Self Employed and Drowning.

silvervan

I have run a shop successfully for 14 years. We had a good life out of it and bought a house.
Things started to go bad 2 years ago and we sold our house and bought a cheaper one on an interest only mortgage.
Things have got worse, I have put the 2 staff on part time and am now struggling to pay myself the £350 a week I always have done. The last few months I have paid myself 2 or 3 weeks out of every 4.

Heres My statement. Should I get an Iva? I havent missed any payments on my debts yet but I am really struggling.
Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget SummaryAmount(£)Total monthly income1,680Monthly expenses (incl. HP & secured loans)1,820Available for debt repayments-140UNsecured debt repayments605Amount short for making debt repayments-745

Personal Balance Sheet SummaryAmount(£)Total Assets (things you own)210,000Total Secured & HP Debt-135,000Total Unsecured Debt-23,200Net Assets51,800
Household Information

Number of adults in household3Number of children in household1Number of cars owned2
Income, Expense, Debt & Asset Details

IncomeAmount(£)Monthly income after tax1000Partners monthly income200Benefits480Other income0Total monthly income1680

ExpensesAmount(£)Mortgage600Secured loan payments0Hire Purchase (HP) payments200Rent0Management charge (leasehold property)0Council tax140Electricity88Gas0Oil100Water Rates40Telephone (land line)25Mobile phone0TV Licence11Satellite/Cable TV24Internet services25Groceries etc.300Clothing70Petrol/diesel50Road tax15Car Insurance23Car maintenance (including MOT)20Car Parking0Other travel0Childcare/nursery0Other child related expenses0Medical (prescriptions, dentists, opticians etc.)0Pet Insurance/Vet bills0Buildings Insurance36Contents Insurance0Life Assurance33Other Insurance0Presents (birthday, christmas etc.)20Haircuts0Entertainment0Holiday0Emergency Fund0Total monthly expenses1820

Secured & HP Debt DescriptionDebt(£)Monthly(£)APR(%)Mortgage135000(600) 5.75Hire Purchase (HP) Debt0(200)0Secured & HP Debt totals135000- -

Unsecured Debt DescriptionDebt(£)Monthly(£)APR(%)egg64001360cap 140001490littlewoods1300700a&l loan100002000intelligent fin1500500Unsecured Debt totals23200605-

Asset DescriptionValue (£)Cash0House Value (Gross)208000Shares and bonds0Car(s)2000Other assets (e.g. endowments, jewellery etc) 0Total Assets210000
Comments on the results
You do not have enough monthly income to meet your expenses and your minimum monthly debt repayments. Seek ways to increase your income and/or reduce your expenditure by £745. Whatever your results show, it always pays to seek advice or comments from others. Why not post your SOA details on our Debt Management discussion board or on your preferred discussion forum elsewhere. Thankyou for using the SOA Calculator at www.makesenseofcards.com.

poorandindenial

Hi there

Your SOA doesn't seem to have pasted properly but I will try to unpick in a mo. You do have a very large shortfall so it is worth you getting in touch with CCCS who have a specialist self employed team who will be able to tell you where you stand.

See here:http://www.moneysavingexpert.com/loans/debt-help-plan#help

silvervan

Thanks for your reply. I am crying typing this.

TismE_3

Hiya silver van,
Thanks for joining us hun x
Just tried reading through that and its hard going, i think you can post it in a more reader friendly way if you click a certain button..... .....Im sure someone will be along soon to be able to tell you which button you need to check ! :T and offer some help with cut backs!

Just wanted to say HI, and welcome you to the dfw boards........loads of help advice and most importantly support are available here, peeps are really friendly, and there are no judgements, just help and support! so your in the right place.
There is always a way forward, so hold tight and stay strong!!

Best wishes Tisme x

poorandindenial

silvervan wrote: »

I have run a shop successfully for 14 years. We had a good life out of it and bought a house.
Things started to go bad 2 years ago and we sold our house and bought a cheaper one on an interest only mortgage.
Things have got worse, I have put the 2 staff on part time and am now struggling to pay myself the £350 a week I always have done. The last few months I have paid myself 2 or 3 weeks out of every 4.

