In a mess

sara77 · 2 January 2018 at 11:48AM

Hi

Hoping you can help me or at least advise me what my best options would be.

I’m in a mess(again ) with finances and even though I haven’t missed any payments yet, it won’t be long until that happens.

The 2 loan and catalogue payments are high and once they have been paid I’m not left with much and have been using credit cards to pay for day to day items, I am now seriously close to hitting the limits with these so will be left with nothing unless I stop paying the debts off. I’ve attached my SOA (not got the APRs to hand) as a starter for 10. I can’t get any more credit so that is not an option. I don’t think I want to go down the debt management plan as the creditors can still contact you and send debt collectors knocking ( I don’t think I could take the stress of this again –did the DMP last time I was in a mess ). I need my car to travel to work, take my nan to medical appointments and to pick up my niece once a week.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1350
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1350

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 400
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 45.58
Telephone (land line)................... 10
Mobile phone............................ 20
TV Licence.............................. 12
Satellite/Cable TV...................... 15
Internet Services....................... 10
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 50
Road tax................................ 9.68
Car Insurance........................... 30
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 25
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 35
Holiday................................. 0
Emergency fund.......................... 20
(Unnamed monthly expense)............... 0
Total monthly expenses.................. 1032.26

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 4000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Loan 1 ........................15000.....280.......0
Loan 2.........................10000.....222.......0
Credit Card 1..................1900......120.......0
Catelogue......................1850......100.......0
Credit Card 4..................500.......25........0
Credit Card 3..................900.......25........0
Credit Card 2..................900.......25........0
Total unsecured debts..........31050.....797.......-

Monthly Budget Summary
Total monthly income.................... 1,350
Expenses (including HP & secured debts). 1,032.26
Available for debt repayments........... 317.74
Monthly UNsecured debt repayments....... 797
Amount short for making debt repayments. -479.26

Personal Balance Sheet Summary
Total assets (things you own)........... 4,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -31,050
Net Assets.............................. -27,050

TIA
S

Mnd · 2 January 2018 at 12:04PM

I don't know what to say that would help, but you need serious assistance. I expect other people will be far more help than me, but I would think you need to go to Stepchange os similar to get this help, even if you would prefer not to, saving £10 a month on your mobile or £20 on your groceries isn't going to solve this.
What happens when your car breaks down, needs tyres or MOT etc.

sara77 · 2 January 2018 at 12:25PM

Thanks for the response

The worst thing about all this is that I just looked at the previous thread I posted back in 2016, where I was looking at getting a mortgage, the only debt I had at that time was 1 loan.

Beginning of 2017 was a hard one and it seems I deal with stress by eating or spending money – I’ve started working on that .

I’m furious with myself tbh – I was in this mess back in 2008, had a DMP with payplan – sorted it all out etc. I just cannot be trusted with any sort of credit it seems.

Thanks
S

System · 2 January 2018 at 12:58PM

Big debt on that income! You could get rid of things like the grocery bill, however it wouldn't really make much difference. Thought about bankruptcy?

sara77 · 2 January 2018 at 1:18PM

To be honest I think bankruptcy or an IVA is my only option. Not sure what would be best.

Shamed&Scared · 2 January 2018 at 1:39PM

Just wanted to say hello. I’m new to posting here and I have been so stupid with credit etc too

sara77 · 2 January 2018 at 1:45PM

Hi Shamed&Scared

It's so easy to do, thankfully we've come to the right place

pmlindyloo · 2 January 2018 at 1:55PM

sara77 wrote: »

To be honest I think bankruptcy or an IVA is my only option. Not sure what would be best.

I think you are right. These seem to be the only two options based on what you have said. Get some advice from one of the free debt advisory agencies about which is most suitable for you.

Am wondering if your two loans amounting to £25000 have been used for anything that you could sell?

Are you able to get a second job? Any chance in the future of a better paid job?

Can you think about sharing a house rather than renting your own? No idea how old you are or whether this is something you could consider but it would work out cheaper than your present situation. Have you got parents that you could live with so you can build up some savings?

I understand why you want to keep the car but is there any way round this? Could someone else help out with your nan and niece? How far do you travel to work? Could you go by public transport/get a lift with a colleague?

Have you room for a lodger?

Big changes are needed even if you take the bankruptcy/IVA route. Sorry.

kram · 2 January 2018 at 2:17PM

Hi sara77,

Well worth calling stepchange to see how they could help or
you could also look at the debt remedy tool on their website, its anonymous with no commitment.

I know its hard and no one likes to make the phone call but it has to be done.

I would also look through and read previous threads as there is loads of helpful stuff to be found.

All I have had since starting a dmp is the computer generated letters and a few phone calls but after a couple of months that all disappears.

Good luck

K

kram · 2 January 2018 at 2:20PM

Shamed&Scared wrote: »

Just wanted to say hello. I’m new to posting here and I have been so stupid with credit etc too

Hi and welcome to the forum.

K

Dobbibill · 2 January 2018 at 2:49PM

Hi Sara77, welcome back to the forum.

There are some areas you could cut down in your SOA but this isn't going to free up enough to meet your commitments.

Going forward you will still need a budget even if you opt for a bankcrupcy/IVA solution so I'm going to give you some food for thought for the long term rather than the immediate.

- Do you pay your council tax over 12 months instead of the usual 10? -Do you have the single person's discount included?
- As above with the water rates - and/or have you considered a water meter?
- You mobile cost could be halved. Deals floating around for £9 a month on SIMO.
- change your TV/satellite to freeview/freesat.
- Groceries are high - is this because of the pet?
- No clothes ever?
- No maintenance ever on your car?
- No contents insurance is false economy.
- Do you really never buy a present?
- Do you never have your hair cut?
- You have £20 for an emergency fund but no cash below.

As I said above these amendments won't create almost £500 a month which is what you need. At best it would free up approx £100. Without a 2nd job and/or lodger (if you have a spare room) and selling lots of things, you will still be looking at a BR/IVA solution.

Please make sure you address why you have the debt, what it was spent on - without addressing this it will be a vicious circle.

The loans amounts are large in ratio to your income - has your income changed recently?

I genuinely wish you all the best.

In a mess

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