£40k Debt, any advice please?

Magical30

[Statement of Affairs and Personal Balance Sheet[/b]

Monthly Income Details
Monthly income after tax................ 530
Partners monthly income after tax....... 1000
Benefits................................ 356
Other income............................ 0
Total monthly income.................... 1886

Monthly Expense Details
Mortgage................................ 743
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 94
Electricity............................. 58.75
Gas..................................... 50
Oil..................................... 0
Water rates............................. 24.81
Telephone (land line)................... 20
Mobile phone............................ 90
TV Licence.............................. 11.5
Satellite/Cable TV...................... 0
Internet Services....................... 12.99
Groceries etc. ......................... 340
Clothing................................ 20
Petrol/diesel........................... 150
Road tax................................ 20
Car Insurance........................... 52
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 39
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 34
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 5
Entertainment........................... 28
Holiday................................. 0
Emergency fund.......................... 25
Total monthly expenses.................. 1848.05

Assets
Cash.................................... 0
House value (Gross)..................... 195000
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 197500

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 150000...(743)......0
Total secured debts........... 150000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................13000.....270.......9.99
credit card....................6000......150.......15.9
credit card....................5400......108.......15.9
catalogue......................166.......20........0
credit card....................1965......44........9.99
old capital one debt ..........900.......10........0
hm revenue & customs...........293.8.....0.........0
old sky debt...................141.......10........0
old electric debt..............235.......47........0
old gas debt...................188.......46........0
overdraft......................260.......20........0
credit card....................3103......78........0
credit card....................3814......80........0
overdraft......................450.......0.........0
overdraft......................1000......0.........0
overdraft......................1000......0.........0
credit card....................1000......30........17.9
credit card....................3800......110.......0
Total unsecured debts..........42715.8...1023......-

Monthly Budget Summary
Total monthly income.................... 1,886
Expenses (including secured debts)....... 1,848.05
Available for debt repayments........... 37.95
Monthly UNsecured debt repayments....... 1,023
Surplus(deficit if negative)............ -985.05

Personal Balance Sheet Summary
Total assets (things you own)........... 197,500
Total Secured debt...................... -150,000
Total Unsecured debt.................... -42,715.8
Net Assets.............................. 4,784.2

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.[/font]

======== Enter any other useful information below ========
2 adults, 2 children aged 4 and 7months. also another at weekends. 2 cars, also Child support payment £108.00. Partner self-employed so based his income on an average. Totally desperate. Using credit to live on and pay other credit, reaching end of road now.

Magical30

Took me ages to get the courage to post. Considered a dmp but don't have any income left. Was thinking of increasing hours on my return to work as on maternity leave. I currently work weekends so my partner has kids.
Think we may lose the house? If creditors make me bankrupt? Have not missed a payment on anything yet. My partner had a few old bits of credit that have caught up with us through colection agencies. Anyone got any ideas please

saintly_2

hi

i didnt want to read and run

well done for making the 1st step, there are some wonderful people on here who will be able to help you.

good luck with your journey

xx

beer_tins

I'm sure other's will post with advice, but your minimum debt repayments are so high, you can't really tweak them out of your budget (though you should tighten that too if you can). You will have to go on a DMP. Can either of you do extra hours/weekend jobs? Make sure you keep up mortgage payments and council tax. Are you on a repayment mortgage? If so, consider going on an interest only mortgage for a while.

Piquant_2

Well done Magical for posting, that's the worst step over, you've been really brave!!

I think there are ways to cut back, I don't think it's all despair. The experts will be along soon to help you.

I'll pop back for support purposes :hello:

Empty_pockets

Well done for posting. I flirt with this site now and again. I've been struggling with debt for years, think I'm heading in the right direction now.

Good luck.

Jesthar

Hi, Magical, and welcome - congratulations on posting your SOA and asking for help.

You may be looking at a Debt Management Plan with this one, I think, as you are so far short of being able to pay your debts each month. There are plenty of people whi can give you better advice that I on that, though, so let's have a lok at your SOA:

Magical30 wrote: »

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 530
Partners monthly income after tax....... 1000
Benefits................................ 356
Other income............................ 0
Total monthly income.................... 1886

Monthly Expense Details
Mortgage................................ 743
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 94
Electricity............................. 58.75 - seems high, can you change supplier and/or cut useage?
Gas..................................... 50- seems high, can you change supplier and/or cut useage?
Oil..................................... 0
Water rates............................. 24.81 - not too bad for a family your size if you're on a meter, might be a few pounds to be saved here with care
Telephone (land line)................... 20
Mobile phone............................ 90 :eek: - this is VERY high
TV Licence.............................. 11.5
Satellite/Cable TV...................... 0
Internet Services....................... 12.99
Groceries etc. ......................... 340 - This is very high, I only spend about £50 a month on food for me and eat VERY well, and that's without buying Value brands. Check the old Style Moneysaving boards for ideas and inspiration on how to halve this bill.
Clothing................................ 20
Petrol/diesel........................... 150
Road tax................................ 20
Car Insurance........................... 52
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 39
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 34
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 5
Entertainment........................... 28
Holiday................................. 0
Emergency fund.......................... 25
Total monthly expenses.................. 1848.05

