In SERIOUS debt!

I have no job currently my debt is piling on top of each other all the time im not all that worried about it no more as everyone gets in debt at some point in their lives.

Edit: Well to say im not bothered is a understatement iam i just dont let it get to me
 
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£7500 - Student Loans Company - They won't pester you until your registered as no longer at Uni, either by leaving or Finishing, then a repayment of asbout 2 pints of beer a week is what you can agree on.

£1250 - Overdraft Limit - go and talk to the bank, thye'll extend it as long as they can see some income into it. Talk nicely and as long as your credit history is OK (ish) they'll be ok with you. I had a £3k overdraft with my bank when at Uni.

Also, don't With draw money form your Debit card in Clubs or pay for anything non-essential with your debit card. When applying for a hardship loan from your Uni, most likely they will want to see your bank statement, and seeing money going to boozers / non-essential items, will incline they to tell you to save money rather that give you any.

£1200 - Borrowed from Girlfriend - Keep her sweet at all costs, not to borrow more money of her, just by owing that much to a non family member could put excess stress on your relationship. This is the most important one to pay back.


£500 - Credit Card - Transfer the debt elsewhere into a card which will allow interest free periods, do this every 6 months and never spend money on credit cards. I had £500 on CC's when at Uni and a large overdraft, talk to them and arrange a repayment term that you can agree on, as little as £10 / week, it shows willingness, but if you miss one, they'll be quick with there fines, remember this is how they make their money.

£450 - Borrowed from Dad - By him a pint or so every so often, don't let your folks see you wasting money on booze as they will then become concerned about giving you cash if it ends up in a pub.

Banks will threaten Debt collectors all the time, eventually they might do that, but that would be after they have setup dozens of meetings and discussed your problems with you, and you would have failed a few repayment plans. If they bring in Dbt collectors, they won't earn money of your account, the Debt collectors will recieve the money and a percentage will go to the bank not all, they won't want to loose this.

Also, about debt collectors, they can threaten you with seixure of goods and all that like they do on the telly, but one thing they don't tell you is that Civil Debts, ones that don't involve public bodies, can't be solved by nicking your stuff, this can only be done with National Debts (ie tax and fines to police / council).

Civil debts need to be taken up with the civil courts, more expense and more time for banks to go through, even most debt collectors will shy away from this, as it takes time, almost always sides with the debtor offering to pay back 55pence a week over 100 years.
 
I have the following debts...

£7500 - Student Loans Company

£1250 - Overdraft Limit
£1200 - Borrowed from Girlfriend
£500 - Credit Card
£450 - Borrowed from Dad

Total debt = £9,900!
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a) £7500 - This will only have to be paid back when you have finished University and you are earning at least £15k a year. It is also pretty much interest free, well, is at 4.3% or something. Which isn't all that much really.

b) £1250 - If your overdraft is interest free, you can have it extended perhaps. I had a £1000 overdraft once. It took me one third of my student loan to pay it back along with my job. So look to draw up a budget and try to pay a little back every month say. Of course, you need a job first. But now is a good time to start looking.

c) £500 - Credit cards are interest bearing. A lot of interest. Have this as your first priority to pay back. Take advantage of interest free balance transfers from other cards. This needs to be paid back, or you'll be like one of my colleagues - she has debt spread across store cards, credit cards etc. She is finding it hard to pay back, and she works full time.

d)£1200 - As long as you are with her, don't worry too much. Although, do make sure you give her a little back each month.

e)£450 - Family lent money is the best way in my opinion. Make sure you are clear that you intend to pay this back, maybe also give a little back each month.

Of course...any work will do. You may even be able to find some part time pub work (very flexible hours) as well as some retail work (less flexible, but at least it's stable.

I have debts. I will owe the Student Loans Company £3407 by the end of this year. I am putting money into savings (as much as I possibly can) as security just in case there comes a time when I need to pay them it back. I have a £500 credit limit which I have recently paid back. I intend to stop using it, as I have needed my Credit Card less and less, I have evaded interest so far too. I also have a £450 overdraft...which I make efforts to decrease each month. That's interest free.

All students end up with debt, it's not bad debt, and is only repayable when you are finished with Uni and you are working, so don't worry about it, yet!
 
Mint_Sauce said:
Go to the library and get "The Motley Fool" book. It's excellent at showing you how to manage your money. The first half of the book is to do with getting out of debt and should help you a lot.
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The Motley Fool is also a website with a forum so you can probably get some free advice there (saves having to buy a book).

The news today from Rightmove (the property site owned by estate agents who are about to float the company on the stock exchange - so completely impartial ;)) is that house prices are on the way up again. But apparently this good news for us all. My own view is that students now start with so much debt that they will never be able to save enough to buy at current prices.

But on to some advice... Move the debt from credit cards to a low interest loan. Credit cards have very high interest so you have to get rid of that burden. But if you do that then you must cut up the cards to stop you spending on them again. A classic mistake is to convert the debt to a loan and then start ramping up the credit cards again.

