Please help I need advice

snowhite_2 · 11 October 2007 at 8:54PM

I’m just getting my life back together again and need some advice.

My position is I haven’t worked for 3 years after losing my job I won’t go into details but out of court settlement from firm was £7000. The reason I didn’t pursue them through the courts - father diagnosed with terminal cancer same month so became full time carer until he passed away. My income for this period has been £0 literally lived off savings. I know I was stupid in not paying off my debts when I had the money.

At the moment bank account stands at just over £4000 in credit and I have shares to sell which should amount to approx another £4000. I have a house that I own outright no mortgage or loans secured on it. My debts amount to £38000 made up of bank loan just over £15000 left owing, credit card just under £15000 and cahoot flexible loan of £8000. I am working on my SOA now.

I have just gone self employed with a catalogue company which means that I should get commission of between 21% - 42% depending on amount of orders collected in a 4 week period. The idea is you drop off catalogues to a house and collect 2 days later with or without orders. Now the firm reckon that the average order you get when you start is £1 per catalogue dropped (this seems to be working out as first orders picked up amounted to £258) I have a realistic plan to drop between 1000 – 1200 cats a week this should bring in an income of around £1300 - £1500 per four week period (worked out on a return of £1 per cat) Even if it only brings in half of what they say at least it is immediate income and more than I have been getting. However I shall still be applying for jobs.

Now what do I do with my debts I don’t want to lose my home or go bankrupt. I should have an excellent credit rating at the moment as have never missed or been late with a payment due on any debt yet. I had thought of going to the bank to request a formal loan secured against the property I don’t like doing this but can’t see an alternative – I know I would be paying a lot more in interest over the longer term and it would significantly reduce my monthly payments to a manageable level – the plan would be to pay off loan before the full term as I want to be debt free as soon as practically possible. I realise I would have to submit a business plan and cash flow forecast to even having a glimmer of hope the bank would loan the money. I have been a customer with them for 29 years my current loan and credit card are through them. I don’t know what else to do if I don’t get a loan to pay off existing loans I am worried sick I will lose everything.

Does anyone have any advice on the best way forward to tackle the problem I have?

Thank You.

Gale_10 · 11 October 2007 at 9:04PM

Hello there,

I am not sure if I can help you much but I wanted to say welcome. Generally people on here don't seem to recommend taking out loans secured on the house.

When you post your SOA lots of people will help you out saving you money where they can. You would be surprised at the amount you can save without scrimping very much at all.

You haven't said whether you live alone or have any other people to care for, children or husband, do you live alone? If your home is owned outright and you do live alone, could you manage on the wages of the job that you have?

Other MSE'ers will ask you for your APRs on your loans, and they will suggest that you snowball your debts to see when your debt free day is. There will be a link to snowballing on the main site, and other peeps will help you with that also.

Its nice to have you with us and I look forward to hearing more from you!

Gale

GeorgeUK · 11 October 2007 at 9:23PM

Welcome aboard snowhite
(Sorry to hear about your father:()

I'm sure there will be a few tricks we can get to work for you with managing the debt. After you post up your SOA we'll have a better idea of what can be achieved. For your income totals, i wouldn't put any estimated figures in however - just leave it blank if you have no salary income and put a brief description of what is intended for salary at the end.

Unfortunately most of the thinks i know rely on a decent credit rating and an income so i may not be much use. If you can say what the card limits are as well as the interest % it would help - incase you can get a 0% balance transfer deal with an existing card and get rid of some of the more expensive debts.

Others will probably be able to tell you who to ask about managing your debt due to your circumstances, but hopefully they'll know of groups that can advise carers as well as the usual Citizens advice/payplan/CCCS.

Rooting for you
George

snowhite_2 · 11 October 2007 at 9:58PM

Hi Gale_10

Thank you so much for the welcome.

Just to clarify yes I do live alone now. Could I manage on wages earned from self employment I don’t think so its predicted to be £1300 - £1500 per 4 week period that’s made up of 21% commission received in cash when take goods to customers and bonus check which will be paid into current account once every 4 weeks. Figure quoted is gross. My repayments alone at moment amount to a total of £846 made up of

Repayment on Cahoot Loan £166 per month
Repayment on Credit Card £300
Repayment on Loan £380

Could I continue to meet the payments on the projected income? I don’t think so to start off with. I have been introduced to many people in the business who earn this amount and significantly more than this each month. So the business works but it needs time to build a customer base then income is projected on average of £5 per catalogue dropped so the potential is there.

I am looking at what I can sell although loath to sell the car as really need it now for business I have traded it in for cheaper diesel and cut bills significantly there. I’ve also cut the food bill is now no more than £20 per week and should be less next year as have seeds to grow own veggies.

What is snowballing I’ve seen it mentioned in other posts but haven’t found the link on the main site yet is it called something else?

Thanks once again.

Snowhite

snowhite_2 · 11 October 2007 at 10:05PM

Hi GeorgeUK

Thank you for the welcome.

Will post full SOA details as soon as possible.

