Have I ruined my life?

[confused2014]

Hi,

Before I start I'm not looking for sympathy I know I've been stupid.

To put it bluntly I'm in a financial mess... I'm 25 I've borrowed more than I can pay back to the point after I've paid my other living expenses I'm left with practically nothing. I'm falling deeper into my overdraft and struggling to hold it together. In total I owe around £15,000 through loans, credit cards and an overdraft. I've tried looking at consolidation but no loan company will touch me anymore. Although I have an excellent credit rating on experian, I think I've just borrowed to much.

Can anyone offer any help or advise? Other than calling me an idiot.

[confused2014]

Only my car which is probably worth about £4,000 but I need that to get to work. The only other things are electronics. But that's it if I sell those then i am really left with nothing.

[confused2014]

I've looked at financial help companies. Don't they normally require you to change your bank account? How much would it damage my credit rating? Has anyone used them? What are your experiences with them?

In terms of electronics I have My TV my PS3 and an iPhone... that is literally it.

Cycling to work is a good shout.

[confused2014]

TTmonkey said:

PayPlan isn't a financial help 'company', its run as a charity. If you really wan to to pay off your debts the quickest way - give them a try. Once they take on your case they will get an agreed freeze all interest on your debts whilst you run a debt management plan (dmp). This will also stop the threatening letters from your creditors and stop them from taking any legal attempts to recover money, and also stop any charges from being applied to your debt.

They will analyse your income, find ways of cutting your bills, and get your debt paid off over a set time period. Most credit card companies accept DPM's run by payplan as they get all their money back without resorting to expensive legal matters.

If you do NOTHING else about your debt, at least talk to PAYPLAN. It costs nothing to talk to them, and they do not charge you ANYTHING for their services.

I have made a request to talk with them, as for all the other points you are right. Everything will go on ebay tonight when i get home from work and i shall start looking for part time work in the evenings.

Thank you all... you have given me a huge kick up the backside.

[confused2014]

I have certainly learnt the error of my ways. Again all of you, thanks for being understanding and not just telling me how stupid I have been.

I am very remorseful and frankly embarrassed that I've let myself get into this mess. The advise some of you have given me has given me a little bit of light (although still faint) at the end of the tunnel.

It'll be hard but i'll have to be strict and limit what I do.

Once again thanks for the support.

[confused2014]

Dave350 said:

Also, what do you spend on a day to day basis? e.g. £5-6 in the work canteen adds up to a lot, i bulk cook food on a Sunday / Wednesday evening for the week, saves me a fortune!

I make my own lunches for work, normally just a sandwich (one filling) and/or some fruit with tap water.

At the moment I'm living off of tesco basics pretty much.

I used to buy lunch from the shop round the corner which was £5/6 a day so that's where I realised I could save money. Also I have given up smoking. I wasn't a heavy smoker but I realised I was wasting money on a pointless habit.

Edited by confused2014 on Monday 1st December 17:50

[confused2014]

Muzzer79 said:

OP - what did you blow all the cash on?

Be honest.

I'm not being morbidly curious - knowing what you spent it on helps advise on how not to in the future....

i.e was it booze and nights out? Stuff you don't actually need for the house? Expensive car? Combination of all three? etc, etc

Ok, so a proportion is historical. Some on an overdraft some on credit dating back to when I was 18/19.
I also borrowed about £9,000 to buy my car. All of this I was steadily paying off while living at my parents. And living comfortably still.

I received a job offer which meant relocating it was a dream job but with less pay but better prospects of future earnings for the future. I had to find a deposit for the house I was and still am lodging in and having to pay proper rent. Not just the token fee to my parents. I found this tough adapting my life to living on my own buying shopping and things. As pathetic as it sounds I never understood the true cost of living on my own. Being lazy I was buying takeaways and having drinks in the pub most evenings. Until I hit my overdraft limit.

In search of more funds I called my bank who suggested I take out a loan and consolidate what debts I had (loan, credit card and overdraft) this is where I went wrong I borrowed to little to pay the loan. And I was then paying two hefty loans after a couple of months (back in my overdraft and using credit card). In a panic I switched to another loan to consolidate the lot again. But the APR was high but I saw no other way out. A few months down the line I find myself struggling again.

I feel like I'm playing a game of snakes and ladders but keep landing on the snake.

However I do feel in better control since I've had a look and stopped spending on the unessasarys. I feel in less of a dark place from chatting with some of you this evening.

[confused2014]

I don't think I was sold any PPI, but might be worth a try.

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BoRED S2upid said:

What do you do? How much do you earn? Where do you live? How much does that cost you a month?

My take home is £1,500 after tax, my rent is £425

[confused2014]

My room and use of the lounge and kitchen. All bills paid.

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eliot said:

Surely the day you used the first £1 of your overdraft should of been the point you realised that you are spending more than you earn in a month and should change your patterns rather than waiting to you hit the limit?

Also stop shopping at Tesco - get down aldi/lidl - it's better and cheaper.

I fully agree,

[confused2014]

I would like to thank you all once again for the good advise as I said earlier I think this is the turning point for me. Also as someone has said thanks for not being judgemental.
I will keep you all updated as I go. Sadly with Christmas round the corner I won't go out as much, but no bother as I'll have good company to spend it with.

[confused2014]

Hi All,

An update for you,

The last few months have been quiet but I feel happier and not feeling like I have to look over my shoulder, Things are more controlled and I've spent much less the last few months.

I have done as much overtime as I can but this is a little hard to come by. I've had a chat with the landlord i rent the room from and he's very kindly agreed to lower my rent if i do some household chores for them. I gladly accepted this.

It's a long road but I actually feel happy for the first time in a while.