Good luck.
 
10k isn't a lot nowadays mate. I've known those close to be in debt for 40 - 50k with no way to ever pay it all back.

I myself have a car loan, and do not even have my own home, and I'm renting. £500 on a credit card is nothing to sweat about, it's when you have 10K on a credit card you want to worry mate. Chin up, just cut the belt and try and pay off what you can each month.
 
iv-tecman said:
10k isn't a lot nowadays mate. I've known those close to be in debt for 40 - 50k with no way to ever pay it all back.
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This is true but if you cannot service credit card debt it increases VERY rapidly, I suggest you contact them and tell them that you are not in a position to pay it and come to an agreement. This is why I suggeted debt councelling as they will assit you in doing this.

MB
 
car - currently 6k
student loan - 3.5k
credit card - 2k
overdraft - £800

my advice. consolidate. tis what i intend to do soon. absorb my credit card and overdraft into my car and start again. probably add another £50 per month to my loan too...just to speed up the process. your money woes can pretty much nearly always be sorted, if you borrowed from the right people.

try not to worry, it'll make it worse for no reason :)
 
Who is your graduate overdraft with? On my Natwest account I had £2000 interest free, of which all of it stayed interest free for the 1st year after finishing Uni, that then dropped to £1000 for the next year and then dropped again to £500 for the next year.

So as had been said don't worry about it, they give you plenty of time to pay it off before charging you anything on it. Just take care not to go over your agreed interest free limit.

It's also worth pointing out that they usually allow you to increase the interest limit in your 3rd year, in my case it was from £1500 to £2000.

And just echoing what the others have said to reitterate, your student loan is not a 'proper' debt, you don't have to pay it until you earn over 15k, and even then they take it out of your pay before you get it so you won't even notice it being there.
 
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Dont worry about it, i owe 10k on my car and have 10grand in student loans :P

Student loans you shouldnt even worry about anyway, i was on 15k when i left uni at some skanky job before my holiday and the amount i paid back on the student loan each month was £2 :P
 
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people who have no debt are millionaires

or people with nothing (no house/car/uber pc/uber amps/guitars)

debt is a way of life
as long as you can manage the debt, life is rosey
 
I'm not suggesting you drink, smoke or gamble, but if you do and you're serious about killing the loans, you really have to give them up!! Don't buy any new magazines, clothes, cds, dvds or computer equipment until you have the credit card and girlfriend paid off .... then get rid of the credit card (keep the girlfriend)

I'm terrible at saving and if I followed my own advice I'd be rich. But if I could pay off a loan in no time at all because I hate being in debt.
 
lemonkettaz said:
people who have no debt are millionaires

or people with nothing (no house/car/uber pc/uber amps/guitars)

debt is a way of life
as long as you can manage the debt, life is rosey
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I disagree. The only debt that can be described as necessary is a mortgage - nothing else. I cannot afford to buy a property so I rent.. and I have a car, a PC etc and I have zero debts.
 
The Jet said:
I have the following debts...

£7500 - Student Loans Company
£1250 - Overdraft Limit
£1200 - Borrowed from Girlfriend
£500 - Credit Card
£450 - Borrowed from Dad

Total debt = £9,900!

1.) The student loan is repayable monthly on finishing University and once i get a job earning over a certain amount so that is the least of my worries.

2.) My first worry is my Credit card.

Basically i was wondering what you would all do? Would you get a £5000 loan to pay back everything bar the loans company? Possibly something else?
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You need to relax a bit. Student loans company doesnt count at all. Neither do your debts to your gf and dad, I'm sure they understand (unless you've just wasted it all away on booze etc) and wont mind if you pay it back when you can.
All you really need to do is pay off the credit card, which you should be able to do by working over your next holiday from uni.

ps: £7 an hour isn't a lot. I suggest you seek a better paid evening job.
 
Most amusing thing for me is when Creditors ring you up to talk about your situation. They have to prove your you before they can discuss it obviously :p

"Can I have the first line of your address"
"No, sorry I can't remember it"
"Oh"
:D
 
dirtydog said:
I disagree. The only debt that can be described as necessary is a mortgage - nothing else. I cannot afford to buy a property so I rent.. and I have a car, a PC etc and I have zero debts.
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ok.. the majority of people.

maybe i come from a different area, but most people dont constantly save up for one new thing all the time.

i.e. tvs, couchs, washing machines, ovens, carpets, rugs, kitchens, sheds, windows, doors, computers, cars, bikes.

who can save up for everything without borrowing money at somepoint
 
VIRII said:
Don't smoke after a tooth extraction either - very bad for your gums, infact just quit it's nasty.
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Spoken for truth, if you think toothache is bad, get a smoke related mouth infection after extraction, like I did! :o :(

Pain like I thought I'd never feel.

Hav'nt quit though...... :o

Btw, that isn't a debt I'd lose any sleep over, its a smarter man who dies owing £1M than leaves £1M imo! ;) :D
 
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