Hi,

Shiverkitten, in my view, is absolutely spot on. I worked in debt collection for quite a while, and I answer many posts trying to help people in debt. Circumstances change, and if the changes are massive enough if can push us off the 'financial knife edge' we were on. All too often people look for further borrowing to sort themselves out when they could just stop spending for a few months to rectify the situation. Being a student and having to stay in for a while will be hard when others are out (socially), but you'll be getting out of this situation on the back of your hard work.

Unless there are reasons other than what Matt has said previously, I seriously think it would be a case of cutting back on all unnecessary outgoings. Not only will it sort you out in a short space of time, it will be character building.

Rob

Lucy,

On what basis do you think this person should be only paying £10 per month? You think he should have £690 per month to spend on beer? He has provided no evidence whatsoever that he can not afford to pay his debts. His net income is higher then many under-25s gross income. He is living at home. Matthew has not indicated that his circumstances have changed. As far as I can see he can easily clear his interest-bearing debts in under six months without any hardship.

The CCCS is a charity. I wish people would stop suggesting that their resources be squandered handling specious queries.

Hi

Go and have a look ate the CCCS website, Consumer credit counselling service, its a charity, and they can advise on weather you can negoiate a lower payment each month to your creditors and what the consequenses are. The thing to remeber is that they financial instititions have made an agreement with you, and have taken a calculated risk that you can pay them back. The only ones that you must pay, are any Income tax, and council tax as these are enforceable by law, the rest are purely agreements. Very often if you take the intiative to say that you want to pay, and understand that you must pay, but currently as your situation has changed youcan make a gesture of £10 a month these companies will talk to you about a reduced payment plan. you will need to send them a list of your creditors and an income and expenditure spreadsheet, but it may be wothwhile.... do not get another loan.. it won't work.

I don't understand your figures. You have £2500 of debt (ignoring the interest free student loan.) You are living at home. Surely you can pay five or six hundred pounds per month to reduce your interest-bearing debts to a manageable level? Why do you need more than £150 per month to live on for two or three months? Are your parents dependent on your contribution? If you pay off £1500 over three months you can then lighten up and pay the remaining £1000 over five months. (Remember to add interest - £500 + interest for three months then £200 + interest for five months). If you are clearing your debts I am sure your mother will not let you starve to death. (Actually, even if you aren't, ...)

Sorry, I just can't see why you think you should waste your credit history applying for a loan. What am I missing?

Its not the end of the world !! Talk to citizens advice they can help you. They can put you in touch with debt management adviser. They can help you contact any creditors and help you make payment arrangements and freeze any intrest and stop you incurring any charges for non payment etc. The last thing you need is to take on more lending and over stretching yourself. We have been there ourselves 15 years ago, dont worry everyone has money problems at some point good luck.

Hi everyone, and may I start by saying thanks very much for all the replies, I really appreciate it.

Firstly, sorry about causing unnessesary concern about MSM - it was acutally theloansupermarket.co.uk - easy enough mistake to make!

Anyway I contacted them today to find out the progress of my loan as no forms were yet recieved. They said that my application had been cancelled because the loan company said I applied elsewhere. I agreed and said yes I did, however after they accepted I declined the rest and paid the 50 quid fee they requested. They said that this wasn't their problem and that my money was only refundable if I wrote to them in writing. I am awaiting a phonecall after 4pm today from their manager because I do not think this is acceptable - it may not put money in the bank however I still feel its my place to say something to these companies; every little helps and all that.

Anyway, now I am back to square one. No loan. No applications. I agree that a loan is maybe not the best possible way, however as I see it at the minute, it is my only option. Many of the companies I have rang and told them I am having difficulties just don't listen. For example before my Mint card defaulted there was a 80 quid minimum charge. I rang on the due date prepared to pay 40, and the other 40 next month. The girl on the phone said she would not accept any payment unless it was the full 80 pound. I said surely there was some sort of payment agreement we could come to as I was experiencing financial difficulties and I was told under no circumstances could they accept anything lower than the 80 pound. So then that card defaulted and NOW I can arrange a payment plan with them.

The problem is the more I budget the more I seem to have problems. I have recently changed my bank account because of the direct debits causing bank charges on my other account. This has helped to an extent because I can keep tabs on what is coming in and out, however Northern Bank have not supplied me with a debit card so I need to ring and request that after I make this post.

Anyway, the crux is I need the loan, ASAP. But it doesn't look like I'm going to get it. I'm flying to London on Monday for my only holiday and my first time away in 3 years and I dont think I'm even going to be able to go! It sounds bad but was relying on the loan to carry me through the week until payday. Now, it looks hopeless.

I in complete dispair and at my wits end - it doesn't look like I've many more options. I just wish that everyone could see this and learn; being able to access thousands of pounds on your 18th birthday which isn't rightfully yours is a real hiccup in our society - the depression debt can invoke is unreal as alot of you can relate too - I wouldn't wish this feeling on my worst enemy!

Matt

Hi

I agree with teh previous post that a loan is not the solution here.

