Need help sorting out my o/d mess

Tob3z

Hi there,

OK I'm starting to feel the pressure at the moment.

I'm 20 and last year decided to go back into education to make something of my life. Amazingly I didn't realise how much it was going to cost me. I found it impossible to get a job as well so was slowly borrowing money from my parents to pay for books, petrol etc. Then recently I forgot about my car. MOT, Tax, Insurance. I now owe my parents about £1000 and I get the feeling they are struggling slightly with this.

It's not fair on them and I think I need to move the responsibility over to me. I now have a job but I'm only earning around £70 a week as the hours are low at the moment (Bring on summer). I still need to buy tax for my car and I don't know where I am going to get this money from.

I two accounts. A ISA (empty now) and a Current account, both with Natwest. I have a £100 o/d and I have been charged £28 every month for the past 8 months. Reason being is I accidently went over my o/d. The fee then causes me to go over it again and it continues like that because I can never get back in the possitive. With my recent job I have now been able to get out of my overdraft but recent car purchases caused me to go into my overdraft of which I couldn't pay back till I got paid. This went into a second month with caused a £28 charge and interest. This has hit me in the face as I didn't realise I would get charged for staying within my agreed o/d.

Whenever I go into my Natwest branch I can never seem to speak to the manager. I am told I will get a call. I never do. When I opened my ISA they never sent me a welcome pack or transfered the money over which was agreed.

So I would love some advice on how I can try to sort this out. I know there is no quick fix but I have a income now so I'm hoping I can slowly get rid of it. I'm thinking I open a account with A&L for better service. While keeping my Natwest account open and pay off the o/d. Then try to reclaim fees. As well as apply for a credit card and use that to pay for things which I need ASAP (Tax, work clothes)

Tob3z

Anyone?

If I have posted in the wrong section please say.

GeorgeUK

Not the wrong section, but your post probably slipped down without anyone noticing it.

First, we need to know your outgoings as well as your income. Post a SOA and list and essential that you need to buy at the bottom of the post. It sounds as if your income does not cover your outgoings right now, but hopefully the tax and workclothes will be a 1 off annual payment. The fact that you want to put this on credit is a little worrying, but we can deal with that later.
http://www.makesenseofcards.com/soacalc.html

We need to get you saving money to pay back your folks aswell as getting rid of the overdraft. I would have suggested a 0% card but we'll need to get all the details before we can advise.

Tob3z

GeorgeUK wrote: »

Not the wrong section, but your post probably slipped down without anyone noticing it.

First, we need to know your outgoings as well as your income. Post a SOA and list and essential that you need to buy at the bottom of the post. It sounds as if your income does not cover your outgoings right now, but hopefully the tax and workclothes will be a 1 off annual payment. The fact that you want to put this on credit is a little worrying, but we can deal with that later.
http://www.makesenseofcards.com/soacalc.html

We need to get you saving money to pay back your folks aswell as getting rid of the overdraft. I would have suggested a 0% card but we'll need to get all the details before we can advise.

With the SOA it list things such as insurance and MOT as monthly? However both of these have been paid for a whole year. Would I still list the full price for the year?

Edit: Form has told me what to do

Tob3z

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 200
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 200

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold flat)...... 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 60
Clothing................................ 0
Petrol/diesel........................... 80
Road tax................................ 9.5
Car Insurance........................... 0
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Total monthly expenses.................. 179.5

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1200
Other assets............................ 0
Total Assets............................ 1200

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Parents........................1100......0.........0
Total unsecured debts..........1100......0.........-

Monthly Budget Summary
Total monthly income.................... 200
Expenses (including secured debts)....... 179.5
Available for debt repayments........... 20.5
Monthly UNsecured debt repayments....... 0
Surplus(deficit if negative)............ 20.5

Personal Balance Sheet Summary
Total assets (things you own)........... 1,200
Total Secured debt...................... -0
Total Unsecured debt.................... -1,100
Personal net worth...................... 100

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.
The thing is I don't have a fix amount of how much I earn or spend. I started my new job 2 weeks ago. This week I have zero hours so no income this week. The same is probably going to be said for next week as well. I start college again but have arranged it so I only do 3 days a week. This gives me 4 days to get another job and work days. As well as working nights at a bar when they need me. I will get more hours when it gets busy in the summer. I don't spend any money of luxury items. I still live at home and used to pay rent last year but now in education my parents have let it slide. I don't buy clothes every month etc.

