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  • FIRST POST
    • kpbubbly
    • By kpbubbly 8th Oct 17, 1:40 PM
    • 6Posts
    • 1Thanks
    kpbubbly
    Please help my debt situation/spiral
    • #1
    • 8th Oct 17, 1:40 PM
    Please help my debt situation/spiral 8th Oct 17 at 1:40 PM
    Hello everyone, my name is Kevin, 24, live and work in London.

    I have gotten myself into a payday debt spiral since I was 18 and realised a while back how stupid it was for me to borrow from these but I am having alot of trouble trying to pay it back myself and only found out I am paying out more then I am earning until I do not have enough this month! so I am searching for any advice/help.

    A few things about my situation:
    • I am currently on a debt management repayment plan with all payday loans consisting of £1 payments and some at a higher rate to try and repay it back over time...
    • I have a credit union loan of £4000, however in mid-november I am eligible to borrow up to £20,000 at 1% APR. This seems very promising for me, but I would need to PAY BACK the £4k loan i initially borrwed and get an extra £4k in my balance to borrow x5 the amount (maximum £20k)
    • I am currently making minimum repayments to my credit cards and the car hire purchase will have £1500 left to pay back (5 more months). I cycle to work and drive to Norwich on the weekends to work with my girlfriend to earn another £45 but to be honest it just goes to seeing her and paying for the fuel.

    Thank you in advance!
Page 1
    • kpbubbly
    • By kpbubbly 8th Oct 17, 1:44 PM
    • 6 Posts
    • 1 Thanks
    kpbubbly
    • #2
    • 8th Oct 17, 1:44 PM
    • #2
    • 8th Oct 17, 1:44 PM
    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 5
    Number of children in household.........
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 1600
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1600


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 511.4
    Rent.................................... 758
    Management charge (leasehold property).. 0
    Council tax............................. 0
    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 60
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 320
    Clothing................................ 20
    Petrol/diesel........................... 60
    Road tax................................ 11
    Car Insurance........................... 100
    Car maintenance (including MOT)......... 10
    Car parking............................. 10
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 15
    Entertainment........................... 20
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 1895.4



    Assets

    Cash.................................... 30
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 3500
    Other assets............................ 0
    Total Assets............................ 3530



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 0........(0)........0
    Secured Debt.................. 3780.....(220)......26.8
    Hire Purchase (HP) debt ...... 1552.....(291.4)....21
    Total secured & HP debts...... 5332......-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Barclay........................400.......11....... .21.9
    Capital One....................200.......6.........34.9
    Aqua...........................254.......10....... .44.9
    Vodafone.......................1440......60....... .0
    Satsuma........................1000......1........ .0
    PaydayUK.......................327.......48.5..... .0
    Wonga..........................343.3.....50....... .0
    MyJar..........................1086......1........ .0
    Safetynetcredit................848.......80....... .0
    Luma...........................200.......4........ .35.9
    Total unsecured debts..........6098.3....271.5.....-



    Monthly Budget Summary

    Total monthly income.................... 1,600
    Expenses (including HP & secured debts). 1,895.4
    Available for debt repayments........... -295.4
    Monthly UNsecured debt repayments....... 271.5
    Amount short for making debt repayments. -566.9


    Personal Balance Sheet Summary
    Total assets (things you own)........... 3,530
    Total HP & Secured debt................. -5,332
    Total Unsecured debt.................... -6,098.3
    Net Assets.............................. -7,900.3
    • EssexHebridean
    • By EssexHebridean 8th Oct 17, 2:04 PM
    • 8,013 Posts
    • 41,448 Thanks
    EssexHebridean
    • #3
    • 8th Oct 17, 2:04 PM
    • #3
    • 8th Oct 17, 2:04 PM
    Hi Kevin - well done for facing up to things and looking to get yourself sorted.
    comments on your SOA in red as usual.

