Help with best action for 72K Debt!!

pmurray

I am new to this forum, so please bare with me. Having spent weeks trying to decide what to do with my 72K Debt of which all but 9K is credit cards. The 9k is an unsecured bank loan, I need to make a decision on the best way forward as I will be unable to pay minimum payments next month and will miss my loan repayment also. I have looked at Debt management plans, but dont think I have enough left to pay one. I have also looked at Trust Deeds and while this seems my only option am now worried who I should use to do this.

I got myself into this situation as I bought a property that needed renovated, spent the money on it and now can not sell it. I know I have the option of renting it but that then means that the money will definately be tied up for the term of the lease etc etc.

Any help would be appreciated. As suggested I have attached a statement of affairs, hope I am doing this ok. Let me know if I am not. Just some more info, I lost my job back in July and have been using savings to get buy which are now finished. I will not be able to work for the forseable future as my Husband is disabled and I need now to stay at home to care for him......that is why my only income is benefits. This is not how I wanted things to be and while my husband has been unable to work for 20 years now (MS when he was 30) I had continued to work succesfully for thoes 20 years.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 1574.82
Other income............................ 0
Total monthly income.................... 1574.82
Monthly Expense Details
Mortgage................................ 350
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 0
Management charge (leasehold property).. 20
Council tax............................. 30
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 35
Mobile phone............................ 20
TV Licence.............................. 12
Satellite/Cable TV...................... 20
Internet Services....................... 10
Groceries etc. ......................... 120
Clothing................................ 10
Petrol/diesel........................... 80
Road tax................................ 20
Car Insurance........................... 40
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 38
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 17
Life assurance ......................... 71
Other insurance......................... 10
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1003

Assets
Cash.................................... 0
House value (Gross)..................... 130000
Shares and bonds........................ 0
Car(s).................................. 7000
Other assets............................ 0
Total Assets............................ 137000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 89000....(350)......5.75
Total secured & HP debts...... 89000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Bank Loan......................9000......1322......8.9
Barclaycard....................595.......11........0
Barclaycard....................5583......150.......0
Virgin.........................7326......152.......0
Sainsburys.....................5967......136.......0
Mint...........................1942......43........0
MBNA...........................2825......44........0
MBNA...........................3937......97........0
Marks & Spencer................3686......93........0
John Lewis.....................6739......205.......0
Halifax........................5796......98........0
Egg............................8705......173.......0
Overdraft......................4000......0.........0
Capital One....................3268......87........0
Total unsecured debts..........69369.....2611......-

Monthly Budget Summary
Total monthly income.................... 1,574.82
Expenses (including HP & secured debts). 1,003
Available for debt repayments........... 571.82
Monthly UNsecured debt repayments....... 2,611
Amount short for making debt repayments. -2,039.18
Personal Balance Sheet Summary
Total assets (things you own)........... 137,000
Total HP & Secured debt................. -89,000
Total Unsecured debt.................... -69,369
Net Assets.............................. -21,369
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

St0lli

Hiya, firstly take a deep breath and take some time to fill in a SOA at http://www.makesenseofcards.com/soacalc.html This will give people some idea of how to help you and see what your true situation is. Keep posting on this thread and I'm sure you will get lots of advice soon

Good luck!

savingholmes

Hi perhaps a good place to start would be national debtline and CCCS both of whom provide free impartial advice on the best way forward. It sounds highly likely you will need professional advice with that amount of debt.

If you want us to comment on where you can make cut backs to make your money go further it would help us if you posted a statement of affairs using the soa calculator at makesenseofcards (another website). You then put in all your info and reformat it at the end for mse (here) and then copy and paste it here.

We will then offer some feedback (some of which will be kind and some not, some sound and some not - take it as well meaning advice)

To look at which debts would be best to pay first you can use the snow ball calculator at the website what's the cost - that can stay private. You put in how much you have available to pay off your debts and it will tell you which to pay off first and how long it will take you. You need your current debt levels, apr's and minimum payment info before you begin that...

Hope that helps get you started.

Good luck and well done for starting the journey - I've paid off loads since I joined in July - it is doable! Hypno and others had worse debts than you when they began and they set us a fantastic example of what can be achieved if you work at it...

pmurray

Thanks for all that immediate help. I will do all that and get back to you, its good to know that others are out there I have sat at the computer for days, just crunching numbers and as always getting the same answer.....I am skint and in major debt.

elsie52

Hi

You are not alone with bigs debts...just look at my signature figures and you will see that we were also in that situation a year ago. We went on a DMP and its turned us around.

Post your SOA as the previous posters suggested and you will get all the help and advice you could wish for.

Its not the end of the world, things can be sorted. Take heart, and keep posting.

thenightporter

We're in a similar position wrt the total debt, I've just had a month out of work & now a close to 50% paycut which means that we've had to take immediate action.

Last month we only paid token amounts to the creditors, and are planning to do the same this month before we start a DMP with CCCS (as soon as I get my first wage slip). Our DFD (if the creditors cooperate) is in 9 years time (would've been 5 on previous salary). We want too ride the recession out & hopefully see a recovery in salaries which would knock a few years off the DFD.

MissKJ

I owe more than you, for similar reasons. If only we could turn the clock back eh? But we cant. So we look forward, tomorrow the sun will rise, and you will still owe £72,000. But you can change the outlook, and plan for your future. I am on a DMP now, and I never thought my 8 creditors would except such low payments as I have two mortgages. But half so far have. It gives breathing space. But a DMP is only one remedy and many people get out of debt by budget, budget and budget ! This is where to start.

Good luck and well done for taking the first step

St0lli

Don't worry I'm almost at the same amount of debt and I'm a single parent. I've got my appointment with CCCS next week and I'm still going through periods of feeling very depressed and anxious with the debt but at least we are dealing with it and taking control. As soon as you get your SOA posted up I'm sure you will get some helpful advice.

Chin Up!

MissKJ

St0lli wrote: »

Don't worry I'm almost at the same amount of debt and I'm a single parent. I've got my appointment with CCCS next week and I'm still going through periods of feeling very depressed and anxious with the debt but at least we are dealing with it and taking control. As soon as you get your SOA posted up I'm sure you will get some helpful advice.

Chin Up!

You poor thing.Please try not to feel too depressed and anxious (she says, suffering the same fate herself:rolleyes: ) I am just a little ahead of you, and belive me, it is always theer in your head, but at least you will feel in control and less stressed once the initialphone calls stop. Just keep coming here, and don't be bullied by any creditors. Life goes on.

I have a hubby, but because of the money thing he is having to work away, so i am effectively a working single parent in the emotional sense. I worked a 62 hour week last week. I do everything anyway, nothing has really changed except adult company :rotfl: