Money advice....Please

Tonytank

Tonytank

Tonytank

Associate
Joined
4 Sep 2006
Posts
514
Hi guys.

I dont want to go into too many specifics with this thread, but ill try to be as descriptive as possible. Essentially, money, i have non of it, and whats worse is i owe a fair bit, my outgoings arent extreme but there constant, so i get little or no breathing space to attempt to save or even beat back my overdraft, i feel like every payday im getting just enough to stay afloat, which to be honest sucks.

I suffer from depression every now and then, and i really, really dont want this to bring my old ghosts back, im trying to remain upbeat about all this because frankly, thats all i have left in me, me and my gf split a few weeks ago (not money related) and at the risk of sounding like a forum cliche, that brought me about as close to the edge as i would ever want to have been.:(

But hey, im still smiling, i got the sun on my back, smile on my face and a happy beat in my heart, and im determined not to let things get me down, cus at 25, life is too dang short i tell you what...

Anyway...

I always hear about people who contact certain groups who help with debt problems, i work a 30 to 40 hour a week and even though its only a "lowly" retail job, i figure that means im not due ANY benefits, so im wondering if there is anyone i can talk too??

I hear about people who "freeze" there debts, some legislation about only paying back what you can afford or some such??, i dont really know, which is why im hoping one of you smart fellas will help a guy who wants to start getting things in order.

Any advice would be awesome, and if it helps, the debt (bulk of it) is 3 credits cards to the tune of 1500 (altogether), a 3000 overdraft and a few other bits and pieces.

Again, thanks for any help, positive or negative, i would be gratefull for any spare light to illuminate my cave today.

Take care guys and have a brilliant day.

Tank out.
 
Ok, this is a pretty easy reply, but it's the most effective.

You're in debt by £4,500... which, on the scale of things, isn't very much. I appreciate however it's enought o weight you down. It should be some comfort to you to know that £4500 is not an unreasonable, nor impossible, amount to be able to pay back over time. You need to consolidate.

My advice would be thus:
Go to your bank and talk to them. Organise a meeting so you dont have to discuss it in front of queues of people. Banks are usually more than happy to help you consolidate because it means another loan, + slightly higher interest.

The benefits of this are two fold:
1. You can pay off your credit cards immediately and stash them away. Dont close them down, just dont use them very much. Making small purchases and paying them immediately is the easiest road to remove any black marks on your credit rating.

2. Your repaymemts are reduced to only 1 single amount per month. This is usually flexible, as you can choose the length of the loan (3 - 7 years usually). This also means you only owe money to 1 person, which reduces the number of letters you get, which reduces stress.

You're obviously upset about the money so i would also suggest somethign else.

Cut down on any out-goings that are not absolutely necessary. Got a subscription to that game? cancel it. Could make do for a while with a smaller car? chop it in. Dont need all the sports channels? take them off. Of course you'll be losing the luxuries in life, but you need to make the choice between financial stability and the life of luxury.

Good luck.

PS:
If in doubt, see a professional. The CAB are excellent for things just like this. And dont forget, the amount you're in debt by really isn't that much. Not on the grand scale of debt anyway ;)
 
Hi, I'm in 3rd year at Aberdeen university doing accountancy and finance. I can recommend one very useful site with which you can save. It's called http://www.moneysavingexpert.com/
If you go through all the things in there you will save quite a bit of money.
I live on a low income, but I don't drink, smoke, take any drugs, I don't bother with a car and use my bicycle. I don't have the heating on when I am out and I don't use a tumble drier and put clothes on airing stands. I get my shopping delivered and use this site to get reductions. http://www.shoppingcodes.co.uk/tesco_voucher_codes.asp
Try and live like a student.
You have to ask yourself why you got those debts in the beginning. Why? How much of them were really necessary. First of all you need to look at your cards and then start paying off the minimum payments, but try and pay off the ones with the highest interest first. How we were taught in advising peopole with debts is to get a peice of paper (your bank statements over the last two months should help) and then right down all your expenses. Catergorise everything. MObile phone, food, fuel, car, rent you name it. Account for every single pound that you can. You'll find that you can't make much difference to some of the things on there, but you'll soon see where you can drop some items. Don't be too mean. You don't want to get out all the nights out and fun, but just be more realistic. Finally, I know you work hard, but if it really isn't enough after all that you need to work more or get a better paid job. I have worked in retail and it is hard work. Other jobs pay a lot more, but you do have to hunt around.

Private nursing homes don't pay bad. Ok no-one wants to do it, but I worked in one during the summer. PLenty of men there. No, I didn't wipe people's backsides I just did the hospitality side. I was on £6.50 an hour with many hours available. However, if you can do a job like that you can then make a career out of it and work your way up.

Try and look at all your options. Everything. Using that site I gave you see how much you can save.

Ben
 
bump it up to around £7 - 10k then get yourself declared bankrupt. Flippant remark yep but its only a few years on the credit blacklist. And nowadays it is a lot easier to do if you look into it.

Of course the system would have you work like trojan for years to pay it all back....
The system rewards those know how to work it not those who are honest and work hard.
 
Thanks guys, really, i cant explain how much this has made me smile.

In regards to the loan, i tried to organise a loan with the bank some time ago, a graduate one in conjunction with my student account (graduated with a first this year, hooray), but unfortunately i was declined.

Is it worth having another go with the bank, perhas with a standard loan?

I think ill skip the bankrupt advice, i appreciate it by all means, but i know i can deal with this the right way, without taking it too an extreme.
The system rewards those know how to work it not those who are honest and work hard.
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I appreciate that in todays state of affairs that advice holds some credance, but i simply cant do that, i watched my dad work hard my whole child hood, and he never once had to resort to anything like that, who knows, maybe he was foolish, but in my heart, i know if i work hard and try hard, ill get back what i put in. It may be niave, but i really believe that if you work hard, you cant go far wrong.