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 5 You need to explain what's going on here - 5 adults in the household and you showing as the only earner?
    Number of children in household.........
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 1600 does this include the £45 you earn when you go to see your girlfriend?
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1600


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 511.4 Is this the car? Are you at a stage on this where you can hand it back?
    Rent.................................... 758 Why does nobody else contribute to this?
    Management charge (leasehold property).. 0
    Council tax............................. 0 Why zero on so many of the bills? If you're sharing with friends does it work out fairly that you're paying the rent (which is reasonably high)
    and they pay the remainder? Have you checked how much everything else totals to if this is the situation?

    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 60 Are you out of contract? If so get shot of this immediately - it's extortionate!
    TV Licence.............................. 0 You don't watch any TV at all? not even on catch-up? or does someone else pay this?
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 320 How many people is this for?
    Clothing................................ 20
    Petrol/diesel........................... 60
    Road tax................................ 11
    Car Insurance........................... 100 This reallyu is the nail on the coffin for the car. You don;t need it for getting to and from work - and at the moment it's costing you somewhere about £8,000 a year, not including any maintenance costs. In contrast, the £45 a week you earn while in Norwich (the only time you need the car, apparently) is earning you less than £2,500 a Year.
    Car maintenance (including MOT)......... 10 This is incredibly unrealistic,
    even allowing that the car is presumably not needing MoT tests yet?

    Car parking............................. 10
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0 You need something in here - getthis sorted as a matter of urgency - if you live in some form of house share though it will need to be a bit of a specialist policy, possibly.
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0 You don't buy anything for your girlfriend, ever?
    Haircuts................................ 15
    Entertainment........................... 20
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 1895.4



    Assets

    Cash.................................... 30
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 3500
    Other assets............................ 0
    Total Assets............................ 3530



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 0........(0)........0
    Secured Debt.................. 3780.....(220)......26.8
    Hire Purchase (HP) debt ...... 1552.....(291.4)....21
    Total secured & HP debts...... 5332......-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Barclay........................400.......11....... .21.9
    Capital One....................200.......6.........34.9
    Aqua...........................254.......10....... .44.9
    Vodafone.......................1440......60....... .0
    Satsuma........................1000......1........ .0
    PaydayUK.......................327.......48.5..... .0
    Wonga..........................343.3.....50....... .0
    MyJar..........................1086......1........ .0
    Safetynetcredit................848.......80....... .0
    Luma...........................200.......4........ .35.9
    Total unsecured debts..........6098.3....271.5.....-



    Monthly Budget Summary

    Total monthly income.................... 1,600
    Expenses (including HP & secured debts). 1,895.4
    Available for debt repayments........... -295.4
    Monthly UNsecured debt repayments....... 271.5
    Amount short for making debt repayments. -566.9


    Personal Balance Sheet Summary
    Total assets (things you own)........... 3,530
    Total HP & Secured debt................. -5,332
    Total Unsecured debt.................... -6,098.3
    Net Assets.............................. -7,900.3
    Originally posted by kpbubbly
    OK - there is a lot of unanswered questions around the above which makes it difficult to clearly see the picture - but I will say this. Getting shot of that car is absolutely key to you starting to turn things around. On your income, and with your rent taking up pretty much half of that income anyway, what on EARTH possessed you to think that you could afford over £500 a month on buying a car? Check out the agreement that you're in- hopefully it will let you just hand the car back with no penalty, but read it carefully first to make sure.

    I think you need to explain a bit more fully about your living arrangements so we can see what the situation is there - on the face of it if that grocery spend is just for you then there's another £200 + a month there that can be freed up but if it's for more adults then that may not be possible.

    You've done the right thing getting interest frozen on the payday loans but you desperately need to get yourself into a position where you have a budget that balances inn order to start making headway on clearing things.
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£544.67 (17/10/17)
    • DCFC79
    • By DCFC79 8th Oct 17, 2:21 PM
    • 30,118 Posts
    • 19,058 Thanks
    DCFC79
    • #4
    • 8th Oct 17, 2:21 PM
    • #4
    • 8th Oct 17, 2:21 PM
    Forget the loan for the time being and follow the advice already posted.

