110K+ in debt

ab16

I am a bit nervous about posting this as I know how stupid I have been. My current debts are £102,857. I know this sounds huge. It has built up over a good number of years, however, I am not excusing it. I am going to CAB on Thursday of this week. I have also looked into CCCS and provisionally filled out the DMP. The one thing I have in my favour is that I earn a good salary £64,000 a year with an annual bonus of around 20%. My monthly salary after tax etc is £3449. The CCCS with the same figures as for my SOA state that I could be debt free in 4.5 years. I had a tearful weekend when I told my wife and she is very worried but is standing by me as long as I do something about it.

I have recognised I have a problem and will now try to solve it. I don't want to loose my wife or my house, so do not want to go bankrupt.

Here is my SOA

Monthly income after tax................ 3449
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3449

Monthly Expense Details
Mortgage................................ 680
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 124
Electricity............................. 32
Gas..................................... 0
Oil..................................... 25
Water rates............................. 12
Telephone (land line)................... 32
Mobile phone............................ 0
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 160
Clothing................................ 5
Petrol/diesel........................... 130
Road tax................................ 12
Car Insurance........................... 15
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 20
Buildings insurance..................... 20
Contents insurance...................... 15
Life assurance ......................... 50
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 7
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1411

Assets
Cash.................................... 0
House value (Gross)..................... 200000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 205000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 88000....(680)......0
Total secured debts........... 88000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................15000.....330.......14.9
Barclays loan..................18500.....270.......11.42
Barclays loan..................9019......289.......11.42
Halifax CC.....................8350......160.......15.9
Post Office CC.................3000......76........15.9
Mint CC........................3250......76........12.9
Lloyds TSB CC..................11100.....220.......16.9
Halifax overdraft..............4500......0.........0
Barclays overdraft.............4000......0.........0
Goldfish CC....................7900......160.......12.9
Capital one CC.................16000.....480.......14.9
Barclays loan..................2238......72........11.42
Total unsecured debts..........102857....2133......-

Monthly Budget Summary
Total monthly income.................... 3,449
Expenses (including secured debts)....... 1,411
Available for debt repayments........... 2,038
Monthly UNsecured debt repayments....... 2,133
Surplus(deficit if negative)............ -95

Personal Balance Sheet Summary
Total assets (things you own)........... 205,000
Total Secured debt...................... -88,000
Total Unsecured debt.................... -102,857
Net Assets.............................. 14,143

Many thanks for any words of advice.

CLAPTON

does your OH work?

vikki400

Well done for taking the hard first step; I can see why you are daunted by the figure, but with your OH standing by you I'm sure you can clear it.

pmyhill

Congratulations on putting it all down on paper - I've been there and its a very scary moment.

The first thing i would do is to contact all the above (unsecured) and ask them if the can freeze the interest on the acounts to try and give you a reasonable chance of working out a debt management plan.

This way all though the amount wont go down the intrest still won't be piling up.

Odette

Any point in selling your car and buying something cheap and 2nd hand? Then using that money to pay off some debts? Even if you buy a car for a grand, thats still four left for debt?

tallyhoh

At the moment you are only short of less than £100 per month, AT the moment!
Can I ask what the money went on, have you an expensive hobby or something. What I am trying to say-- is there anything you can sell that might clear a debt or 2.
Does your wife work, any chance of a contribution off her towards the debts?

WorkingHardDFW

well done on taking the hardest step in admitting that you are in debt and facing up to the challenge.:T

We were in your position 1 year ago with £52k of debt and now a year later we have £32k (still massive) but we are looking to be DF in one years time. We've learnt some lessons along the way and the most important I would say are:

• Keeping a spending diary of every penny spent. Mine has been going for 10 months now and I wouldn't be without it. Its helped to focus on what we are actually spending and in conjunction with the budget helps us ID what it costs us to live against what we were actually spending. The shortfall being what we ran up in debt.
• Budgeting for everything you spent and revisisting the budget to ensure that you are still on track. If necessary adjusting the budget to reflect the reality

Its not been an easy journey, a challenge is a good description, but its been fun and it amazing how motivated you can be to clear debts.

