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  • FIRST POST
    • nigrub94
    • By nigrub94 21st Nov 17, 11:16 PM
    • 8Posts
    • 8Thanks
    nigrub94
    Desperately need help
    • #1
    • 21st Nov 17, 11:16 PM
    Desperately need help 21st Nov 17 at 11:16 PM
    Hi all,

    Finally come to the realisation today that I canít continue the way I have and need to get out of the black hole Iíve found myself in.

    Bit of backstory. Iím 22 and in my last year at university and in a complete financial mess. I live at home with my mum and commute to/from University and work. Everything was fine up until about 15 months ago when my dad unexpectedly left. Literally walked in from work one evening, went upstairs, packed his suitcase and told my mum he was leaving her & Iíve not seen him since. My mum didnít work (I have a younger sibling) and dad earned enough money where she didnít need to. Turned out, he hadnít paid any bills for a while and cleared out their accounts & Mum had a complete mental breakdown.

    Fast forward 15 months. My mum is now in work full time, but as she hadnít worked for nearly 20 years sheís not earning great money (I think with uni + my job I earn about the same if not more than her), we split the household bills down the middle as otherwise we would be homeless. The house is mortgaged, but due to the financial situation my dad left her in her credit profile is pretty wrecked and the bank wonít re-mortgage or anything.

    I spent all my savings & earnings to bring the household bills up to date for the 9 months she wasnít working, but at the time I wasnít getting nearly half what I get now so I took out whatever credit I could just to keep us afloat & not homeless, and now Iíve hit rock bottom.

    Iím in a complete and utter financial mess, Iíve been signed off work for 4 weeks because Iím at my breaking point. It got so bad during the summer I was debating on offing myself so my Mum would receive my life insurance pay-out & be set.

    Pretty much everything is on 0% balance transfer or purchases, but these are all set to run out in the next 1-2 months. I've applied for other cards or loans to reconsolidate and get declined. My mum knows the situation and has tried to apply herself to help me but has had no joy either.

    Iíve posted my SOA bellow and would appreciate any help.

    Statement of Affairs and Personal Balance Sheet

    Monthly Income Details

    Monthly income after tax................ 880
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 600
    Total monthly income.................... 1480


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 150
    Rent.................................... 400
    Management charge (leasehold property).. 0
    Council tax............................. 50
    Electricity............................. 40
    Gas..................................... 10
    Oil..................................... 0
    Water rates............................. 15
    Telephone (land line)................... 0
    Mobile phone............................ 55
    TV Licence.............................. 5
    Satellite/Cable TV...................... 25
    Internet Services....................... 10
    Groceries etc. ......................... 150
    Clothing................................ 50
    Petrol/diesel........................... 65
    Road tax................................ 0
    Car Insurance........................... 60
    Car maintenance (including MOT)......... 10
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc)....
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 10
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 20
    Entertainment........................... 130 (£30 per week to go out with my friends & I would go crazy/ended it all if I didn't have them)
    Holiday................................. 0
    Emergency fund.......................... 0
    Overdraft .............................. 81
    Total monthly expenses.................. 1358.4



    Assets

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



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 0........(0)........0
    Secured Debt.................. 9500.....(150)......7
    Total secured & HP debts...... 9500......-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Halifax CC.....................650.......26........30
    Halifax CC.....................3600......40........0
    Halifax OD.....................3000......0.........0
    Barclaycard....................1000......25....... .0
    Very...........................3300......0........ .0
    Debenhams......................800.......30....... .30
    MBNA...........................700.......25....... .0
    MBNA...........................4800......50....... .0
    Natwest OD.....................2000......0.........0
    Total unsecured debts..........19850.....196.......-



    Monthly Budget Summary

    Total monthly income.................... 1,480
    Expenses (including HP & secured debts). 1,358.4
    Available for debt repayments........... 121.6
    Monthly UNsecured debt repayments....... 196
    Amount short for making debt repayments. -74.4


    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -9,500
    Total Unsecured debt.................... -19,850
    Net Assets.............................. -29,350


