Author Topic: Need Help to stay focused.  (Read 1804 times)


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Need Help to stay focused.
« on: Jun 15, 2009, 05:24:53 PM »
I got into debt at 18 and it has spiralled since, 0% credit cards with my bank and other companies who my bank own, so they gave me £3200 & £4200 respectively but when the 0% deal ran out and i tried to transfer to a new card the most any other company would offer me was £500 so i was stuck with £6000 at 16.9%. Refinanced and didn't cancel the cards and inevitably used them again.

To put a long story short, took out a loan in December at 15.9%!!! Previous loan was 6.9% but this new rate was due to credit crunch. Basically I was in £22560 debt in April with NOTHING to show for it when I decided enough was enough, sleepless nights and feeling low not wanting to do anything but sit and toil over my predicament. I'm working abroad until September at the moment so I am paying off debt quickly I'm now in £20640 and in September I should be at £16700, £14670 on the loan with 4 years 3 months left and the rest on a credit card.

However I have the chance of a loan at 9.9% which would mean I could consolidate and only have £15600 on a loan over 4 years. Sounds plain and simple but I keep wanting to buy a new car when I get back to the UK as mine  is very unreliable and I need a good car to travel home 1-2 times a month from where I work which is 120 miles each way. I had a look for a new car and would only spend £1000 plus what I get for my car, which would take my debt to £17060 in September paid over 4 years which is still a good bit less than £22k but I just worry that I am slipping into my old ways and I should be clearing all debt before considering a new car.

I earn £1100 after all tax deductions and rent and I can afford each option but this is the mentality that got me into this mess, the "Its only an extra £20 a month" I have said so many times without actually thinking about the bigger picture, i.e. if you say do this 5 times then it £100 extra a month and the total debt spirals while you only think about how much it is a month.

I really want to get out of debt asap and save for a house and as you can tell by my post my head is spinning with all these different views and need some advice from someone on the outside.

Thanks in anticipation



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Re: Need Help to stay focused.
« Reply #1 on: Jun 30, 2009, 08:42:42 PM »
Hi, I know how you are feeling I was at my wits end-but I found help and a superb understanding person that really cared and help me.


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Re: Need Help to stay focused.
« Reply #2 on: Aug 02, 2009, 08:26:57 AM »
talk to

there's no point in me giving you advice when you say yes you have £20k of debt but "after tax and rent you have £1100 so you can afford it"

you need to start thinking I have £20k of debt and I have £50 a week to live off... thats the mentallity that will help you get rid of all the debt and start on a house...

I've been there, it's not easy, but you know yourself if you do that there is light at the end of the tunnel...


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Re: Need Help to stay focused.
« Reply #3 on: Aug 03, 2009, 03:37:38 PM »
Hi Scott,

Well done for trying to pay your debts off. It sounds like your off to a good start.
I think you have to look at the psychology of your spending really.
Watching BBC3 Programmes about debt have really helped me get over my shopaholic past. Lol even the film confessions of a shopaholic.
Yes speaking to the CCCS is always a good idea and you could look into applying for an IVA I believe they may recommend this. Before entering into an IVA look at all the pitfalls and see all the alternatives. Bankruptcy is an alternative but you sounds more committed to paying your debts off.
Can you use an income expenditure form (or free from the CCCS) to come up with a reasonable budget and stick to it? Your doing great to pay off your debts and don't really want to take on anymore new ones to head back into the same situation.
If you want a new car ask yourself is it essential? Do you need it? Can you cope without it?
I got rid of my car as it crippled me financially and I can cope without it.
I would say to anyone in debt who is trying to pay it off either look into spending less money or gaining extra money so you never use credit again and fall into the same trap.

Hope it all works out for you.

P.S. with all debt look into freezing / reducing the interest to reduce the total amount.