    Can your girlfriend not take a weekend off work to visit you rather than the other way round ?
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • sourcrates
    • By sourcrates 8th Oct 17, 3:44 PM
    • 12,199 Posts
    • 11,655 Thanks
    sourcrates
    • #5
    • 8th Oct 17, 3:44 PM
    • #5
    • 8th Oct 17, 3:44 PM
    Don’t borrow any more money.

    I’ll say that again……………

    Don’t borrow any more money !!!

    Consolidation loans are usually the next/last step to bankruptcy, they rarely work, and just increase your debt.

    Can’t really tell much from the SOA as it makes no sense, but continuing with the DMP for now seems reasonable, explore other options to tackle the debt, don’t resort to further borrowing.

    Edit.

    Good pickup on the payday loan reclaiming by Fatbelly, further info here :

    https://debtcamel.co.uk/payday-loan-refunds/
    Last edited by sourcrates; 08-10-2017 at 6:30 PM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
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    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.

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    • fatbelly
    • By fatbelly 8th Oct 17, 4:45 PM
    • 11,369 Posts
    • 8,533 Thanks
    fatbelly
    • #6
    • 8th Oct 17, 4:45 PM
    • #6
    • 8th Oct 17, 4:45 PM
    Actually if you've got 2.5k left to pay on the car hp, and it will then be worth 3.5k, I'd keep going with it for 5 months

    But i'd stop paying the payday lenders and see what I could reclaim from them

    http://forums.moneysavingexpert.com/showthread.php?t=5289150
    • enthusiasticsaver
    • By enthusiasticsaver 8th Oct 17, 5:06 PM
    • 4,431 Posts
    • 8,242 Thanks
    enthusiasticsaver
    • #7
    • 8th Oct 17, 5:06 PM
    • #7
    • 8th Oct 17, 5:06 PM
    The reason you are in debt is due to high rent and unaffordable car costs.

    You have not elaborated on your living situation but I guess it is a shared house with bills included. If not as EH says you need to explain why only you out of 5 adults are paying rent. The groceries figure is way too high for one person.

    The car though is completely unaffordable. If you can give it back at this point I would. Forget getting a loan to pay off the debt. It will make your situation much worse. You cannot afford the payday loans so stop paying them and check out template letters. Fat belly has given you the link. Is that Vodafone bill for your mobile? It again is unaffordable so I think defaulting on that too would not be the worst thing as presumably your credit rating is shot anyway.

    You need to stop the trip to Norwich if that is the only reason you keep the car. Find cheaper ways to see your girlfriend.
    Countdown to early retirement on 21.12.17 2 months to go.
    • EssexHebridean
    • By EssexHebridean 8th Oct 17, 5:32 PM
    • 8,013 Posts
    • 41,448 Thanks
    EssexHebridean
    • #8
    • 8th Oct 17, 5:32 PM
    • #8
    • 8th Oct 17, 5:32 PM
    The reclaim on the payday loans is a good point - you certainly look like someone who they REALLY shouldn't have been lending to - certainly recently!
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£544.67 (17/10/17)
    • kpbubbly
    • By kpbubbly 9th Oct 17, 9:43 AM
    • 6 Posts
    • 1 Thanks
    kpbubbly
    • #9
    • 9th Oct 17, 9:43 AM
    • #9
    • 9th Oct 17, 9:43 AM
    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 5 You need to explain what's going on here - 5 adults in the household and you showing as the only earner?
    Yes, I am living in a shared household.