Good luck:T :j

shadydaz

ab16 wrote: »

I am a bit nervous about posting this as I know how stupid I have been. My current debts are £102,857. I know this sounds huge. It has built up over a good number of years, however, I am not excusing it. I am going to CAB on Thursday of this week. I have also looked into CCCS and provisionally filled out the DMP. The one thing I have in my favour is that I earn a good salary £64,000 a year with an annual bonus of around 20%. My monthly salary after tax etc is £3449. The CCCS with the same figures as for my SOA state that I could be debt free in 4.5 years. I had a tearful weekend when I told my wife and she is very worried but is standing by me as long as I do something about it.

I have recognised I have a problem and will now try to solve it. I don't want to loose my wife or my house, so do not want to go bankrupt.

Here is my SOA

Monthly income after tax................ 3449
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3449

Monthly Expense Details
Mortgage................................ 680
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 124
Electricity............................. 32
Gas..................................... 0
Oil..................................... 25
Water rates............................. 12
Telephone (land line)................... 32
Mobile phone............................ 0
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 160 Is it just you and your wife? This could be reduced by £40 a month easy
Clothing................................ 5
Petrol/diesel........................... 130
Road tax................................ 12
Car Insurance........................... 15
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 20 shop around try to get cheaper
Buildings insurance..................... 20 shop around try to get cheaper
Contents insurance...................... 15 shop around try to get cheaper
Life assurance ......................... 50 shop around try to get cheaper
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 7
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1411

Assets
Cash.................................... 0
House value (Gross)..................... 200000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 205000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 88000....(680)......0
Total secured debts........... 88000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................15000.....330.......14.9
Barclays loan..................18500.....270.......11.42
Barclays loan..................9019......289.......11.42
Halifax CC.....................8350......160.......15.9
Post Office CC.................3000......76........15.9
Mint CC........................3250......76........12.9
Lloyds TSB CC..................11100.....220.......16.9
Halifax overdraft..............4500......0.........0
Barclays overdraft.............4000......0.........0
Goldfish CC....................7900......160.......12.9
Capital one CC.................16000.....480.......14.9
Barclays loan..................2238......72........11.42
Total unsecured debts..........102857....2133......-
Are all the CC payments minimum payments?? If you are pay more than the minimum on anything lpease redirect to
Monthly Budget Summary
Total monthly income.................... 3,449
Expenses (including secured debts)....... 1,411
Available for debt repayments........... 2,038
Monthly UNsecured debt repayments....... 2,133
Surplus(deficit if negative)............ -95

Personal Balance Sheet Summary
Total assets (things you own)........... 205,000
Total Secured debt...................... -88,000
Total Unsecured debt.................... -102,857
Net Assets.............................. 14,143

Many thanks for any words of advice.

As previously asked, does your wife work? Have you considered a second job yet? Have you got any children that are old enough to pay rent?

When do you get your bonus? I expect you would get about £10k after deductions.. you need to pay all of it towards one of the cc highlighted in red...

Can you get anymore CC's and balance transfer to 0% for a while, might help a little.

As a bove if it is just you and your wife at home the shopping bill can be reduced in various ways.
Also the electricity, oil could be reduced by careful management of switches and heating timer etc. I still haven't turned my heating on for the winter yet..(yes i am tight)

If you wnat to pay this off ASAP then forego all luxuries and holidays etc for the next few years.

I hope some of this helps, I am not an expert so some others may have better ideas..all the best

DAZ

savingholmes

ab16 wrote: »

I am a bit nervous about posting this as I know how stupid I have been. My current debts are £102,857. I know this sounds huge. It has built up over a good number of years, however, I am not excusing it. I am going to CAB on Thursday of this week. I have also looked into CCCS and provisionally filled out the DMP. The one thing I have in my favour is that I earn a good salary £64,000 a year with an annual bonus of around 20%. My monthly salary after tax etc is £3449. The CCCS with the same figures as for my SOA state that I could be debt free in 4.5 years. I had a tearful weekend when I told my wife and she is very worried but is standing by me as long as I do something about it.

I have recognised I have a problem and will now try to solve it. I don't want to loose my wife or my house, so do not want to go bankrupt.

