Posted by: Pls help silly me | 2008-11-07

Debt Issues not sure

Hi There

I no this is not the correct forum but i def. need someones opinion.
Im in like major debt right now.I have like 6 account, im 23, don' t earn much, support my family (mom,bro.,sis.) and i suppose i couldn' t afford doing this and therefore my debt just got to the point of no return.
It' s like i get paid , pay all my acc.' s and am lucky to have transport money to go to work after that. Then the vicious cycle begins where im forced to use my cards and keep in mind its the absolute nec.that i would purchase.Nothing of pleasure or extravagance at all.
So this is my situation at the moment.

A viciuos vicious cycle which i wish could just end!
So right now im in the process of entering into a loan agreement with another person.Not a company or bank as i have applied but they wouldn' t give me one as my expenses exceed my income...
Well he wuld loan me the money and i could pay it off within 18 months but will be paying back with 23% interest at the end of it all.

The thing is by doing this i would not have all these accounts and just this set amount to be paid to him every month and still have extra left so that i wouldn' t have to use any of my cards again and buy things cash even tho. i will still only just be getting by but then this will all be off my head.
I mean i even have nightmares about it at night.Seriously hectic dreams and its been happening every night now for the past mont and it just makes me feel sick everyday that i have to live like this.
I havnt had a proper nights sleep in it seems like ages. Its on my mind every minute of the day thinking of ways to sort this out.
I work from 8 - 9 pm to earn extra something extra but it dnst even seem worth it! then i get home so tired and cant even sleep.

I havnt spoken to anyone about this, not my family- they dont know the half of it neither my b/f - he knows even less.
I' v heard in conversation that its never the beter to make a loan to pay off debt and i know this but want it off my head in like now!
I always ask my mom for advise but i think this time im on my own as i dont want anyone to know about this so can someone please advise on what i should do.If i should do this?It seems the only thing left to do...

I am planning on getting a weekend job too to pay it off sooner.
Please advise

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Our expert says:
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Speak to a financial advisor at your bank. If your family can make do with less for a while, pay off as much debt as you can. But absolutely NOTHING on credit --- if you don't have the cash, don't buy it. Budget carefully and cut out ALL luxuries --- smoking, drinking, movies, parties, eating out, whatever. Check with someone older and meaner --- is i certain that everything you buy is a necessity, as you think ? Use the clothes you've got, new clothes, eg, are not a necessity until the old ones fall off you. Buy NOTHING on any charge account.
DOn't take out this loan with a "person" until you have discussed it with your banks. You could easily be ripped off and get into worse problems. Banks and shops would rather make a plan with you so you pay back SOMETHING< than push you into paying nothing at all.
And talk it over with your mom and family, they may have some good ideas about how to help.

The information provided does not constitute a diagnosis of your condition. You should consult a medical practitioner or other appropriate health care professional for a physical exmanication, diagnosis and formal advice. Health24 and the expert accept no responsibility or liability for any damage or personal harm you may suffer resulting from making use of this content.

Our users say:
Posted by: Michie | 2008-11-19

Hey sweets,

The fact that you need to support your whole family, means that you won’ t be getting out of your debt anytime soon, and if you ever manage to break free, the cycle will just start over and over again.

You need a better support system, you need your brothers, mother etc to help you generate a little income, even if it’ s just making stuff and selling on the side.

Best advice is to first a) create a spread sheet with your current financial situation. B) make arrangements with all the accounts departments you have, trust me, they will accept a smaller payment, than nothing at all. c) pay of your smallest dept first, and then use the extra money to pay of your larger debt, d) don’ t make a loan with this “ person”  –  23% interest will get you into quicker and deeper dept than what you already struggling with. You need advise, but most of all, you can’ t do this on your own.

Speak to your banks first, if they won’ t help to consolidate your dept, go to your next option etc, but avoid loan sharks!!

Reply to Michie
Posted by: Bunny | 2008-11-07

Welcome to my world IT SUCKS dont it, trust me dont make that loan it will be the worst mistake u can make, concantrate on paying off the small debt then the big, think about it as soon as one thing is paid there will be that extra cash to start paying extra on the bigger ones, thats what im doing and its working its taking long but it gets better

Reply to Bunny
Posted by: anon | 2008-11-07

hi i think u should consider going under debt really help

Reply to anon

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