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  • FIRST POST
    • Brokenlost
    • By Brokenlost 10th Jun 17, 8:42 PM
    • 1Posts
    • 0Thanks
    Brokenlost
    Tornado of debtors
    • #1
    • 10th Jun 17, 8:42 PM
    Tornado of debtors 10th Jun 17 at 8:42 PM
    Hi all.
    I'm spinning through hoping someone can point me the right way to my debt free rainbow!
    Have always been bad with money. If I have it, I spend it. Food and children's treats is the main distraction. So, when I married I left the Mr to control the account and just tell me what was available weekly. I've now found he's been using pay day loans every month for the last two years. Varies between 80 and 200. I knew nothing. He's maxed his cards to the point they're blocked, he's got 4 debt collection agreements in place too. Our overdraft is more than his monthly salary. I've gone through the last month's bank statement and see we got hit with charges of 220 for failed direct debits and going over the agreed limit. One month arrears on the mortgage. All insurances except the car got cancelled for non payment. We have 250 more due to go out than come in this month. I've called the mortgage company and explained. They've agreed a payment plan, what should I do next to start sorting this mess out??
Page 1
    • parsniphead
    • By parsniphead 10th Jun 17, 9:06 PM
    • 1,993 Posts
    • 12,735 Thanks
    parsniphead
    • #2
    • 10th Jun 17, 9:06 PM
    • #2
    • 10th Jun 17, 9:06 PM
    Firstly well done for posting. There are some amazing people who will help on this site.

    Get a statement of affairs done which will show where you are. You need to find out exactly where your money is going.

    http://www.stoozing.com/calculator/soa.php

    There is a way out of all debt. Keep strong.
    Debts as of 08/07/17 Credit cards £7811 majority on 0%. Car loan £1500 my half. Mortgage £36272 remaining balance (10 yrs 2 mnths remaining - i think not). Emergency fund £500/500
    GAZELLE INTENSE AND GAINING TRACTION
    • rockabillygirl
    • By rockabillygirl 10th Jun 17, 9:06 PM
    • 119 Posts
    • 715 Thanks
    rockabillygirl
    • #3
    • 10th Jun 17, 9:06 PM
    • #3
    • 10th Jun 17, 9:06 PM
    Hi, I didn't want to read and run and wanted to wish you both the best of luck in sorting out your finances. There will I'm sure be someone along soon, far more knowledgeable than I to offer advice, but wanted to give my support x
    It will all be ok in the end - if it's not ok, then it's not the end!
    Working hard to be debt free...long road.
    Debt currently £20,727.10.
    Saving for Xmas 2017 #10. :
    Sealed pot challenge #32
    Mortgage paid off.
    • Ilona
    • By Ilona 11th Jun 17, 8:30 AM
    • 1,821 Posts
    • 6,363 Thanks
    Ilona
    • #4
    • 11th Jun 17, 8:30 AM
    • #4
    • 11th Jun 17, 8:30 AM
    Hi. As above, the Statement of Affairs is the first step. Gather all your paperwork together, bank statements, bills, receipts, wage slips, anything connected with your incomings and outgoings. Lay them out on the kitchen table, sort them into piles, put them in date order. Two large pieces of paper and start itemizing everything. When you have all the figures in front of you transfer them to the SOA.

    If you are not sure what you are spending on start a diary. A notebook in the kitchen drawer, keep all receipts from shopping, write down every penny you spend in the notebook, even the newspaper, packet of crisps, or choccy bar. That's a good start.

    When you have done this post your SOA on here and the good people can suggest where you might be able to cut back on your spending. Good luck, you can do it.

    Ilona
    I love skip diving
    • EssexHebridean
    • By EssexHebridean 12th Jun 17, 12:19 PM
    • 7,439 Posts
    • 39,049 Thanks
    EssexHebridean
    • #5
    • 12th Jun 17, 12:19 PM
    • #5
    • 12th Jun 17, 12:19 PM
    Bless you - what a muddle. Great advice already given above - first step is definitely the SOA, this gives you a budget to work to and you then tweak that until it reaches a point where it's workable for you and you know where every penny is going, and how much you should have left.

    It's sortable one way or another - promise you that, but the sooner you tackle things, the quicker you stop things getting worse.
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£412.21
    • sourcrates
    • By sourcrates 12th Jun 17, 12:37 PM
    • 11,159 Posts
    • 10,830 Thanks
    sourcrates
    • #6
    • 12th Jun 17, 12:37 PM
    • #6
    • 12th Jun 17, 12:37 PM
    I've called the mortgage company and explained. They've agreed a payment plan, what should I do next to start sorting this mess out??
    Originally posted by Brokenlost
    Stop prioritiseing unsecured debt over secured.

    Mortgage, council tax etc are essential payments, and must be paid first, the unsecured credit is the last thing you should pay.

    If there's nothing in the kitty, then don't pay it, for now.

    Post an SOA, have a look on some of the debt charity websites in my signature, that will give you some idea of your options.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
  • National Debtline
    • #7
    • 12th Jun 17, 4:27 PM
    • #7
    • 12th Jun 17, 4:27 PM
    Hi there and welcome to MSE,


    I agree with other posters about the SOA and sourcrates advice regarding prioritising is essential. A couple of other things that will help you take control of this is firstly, change banks and secondly, stop the payday loans taking their payments.

    So, when you owe debt to your bank they can take money from your current account towards that debt, without needing to ask you for permission. We generally accept this with an overdraft, but an overdraft is not a priority debt and your budget will be too hard to stick to when you are in your overdraft every month. So, a new, free, basic bank account is essential.

    The other issue is that payday loans normally set up a continuous payment authority as part of their agreement which lets them take money from the account, even after the direct debit has been cancelled. You need to cancel this authority with your bank with this letter - https://www.nationaldebtline.org/EW/sampleletters/Pages/Withdraw-your-continuous-payment-authority-from-your-card-issuer-%28sole-name%29.aspx


    From here you can start to overpay your mortgage (and any other priority debts) to get them back on track, first and foremost. Then look at re-neogotiating to pay what you can afford to the credit debts. You may do this yourself or through a free DMP. There may be other options as well, but they will become clearer once you post your SOA. Good luck,


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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