I have a Lloyds TSB Mastercard and I believe the rate is 15.9% The Limit is £15000 and I have almost maxed out on it.

Thanks again

Snowhite

lunar · 11 October 2007 at 10:52PM

Hi, wanted to say welcome to the board, ive found it a real life saver. Post you soa as others have said, and keep posting on here you will get loads of support, advice and laughs, even if it doesnt feel like it right now. well done for posting.

GeorgeUK · 11 October 2007 at 11:31PM

re the calculator for snowballing: https://www.whatsthecost.com
The snowball is on the left hand menu, but some of the others may be worth looking at too.

snowhite_2 · 11 October 2007 at 11:35PM

Thanks a million guys I already feel better just being able to talk about this Here is what I have worked out so far don't think I have missed anything off.

SOA (so far)

Gas £14
Electric £23
Water £28.82
Local Tax £62.48
Phone £15
Food £80
Car tax £9.58
Car Insurance £27.52
Diesel £40
TV License £11.30
Internet Connection £22
Business Messaging £10.99
Mobile £5

Total £282.69

Cahoot £166.19
Loan £380.41
Credit Card £299.00

Total £845.60

Grand Total Outgoings £1128.29

Not had a holiday in 3 years so allowed no expenditure
I will have a dental bill (NHS Treatment) in 6 months time which has not been allowed for
Nothing allowed for clothes (got enough any thing else will get at charity shops)
Have no other insurance now on the house.

I think this is it don’t think I have missed anything off.

Not sure what APR on the loans are will check that in the morning.

But the Lloyds TSB Loan was originally for £25,000 and now stands at £15,604.28 opened on 10/06/2004 it does state next to amount please note that the current balance figure is not the amount you will need to repay your loan.

Credit Card owe exactly £14965.23 Limit is £15,000

Comments and suggestions most welcome

Snowhite

GeorgeUK · 12 October 2007 at 12:08AM

I'm sure you'll get some of the experts in soon.

Only thing i'm concerned about is that this catalogue job seems to be commission only. If you don't get the figures you are expecting, it could get even worse. Have you seen if you are eligible for Job Seekers allowance? You may not be uptodate with NI contributions, but if i recall correctly it is also income based - whether you have made NI contributions or not.

Saw this one one of Martin's articles. Hopefully you can find something in there that you can claim for http://entitledto.co.uk/

Goodluck with the job hunting.
G'night
George

TheAble · 12 October 2007 at 5:05AM

Hiya,

Just wanted to say if that's Kleeneze you're talking about, beware it's no cakewalk. You have to buy the catalogues upfront, prep them all up with the inserts which takes hours, drop them off, pick them up (usually in the p****ng rain), clean them (because of the p****ng rain), knock on doors because people don't leave them out, pay for their orders yourself over a frankly antiquated online system which you have to pay a monthly fee for and hope that the customers still want them and will pay you, and the list goes on.

I understand you're keen to make some cash but my advice is don't go anywhere near Kleeneze. I actually made a loss and was frankly glad to see the back of it.

snowhite_2 · 12 October 2007 at 11:11AM

Hi Able

Thanks for the advice, yes it is Kleeneze I had tried to avoid naming the company didn’t want to get into trouble for advertising and am certainly not looking to recruit here.

I have already purchased catalogues and have done a drop, I did think very carefully about the decision before I made it – I not only wanted to see proof of income but actually insisted on meeting and talking to people face to face, which they duly obliged.

I was also swayed by the recent article in the Daily Mirror and the one in the Autumn special of Woman, I hasten to add these were not advertisements but actual stories of peoples success. I figure if they can do it why can’t I. Kleeneze was bought out by Findel PLC last year and is a company quoted on the FTSE 250. They also are founder members of the DSA and have the office of fair trading approved code on all their books. So I figured they must be kosher and not a scam.

I wasn’t interested in the incentives they offer of holidays or cars to reach certain levels by a certain time frankly they don’t really appeal to me. I see it as an opportunity to get some income now, and start to get my life back on track. I realise it is hard work in all weathers and very time consuming, but time is one thing I do have on my hands. I wasn’t sold on part time hours for full time money and realise it isn’t a get rich quick scheme, people with incomes in excess of 5,000 every month have been the in business a number of years and have built a large team.

I am still looking for work but am having great difficulty finding employment I have no references from my most recent employer. I feel any employer would have grave doubts about employing someone who received an out of court settlement from there previous workplace. This is despite the fact that I worked for 25 years for an employer before that with a track record of receiving regular promotion. I am suffering from a lack of self confidence and see self employment as the way out of circumstances at the moment. I would have much preferred to have run my own business from home doing secretarial work or computer training however I felt this would take longer to set up and would cost more to start and advertise.

However all that said and done I want to say a big thank you for your input and concern Able and assure you I will keep a very close watch on the real cost of joining Kleeneze if it is going to make a loss I will ditch it quickly.

If anyone else has been involved with the company I’d also welcome their comments on their experience of it.

Snowhite

Please help I need advice

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