Again, thank you so much for your kind words and advice, and as always, anymore would be awesome.
 
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dampcats advice is ok - yes it's stress free and the easy option. But it is generally more expensive. The other problem is that if you own your house they'll want to put it upon that. At the moment the credit card companies can only take your belongings should the worst happen (and you should be able to solve that with some friends). If you get a loan and can't pay it the bank will take your house. You really don't want to do Surfers advice. You'll NEVER be able to take out a mortgage or get little credit for the rest of your life. Your children will also struggle.
 
Tonytank said:
Thanks guys, really, i cant explain how much this has made me smile.

In regards to the loan, i tried to organise a loan with the bank some time ago, a graduate one in conjunction with my student account (graduated with a first this year, hooray), but unfortunately i was declined.

Is it worth having another go with the bank, perhas with a standard loan?

I think ill skip the bankrupt adice, i appreciate it by all means, but i know i can deal with this the right way, without taking it too an extreme.


Again, thank you so much for your kind words and advice.
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You'll probably find it's easier to go with the same bank. A standard loan might be declined due to credit rating. I've previously been declined credit due to my past, but my bank was more than happy to give me a loan for consolidation. They have your full history for one, they know exactly whats going in and whats going out and make a decision based on that.

If you are unable to meet the obligations of repayment, you will need to talk to someone. Preferably someone who doesn't sit on a forum all day ;)

Check out moneysavingexpert.com as mentioned above, and think about going to see the CAB. I'd estimate a £4,500 loan at a decent interest rate to be around £60/month over 5 years. You'd need to check that, don't take my word for it, but it sounds about right based on my experience.
 
Tonytank said:
Any advice would be awesome, and if it helps, the debt (bulk of it) is 3 credits cards to the tune of 1500 (altogether), a 3000 overdraft and a few other bits and pieces.
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That sounds fairly manageable to me, even without professional help. So keep smiling.

I'm also a 'lowly retail worker', but I work nights to maximise what I earn. The best advice I can give to anyone sounds patronising, but it's still true.

First, you need to boost your self esteem by taking control. You *must* start recording every single penny you spend. I mean every single penny. This will bore you, annoy you, but it will also educate you as to exactly how the money drains through you fingers. And we all waste money.

You may already do something similar. Next step is to look at every single thing you buy and ask yourself whether that thing/service/item means more to you than getting out of debt? If it does then either it's critical to your current needs or you just don't care enough about being in debt yet. Be completely honest with yourself.

Second, can you earn more... do overtime, even if it's the worst shifts at times you'd rather not work. That is 'free money', and it can go straight off your most expensive debts. And of course it's important to prioritise your debts. Only pay off the minimum on the cheapest debt. Pay off the expensive stuff (probably the credit cards) first. There's plenty of that kind of advice on Martin Lewis' site though.

Life can appear pretty boring if you have to cut right back. But libraries are free... the greatest human resource after the internet. The internet is one long adventure for a fixed cost. Crisp, clear autumn days are free (walking is a great way of clearing your head), the company of friends is free (unless it's your round :-), and if you broaden your range of interests there's plenty of informative and entertaining stuff on TV.

Taking control of your life and finances isn't boring. It's the best investment you'll ever make. Start now.

Good luck.
Andrew McP
 
Another thing to look in to is tax credits. If you are on a low enough wage and 25 or over you can actually apply for tax credits and get some more money back from the government. It won't be much, but every little helps.
 
Get a second job working evenings and weekends and use the money to solely pay off your debts. In the short term you'll have less free time but its a positive step towards making things better.

Cut up your credit cards. Look at consolidating all of your debts into one loan, but make sure you are able to pay off extra with no penalty and there are no fees for early settlement. TBH though if your total is £4500 maybe look at putting it all on one interest free credit card.

Economise as much as possible. No takeaway, go out as little as possible, make bulk food (bolognese, curry etc) and freeze it.

Every couple of weeks I make a big pot of bolognese which is enough to feed me for 12 evenings, costs about £15 incl pasta.
 
DampCat said:
Check out moneysavingexpert.com as mentioned above, and think about going to see the CAB. I'd estimate a £4,500 loan at a decent interest rate to be around £60/month over 5 years. You'd need to check that, don't take my word for it, but it sounds about right based on my experience.
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Would be more like £100 a month.

I would speak to CAB though, do not take anyones advice off the internet, speak to a professional advisor.
 
Surfer said:
bump it up to around £7 - 10k then get yourself declared bankrupt. Flippant remark yep but its only a few years on the credit blacklist. And nowadays it is a lot easier to do if you look into it.

Of course the system would have you work like trojan for years to pay it all back....
The system rewards those know how to work it not those who are honest and work hard.
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FYI - You can be delcared bankrupt for owing as little as £750...

It stays on your credit file for 6 or 7 years, it would NOT affect your children they have nothing to do with your credit.

But my actual advice is as already stated, speak to the CAB, and see what they say. Also try the Consumer Credit counselling service aswell.
 
Your parents credit situation is taken into account when giving credit. Statistics show that parents with large unpayable debts will have a much greater chance with children with the same. That should be pretty obvious anyway. I learned that in my personal investment and finance course. It's not end of story going bankrupt after 6 years. You always have to decalre bankrupty when applying for a mortgage and I think also credit cards.
 
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Surfer said:
bump it up to around £7 - 10k then get yourself declared bankrupt. Flippant remark yep but its only a few years on the credit blacklist. And nowadays it is a lot easier to do if you look into it.

Of course the system would have you work like trojan for years to pay it all back....
The system rewards those know how to work it not those who are honest and work hard.
Click to expand...

great attitude there....
 
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