    Number of children in household.........
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 1600 does this include the £45 you earn when you go to see your girlfriend?
    Yes, this includes the £45

    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1600


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 511.4 Is this the car? Are you at a stage on this where you can hand it back?
    I got this car 2 years back when I was debt free, living in my parents house and needed a car to commute 50miles there and back for my previous job. I moved to London 6 months ago which is why I still have the car but to be honest I believe it is best to just keep it as there is only 5 months left and once finished I could sell it for £3500? rather then hand it back now when there is only £1500 right?

    Rent.................................... 758 Why does nobody else contribute to this?
    I am a private tenant.

    Management charge (leasehold property).. 0
    Council tax............................. 0 Why zero on so many of the bills? If you're sharing with friends does it work out fairly that you're paying the rent (which is reasonably high)
    and they pay the remainder? Have you checked how much everything else totals to if this is the situation?
    Council tax and utility bills are included in the rental price.

    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 60 Are you out of contract? If so get shot of this immediately - it's extortionate!
    This is contract I took out a year ago. There is still one year left. This was before I was in debt.

    TV Licence.............................. 0 You don't watch any TV at all? not even on catch-up? or does someone else pay this?
    Nope

    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 320 How many people is this for?
    This is for me, I just estimated £10 a day for food, so around £2 breakfast, £3 lunch, £5 dinner/late dinner which I find low as I try to eat 3000 calories a day (gym)
    Clothing................................ 20 (averaged over the year)
    Petrol/diesel........................... 60
    Road tax................................ 11
    Car Insurance........................... 100 This reallyu is the nail on the coffin for the car. You don;t need it for getting to and from work - and at the moment it's costing you somewhere about £8,000 a year, not including any maintenance costs. In contrast, the £45 a week you earn while in Norwich (the only time you need the car, apparently) is earning you less than £2,500 a Year.
    Yes I would like to get rid of the car to be honest but as there is only £1500 left to pay I think it will be best to carry on with this payment the next 5 months and then sell it at the market price £3500-£4000? I had this before I moved to London which is why I had it in the first place (commuting motorway 50 miles each way and was perfect) but I got offered a good job progression in London and went for it.

    Car maintenance (including MOT)......... 10 This is incredibly unrealistic,
    even allowing that the car is presumably not needing MoT tests yet?
    Sorry I just seen MOT car maintenance I guess £50 a month?
    Car parking............................. 10
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0 You need something in here - getthis sorted as a matter of urgency - if you live in some form of house share though it will need to be a bit of a specialist policy, possibly.
    Thanks, I will research this tonight.
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0 You don't buy anything for your girlfriend, ever?
    Haha haven't spent a birthday with her yet but yes it is coming up actually !
    I would say £50, I've just arranged a gathering which she will prefer to be honest.

    Haircuts................................ 15
    Entertainment........................... 20
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 1895.4



    Assets

    Cash.................................... 30
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 3500
    Other assets............................ 0
    Total Assets............................ 3530



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 0........(0)........0
    Secured Debt.................. 3780.....(220)......26.8
    Hire Purchase (HP) debt ...... 1552.....(291.4)....21
    Total secured & HP debts...... 5332......-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Barclay........................400.......11....... .21.9
    Capital One....................200.......6.........34.9
    Aqua...........................254.......10....... .44.9
    Vodafone.......................1440......60....... .0
    Satsuma........................1000......1........ .0
    PaydayUK.......................327.......48.5..... .0
    Wonga..........................343.3.....50....... .0
    MyJar..........................1086......1........ .0
    Safetynetcredit................848.......80....... .0
    Luma...........................200.......4........ .35.9
    Total unsecured debts..........6098.3....271.5.....-



    Monthly Budget Summary

    Total monthly income.................... 1,600
    Expenses (including HP & secured debts). 1,895.4
    Available for debt repayments........... -295.4
    Monthly UNsecured debt repayments....... 271.5
    Amount short for making debt repayments. -566.9


    Personal Balance Sheet Summary
    Total assets (things you own)........... 3,530
    Total HP & Secured debt................. -5,332
    Total Unsecured debt.................... -6,098.3
    Net Assets.............................. -7,900.3
    • kpbubbly
    • By kpbubbly 9th Oct 17, 9:46 AM
    • 6 Posts
    • 1 Thanks
    kpbubbly
    Thank you for the fatbelly option. I will read that tonight after work, I believe I shouldn't have been eligible for £1000 loans even after I was on a debt repayment plan on multiple payday loans. I was quite desperate at the time because I had a problem with my workplace when they offered me the job and had an issue with my working visa.

