Financial Help Please

threestoreymadness · 21 November 2012 at 11:27AM

I started a business in Jan 2010 and had some equipment onlease for 3 years at which point I would own it. The lease was secured bymy husbands uncle on his property as I had nothing to secure it with so acharge was made. During that year I struggled with cash flow and thecompany offered me a loan for £15,000 which I took and this was also added tothe charge. I had a problem with my husband during this time which meantthat I didn’t give all to my business and also the economic downfall meant thebusiness had to close in September 2011. I struggled to keep up thepayment which at this time were around £1400 per month and came to an agreementto pay £500 which then decreased to £250 per month. I only work part timeas I have 3 children and struggle to work full time at the moment as I havebeen quite depressed so whilst the payments were high I used any funds from theselling of equipment to pay the monthly payments. I am now having to pay£600 per month for 6 months at which time they will increase to £1000 per montha sum I just cannot afford but I am petrified that my husbands uncles housewill be sold and taken from him. They have said a settlement figure ofaround £35,000 at the moment which when the lease was £17,500 and the loan was£15,000 3 years ago and I have made substantial payments since then I am notsure how. I am so scared not to make these payments as I cannot lethim lose his house. I am really struggling mentally because of this andjust don’t know what to do – I am making the £600 payments but have no moneyleft at all and am leaving things like poll tax and electric etc as I justcannot let these payments not be made.
Any help please xxx

[Deleted User] · 21 November 2012 at 11:35AM

Sorry to hear about your situation, sounds stressful.

Perhaps you should contact business debt line for fee, impartial advice?

http://www.bdl.org.uk/

Or one of the other free organisations who will be able to give you specific information on your circumstances.

http://forums.moneysavingexpert.com/showthread.php?t=4228011

D9

somethingcorporate · 21 November 2012 at 11:46AM

To start with, take a deep breath and make yourself a cup of tea (works wonders, honestly).

Secondly, get in touch with a friendly debt advice charity such as CCCS - now called Stepchange (http://www.stepchange.org/) and make an appointment to see them. It would also be really useful if you completed an SOA to understand your income and outgoings as this will form the basis for anything going forward (find the template here http://www.stoozing.com/msoc/soacalc.php) and dig out all paperwork to do with your debts and financial situation. If you share it with the good folks on the debt-free wannabe forum I have no doubt you will get some sound advice on how to shave some cost off.

Good luck, and please pop back whenever you need to for a bit of moral support.

chalkie99 · 21 November 2012 at 12:55PM

They have said a settlement figure ofaround £35,000 at the moment which when the lease was £17,500 and the loan was£15,000 3 years ago and I have made substantial payments since then I am notsure how.

Ask for a breakdown of the figures.

I am not sure if the normal debt advice charities will deal with you as this relates to business debt although you can but ask. Either way, they will need to know your exact position and it is important that you do too - for your own peace of mind if nothing else.

You say the lease was for £17,000. Presumably this was the purchase price of the equipment and not the total amount repayable, The £15,000 loan, in the same way, you need to work on the total repayable. Clearly you were going to be paying back more than £35,000.

An added problem is that you have made reduced payments and during that time interest will have been added to cover the shortfall so your debt has been increasing.

So, first things first, get written statements from both the lease company and the other lender to see how exactly you stand.

threestoreymadness · 28 November 2012 at 8:19AM

Ok thanks everyone. I have statements and so far they haven't added the late payment interest which adds up to about another £10/15k. I'm not worried about my other debts as the company is being dissolved but this one has to be paid every month. I have £508 saved and £600 is due Friday so once again food money has to be used :-(

Lensman_2 · 28 November 2012 at 8:20PM

+1 for the advice from Domino to contact Business Debtline.

Your position is not sustainable and you are spending food money on debts.

Frankly you have already gone too far fighting this and if your food budget covers anyone else but you (including pets) then you should take a serious view on your situation.

I speak from personal experience - and my cats will attest. (Actually not - the cats didn't actually go without for more than 1 day - but that was only because I realised what my real priorities were in the nick of time).

Financial Help Please

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