Help This New Wannabee!! :(

paulmorrisjcp

Hi there,

A new wanabee debt free person here. I am 25 year old from Newcastle and in approximately £7500 worth of debt of which £2500 is an unsecured loan. Im afraid ive been a very silly boy and have ignored letters and phone calls for about 5 years and this has resulted in CCJs which i also failed to keep up payments with. I currently live at home and have sent letters recently to creditors with a budget sheet attached and made offers of payment which some refused, and some just ignored.

I seriously am tired of sleepless nights, stress and worrying so need and want to do something about this. I have received a letter containing a stat demand for bankruptcy which appears may have been a scare tactic as i havent heard anything since and this was 6 weeks ago. Ive spoke to CCCS and debt management helpline but they dont seem to be able to do anything as my creditors have passed it onto DCA's and some of it is missed CCJs and so forth. So i am in a bit of a pickle!

Ideally, id like to take out a loan to cover it all and make one monthly payment. But i cant get a loan. cant get a credit card to put it on, it looks as though the only option is bankruptcy which is a depressing thought. Can anyone who has been in same situation help me or offer advice?

I would be greatly greatly appreciative.
Thanks
Paul

RAS

Do a Statement of Account so we can see what the full situation is.

http://www.makesenseofcards.com/soacalc.html

This is a sort of summary of your monthly finances, and helps the wonderful people here work out where you can make savings and how you can best pay off your debt. Fill out absolutely EVERYTHING as honestly as you can (you can always revise it later if you forget something), then use the 'MSE' button in the 'Format results' section near the bottom. That will give you a version of the results you can copy and paste straight into a new post in this thread, and people can get to work helping you sort things out.

In the short term do not prod the hornet's nest. If some of this debt is 7years old, it may be or shortly be statute barred, although that does not count if you have CCjs.

paulmorrisjcp

Hi,

Here is my statement of affairs. hope ive done this right!

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1069
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1069

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............................ 75
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 10
Groceries etc. ......................... 10
Clothing................................ 20
Petrol/diesel........................... 140
Road tax................................ 20
Car Insurance........................... 83
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 12
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Gym Membership.......................... 55
Total monthly expenses.................. 790

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1500

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Unsecured Loan.................2500......233.......0
Halifax Debt...................1763......0.........0
Capital One....................700.......0.........0
CCJ............................500.......0.........0
Magistrates Fine...............180.......0.........0
Black Horse....................2000......0.........0
Total unsecured debts..........7643......233.......-

Monthly Budget Summary
Total monthly income.................... 1,069
Expenses (including secured debts)....... 790
Available for debt repayments........... 279
Monthly UNsecured debt repayments....... 233
Surplus(deficit if negative)............ 46

Personal Balance Sheet Summary
Total assets (things you own)........... 1,500
Total Secured debt...................... -0
Total Unsecured debt.................... -7,643
Net Assets.............................. -6,143

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

paulmorrisjcp

The loan still has 21 monthly payments left at a total of £233 per month. Not 100% sure of the APR's, would have to dig out the finance pack from the loan company at home.

RAS

Well done

paulmorrisjcp wrote: »

Hi,

Here is my statement of affairs. hope ive done this right!

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1069
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1069

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............................ 75 - this is massive and can be cut back a lot.
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 10
Groceries etc. ......................... 10
Clothing................................ 20
Petrol/diesel........................... 140
Road tax................................ 20
Car Insurance........................... 83 - do you have points? otherwise check the comparison sites and swap with a cashback site as this is high.
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 12
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Gym Membership.......................... 55 - whats the contract term?
Total monthly expenses.................. 790

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1500

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Unsecured Loan.................2500......233.......0
Halifax Debt...................1763......0.........0
Capital One....................700.......0.........0
CCJ............................500.......0.........0
Magistrates Fine...............180.......0.........0
Black Horse....................2000......0.........0
Total unsecured debts..........7643......233.......-

Monthly Budget Summary
Total monthly income.................... 1,069
Expenses (including secured debts)....... 790
Available for debt repayments........... 279
Monthly UNsecured debt repayments....... 233
Surplus(deficit if negative)............ 46

Personal Balance Sheet Summary
Total assets (things you own)........... 1,500
Total Secured debt...................... -0
Total Unsecured debt.................... -7,643
Net Assets.............................. -6,143

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

How llong since you paid on each of these debts?

Do you have any stuff that you can sell on amazon, e-bay or at a car boot sale?

Do you absolutely need a car?

If you sort out the car insurance and the phone, you can save up enough to pay off the magistrates fine in two months.

paulmorrisjcp

Hi,

im afaid to say i buried my head in the sand and ignored letters etc so it has been quite a while since i paid on any of the debts other then the unsecured loan which i havent missed a payment on.

I dont have anything which i could sell, i literally dont own anything other then the clothes on my back and my car. The car is needed, i travel 60 miles daily to and from work and go to meetings all over the country, plus im only a year into a career which the company support me academically at uni so cant risk rocking the ship and telling them i cant go to meetings due to lack of car or heaping extra expense of them and getting me a flight to where ever i need to be.

The mobile phone, i upgraded the contract 2 months ago and now tehy say i cant lower my tariff until month 9 of the contract so cant get that expense down.

RAS

paulmorrisjcp wrote: »

The mobile phone, i upgraded the contract 2 months ago and now tehy say i cant lower my tariff until month 9 of the contract so cant get that expense down.

Yet. Put it in your diary.

Ok do you understand the statute of limitations? means that if you have not paid towards a debt for 6 years, the debt is not enforceable in the courts and you can choose whether or not to pay.

paulmorrisjcp

loaner wrote: »

21 months at 233 is getting on for 5k, a hefty apr for a 2.5k loan. You need to find out all the apr's and deal with the magistrates fine asap

The loan was over 24 months @ 233.43 per month so works out at £5602 if my maths is any good so yeah it is a hefty apr. The magistrates fine is sorted so that can be removed from the SOA. i caved in to the threat of bailfifs knocking on my door and paid that from xmas money saved up about 2 hours ago.

Apologies for putting it on SOA.

paulmorrisjcp

RAS wrote: »

Yet. Put it in your diary.

Ok do you understand the statute of limitations? means that if you have not paid towards a debt for 6 years, the debt is not enforceable in the courts and you can choose whether or not to pay.

I will put that it in my calendar now.
I havent heard of statute of limitations before.
I guess itd be extremely hard to find out when a payment was last made to some of my creditors as they go back to when i was 18

RAS

And how old are you now?

paulmorrisjcp

RAS wrote: »

And how old are you now?

im 25 now.
26 in March.

I really couldnt be sure when i last paid on the capital one debt which was from when i was 18/19.

and i dont think i have ever made a payment to halifax