debt help real desperate

jamieT_3

rog2 wrote: »

Hi Jamie - and welcome to DFW. It can be very daunting for someone to suddenly find themselves in your current circumstances - there will be many more as the recession deepens.

I know that it is easy to say, but try not to let your situation get you down - there is help out there, and coming to this forum is a good start.

It looks, to me, that you need to be trying to come to some arrangements with your creditors before the situation becomes unbearable. This may mean negociating a mortgage break, or reduced payments on some of your loans.

I would suggest that you talk, in the first instance, to one of the Debt Counselling charities, such as:

• CCCS - www.cccs.co.uk/ - tel. 0800 138 1111
• National Debtline - www.nationaldebtline.co.uk/ - tel. 0808 808 4000
• A debt adviser at your local CAB

Any of the above charities will be only too pleased to explain the many options open to you, and most will suggest the best way of contacting your creditors. They are free, professional and fully endorsed by this site.

We can offer as much support as you need, but it is also best to have a professional body working with you.

Another thing you can do is to post your SOA (Statement of Affairs) listing all your income, expenditure and debt. The good people on this forum will overwhelm you with sugestions as to how to save money on your day to day expenditure,

And RAS will be able to point you in the best direction for help.

Good luck.

hi many thanks for your advice ive been to cab and they have said that i am to fill out a soa and take it back to them this friday then if i cant afford to pay the money back then i can come to an arrangement to pay a bit back per month and go from there?

rog2

Having glanced at your SoA, I'm sure that there will be a solution that avoids the need for bankruptcy, or the loss of the family home.

Please call one of the Debt Charities.

Having been refused benefits myself I have had to take a job that pays little more than minimum wages whilst I continue to look for work. I don't enjoy it, but at least I am earning something.

jamieT_3

rog2 wrote: »

Having glanced at your SoA, I'm sure that there will be a solution that avoids the need for bankruptcy, or the loss of the family home.

Please call one of the Debt Charities.

Having been refused benefits myself I have had to take a job that pays little more than minimum wages whilst I continue to look for work. I don't enjoy it, but at least I am earning something.

i have been in contact with cab and have to fill out a soa or them then they will help me with letters to my credit cards ect to freeze payments and go fromthere but if i was to tell my secured loan i cant pay them surely they can take my house?? i have payment protection with them but i have to be recieving unemployment to get it activated and as i cant sign on then i cant get the protection

RAS

First thoughts below

jamieT wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 850
Benefits................................ 120
Other income............................ 0
Total monthly income.................... 970
Monthly Expense Details
Mortgage................................ 760 - Interest only or repayment. Can you get a payment holiday?
Secured loan repayments................. 156
Hire Purchase (HP) repayments........... 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 104 - have you claimed CTC since October?
Electricity............................. 90 - highish. Check the meter and see where you are? Then turn everything off except the fridge and frezzer and keep as much off as possible.
Gas..................................... 0
Oil..................................... 0
Water rates............................. 34
Telephone (land line)................... 20
Mobile phone............................ 60 - this is huge. Either cut the pack age to the minimum or get rid. Then go PAYG.
TV Licence.............................. 11
Satellite/Cable TV...................... 20 - get rid. Freeview.
Internet Services....................... 20 - can you bundle with the other services?
Groceries etc. ......................... 450 - massive You can certainly manage on £200 and possible £125 per month with meal planning.
Clothing................................ 50 - you simply do not need these right now.
Petrol/diesel........................... 40 -do you HAVE to have car for work?
Road tax................................ 10
Car Insurance........................... 55 - high. Check with a comparison site and then use www.quidco.com or another cashback site.
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 44 - can you look after the children instead.
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 25
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 55 - this also llooks massively high, unless one of you has a health problem. Simple term insurance is very cheap. Compare, swap and quidco.
Other insurance......................... 100 - what is this?
Presents (birthday, christmas etc)...... 50 - you cannot afford anything at the moment. Join https://www.freecycle.org.uk
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2189

Assets
Cash.................................... 0
House value (Gross)..................... 152000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 153500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 155000...(760)......4.89
Secured Debt.................. 7500.....(156)......12
Total secured & HP debts...... 162500....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
credit card lloydstsb..........6200......135.......7.95
sony credit card...............2500......50........8
overdraft......................6000......55........10
Total unsecured debts..........14700.....240.......-

