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female
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anonymous
writes:Im 24 and hugely in debt, around 13,500 pounds to various loan companies. I live at home with my mum but I cant stay for much longer. i work full time but dont earn alot to pay them all off so every month they dont all get paid, and then they start phoning me and harassing me. Its ruining my life. Im tied down to the debt and I hate it. I cant handle it. Most of my friends are off travelling the world which is something I would love to do, but impossible cos I have to stay and work and pay off this debt. Other people my age are buying their own place, something else I will never be able to do. Everything in my life boils down to this debt. When friends ask me if I would like to go away, or go out or whatever the first thing I think of is money. And it shouldnt be like that. Ive looked into debt management plans which seem good but I know it would take twice as long to pay it back. Bankruptcy isnt an option cos of my job, i work at a hospital and with bankruptcy you have to be paid wages in cash which is something my employer would not do. It just feels like my whole life is tied down to this and I cant get free, its really depressing me. In fact Ive thought about ending it all, its got to me that much.
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reader, anonymous, writes (11 May 2008): This is verified as being by the original poster of the questionthanks to you all for your advice, I will be able to sleep easier tonight knowing there are more ppl in the same boat and there are ways of getting out of debt. Thanks xxx
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female
reader, LouLee +, writes (10 May 2008):
 Well, i would suggest that when you have to pay your loans off monthly, that you ring them up, tell them your circumstances and notify them that you'll give them the cash you can afford to pay back each month regularly..
Always make sure you give a bit to each loan company or they'll start sending letters etc. If you give like lots to one company and none to another.. you're gonna be stuck so yeah like i said.. some cash to each..
If you tell them everything, they SHOULD (touch wood) be okay with it..
=)
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female
reader, anonymous, writes (10 May 2008): Hey, well i'm 24 too and i owe 15k on a student loan, 900 on one overdraft, 2k on another and 1000 on cards!!- and i have no fulltime job, because i'm training to be a lawyer!
But never think about ending it all, it can often feel like theyre "after" you, but to them your just another name on a list in a collections dept.
The first step you can take is to prioritise your debts. you can't be imprisoned for owing on cards or overdrafts- you can on utilities though, like council tax. Also which one are you having the most trouble with? For me it was lloyds tsb and their extortionate charges and bully boy tactics- because it was an overdraft, on my account too, that was affecting my already dire credit rating.
So i started off with that, and i made it my priority to put the cash i had into that, i'm just about to pay off the last bit, so good news there.
my advice would be, go to the CCCS, google it. I have friends in the same boat, one guy 27 and owing 14k, and my other friend, 24 and owing 24k!
there ARE people who can help you, and you have every right to be helped, if youre on low income and already struggling and cant afford to comfortably repay your debts then the help is there. you could also try your local citizens advice. You say it will "take forever" to pay it off, but i was repaying my overdraft at 10 quid a month, it was sod all- BUT it kept them off my back, and it seems like keeping people off your back is the most important thing. You could also try negotiating with your creditors- often theyre reasonable, i know egg were with me when i explained my situation. often they want just to know youre there and willing to pay, and you havent run off!
If you don't feel like negotiating with creditors, again, visit your local CAB- i did and the advisor there told my creditors that it was true that i couldnt afford to pay and negotiated, and they know their rights there- you shouldnt be paying any amount that is too much for you. it can be scary ringing up, but once the divs on the other end of the phone realise they are messing with the CAB, they soon back down.
Also for advice and people in the same boat, visit moneysavingexpert.com, theyre all in the same boat on the forums and theres lots of examples of people who have cut down their debt. But please, dont think of ending it all because of hassle from some call centre monkey working on commission, who is trying get yopu to pay up at a rate you cant afford. They did it to me- asking me to pay £60pm, as a student! They cant take your house, you havent got one. they cant take your liberty. So what they gonna do? take you for a CCJ? the worst is to send bailiffs round and you don't have to let em in. I'm sure your creditors can afford whatever you owe them, you can't, stand your ground! good luck.
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reader, anonymous, writes (10 May 2008): Get a second job and work your ass off. Every penny from your extra job and any overtime you do in your current job is committed to clearing your loan. Then work out what you spend money on in your regular life that you could cut out... like lottery tickets, or buying supermarket branded products instead of more expensive rivals. When I decided to save cash I didn't realise how much money could be saved by cutting down a few pennies on things and taking my own lunch to work instead of buying etc but by the end of the first month I had an extra £200 in my bank. I get paid pretty rubbish money and before used to use up all my wages and then some so it was a huge saving for me. Give it a try. It does mean cutting back on the fun but surely that is infintely better than having bankruptcy hanging over you forever. You say you want to buy your own place... you'll never get a mortgage with bankruptcy behind you, nor will anyone ever give you credit for travelling. You'll have to pay for everything up front. A few changes now will make your life much easier in the long run even if it means that theyre not so great for now.
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