hello:

Didn't want to read and run, I'm no expert on here and I'm sure someone will pick a few things but what jumped out to me is, you don't seem to be paying much out.. do you pay for mobile phone, internet, water rates, land line? Is there anything you have missed off?

Naomi x