Need to take control of my debts

HorseyLady_2

Hello everyone,

I'm new to this. I'm in the middle of a really bad seperation from my husband who has left me with several huge debts. Unfortunately these debts were taken on in my name but have got to a point where they are ruining my life. I can't sleep because of the worry but I've come to realise that the sooner I can get them under control the better.

I want to pay all of my debts off - I'm not looking for an easy way out. Its just that the amount I'm currently paying each month is crippling me. If I can be pointed in the direction of restructuring the payments, even if it means continuing to pay for a little longer then this would make my life so much easier. If anyone could help I would be so grateful for their time.

Below is my SOA. Its not pretty, but there is approximately £15000 outstanding to creditors. I also have a loan of approximately £2000 which I pay back to my dad who tried to help me out. Would it be feasible to restructure my debt excluding what I owe to my dad, then adjust the amount I am paying back to my creditors once I am free from this loan to my dad?

Like I say, I'm not looking for an easy way out; I just need to get this mess under control.

Many thanks in advance for any help or advice given

Horsey.


Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1290
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1290

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 350
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 25
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 150
Road tax................................ 10
Car Insurance........................... 30
Car maintenance (including MOT)......... 0
Car parking............................. 20
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 30
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 755

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 1000

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
MBNA Card......................7700......200.......0
Honda Finance..................5500......160.......7
HSBC Overdraft.................900.......120.......0
Loan from Dad..................2000......400.......0
Student Loan Arrears...........250.......0.........0
Accountant Bill................300.......0.........0
Energy- Debt Collect...........240.......0.........0
Total unsecured debts..........16890.....880.......-

Monthly Budget Summary
Total monthly income.................... 1,290
Expenses (including secured debts)....... 755
Available for debt repayments........... 535
Monthly UNsecured debt repayments....... 880
Surplus(deficit if negative)............ -345

Personal Balance Sheet Summary
Total assets (things you own)........... 1,000
Total Secured debt...................... -0
Total Unsecured debt.................... -16,890
Net Assets.............................. -15,890

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

GeorgeUK

Do you live alone? it's just i noticed you aren't paying council tax or have any gas/electricity bills listed.

Groceries - you may be able to cut this - have a look at the old syle board and possibly move down a brand.

mobile - PAYG?

-345 is quite a shortfall. Have you had any late payments or defaults? Have you applied for credit recently? Have you seen your credit file?

savingholmes

HorseyLady wrote: »

Unsecured Debts
Description....................Debt......Monthly...APR
MBNA Card......................7700......200.......0
Honda Finance..................5500......160.......7
HSBC Overdraft.................900.......120.......0
Loan from Dad..................2000......400.......0
Student Loan Arrears...........250.......0.........0
Accountant Bill................300.......0.........0
Energy- Debt Collect...........240.......0.........0
Total unsecured debts..........16890.....880.......-

Monthly Budget Summary
Total monthly income.................... 1,290
Expenses (including secured debts)....... 755
Available for debt repayments........... 535
Monthly UNsecured debt repayments....... 880
Surplus(deficit if negative)............ -345

Personal Balance Sheet Summary
Total assets (things you own)........... 1,000
Total Secured debt...................... -0
Total Unsecured debt.................... -16,890
Net Assets.............................. -15,890

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

It sounds like you need to take some professional advice and see if you can reduce your payments to amounts that match your income a bit better. I know it's not nice owing family but it looks like your repayments there need to be lower unless you can find a way of reducing some of your other payments. The only other thing that stood out was the pet insurance - si this really necessary?

HorseyLady_2

Hi George and savingholmes,

I live with my parents after my husband and I split. They take £350 per month from me as board payments and I organised the cat's (3 cats !!) insurance for them, it just happened that it came out of my bank account. (I know it sounds silly but it was the only thing I could think of as a way of saying thank you for them helping me out).

I know I'm going to have to save money on groceries and stuff, I can't give up my car as I need it for work (besides, no-one in the world would buy it from me; it's a CityRover lol).

I think I'm going to need a DMP: can anyone give me any advice regarding this at all please?

Thanks so much for your answers so far.

Horsey xx

CCCS_Alan

Hi HorseyLady

Welcome to the boards.

Firstly, please do not start cutting out your essential living cost such as food to try and satisfy your creditors. At the end of the day you can only pay what you can afford to your creditors no matter how much they stamp their feet and throw the rattle out of the pram, if you have not got it you can’t pay it.

If you need the car you will need to start budgeting for your MOT because if you are serious about resolving your situation you won’t have any credit to use by the time the MOT comes round. Your budget needs to be exactly that, you budget for everything. Start putting the money aside for MOT and road tax so when you have to pay it out you have budgeted enough each month into a secondary basic account to pay it in full when required, rather than having to borrow or go without essentials for that month.

Regards what your next steps should be to deal with your debt you can seek specialist advice from a number of places which can normally be found on the bottom of people’s signatures.

If you would like advice from CCCS you have a couple of options. You can visit our online debt advice facility called Debt Remedy.

Debt Remedy would assist you in completing a financial statement and you would be provided with tailored advice on the best way to deal with your situation. Click here to go directly to Debt Remedy.

If you would prefer to talk to a debt counsellor about your situation you can book a telephone based appointment by calling our helpline free on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00.

Hope this is helpful

CCCS_Alan

moneymare

Honda Finance..................5500......160.......7

What is this, a car, motorbike? where is the vehicle??

Cyril

I hate to suggest this but could your parents cut your rent until you get back on your feet, also I am not sure if you have a horse but I don't see livery fees on your SOA, is that why you have such a deficit.

Good luck you will be fine once you are back in control of things