    Has anyone had any experience in how this has worked out for them?
    • StopIt
    • By StopIt 9th Oct 17, 10:12 AM
    • 1,103 Posts
    • 970 Thanks
    StopIt
    At the current time, you're insolvent until that car loan is cleared.


    After that? Look for ways to reduce your food bill, because £10 a day for a single person is ridiculously high and you can feed a family of 3 with that easily.


    Do not look at further borrowing, and look at those PDLs as a matter of urgency.


    Once you've paid the car off, either look to sell it, or budget around it. Do not resort to PDL companies ever again, try to build an emergency fund, and you'll be OK.
    • kpbubbly
    • By kpbubbly 9th Oct 17, 10:17 AM
    • 6 Posts
    • 1 Thanks
    kpbubbly
    Yes I will try to cut down on the groceries to £5-£6 a day, perhaps I didn't add it up properly because on the weekends I actually eat free as I work in a restaurant and save on the food costs there haha.

    I'll say my updates food costs is £100 a month this way.
    • kpbubbly
    • By kpbubbly 9th Oct 17, 10:20 AM
    • 6 Posts
    • 1 Thanks
    kpbubbly
    Which credit shall I look to pay off first? Shall I talk to the PDL debt management plan and resort to £1 payments for all? and what do you suggest to I tackle first, Secured loans debt? Credit cards? PDL on DMP?

    Thanks
    • StopIt
    • By StopIt 9th Oct 17, 10:30 AM
    • 1,103 Posts
    • 970 Thanks
    StopIt
    Which credit shall I look to pay off first? Shall I talk to the PDL debt management plan and resort to £1 payments for all? and what do you suggest to I tackle first, Secured loans debt? Credit cards? PDL on DMP?

    Thanks
    Originally posted by kpbubbly

    Always tackle priority debts first.


    In your case, secured debts first, credit cards second, PDL last, so long as they're not charging further interest. By law they cannot charge more than double the initial capital so that's the line in the sand for them, but as before, do not take out further credit with any of them.


    It's going to be a tough few months with the SOA you have, but get the secured debts out of the way. Write to all of your PDLs you're paying stating they'll need to wait a few months before you'll be able to deal with them.
    • nkkingston
    • By nkkingston 9th Oct 17, 10:31 AM
    • 432 Posts
    • 484 Thanks
    nkkingston
    Try going through your bills to get an idea of what you're actually spending on food. Your estimation is definitely out - if you're eating out for breakfast every day £2 is way too low, but if you''re having, say, scrambled eggs on toast every morning, it's way too high (think about it - you can get a loaf of bread, a block of butter and a dozen eggs for around £5 - that's nearly two week's worth of breakfasts with butter left over). If you're trying to keep up a high calorie count on a small budget, look at what you can bulk buy and pre-prepare, like overnight oats.
    Mortgage
    June 2016: £93,295
    October 2017: £80,520.19
    • EssexHebridean
    • By EssexHebridean 9th Oct 17, 10:35 AM
    • 8,013 Posts
    • 41,448 Thanks
    EssexHebridean
    That's a "guesswork" SOA. You're accounting for things that you're not actually setting money aside for aren't you - like car maintenance - "I guess £50 a month?"

