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  • FIRST POST
    DanniL_2006
    21 and in a complete mess : ( !!
    • #1
    • 31st Jul 06, 1:50 PM
    21 and in a complete mess : ( !! 31st Jul 06 at 1:50 PM
    Hello,

    In just over a year I have managed to get myself into 16k of debt.

    This is through credit cards, loans to pay off these credit cards and putting it back on my cards.

    I am now at the point where I owe on 2 loans (about 7k) and the rest is accross 3 credit cards.

    Its started to hit me how much of a mess I am in - I moved out of my parents house nearly 5 months ago and because rent is so high, along with bills I have no money left at the end of the month and I am having to beg and borrow to see my way through.

    I want to pay my debts off and beable to live without worrying about it all the time. I called CCCS and spoke to a credit counsellor there who suggested I go bankrupt which is not really what I want to do as I know it will affect me for the rest of my life.

    Has anyone got any honest advice of how I can start working my way out of this. I was thinking of selling a lot of my things I bought on ebay and maybe getting a part time job but Im not sure I would have time for that.

    Please help as i dont know what to do : (

    Thanks so much.

    Danni


    Last edited by Former MSE Natasha; 01-08-2006 at 4:51 PM.
Page 1
  • wanna-be-mortgage-free
    • #2
    • 31st Jul 06, 1:54 PM
    • #2
    • 31st Jul 06, 1:54 PM
    First of all, welcome Danni and secondly big hugs to you!

    Can you post your income and outgoings (SOA) so we can have a look to see where you can make cut backs. Also put down the loans and interest rates along with your credit cards and the interest rates they are charging.
    DFW Nerd no: 149

    • **purpleprincess**
    • By **purpleprincess** 31st Jul 06, 2:00 PM
    • 3,516 Posts
    • 3,845 Thanks
    **purpleprincess**
    • #3
    • 31st Jul 06, 2:00 PM
    • #3
    • 31st Jul 06, 2:00 PM
    Hey hun!! first thing is first welcome!! And also you need to post an SOA, see the sticky about first time posters. I'm 21 too so you're not alone!! (((hugs))) And we can see what we can do to help!
    Official DFW Nerd no. 082!
    Debt @ 01/01/2014 16,956 Debt now: 0.00
    Aims: clear debt, get married, buy a house ALL DONE!!
  • Glitterari
    • #4
    • 31st Jul 06, 2:35 PM
    • #4
    • 31st Jul 06, 2:35 PM
    Can you move back into your parents - you should not be paying rent that you deem to be 'too high' - that should be causing alarm bells to ring immediately.
    Proud DFW Nerd #62

    Became Debt Free in Oct 2006 - uni was hard - financially!! Now need to start again.... :rolleyes2

    PROUD TO BE DEALING WITH MY DEBTS
    • james32_uk
    • By james32_uk 31st Jul 06, 2:46 PM
    • 1,187 Posts
    • 483 Thanks
    james32_uk
    • #5
    • 31st Jul 06, 2:46 PM
    • #5
    • 31st Jul 06, 2:46 PM
    CCCS appear to be advising lots of people to go bankrupt at the moment. I hope it's not a trend as in this case it seems quite reasonable that Danni can sort herself out without resorting to such drastic measures.

    Well done to Danni for recongnising the problem. You've taken the biggest step and with affective moneysaving and a good attitude it should be downhill all the way.

    Post your SOA and we'll help you get through it!
    Debt as at 12th July 2006 - 61,345
    Debt free 21st Oct 2011.

    All thanks to
  • DanniL_2006
    • #6
    • 31st Jul 06, 3:11 PM
    • #6
    • 31st Jul 06, 3:11 PM
    Monthly Outgoings:

    Rent: 450
    Water: 30
    Council Tax: 23
    Gas: 27
    Electricity: 27
    Insurance: 17 ( Mobile and House)
    Mobile bill: 80 (average per month)
    Travel: 86 - 130
    Barclay Card: 110
    Morgan Stanley:70
    Loan 1: 36
    Loan 2: 91
    Topshop: 5
    Egg: 30
    Charity: 10

    This is without food so just the basics, I get paid 1276 after tax.

