In loads of debt and unsure where to start

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  • Mnd
    Mnd Posts: 1,699 Forumite
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    It has been suggested that you either get rid of the car or the bus fares, you can't afford both tbh
    No.79 save £12k in 2020. Total end May £11610
    Annual target £24000
  • ElleWoods
    ElleWoods Posts: 421 Forumite
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    Mnd wrote: »
    It has been suggested that you either get rid of the car or the bus fares, you can't afford both tbh

    The bus fare isn't for me, it's for my child to get to school in the mornings (he walks home). As I said in an earlier post, he doesn't want me to drive him to school because it's 'embarrassing' and tbh he needs to build up his confidence, independence and road sense, so the bus/walking it is. I've considered getting rid of the car but then I couldn't get to my clients when I have them, so I'd have to give up my business and sign on JSA as I'd literally have no earned income.
  • strongboes
    strongboes Posts: 107 Forumite
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    ElleWoods wrote: »
    The bus fare isn't for me, it's for my child to get to school in the mornings (he walks home). As I said in an earlier post, he doesn't want me to drive him to school because it's 'embarrassing' and tbh he needs to build up his confidence, independence and road sense, so the bus/walking it is. I've considered getting rid of the car but then I couldn't get to my clients when I have them, so I'd have to give up my business and sign on JSA as I'd literally have no earned income.

    I'm not sure why no one has said this to you. You need to forget about your business, seriously you could earn that in one day in any job. With the car you say you need for it you are wasting a considerable amount of money.

    Use the car for a proper job, or get rid of it until you can afford one.
  • zippygeorgeandben
    zippygeorgeandben Posts: 1,273 Forumite
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    You can't lose the cat! I'd rather have no food in than lose my cat!
    Supporting you all the way :)
    Savings as of April 2023 Savings account - £26460.50(14474.88)Current account - £2140.24(4576.79)Total - £28600.74(19051.67) £1010 (£65pm CS/BS) £250 CS/BS/JS
  • ElleWoods
    ElleWoods Posts: 421 Forumite
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    strongboes wrote: »
    I'm not sure why no one has said this to you. You need to forget about your business, seriously you could earn that in one day in any job. With the car you say you need for it you are wasting a considerable amount of money.

    Use the car for a proper job, or get rid of it until you can afford one.

    I'm applying for jobs but in the meantime I'm trying to keep my business going to at least bring in something, even if it's a pittance. Or should I just give it up and sign on? I don't know what to do for the best, it's all really overwhelming.
  • ElleWoods
    ElleWoods Posts: 421 Forumite
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    zippygeorgeandben wrote: »
    You can't lose the cat! I'd rather have no food in than lose my cat!
    Supporting you all the way :)

    Thank you. :kiss:
  • strongboes
    strongboes Posts: 107 Forumite
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    ElleWoods wrote: »
    I'm applying for jobs but in the meantime I'm trying to keep my business going to at least bring in something, even if it's a pittance. Or should I just give it up and sign on? I don't know what to do for the best, it's all really overwhelming.

    Some business ideas work, some don't, chalk this one up as a failure and move on with your life, immediately!

    You are more employable for simply giving it a go, so take your experience with you.

    I have no idea how much you get for signing on, but I can only assume its far more than £50 per month.

    If the debt is making you as anxious as you state in first post then also get rid of your car, if it doesn't impact on potential jobs. If you really don't want to then you must accept it will hamper you with your debt repayments.
  • nicmalauren
    nicmalauren Posts: 94 Forumite
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    Good for you for facing up to your debt and tackling this head on!

    Financially, you would definitely be better off closing your business and going on Job Seekers Allowance. You say your business brings in £50 profit per month? JSA is £73 per week. You'd be up an extra £200 each month, and the advisors at your local jobcentre will help you with any other benefits you may be entitled to.
    "The future belongs to those who believe in the beauty of their dreams."
  • Prometheus2
    Prometheus2 Posts: 4 Newbie
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    Hi Ellie
    Been a while since having seen your post I’d like to say that I’ve been here and the most important thing is your wellbeing and not to let things take over you. Always keep positive as things are never quite as bad as they seem so long as you’re willing to be flexible there will be light at the end of the tunnel. Promise!!

    Any mentioning of losing the cat can go fly with the pixies!!

    Had a look at the your SOA that you kindly provided and there’s a few choices that may seem painful to begin with but ones that I’ve had to take so they are not as bad as they seem.
    First easy ones is the £42 on the TV and the licence of £12.02. Yes if you’re willing not to watch The BBC then doing this will give you an additional £52.02 a month.

    Now comes the harder one which would be to sell the car in doing this you would save £122 in HP , £25 in petrol , £20 in road tax , £26.79 insurance and £5 parking . Saving you £198.9 totalling up to an additional £250.81.

    I understand that you use the car to drive to your clients which you could get public transport to get you there granted it’s not as convenient but even so it would not eat that much into you £250.81 saved. That said if by the looks of it your business is not going well and congratulations you are a braver person than me for trying it!! Then wind it up and go onto JSA as Lauren says its £75 a week plus would shouldn’t have to pay your council tax or be it at a highly reduced rate. Also I would check with the Child tax credits or whatever it’s called as you might be eligible for an increase. Furthermore a check on the CSA calculator wouldn’t go a miss to make sure your x partner is paying the correct amount.

    Lastly in terms of the debt might be worth seeing if there’s a loan u can take for £9500 over maybe 5 years at a fixed term which would reduce your monthly payments down to around £220 or alternatively contact the vendors themselves and tell them you can’t afford to keep paying could you come to an agreed figure. In most cases they will as the last thing believe it or not they want u to do is stop paying.

    I found that a simple cash flow on a spreadsheet helped me lots as I could at least tell where I would be at the end of the month with the goal of keeping a positive even if it was only a few pounds!

    Also kids are very resilient mine where shocked that I had to take them home on the train or bus cause I had no car but I said that it will be way more fun and why not let someone else do the driving which now they don’t seem to mind.


    Thing is I was left in over 15K in debt while having to suffer the humiliation of betrayal and did go through some very dark times. However I drew a line across the sand and like I said honestly it’s not the end of the world speaking from experience that keeping positive is the only demand.
  • Mnd
    Mnd Posts: 1,699 Forumite
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    It's not only watching bbc that you need the licence for, it's needed if you watch itv or anything really, I think it's needed if you have equipment available to watch television. It even applies to I player
    No.79 save £12k in 2020. Total end May £11610
    Annual target £24000
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