Help, outgoings are more than incoming :(

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  • iolanthe07
    iolanthe07 Posts: 5,493 Forumite
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    Then £45 for metered water is expensive

    Not if you're unfortunate enough to be a customer of South West Water, it isn't.
    I used to think that good grammar is important, but now I know that good wine is importanter.
  • gembo69
    gembo69 Posts: 40 Forumite
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    Grumpelstiltskin wrote: »
    Loans to family and friends cannot be paid by you if you are bankrupt and you must not pay them back now that makes them preferential creditors and the OR can make them pay the money back.

    Also f you are intending going bankrupt do not under any circumstances borrow any more money.

    Ah ok. So do you think bankruptcy is the best route?
  • gembo69
    gembo69 Posts: 40 Forumite
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    Grumpelstiltskin wrote: »
    Loans to family and friends cannot be paid by you if you are bankrupt and you must not pay them back now that makes them preferential creditors and the OR can make them pay the money back.

    Also f you are intending going bankrupt do not under any circumstances borrow any more money.

    So how do I pay family and friends back?
  • KxMx
    KxMx Posts: 10,605 Forumite
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    gembo69 wrote: »
    My mum could be financially ok now, I’ve just carried on paying the 200. I will most definitely bring it up with her.

    Along side that you could offer practical help, like checking her benefits, looking for a better deal on utilities etc, especially if she's not internet savvy.
  • gembo69
    gembo69 Posts: 40 Forumite
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    KxMx wrote: »
    Along side that you could offer practical help, like checking her benefits, looking for a better deal on utilities etc, especially if she's not internet savvy.

    Great idea!
  • Winterrose
    Winterrose Posts: 24 Forumite
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    gembo69 wrote: »
    I will mention it to her, should be ok.
    Thanks you have given me some good advice.
    No problem, I hope it all works out for you. It's a tough road but you can get there :)
  • Grumpelstiltskin
    Grumpelstiltskin Posts: 4,240 Forumite
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    gembo69 wrote: »
    So how do I pay family and friends back?

    You don't, you cannot it's preferential, they have to be treated the same as your other creditors.
    If you go down to the woods today you better not go alone.
  • Happier_Me
    Happier_Me Posts: 563 Forumite
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    I really think you need to contact Stepchange as a priority. They can talk you through your options and the repercussions of each.

    Your husbands priority is to clarify the situation at work... then phone Stepchange. If bankruptcy for him is out then maybe a DMP would be an option.

    Until you know what your husband can and can't do you can only attempt to fix your half of the debt, but you really need an affordable plan to manage ALL the debt asap (and hopefully minimise the impact on your husband's credit rating, although I'm not sure if it's possible to avoid defaults at this stage!).
  • gembo69
    gembo69 Posts: 40 Forumite
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    So...spike tp phone provider they can reduce my tariff to £37 instead of 57. The only thing is it is a new 24 month contract. Is this the best thing to do? Old Contract runs out sept 18.
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,594 Ambassador
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    You have very few options available to you as your income is nowhere near high enough to sustain almost £80k of unsecured lending. I am amazed really at the irresponsible lending practices of some of these high street banks in lending you both this much money.

    Your husband losing his job though would only hinder the debt repayment so he needs to check whether any debt management solution is acceptable. You can go on to a DMP though and I would suggest you ring stepchange asap to see which solution would be better for you - either a DMP or bankruptcy. This may also impact on your help to buy loan unless you can deal with this quickly. You can't afford to give your mum £200 per month so that needs to stop immediately. By the time any debt solution is agreed on then the loan to your sister will presumably have been repaid. No account will be given to friends and family loans.

    When your husband knows whether he would lose his job then he can look into debt solutions. For both of you though interest on that level of debt is too much to cope with on top of capital repayments so a freezing of interest would be needed.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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