    I Owe:

    Barclaycard: 3,550
    Morgan Stanley:2500
    Egg: 1550
    Loan 1 1846
    Loan 2 5666
    Overdraft 500

    I am not paying my overdraft off at all and am paying minimum payments on everything else.
  • melancholly
    • #7
    • 31st Jul 06, 3:15 PM
    • #7
    • 31st Jul 06, 3:15 PM
    that's a really big phone bill - you could save a bit there, and the travel amount is quite a big range - if you stick to the lower end that's an extra £528 a year!
    what are the interest rates on the credit cards/loans?
  • Emmzi
    • #8
    • 31st Jul 06, 3:17 PM
    • #8
    • 31st Jul 06, 3:17 PM
    That looks like £1136 a month outgoing to me, assuming higher travel cost. Add on your food and incidentals, and you're just about breaking even, but not defaulting on anything.

    Costs seem reasonable except

    mobile £80?? VERY high!
    And I don't know if you can afford £10 to charity right now.

    Have you checked to see if you can save by switching energy providers?

    Do you rent a flat on your own? Sharing could save you some too.

    What options are there for you to get overtime/ a second job/ car boot sales etc to bump up your income?

    Total debt = £15, 612. If you could find another £200 a month, it's 6 years to repay.. ish...

    The DFW nerds would also like the APRs on your credit to see if some switching could save you in interest!
    Debt free 4th April 2007.
    New house. Bigger mortgage. MFWB after I have my buffer cash in place.
  • davesgirl
    • #9
    • 31st Jul 06, 3:19 PM
    • #9
    • 31st Jul 06, 3:19 PM
    first thing i wouls suggest is drop the charity one till you can afford it again - you need to sort yourself outbefore you can help anyone else.
    as already suggested try and cut back on travel and mobile expenses.
    look on os board to help keep your food shopping to an absoloute minimum - this really does make such a big difference
    and most of all keep your chin up, stay positive and tell yourself that you can clear this debt, i know its hard not to get down about tings but it wont help (((hugs))))
    debt in june 06:6290:rolleyes:
    july 1st 06 : 5247.70
    july 20th 06 4867
    hope to be debt free by : july 2007at the latest

    dfw grocery challenge 20/07-20/08 240
    spent so far - 75.57_____164.43 left
    • james32_uk
    • By james32_uk 31st Jul 06, 3:19 PM
    • 1,187 Posts
    • 483 Thanks
    james32_uk
    I cant believe CCCS are tellilng someone in her position to go bankrupt! Insane!
    Debt as at 12th July 2006 - 61,345
    Debt free 21st Oct 2011.

    All thanks to
  • wanna-be-mortgage-free
    [QUOTE=DanniL_2006]Monthly Outgoings:

    Rent: 450 (is it possible to move back with parents until you get yourself out of debt? - may be a bit drastic but if you really want to get sorted and quickly it might be the most appropriate course of action - just wish I could move back with mine...)
    Water: 30
    Council Tax: 23
    Gas: 27
    Electricity: 27
    Insurance: 17 ( Mobile and House)
    Mobile bill: 80 (average per month)(change to payg and only use for emergencies)
    Travel: 86 - 130 (could this be reduced by walking/cycling/car sharing with a friend)
    Barclay Card: 110
    Morgan Stanley:70
    Loan 1: 36
    Loan 2: 91
    Topshop: 5
    Egg: 30
    Charity: 10 (seems harsh I know but until you are sorted I would stop this donation - sorry)

    /QUOTE]
    DFW Nerd no: 149

  • Emmzi
    Plus if you could bear moving back home you'd save £540 per month less, say, £200 rent to bank of mum = £340 per month - debt free in about 3 and a half years.. not too bad.
    Debt free 4th April 2007.
    New house. Bigger mortgage. MFWB after I have my buffer cash in place.
    • james32_uk
    • By james32_uk 31st Jul 06, 3:21 PM
    • 1,187 Posts
    • 483 Thanks
    james32_uk
    I'd move back home and clear it in 2-3 years.
    Debt as at 12th July 2006 - 61,345
    Debt free 21st Oct 2011.

