Please help, what to do?

dav_blackpool

Hi everyone,

Have been reading for a while, but now plucked up courage to ask for help .

Sorry if I go on a bit, but I'm in a really bad place and not quite sure what to do..

I'm 20 years old, and somehow have racked up £10k of debt and don't really have anything to show for it, just my own stupidity.

I've contacted CCCS who did a budget with me, which is all fine, except they told me beacuse I don't have any disposable income I am not elegible for a DMP or IVA, and to write to creditors offering amounts of as little as £1 per month repayments.

The only problem is that none of my creditors have actually responded to these letters and just keep hounding me for money that I haven't got.

I've done an SOA as suggested on other threads - this is below... One option I am seriously considering is bankruptcy, I just feel I have no life, I can't even afford to buy food some weeks - and its just really stressing me and straining my relationship at home (OH is really good with money and isn't supportive at all on this subject).

Does any one think BR is the way to go? I just feel that I am never going to get my head above water again...

SOA:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 3
Number of children in household.........
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 925
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 925

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 96
Rent.................................... 238
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 15
Mobile phone............................ 20
TV Licence.............................. 0
Satellite/Cable TV...................... 15
Internet Services....................... 15
Groceries etc. ......................... 200
Clothing................................ 30
Petrol/diesel........................... 200
Road tax................................ 10
Car Insurance........................... 60
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 20
Emergency fund.......................... 0
Total monthly expenses.................. 954


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


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 3250.....(96).......44.8
Total secured & HP debts...... 3250......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Capital One....................400.......50........0
Welcome Finance................2300......46........0
Littlewoods....................1200......50........0
Kwik Fit (car ins).............60........0.........0
Swinton (car ins)..............280.......0.........0
Abbey..........................480.......0.........0
HSBC...........................500.......0.........0
TalkTalk.......................190.......0.........0
Provident......................350.......40........0
Payday Loan....................200.......50........0
Orange.........................900.......50........0
Total unsecured debts..........6860......286.......-


Monthly Budget Summary
Total monthly income.................... 925
Expenses (including HP & secured debts). 954
Available for debt repayments........... -29
Monthly UNsecured debt repayments....... 286
Amount short for making debt repayments. -315

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -3,250
Total Unsecured debt.................... -6,860
Net Assets.............................. -6,860

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

Sorry for such long post, all help is really appreciated.

Thank you

David x

tigerfeet2006

Welcome to the board

dav_blackpool wrote: »

Hi everyone,

Have been reading for a while, but now plucked up courage to ask for help .

Sorry if I go on a bit, but I'm in a really bad place and not quite sure what to do..

I'm 20 years old, and somehow have racked up £10k of debt and don't really have anything to show for it, just my own stupidity.

I've contacted CCCS who did a budget with me, which is all fine, except they told me beacuse I don't have any disposable income I am not elegible for a DMP or IVA, and to write to creditors offering amounts of as little as £1 per month repayments.

The only problem is that none of my creditors have actually responded to these letters and just keep hounding me for money that I haven't got.

I've done an SOA as suggested on other threads - this is below... One option I am seriously considering is bankruptcy, I just feel I have no life, I can't even afford to buy food some weeks - and its just really stressing me and straining my relationship at home (OH is really good with money and isn't supportive at all on this subject).

Does any one think BR is the way to go? I just feel that I am never going to get my head above water again...

SOA:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 3 Who are they?
Number of children in household.........
Number of cars owned.................... 2 Are these yours?

Monthly Income Details
Monthly income after tax................ 925
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 925

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 96 Is this a car?
Rent.................................... 238
Management charge (leasehold property).. 0
Council tax............................. 0 Do you not pay this?
Electricity............................. 0 ditto?
Gas..................................... 0 ditto?
Oil..................................... 0
Water rates............................. 0 ditto?
Telephone (land line)................... 15
Mobile phone............................ 20
TV Licence.............................. 0 ditto?
Satellite/Cable TV...................... 15 Or will not allow on the SOA. It will ve to come from surplus
Internet Services....................... 15 Or will not allow on the SOA. It will ve to come from surplus unless essential for work.
Groceries etc. ......................... 200
Clothing................................ 30
Petrol/diesel........................... 200 you may need to prove usage so start keeping reciepts. Is it this high because of work?
Road tax................................ 10 low
Car Insurance........................... 60 quite high may need to proove
Car maintenance (including MOT)......... 10 low
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0 you need this for your belongings. Make sure it has accidental damage.
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5 some allow, some don't. Leave and see.
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 20
Emergency fund.......................... 0
Total monthly expenses.................. 954


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


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 3250.....(96).......44.8
Total secured & HP debts...... 3250......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Capital One....................400.......50........0
Welcome Finance................2300......46........0
Littlewoods....................1200......50........0
Kwik Fit (car ins).............60........0.........0
Swinton (car ins)..............280.......0.........0
Abbey..........................480.......0.........0
HSBC...........................500.......0.........0
TalkTalk.......................190.......0.........0
Provident......................350.......40........0
Payday Loan....................200.......50........0
Orange.........................900.......50........0
Total unsecured debts..........6860......286.......-


Monthly Budget Summary
Total monthly income.................... 925
Expenses (including HP & secured debts). 954
Available for debt repayments........... -29
Monthly UNsecured debt repayments....... 286
Amount short for making debt repayments. -315

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -3,250
Total Unsecured debt.................... -6,860
Net Assets.............................. -6,860

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

Sorry for such long post, all help is really appreciated.