I want to be able to pay my parents back ASAP. At least take the debt off them and pass it on to me because I can tell it's becoming troublesome for them. I don't actually know where the money has come from but my mum owns a small shop and needs to buy supplies which she purchases with her credit card. I assume that it's probably got my debt on it as she has told me she can't buy anything at the moment.

GeorgeUK

What is your job? Just wondering as they expect you to have "work clothes" but aren't giving you any hours?

I think even stacking shelves or stockroom work at the weekend would be a good place to start. You need a regular income - just noticed you don't have the overdraft listed as a debt. Is that clear now?

Tob3z

loaner wrote: »

Car insurance = 0?

Realistically you can't afford to run the car and pay back your parents and overdraft charges on that wage, which leaves 3 options (assuming you don't want to get into a debt spiral);

better job
no car
keep borrowing ever increasing amounts from parents.

A credit card might not be the best idea, you will end up paying interest on that instead of the od. Do you have a student account (assuming you are eligible)?

The car insurance was bought on my mums credit card. So £647 is what part of the £1100 I owe her.
As stated I'm after a second job.
No car is not a option. Work and college. A 20 minute journey to college takes 1 1/2 hours on the bus. Plus my job isn't in bus distance.

GeorgeUK wrote:

What is your job? Just wondering as they expect you to have "work clothes" but aren't giving you any hours?

I think even stacking shelves or stockroom work at the weekend would be a good place to start. You need a regular income - just noticed you don't have the overdraft listed as a debt. Is that clear now?

Barman at a holiday home site. So it only gets busy in the summer. They did talk to me about doing a shift on my own but we both agreed I am not confidant enough yet and as such they don't need 2 people on one shift for this week. Work clothes are just some new shoes and trousers I need.

It looks like I got paid yesterday. £150 (last weeks work) + £30 ALG (Adult Learning Grant). Which is great. So I am in the clear bank wise and I can purchase Tax for my car.

There is still the big amount I owe my parents though. While I know it may seem like it's money which I can slowly pay back with no worry things have been getting "difficult" at home. It was decided that I wanted to be more independent. As such I would rather deal with paying the money back to someone who is not my parents.

Is it not possible to transfer this to a credit card with 12 months interest free. Then I can pay as little as say... £50 a week or more and it would be paid off in less than 30 weeks. Or have I got the wrong idea? I know it may sound not the best but I can't keep relying on my parents and I would rather race real life consequences and learn from it. I wouldn't be purchasing anything with the card as... well there is nothing I want

GeorgeUK

I was not going to suggest the CC thing - just incase you came a cropper. You will not be able to spend anything on this 0% CC so please make sure you don't otherwise you will be charged interest on your purchases until the entire amount is cleared on the card.

Your salary is not very high or consistant so that may also go against you. You can usually have 3 credit searches within a 6 month period before your credit score is affected. I don't think yours will be too good if you have not got a credit history for them to go by.

I would advise getting the virgin money card as it is 15 months at 0% and 2nd - 15th months have a minimum payment of £25 so even on "poor" weeks you should be able to cover it. If you miss a payment, you could lose the 0% deal and be charged full interest.

If you do decide to apply and are refused, i wouldn't try going somewhere else. That offer would suit you and any other decent offers will probably have the same requirements and refuse you.

good luck

Tob3z

GeorgeUK wrote: »

I was not going to suggest the CC thing - just incase you came a cropper. You will not be able to spend anything on this 0% CC so please make sure you don't otherwise you will be charged interest on your purchases until the entire amount is cleared on the card.

Your salary is not very high or consistant so that may also go against you. You can usually have 3 credit searches within a 6 month period before your credit score is affected. I don't think yours will be too good if you have not got a credit history for them to go by.

I would advise getting the virgin money card as it is 15 months at 0% and 2nd - 15th months have a minimum payment of £25 so even on "poor" weeks you should be able to cover it. If you miss a payment, you could lose the 0% deal and be charged full interest.

If you do decide to apply and are refused, i wouldn't try going somewhere else. That offer would suit you and any other decent offers will probably have the same requirements and refuse you.

good luck

Thanks very much for your help

Loaner. I didn't think I would be receiving the £30 a week ALG but I guess I can add that now. The £150 was for working 5 nights a week. This won't happen again for another month yet. Another job should bring this up to a steady £200 a week though.

Jay37

Hi tob3z,

I'm no money expert so I can't offer anything new I'm afraid,but, I just wanted to say how commendable it is that you are taking responsibility for sorting this out and re-paying your parents. I hope my kids turn out like you!
Good luck with everything.