Here is my SOA

Monthly income after tax................ 3449
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3449

Monthly Expense Details
Mortgage................................ 680 Is this repayment or interest only - you could perhaps move to interest only for a while you pay off your other debts?
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 124 could you spread this over 12 months instead of 10 otherwise make sure you use the 2 spare months for extra debt repayment
Electricity............................. 32
Gas..................................... 0
Oil..................................... 25
Water rates............................. 12
Telephone (land line)................... 32 could you move to something like Talktalk thro Quidco - I did this now £17 per month for 10gig broadband and phone - if we had done it thro quidco would have also got £50 cashback at the time
Mobile phone............................ 0
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 160 If there is just 2 of you thro meal planning and shopping around you should be able to reduce this. The biggest thing is to take a list. But if you really only spend this much you are doing better than me!
Clothing................................ 5
Petrol/diesel........................... 130 Can you reduce this or car share?
Road tax................................ 12
Car Insurance........................... 15
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 20 - post a question/thread on the board just about pet insurance as there are some cheap ones out there
Buildings insurance..................... 20
Contents insurance...................... 15 I was paying £54 per month buildings and contents - I now pay £24 with the same provider altho I have reduced some of my optional cover and got a loyalty bonus/discount when I threatened to move my insurance. Try this method - otherwise checkout your options via quidco or similar and get paid to switch. Barclays for example (poss on Cashbackkings) are paying something like £54 if you switch to them...
Life assurance ......................... 50 Check if you can get it cheaper. Get a quote thro Cashbackkings and you get paid £5 cashback just for getting a quote....
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25 Scrap this for now - or join the £10 a day challenge and use this money to fund pressies - that's what I'm doing. Get your wife involved in cost saving - get her looking at crafty for xmas and finished baskets for ideas on the special occasions board
Haircuts................................ 7
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1411

Assets
Cash.................................... 0
House value (Gross)..................... 200000
Shares and bonds........................ 0
Car(s).................................. 5000 Sell the car and buy a cheaper one?
Other assets............................ 0
Total Assets............................ 205000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 88000....(680)......?
Total secured debts........... 88000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................15000.....330.......14.9
Barclays loan..................18500.....270.......11.42
Barclays loan..................9019......289.......11.42
Halifax CC.....................8350......160.......15.9
Post Office CC.................3000......76........15.9
Mint CC........................3250......76........12.9
Lloyds TSB CC..................11100.....220.......16.9
Halifax overdraft..............4500......0.........0
Barclays overdraft.............4000......0.........0
Goldfish CC....................7900......160.......12.9
Capital one CC.................16000.....480.......14.9
Barclays loan..................2238......72........11.42
Total unsecured debts..........102857....2133......-

Monthly Budget Summary
Total monthly income.................... 3,449
Expenses (including secured debts)....... 1,411
Available for debt repayments........... 2,038
Monthly UNsecured debt repayments....... 2,133
Surplus(deficit if negative)............ -95

Personal Balance Sheet Summary
Total assets (things you own)........... 205,000
Total Secured debt...................... -88,000
Total Unsecured debt.................... -102,857
Net Assets.............................. 14,143

Many thanks for any words of advice.

I know you are in a lot of debt but do think twice before you go on a dmp? Can you definitely not move any of the balances to lower aprs? Will your own bank not give you a better deal? If your wife doesn't work - perhaps she could get a job? I personally don't understand why she would put all the blame for the whole situation on to you unless you stopped her working, stopped her understanding the finances. I've made sure than me and my OH always know how much each other owes - I am the one making the most effort to pay things off but he is at least trying not to spend any money... All my debts luckily are now on 0%...

Anyway best of luck... and well done for being honest enough to post - it truly is the first step. I was as scared as anything when I posted my SOA - at the time we were overspending by about £400 a month, now I'm not over spending by that and thro the £10 a day challenge I've been able to find new ways of generating / finding / reallocating income. :cool:

slummymummyof3

Quite clearly if you can up your family income then this will make a big difference - therefore can your wife go and work?

mstopham

WTG on posting that SOA!

As others have said scary stuff at first!

As others have asked I would be interested to know how you ran up the debt? Mine was living beyond my income for too long and burying my head thinking it would all be OK. I currently earn more than I have ever done to date and yet to clear debts live a much less frivolous lifestyle than I was a year ago. Would this be similar to you or is there something specific that has caused the spending?

Look forward to hearing the story and you progressing to debt free.