    All thanks to
    • nellis10
    • By nellis10 31st Jul 06, 3:25 PM
    • 1,320 Posts
    • 3,083 Thanks
    nellis10
    Hi Danni!

    Panic ye not...people on here are very knowledgeable as they've been where you are...and...I include myself here!!...are a lot older than you....so realised their problem a lot later on. Just think....if you can become debt free in your twenties, you are about 10-15 years ahead of a lot of other people....again I include myself here (a repentant 35yr old!!! ).

    So once these fab people get you back on the right road you can look forward to a life of living within your means, not struggling to pay off anything and more importantly...peace of mind!

    Just by reading these pages daily is a gentle slap on the wrists for me if I have indulged myself wantonly on c**p!!! I know recently I have...and look at my poor pink hands!!!
    Nat
    Goals:
    Baby Step 1 = 1000 EF
    Baby Step 2= Debt Free by Apr 2017
    Baby Step 3 = Full EF 650/8000
    Mortgage Free by 2023!!
  • DanniL_2006
    Yeah my travel is a lot but i live in london so spend £86 a month on a travel pass and the rest is travelling to see my boyfriend and parents who live about an hour or so away.

    Thanks for all the replies its really appreciated. I have been thinking about moving back home, it just seems awful because I love my job up here and I only moved out about 4 months ago!
  • bikerqueen
    feels rubbish - but it'll be great when the debts are paid off!
    • **purpleprincess**
    • By **purpleprincess** 31st Jul 06, 5:03 PM
    • 3,516 Posts
    • 3,845 Thanks
    **purpleprincess**
    Yeah my travel is a lot but i live in london so spend 86 a month on a travel pass and the rest is travelling to see my boyfriend and parents who live about an hour or so away.

    Thanks for all the replies its really appreciated. I have been thinking about moving back home, it just seems awful because I love my job up here and I only moved out about 4 months ago!
    by DanniL_2006
    Could you not commute from your parents? Where is it you've moved from?
    Official DFW Nerd no. 082!
    Debt @ 01/01/2014 16,956 Debt now: 0.00
    Aims: clear debt, get married, buy a house ALL DONE!!
  • DanniL_2006
    portsmouth to london, but i think the cost of travel would be too high.
    • Bargain Rzl
    • By Bargain Rzl 31st Jul 06, 5:13 PM
    • 6,174 Posts
    • 21,392 Thanks
    Bargain Rzl
    Yeah my travel is a lot but i live in london so spend 86 a month on a travel pass
    by DanniL_2006
    85.30 is zones 1 and 2, right? ... If you live in Zone 2 you're not all that far out ... Is there a chance you could ditch the Travelcard, buy a bike and cycle to work, saving your travel costs? ... I live in Zone 4 at the moment, 15 miles from work so I NEED my travelcard, but am moving to Zone 2 soon and am planning to phase out the need for a Travelcard! (Depending on the distances involved you might well find that the cycle route is faster than public transport too! Another added bonus is that if you know you're cycling home, you know you can't drink too much after work, which might also save you a few if you're in the habit of staying out for "a swift half" )
    Operation Get in Shape
    MURPHY'S NO MORE PIES CLUB MEMBER #124
  • DanniL_2006
    I know one of the best options is to move in with my parents, but my brother has moved out and my sister is planning on going soon aswell. I know they are looking for a one bed flat for the two of them so I would feel really out of order forcing them into something else, and I also know they would be so disspointed in me (they dont know how much i owe) but I cant really see what else i can do : (
    Oh and cycling is a good idea, and i have been thinking of that so thanks for that one - although a bit shaky on my bike at the best of times!!
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