Monthly Budget Summary
Total monthly income.................... 970
Expenses (including HP & secured debts). 2,189
Available for debt repayments........... -1,219
Monthly UNsecured debt repayments....... 240
Amount short for making debt repayments. -1,459
Personal Balance Sheet Summary
Total assets (things you own)........... 153,500
Total HP & Secured debt................. -162,500
Total Unsecured debt.................... -14,700
Net Assets.............................. -23,700
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

RAS

jamieT wrote: »

i have payment protection with them but i have to be recieving unemployment to get it activated and as i cant sign on then i cant get the protection

Jamie

It is absolutely essential you get this sorted. OK, because your missus is working, you will not get JSA paid, but you can sign on and it counts towards yout future benefit entitlement and statepension.

if you then get the mortgage paid, things start to look up a long way.

rog2

jamieT wrote: »

but if i was to tell my secured loan i cant pay them surely they can take my house??

Not without a fight, jamie. I'm glad you are talking with CAB - please discuss this aspect with them on Friday. You are quite a way from enforced repossession and, with the help of CAB, this can most likely be avoided.

rog2

You should, also, qualify for some help on your Council Tax - this is not dependent on JSA.

jamieT_3

re done with the exact figures

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 850
Benefits................................ 172
Other income............................ 0
Total monthly income.................... 1022
Monthly Expense Details
Mortgage................................ 760 interest only
Secured loan repayments................. 156
Hire Purchase (HP) repayments........... 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 104 havent claimed any benfit as yet
Electricity............................. 90 tried to get it down by turning everything off but key meter just doesnt seem to go down
Gas..................................... 0
Oil..................................... 0
Water rates............................. 34
Telephone (land line)................... 20
Mobile phone............................ 60 for me and wife cant get out of contract for another 12months
TV Licence.............................. 11
Satellite/Cable TV...................... 20 cable,phone and broadband 60pm for the 3
Internet Services....................... 20
Groceries etc. ......................... 400 have so tried to get it down but sons on milk free diet and its all more expense
Clothing................................ 0
Petrol/diesel........................... 30 for the month traveling to pick son up and wife from work ect
Road tax................................ 10
Car Insurance........................... 55 only been driving 2yrs and had accident in first year cheapest i could get
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 44 have to have as trying to find work ect
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 25
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 50
Other insurance......................... 50 for mortgage and unemployment payment protections but cant claim them as ive been told i cant sign on
Presents (birthday, christmas etc)...... 0
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1974

Assets
Cash.................................... 0
House value (Gross)..................... 152000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 153500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 155000...(760)......4.89
Secured Debt.................. 7500.....(156)......12
Total secured & HP debts...... 162500....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
lloydstsb credit card..........6200......130.......10
sony card......................2500......50........12
overdraft......................6000......55........4
Total unsecured debts..........14700.....235.......-

Monthly Budget Summary
Total monthly income.................... 1,022
Expenses (including HP & secured debts). 1,974
Available for debt repayments........... -952
Monthly UNsecured debt repayments....... 235
Amount short for making debt repayments. -1,187
Personal Balance Sheet Summary
Total assets (things you own)........... 153,500
Total HP & Secured debt................. -162,500
Total Unsecured debt.................... -14,700
Net Assets.............................. -23,700
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

RAS

Hi

Who tld you you cannot sign on?

Re the dairy thing, so am I and all my siblings. Actually it is the luxery items that we cannot eat, like dairy ice-cream and desserts. We can eat crap soft ice-cream made with vegetable fat.

It is about going into the supermarket and reading the ingredicents lists. I bet there is a web-site with whole lists of packaged food that is OK.

if you have been bamboozled into buying special stuff for him, stop. Ok, you might want soya milk, but otherwise, stop.

If you make food from scratch, you control the ingredients, so you can make surre you only have (safe) margerine or oil or that you use soya milk. But you can talk that through later.

Right now, call a debt charity line and get this signing -on business sorted out. That is the absolute priority.

Ames

Why were you told you can't claim JSA? I thought that you could get six months non means tested as long as you had the right amount of NI credits in the previous couple of years.