    The best way of doing an SOA is to start with it reflecting the way things really are right at this minute - there's no point in guessing stuff, or writing what you think you "should" be doing, because that just creates a false picture - do you see? You can say you're spending x on this, y on that, and Z on something else, but if in fact what you're actually spending is 50% of the first, 99% of the second, and 250% of the third, the books won't balance. At the moment you know your figures don't balance anyway - so for the next three months you need to screw EVERYTHING you possibly can down to the basics - and cut as much slack from your budget as possible to minimise further damage. On reflection I agree that trying to pay off the car is the right way to go - but you must be committed to selling it as soon as the finance is paid off and once you have sold it you MUST put every penny towards paying off debt. That's really important. Have you thought how you will proceed then in terms of things like seeing your girlfriend? Obviously Norwich every weekend will not be achievable really - will you alternate that she comes to you once a month and you go to her once a month perhaps?

    I'm going to echo what Sourcrates said earlier as well - DON'T BORROW ANY MORE MONEY - put that credit union idea RIGHT out of your mind - first up you need to focus on learning to budget and getting your current debt paid off - and until you've done the first, and have a budget that balances and a good while of experience of living within it, any more credit is a definite no-no. If you can realise £3500 for the car that will help - and if you can claim back any charges relating to the PDL's then that may help as well - but once the car has gone just divert your monthly surplus to clearing the remainder of the debt one thing at a time.

    Stick at it - make what savings you can, and take it one step at a time.
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£544.67 (17/10/17)
    • 117pauline
    • By 117pauline 9th Oct 17, 11:39 AM
    • 329 Posts
    • 4,635 Thanks
    117pauline
    It must be pretty scary to be where you are at the moment.

    As EH mentions, this SOA isn't an SOA unfortunately.

    I am not sure how you have come up with these figures as you say that you are under a debt management plan. Is this with a company charging you for their "help"? If so please look into moving to one of the companies like Step Change.

    I would suggest you actually do something very painful. Sit down with your bank account information and look back over the last six months to find out what you have really spent.

    I notice you talked about the gym but you haven't shown it in your SOA unless it's in the Entertainment section

    Where is the £4000 credit union loan showing? Usually you have to pay some towards saving account as well

    Groceries - you need to learn to cook at home rather than buying your meals out.

    As others have said, at present this is an unsustainable situation but that doesn't mean you are not able to rectify it. However it will mean some hard choices until you finish paying for the car.

    Perhaps you can look at ways to boost your income whilst in London as your salary looks as though it is only just above minimum wage. A restaurant job in London will almost certainly pay as much as the one in Norwich. Survey sites will not earn you a great amount but will improve your situation. Have a look at Boost Your Income section of these forums.

    In a nutshell:

    • Contact Step Change
    • Analyse bank statements to get the real amounts spent
    • Complete new SOA with more exact figures
    • Increase your income
    • Prepare food at home


    I hope these suggestions will help you and not put you off!!

    Congratulations on coming here to ask for help. That is a really hard step to take but you have to get a real picture of your starting point so you can improve the situation

    Good luck, keep posting and we will be with you encouraging you every step of the way

    Here's to a good week
    Pauline
    Don't get it perfect - Get it going
    Better Than Before
    • EssexHebridean
    • By EssexHebridean 9th Oct 17, 11:59 AM
    • 8,013 Posts
    • 41,448 Thanks
    EssexHebridean
    ^^^
    Brilliant post from Pauline - OP, take note and follow the steps, please!
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£544.67 (17/10/17)
    • WorriedFriend2017
    • By WorriedFriend2017 9th Oct 17, 1:00 PM
    • 27 Posts
    • 8 Thanks
    WorriedFriend2017
    Only £20 per month for entertainment, really? Where did you factor in the gym costs?
    • EssexHebridean
    • By EssexHebridean 9th Oct 17, 1:26 PM
    • 8,013 Posts
    • 41,448 Thanks
    EssexHebridean
    Only £20 per month for entertainment, really? Where did you factor in the gym costs?
    Originally posted by WorriedFriend2017
    The gym could well be a work-perk - that's not uncommon with central London firms.
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£544.67 (17/10/17)
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