    (My car is on PCP, I literally got it a month before everything happened, and its on a 4 year deal. I don't think I can give it back just yet, and I need a car in some fashion to get to work and Uni as taxi + trains would be more expensive than the car costs I think)
Page 2
    • jude47
    • By jude47 26th Nov 17, 5:05 PM
    • 98 Posts
    • 178 Thanks
    jude47
    Hi nigrub94 and welcome to MSE. You're doing incredibly well and the regular, knowledgeable posters here will give you all the support and help you need to deal with your debt situation. Contacting StepChange or CAB is absolutely the way to go. They won't promise what they can't deliver and can also advise on benefits your mum may be able to claim. One that comes to mind is Student Exemption for Council Tax - your mum should claim this if not already doing so.
    Please don't go 'off forum' to private conversation with new posters claiming to have a magic wand to deal with your debts. If such a thing existed, regular posters here like Soucrates and debt doctor would know about it and would be shouting it from the rooftops.
    Cotswoldtony I have reported your post as I believe it's wrong to mislead the OP into believing you have any legitimate advice to offer, and getting them to go off forum is potentially damaging to them. If you have a debt solution that 99% of people (including debt advice specialist s) don't know about, post it here and I will apologise for doubting you.
    • nigrub94
    • By nigrub94 26th Nov 17, 8:52 PM
    • 8 Posts
    • 8 Thanks
    nigrub94
    Hi all. Once again I just want to say thank you to everyone for their replies and help. I know it may sound silly as we're just strangers behind a screen, but your reassuring and kind messages have helped untold amounts. It's helped me come to terms that whilst this is, mildly putting it, a crap situation - its not forever!

    I went the CAB on Friday, who agreed that a DMP would be best. I've filled in the online form with Stepchange and they've advised of a DMP as well. I'm in the process of contacting my creditors to let them know the situation (been so busy with uni that I've just not been able to).

    I have a question though. My aunt works in a call centre for a credit card company, in the collections department, and I've briefly told her my situation. As the debt is all unsecured, there's not too much the creditors can do in the short term. She told me it may be a good idea to tell the creditors the situation and offer £5 to each creditor until everything defaults as my credit rating is ruined anyway. If I went onto a DMP now everything would default in 6-9 months, and at least this way it may happen sooner rather than later. Plus, for the next 6 months save the extra ~£100 per month a small emergency fund. Also, within the next 6 months I should pretty much know what I'll be doing for work after university and can budget more accordingly. Is this the route to go down? Or go onto a DMP now?
    • sourcrates
    • By sourcrates 26th Nov 17, 9:48 PM
    • 12,673 Posts
    • 12,011 Thanks
    sourcrates
    Best bet is to stop paying now, let everything default, save an emergency fund, then start a DMP in 6 months or so.

    Token payments are a waste of time in my opinion, but you can make them if it makes you feel better.

    Any creditor that wants to start court action prior to the DMP, you will have to deal with on a case by case basis, it’s unlikkey to happen, but it’s still a possibility.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    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/
    • enthusiasticsaver
    • By enthusiasticsaver 26th Nov 17, 10:18 PM
    • 4,847 Posts
    • 9,148 Thanks
    enthusiasticsaver
    I agree with your aunt that advising your creditors now that you are experiencing financial hardship and letting the debts default sounds like the best option. It will ruin your credit rating but no other option really. Save an emergency fund as you will have no recourse to credit once you have defaulted and gone onto a DMP.

    You will need a basic bank account ideally not linked to any of your creditors. I think co op does one.
    1 week to go until early retirement. Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • Sarastro
    • By Sarastro 28th Nov 17, 8:55 PM
    • 339 Posts
    • 269 Thanks
    Sarastro
    You said your sister is turning 18 soon; you need to get on with finding out what she's entitled to benefit wise. You need to be go for everything you can right now.

    Take comfort in the fact that completely strangers on her admire you and wish you well. You are a good person. Stick around.
    • elliemet23
    • By elliemet23 29th Nov 17, 10:53 AM
    • 34 Posts
    • 9 Thanks
    elliemet23
    I have been in a DMP with Stepchange myself, they are an incredible organisation and had me debt free (from £4k to £0) in 10 months!

    If you ever need someone to talk/rant to, feel free to message me.

    Good luck!
    xxx
    • pennystretcher
    • By pennystretcher 29th Nov 17, 12:58 PM
    • 312 Posts
    • 1,329 Thanks
    pennystretcher
    Sorry to hear about your situation, but you have made a great start on getting things sorted.
    Just one idea that popped into my head: How big is your mum's house? Could she sublet one of the bedrooms to get some extra income?

    Also you mention £400 rent, is this for your mum?
    MFW Dec 2017 £290 (almost there!!!)
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