You need to work out a budget, how much you have to spend each month minus debt (i.e travel, food, clothes, household bills, rent etc)

Then work out your minimum payments for your debts. If your budget plus your minimum payments are less than your salary then you are fine, you simply use the surplus to start paying off the debt with the highest interest first. If its more then you will have to do some extra work, probably contacting the companies involvde to let them know you have some issue and asking for a payment break or to accept a lower payment for the time being.

If you feel this is a ll a bit much make an appointment at your local Citizens Advice place and they will help.

Most of all do not panic and do not take any additional credit on.

You have taken the most important step in taking control of your finances and with a little work and by controlling your spending you will be out of this situation without too many further problems

Good Luck

Cerbius

Hi Matthew,

Are you absolutely sure this phonecall was from Moneysupermarket and not another site or company beginning with the word 'Money'?

If you would like to email me with your details on the email address below, I will look into this immediately - this is not something that we do and to clarify, we do not deal with either of the companies you have mentioned.

You may find some useful information by reading the article 'Need a loan? Read this first' by Tim Moss, our head of loans and debt. You may also find his article 'Are you facing debt problems?' helpful.

Our Smart Search tool allows our customers to search for products without leaving a damaging application ‘footprint’ on their credit file and the consistent advice from our experts is to be fully aware of the negative effect numerous searches can have on your credit file.

I would also recommend reading our 'Guide to dealing with debt'? It was written by Nick Lord who has more than 30 years experience advising on debt issues.

I hope that helps.

at last a student with the sense to wake up and smell the coffee!!

debt consolodation loan not a good idea though as the ones you will get will be high intrest and will take you ages to repay.

glad you had the sense not to deal with yes loans and welcome finance.

id try and the cancel the loan you getting from moneysupermarket if you can and try and set up payment arrangements with each individual credtior which you can do.

to be honest im a bit concerned about this alleged loan from msm,ive never heard they did loans themselves or call out to sell loans its probably a company they represent

IF any of the staff can clarify this that would be great as im concerned this chap has been conned by another company claiming to act as msm.

try not to worry too much this is not an extortianate debt although it feels like that to you. we have to learn lessons in life , i think you are doing the right thin by getting a loan to consolidate the debt. my son had a similar problem but because his credit rating was so bad he couldnt get a loan. we stepped in and got a credit card that had 14 months interest free, he is paying back 200 a month and will probably take a couple of years, so we will either find another interest free credit card or have to get a loan for him. but i think him telling us bout the problem eased the pressure straight away, he can now carry on with life as normal plus he has given us his bank cards until things are sorted. its nothin to be ashamed of . as you say at least youve learned at an early age. look at all the students out there who are in debt for 18,000 and upwards. your debt is nothing compared to that. you will get it sorted ,even the bank you use can help. carry on and enjoy your life.

Hi everyone,

Thanks for taking the time to click on my post. Its boring and depressing but I've posted here in the hope that someone will be able to give me a bit of advice.

I'm a 19 year old student living at home and have got myself into loads of bother. My situation at the minute lies kind of like this:

- £1200 to pay off M&S Card
- £420 Mint Card - Defaulted
- £400 PS3 Higher Purchase
- £400 Laptop Higher Purchase
- £1000 interest free student account totally used up.
- £112 phone bill in arrears (usually 30 a month)

Due to banking errors when I got promoted in work all of my payments fell behind. Some I kept on top of and others I forgot about and missed payments. Now my excellent credit rating is probably the poorest around for my age. Granted its a small amount of debt, I can't keep up with what is owed and end up spending alot of my wages simply paying off the previous months arrears.

My idea was to get a loan of 4000 - settle all the debt and the interest, and have one monthly outgoing quoted at around 120 or so a month - not a problem.

I live at home with parents, earn 750 a month after tax.

I have applied for loans through money supermarket and other companies. Yes loans provisionally accepted my loan and wanted the £50 admin fee first which I put a delay on paying. They sent me out the forms and after learning I may not get the money I didn't pay the fee, and likewise with welcome finanace. The most recent has been a phonecall from moneysupermarket themselves who claim to guarantee me the loan. So I have paid the admin fee and am awaiting forms which I was told may be sent out in 5 to 10 working days, and after I send them the forms back signed, "providing all the information provided was correct" the money will definitely be in my account within 24 hours. Hopefully the forms will come tomorrow but I am not relying on this money.

Are there any loan companies out there who are prepared to give a consolidation loan to a student? I wish I could just scream please give me the money and I swear I will pay you the money back monthly and on time; but i can understand why companies may not take my word for it. I'm in such a state of distress and its affecting my mood and everything in day to day life. I am glad I have learned this lesson early on in my life though because I see my family at 45 years of age making the same mistakes over and over. I however feel I have learned from this and just want to clear my name, and get on with my life, only getting what I can afford. However my difficulty with getting a loan makes this not the case, and I fear that I may be paying for the beers I bought last December for the rest of my life!

Any advice would be much appreciiated and hopefully brighten up my day - no bad news guys I can't take it ! :P:P

Thanks in advance,

Regards,
Matthew