Assets
Cash.................................... 0
House value (Gross)..................... 195000
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 197500

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 150000...(743)......0
Total secured debts........... 150000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................13000.....270.......9.99
credit card....................6000......150.......15.9
credit card....................5400......108.......15.9
catalogue......................166.......20........0
credit card....................1965......44........9.99
old capital one debt ..........900.......10........0
hm revenue & customs...........293.8.....0.........0
old sky debt...................141.......10........0
old electric debt..............235.......47........0
old gas debt...................188.......46........0
overdraft......................260.......20........0
credit card....................3103......78........0
credit card....................3814......80........0
overdraft......................450.......0.........0
overdraft......................1000......0.........0
overdraft......................1000......0.........0
credit card....................1000......30........17.9
credit card....................3800......110.......0
Total unsecured debts..........42715.8...1023......-

Monthly Budget Summary
Total monthly income.................... 1,886
Expenses (including secured debts)....... 1,848.05
Available for debt repayments........... 37.95
Monthly UNsecured debt repayments....... 1,023
Surplus(deficit if negative)............ -985.05

Personal Balance Sheet Summary
Total assets (things you own)........... 197,500
Total Secured debt...................... -150,000
Total Unsecured debt.................... -42,715.8
Net Assets.............................. 4,784.2

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.[/font]

======== Enter any other useful information below ========
2 adults, 2 children aged 4 and 7months. also another at weekends. 2 cars, also Child support payment £108.00. Partner self-employed so based his income on an average. Totally desperate. Using credit to live on and pay other credit, reaching end of road now.

I'm sure others will have more suggestions. One other thing I can think of - have you ever had charges applied on your back account, credit cards or store cards? If so, you can look at reclaiming them, and should do this as a matter of urgency. You have several small debts which could readily be paid off in full with what you might get back, which would help a lot!

~Jes

Magical30

Thanks fo the replies. I did try the CCCS debt remedy, but says we don't have any income left to do a dmp. My partner is self-employed and averages 1000 permonth, someimes less, sometimes more (not often). The debts have increased by nearly 20k in last year since we brought a house, we can't really afford.
I currently work weekends. My partner has kids, he's not happy about me working all weekend. And doesn't understand we really need the money. He keeps saying he'll be earning moe, but no evidence of it!
Have switched gas and electricity suppliers, so now have outstanding debts with old duppliers to add to worries. Only have heating on in morning for 2 hours and the same in evening. Very cold house, but have been wrapping up warm.
I know mobile usage is high, partner insists he needs to keep that mobile number for business, when i suggested pay as you go.
I have a baby in nappies and i do jarred baby food, so the bare minimum i can get food down to is 70 per week. Its so hard.

Maysie

you can take you mobile number with you its easy i just rang my provider and asked for pac code. They gave it i rang new network gave it them was changed over within 2 days i did not notice when it changed over it just switched off old sim and trasnferred number to new sim.

Now have a skype mobile pay as you go with three network. My boyfriend has one to its free to use the skype part to each other. Perfect as he lives far away. WE can message each other for free to. Three part for normal calls 12p per minute or per text. You only have to put on £10 creidt with 3 every 3 months. Got 2 phones for £99 went through quidco and got £11 cashback i think it was. Could use the skype part before putting on credit they give you a month to put some one.

tyllwyd

Unless you think your income will drastically increase soon, I can't see how a DMP is going to solve your problems. You've got about £40 per month to put towards your debt - so even if you don't pay interest, that's 1050 months before you could pay it off, so 87 years. I think you should phone up one of the debt advice charities so they can give you full advice on your situation. You might find that bankruptcy would be painful, but it might be all over and done with a lot sooner than a DMP.

Jesthar

Magical30 wrote: »

I currently work weekends. My partner has kids, he's not happy about me working all weekend. And doesn't understand we really need the money. He keeps saying he'll be earning moe, but no evidence of it!

Magical,

Sounds like he has his head well and truly buried in the sand - either that or he has no idea what your finances are like at the moment! I would suggest you need to print out your statement of affairs and make him sit down and go through it with you - he really needs to have his lightbulb moment, or you'll be risking losing your house. Put the scary numbers in bold and/or red if you think it will help, he NEEDS to understand you can't carry on as you are.

I'd still suggest you pop over to to the Old Style board and see what they can help you with household and food wise - they really are near-miracle workers, and every little is going to help! And Maysie is right about being able to transfer mobile numbers.

*hugs* Hope it goes well!

~Jes