Help or sympathy at least please?!

IndieBlade

Hello there,

This is my first post and after reading for a while I realised I needed to share my situation. There are people a lot worse off than me but as many of you know (or you wouldn't be here!) it's sometimes difficult to look outside your own debt problem.

I currently owe around £12,000 and I'm wanting to stop the rot. At the moment I spend more than I earn every month and it just can't go on. On the bright side (which in a way has added to the short term problem) I am a qualified plumber with some experience currently on the job hunt although I am having to pay back a career development loan for this privilege. I work in admin at the moment so it is not helping with the plumbing experience.

The breakdown:

Salary - £1010 p/m

Egg CC - £2200 - £58p/m - Currently 0% on balance transfer until October
Barclays CDL - £3500 - £94p/m - 10%
Lombard Loan - £4000 - £116p/m - 6.9%
Overdraft - £2000 - £25p/m
Mortgage, bills, food, insurance, etc. - approx. £550

This leaves about £150-200 each month for petrol (which is usually around £100!) and any other general living costs. This is all before birthdays, weddings, stag do's, car maintenance, clothes, etc.

I have a very understanding partner who is in a better position and has helped best she can but I don't want to start dragging her down into the debt spiral with me.

I've tried to consolidate into 1 loan recently but a combination of ridiculous interest charges and applications being denied have meant this won't be the case. I've thought about getting other credit cards to push money onto, but instead of helping the debt I'm just making more and I don't want to do that.

Once I progress in my chosen career I feel as though the situation will sort itself out but I'm unsure when this will be. I know there are no quick fixes for debt but if anyone has some ideas, that at least for the short term will help me to work that debt (especially the overdraft) down a bit, then it would be very much appreciated. I've read a lot about debt problems on these pages but although I'm not looking for spoon feeding, I feel I need some personal interaction to get me motivated with it!

Thanks for reading!
:think:

Merlot

Welcome to the board.

Firstly can you itemised your mortage, bills, food etc.

Consolidation is generally not advised, it will make the situation much worse in the long term and could be turning unsecured debt in secured debt..never a good idea.

Do not try to get other credit cards either as you have been denied a loan, it will not help your credit rating.

As far as the general living costs ,£150 ish is not too bad, you are going to have to forget about the stag do's etc for a while, Post a full SOA and we will advise you.

Merlot.x.

IndieBlade

I'm just doing the budget planner now and will post my results, it is quite scary really!

Numpty_Monkey

Nothing to be scared of mate

IndieBlade

Some of the results of this may seem odd but its simply because I have halved the mortgage and household costs to make it more personal for mine rather than me and my partner.

Sorry if this has confused things!

Any tips would be welcome.

Monthly Income Details
Monthly income after tax................ 1010
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1010

Monthly Expense Details
Mortgage................................ 255
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 40
Electricity............................. 22
Gas..................................... 22
Oil..................................... 0
Water rates............................. 13
Telephone (land line)................... 10
Mobile phone............................ 20
TV Licence.............................. 6
Satellite/Cable TV...................... 20
Internet Services....................... 5
Groceries etc. ......................... 80
Clothing................................ 0
Petrol/diesel........................... 100
Road tax................................ 15
Car Insurance........................... 40
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 15
Contents insurance...................... 5
Life assurance ......................... 6
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 80
Holiday................................. 30
Emergency fund.......................... 0
Total monthly expenses.................. 839

Assets
Cash.................................... 0
House value (Gross)..................... 115000
Shares and bonds........................ 0
Car(s).................................. 450
Other assets............................ 0
Total Assets............................ 115450

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 51000....(255)......5
Total secured debts........... 51000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................2200......58........0
Overdraft......................2000......25........0
Lombard Loan...................4000......116.......7
CDL Loan.......................3500......93........10
Total unsecured debts..........11700.....292.......-

Monthly Budget Summary
Total monthly income.................... 1,010
Expenses (including secured debts)....... 839
Available for debt repayments........... 171
Monthly UNsecured debt repayments....... 292
Surplus(deficit if negative)............ -121

Personal Balance Sheet Summary
Total assets (things you own)........... 115,450
Total Secured debt...................... -51,000
Total Unsecured debt.................... -11,700
Net Assets.............................. 52,750

Ossireo

I wonder if DMP may be worth looking into as you can then adjust it as your situation improves and you get your feet in the Plumbing world.

I am sure others will be along soon who are good at the SOA analysis

Good Luck and you are doing the right thing coming here as there is a wealth of advice adn reassurance to be had :A

monitorsit

Indie,

I reckon your half way to solving the problem because you recognise there is a problem and want to solve it. nhave you been along to the citizens advice? I went along to them and they were so helpful. it can be easier to talk these things thruogh over a desk than here but we all hope you will find good advice here. i only discovered this site today and allready i love it and can see it offering so much help to people.

I gho along with merlot, consolidation probably not eh way to go and dont put the house at risk and def dont take out another card!

In general if you can pay off the loans with the highest interest rate first but not always possible if someone else is thretening action. If paying all the loans is impossible lenders will usualy come to an arrangement which gives breathing space, if they think yourreally making an efort which obviuosly you are they will be helpful. they would rather have a bit less than drive you bankrupt and get none. citizens advice should be really good at giving practical advice on all of this to fit your circumstances. They see people in similar sitiations all the time so know what there on about.

GeorgeUK

You were right Indie - it does make things a little confusing. I gues we can just get you to check everything so that we know we've covered all the bases.

Council tax............................. 40
If paying over 10 months, can you ask to pay it over 12?

Electricity............................. 22
Gas..................................... 22
Check you are getting a good deal - look at some of the comparison sites (uswitch, moneysupermarket)

Mobile phone............................ 20
PAYG?

Telephone (land line)................... 10
Satellite/Cable TV...................... 20
Internet Services....................... 5
Can you get a package that combines all of these for less?

Groceries etc. ......................... 80
Have a look at the old style board - you can save by going down a brand or doing mealplans etc.

Entertainment........................... 80
This needs to be cut down. A few months with a tighter belt and you'll soon be able to enjoy this better without the debt hanging over you.

I wouldn't try applying for any more credit. You can have about 3 credit checks in a 6 month period before your credit score is affected. You may want to save up the next credit check incase you need to apply for a 0% card in October.

As you have the debts on fairly low interest right now, i would advise trying to clear the credit card first, then the overdraft before trying to tackle the loans. Pay the minimum to all debts then throw anything left at the CC.

You can worry about getting a settlement figure for the loans and possibly then trying for a 0% card to deal with it once the other debts are gone.

IndieBlade

Thanks for all the comments, I didn't know what a DMP was and have looked into that so that seems an option. I'll give citizens advice a go too.

Thanks George regarding the fact I shouldn't apply for anymore stuff due to needing a new 0% card soon, I hadn't thought of that.

Already feeling happier!