Thank you

David x

hope some of that helps. If you could answer the queries for me.

dav_blackpool

Hi Tigerfeet, wow thanks for replying so fast,

I've copied my SOA in below and answered the questions for you:

Household Information
Number of adults in household........... 3 Who are they?- I share with my partner and we have a lodger. The rent is paid evenly across all 3 of us and we have a separate tenancy agreement each.
Number of children in household.........
Number of cars owned.................... 2 Are these yours?- 1 is mine but is HP as below, the other belongs to OH.

Monthly Income Details
Monthly income after tax................ 925
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 925

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 96 Is this a car? Yes - Black Horse
Rent.................................... 238
Management charge (leasehold property).. 0
Council tax............................. 0 Do you not pay this?- All Elec, CTax, Gas, Water & TV licence is included in my rent, but isn't actually on agreement?
Electricity............................. 0 ditto?
Gas..................................... 0 ditto?
Oil..................................... 0
Water rates............................. 0 ditto?
Telephone (land line)................... 15
Mobile phone............................ 20
TV Licence.............................. 0 ditto?
Satellite/Cable TV...................... 15 Or will not allow on the SOA. It will ve to come from surplus
Internet Services....................... 15 Or will not allow on the SOA. It will ve to come from surplus unless essential for work.
Groceries etc. ......................... 200
Clothing................................ 30
Petrol/diesel........................... 200 you may need to prove usage so start keeping reciepts. Is it this high because of work? - High usage because of work - travel 90 mile round trip daily, receipts wont be an issue.
Road tax................................ 10 low I pay £120 ish a year so just broke it down.
Car Insurance........................... 60 quite high may need to proove - can prove, just a young driver. have got TPFT insurance to keep as low as possible with 1 yr no claims.
Car maintenance (including MOT)......... 10 low - Is £20 acceptable?
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0 you need this for your belongings. Make sure it has accidental damage. -I will get quotes online and sort some out before going any further.
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5 some allow, some don't. Leave and see.
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 20
Emergency fund.......................... 0
Total monthly expenses.................. 954

Thanks for looking at this for me - i really appreciate it.

Davidx

Costus

dav_blackpool wrote: »

Hi everyone,

Have been reading for a while, but now plucked up courage to ask for help .

Sorry if I go on a bit, but I'm in a really bad place and not quite sure what to do.. Well done for acknowledging you have a debt problem & not ignoring it.

I'm 20 years old, and somehow have racked up £10k of debt and don't really have anything to show for it, just my own stupidity.

I've contacted CCCS who did a budget with me, which is all fine, except they told me beacuse I don't have any disposable income I am not elegible for a DMP or IVA, and to write to creditors offering amounts of as little as £1 per month repayments.

The only problem is that none of my creditors have actually responded to these letters and just keep hounding me for money that I haven't got. Write a letter explaining your circumstances & include a cheque for £1, when they cash it, which they will, you have proof that your creditor has recieved your letter, keep copies of what you have sent.

I've done an SOA as suggested on other threads - this is below... One option I am seriously considering is bankruptcy, I just feel I have no life, I can't even afford to buy food some weeks - and its just really stressing me and straining my relationship at home (OH is really good with money and isn't supportive at all on this subject).

Does any one think BR is the way to go? I just feel that I am never going to get my head above water again... BR and its long term effects are to be taken very seriously, from our own point of view it was the very last option available to us. You are in a situation where you do have debt and you are struggling, you know your own business better than anyone else but if i were you i'd maybe look at every concievable option open to you, even maybe moving back home with your parents for a while (i know it seems like a backward step), but you could possibly explain your situation to them including that you are considering BR and ask if they would accept a small token contribution to rent and plough every last penny into paying off your creditors. I don't mean to sound like i'm being condescending, but at 20 you have your whole life in front of you, whilst £10,000 is alot of money imagine paying off what you pay in rent & groceries currently to your creditors, you could be debt free in no time.
This is only my opinion and you may well tell me to mind my own business and like i said you know your business better than me, but your situation reminds me alot of mine when i was your age when i made many wrong decisions, when looking back i could of gone back home and cleared my debts and i now wouldn't be BR.

SOA:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 3
Number of children in household.........
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 925
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 925

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 96
Rent.................................... 238 i think you should break this down correctly for BR into gas, elec, council tax etc..
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 15
Mobile phone............................ 20
TV Licence.............................. 0 12
Satellite/Cable TV...................... 15
Internet Services....................... 15
Groceries etc. ......................... 200
Clothing................................ 30
Petrol/diesel........................... 200
Road tax................................ 10
Car Insurance........................... 60
Car maintenance (including MOT)......... 10 20 at least
Car parking............................. 0 parking when shopping?
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10 15 i think your allowed per person
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0 def get will allow £25 i believe
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 20
Emergency fund.......................... 0 we were allowed 40 as a couple
Total monthly expenses.................. 954


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


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 3250.....(96).......44.8
Total secured & HP debts...... 3250......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Capital One....................400.......50........0
Welcome Finance................2300......46........0
Littlewoods....................1200......50........0
Kwik Fit (car ins).............60........0.........0
Swinton (car ins)..............280.......0.........0
Abbey..........................480.......0.........0
HSBC...........................500.......0.........0
TalkTalk.......................190.......0.........0
Provident......................350.......40........0
Payday Loan....................200.......50........0
Orange.........................900.......50........0
Total unsecured debts..........6860......286.......-


Monthly Budget Summary
Total monthly income.................... 925
Expenses (including HP & secured debts). 954
Available for debt repayments........... -29
Monthly UNsecured debt repayments....... 286
Amount short for making debt repayments. -315

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -3,250
Total Unsecured debt.................... -6,860
Net Assets.............................. -6,860

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

Sorry for such long post, all help is really appreciated.

Thank you

David x

I agree with everything Tigerfeet has put above.

Hope this helps