Career Debt.........need to do something but need help and advice pls.

flyingsurfer

Hi all, didnt really know where to write this so ive started a new thread.

Over the last 2 years ive built up a fair amount of debt, well for my earnings it is, trying to become a commercial pilot and as there is no help out there because its not considered professional studies, all of the financing has come from cards and loans.,

The problem is the repayments are wiping out my monthly wage and have nothing left to live on.

My debts are :

hsbc 16000 loan, total still left to payu 21800 (269 per month)
egg 3440 (constantly going over limit due to charges and interest) paying 100 per month
virgin 3426 (0% runs out in may) paying 25 per month
barclaycard 580 (0% runs out in may) paying 40 per month
loan from work 4400 (paying 100 per month)
parents 11000 (i know i cant really do much about this one but it still gets a bit paid off each month) paying 100 per month

total 44646 total outgoings 634 income take home is approx 990, leaving approx 360 per month to run car 120petrol, phone30, insurance40 (190) so in theory i got 170 left, but this never happens and i keep needing to borrow off parents each month just to get to work (car braking down etc)

any ideas on how i can reduce, juggle, manage this lot without getting further into trouble.

Another job is a no go due to hours working as flying instructor and engineer when not flying.

Many thanks in advance
Paul

Appologies if posted this in wrong place.

Hazel673

Hiya. You def posted in the rigth place!! The people on here are gr8 and will be able to give you lots of help. In the meantime, I'd suggest you post a SOA (statement of affairs) on here. This will give a better idea of where money is going etc. There's a link for it somewhere. I don't know how to post links!!!

X

Hazel673

Hey I think I've done it!!!! :j Try this:

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

johncolescarr

Hi,

sounds like a tough situation.

You need to do a complete breakdown of your incommings/outgoings. A good way to do this is to use a Statement of Affairs (SOA) calculator, here is a good one

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

When you have done this, post the output on this website.

From first glance, as you say it looks as if you can satisfy the repayments and have some left over for debt repayment, however there are no incidentals listed, these can really mount up and shouldn't be overlooked.

In terms of juggling, getting cheap credit is hard at the moment, for the best deals you will need an impeccable credit history, you have mentioned that you have gone over agreed limit on one card so you may find it difficult to shift the debt onto cheap cards.

Once you have drawn up a workable budget, start repaying debts by targeting the debt with the highest APR.

John

lauradora

hi sweetie you've sure come to the right place.

Once you've got your soa done let us have a look at it and we can help you more from there,

Everyone here has been where you are right now so we all know what your going through and how to help.


where abouts do you fly from??? I started doing my ppl but as you say its a costly thing!!!

Keep chin up speak soon, laura xxx

flyingsurfer

Thanks everyone for your responses, ive filled in the SOA, please see below, it really does add up when you put it in a formate like this, ive tried to be as accurate as possible.

Hi John, you mentioned credit score, ive had a look at mine and its approx 540 so in the poor area, due to amount of credit agreements on show and amount of credit used 99%. like you say very hard now to get any new credit.

Hi Laura, yep flying is very costly, i started flying in Clacton, north essex, which is who i work for as a flying instructor, did a bit of flying up at Humberside and Doncaster for my Commercial licence. Dont give up on getting your licence, one of the best feelings in the world flying and good luck if you ever carry on with it.

Hope you can all help, but ive got a feeling ive done all i can and ive just got to try and ride the wave as such.

Thanks

Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 933
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 933
Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 100
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 14.99
Groceries etc. ......................... 50
Clothing................................ 0
Petrol/diesel........................... 120
Road tax................................ 16
Car Insurance........................... 39.5
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 12
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 9
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 481.49

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 1000

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
hsbc loan......................21800.....269.......14.9
egg card.......................3450......85........20
virgin.........................3426......25........0
private loan 3.................3260......50........0
private loan 2.................7500......75........0
private loan 1.................4430......100.......0
overdraft......................200.......0.........19
barclaycard....................580.......25........0
Total unsecured debts..........44646.....629.......-

Monthly Budget Summary
Total monthly income.................... 933
Expenses (including HP & secured debts). 481.49
Available for debt repayments........... 451.51
Monthly UNsecured debt repayments....... 629
Amount short for making debt repayments. -177.49
Personal Balance Sheet Summary
Total assets (things you own)........... 1,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -44,646
Net Assets.............................. -43,646
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

theoretica

How long do you expect it to be until you have your commercial licence?

CLAPTON

what are your income prospects like?
is your income likely to increase significantly in the near future?

flyingsurfer

Ive got the commercial now and am teaching when there is work, but due to being winter, there isnt much flying and the days arent very long. it wont be for another 4 months before i get more money for a good flying month.

Earning potential is good and should improve in the summer.

Im lucky compared to alot of pilots as i can work engineering when not flying, but engineering doesnt pay enough.

lauradora

right I can see your bind. I take it you live with your parents??

lauradora

looking at it again i think a dmp is going to be your best option. loom for cccs and the other INDEPENDANT companies who are charities and will help you without charging you!

If you scan round the dfw board and look on the 'first time posters' sticky you'll get a better idea.

let us know how it goesxxxx