Heres My statement. Should I get an Iva? I havent missed any payments on my debts yet but I am really struggling.
Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget SummaryAmount(£)
Total monthly income1,680
Monthly expenses (incl. HP & secured loans)1,820
Available for debt repayments-140
UNsecured debt repayments605
Amount short for making debt repayments-745

Personal Balance Sheet SummaryAmount(£)
Total Assets (things you own)210,000
Total Secured & HP Debt-135,000
Total Unsecured Debt-23,200
Net Assets51,800
Household Information

Number of adults in household3
Number of children in household1
Number of cars owned2
Income, Expense, Debt & Asset Details

IncomeAmount(£)
Monthly income after tax1000
Partners monthly income200 (any chance of this going up??)
Benefits480
Other income0
Total monthly income1680

What does the third adult earn? Is it a lodger or a son/daughter?

ExpensesAmount(£)
Mortgage600
Secured loan payments0
Hire Purchase (HP) payments200
Rent0
Management charge (leasehold property)0
Council tax140
Electricity88
Gas0
Oil100 (188 on energy is high, I know that oil costs quite a bit to run but can you get the cost down at all??)
Water Rates40
Telephone (land line)25
Mobile phone0
TV Licence11
Satellite/Cable TV24
Internet services25 (£74 on phone/internet/TV - bundle them up for less than £30 or ditch the TV and bundle up the internet and phone)
Groceries etc.300 (you can probably get £50+ off this if you cook from scratch, drop a brand etc etc)
Clothing70 (you can't afford this)
Petrol/diesel50 (you drive very little, can you get rid of a car? or both cars??)
Road tax15
Car Insurance23
Car maintenance (including MOT)20
Car Parking0
Other travel0
Childcare/nursery0
Other child related expenses0
Medical (prescriptions, dentists, opticians etc.)0
Pet Insurance/Vet bills0
Buildings Insurance36
Contents Insurance0
Life Assurance33 (check comparason websites to make sure you are getting the best deal, if not then switch through quidco for cashback)
Other Insurance0
Presents (birthday, christmas etc.20
Haircuts0
Entertainment0
Holiday0
Emergency Fund0
Total monthly expenses1820

Secured & HP Debt DescriptionDebt(£)Monthly(£)APR(%)Mortgage135000(600) 5.75Hire Purchase (HP) Debt0(200)0Secured & HP Debt totals135000- -

Unsecured Debt DescriptionDebt(£)Monthly(£)APR(%)egg64001360cap 140001490littlewoods1300700a&l loan100002000intelligent fin1500500Unsecured Debt totals23200605-

Asset DescriptionValue (£)Cash0House Value (Gross)208000Shares and bonds0Car(s)2000Other assets (e.g. endowments, jewellery etc) 0Total Assets210000
Comments on the results
You do not have enough monthly income to meet your expenses and your minimum monthly debt repayments. Seek ways to increase your income and/or reduce your expenditure by £745. Whatever your results show, it always pays to seek advice or comments from others. Why not post your SOA details on our Debt Management discussion board or on your preferred discussion forum elsewhere. Thankyou for using the SOA Calculator at www.makesenseofcards.com.

Hi there

A few suggestions from me, I reckon you can get £150-200 off of this but I can't see that you will find the ful amount.

I saw you mentioned that you were thinking of an IVA - have you read Martin's guide to IVAs?

All the best working this out

poorandindenial

silvervan wrote: »

Thanks for your reply. I am crying typing this.

Aw hun, please believe me when I say that there IS a way to sort this out. I won't promise that it will be easy but there WILL be a way to deal with it and we are all here to support you whenever you need us (although we get a bit thin on the ground in the wee small hours)

TismE_3

Thanks for that poor , makes for easier reading !!:T

TismE_3

Contents Insurance0.............

This although an extra expense is a must!!
GET SOME QUOTES ONLINE , AND I PROMISE IT WONT BE AS EXPENSIVE AS YOU PROBERLY EXPECT!! SAVES AN ALFUL LOT OF HEART ACHE.
Sorry about caps but tis done now !;)

silvervan

Thankyou for working my statement out for me.

My husband and I work together, the £200 I put in for his income is for the few deliveries he does on his day off (we are trying to build this up)

The third adult is my son who works for us. I have cut his hours down to 20 a week and wish he could find another job as I cant afford him but he has applied everywhere but with no luck so far.

I live in a rural area and you cant bundle your TV, Phone and broadband together as we have no cables but I think the sky will have to go.

The £70 for clothes was my catalogue monthly payment. I havent bought clothes for about a year as there are no shops I used to buy all clothes from littlewoods extra and I owe about £1300 some of which is christmas.

The second car is my sons and he pays for that.

I am very frugal with the oil for heating but do put it on for an hour a day for hot water. If it gets really cold I have a solid fuel stove which I light.

I have got rid of my electric kettle and use the calor gas stove to heat it or the solid fueld stove if its on. I have started turning off all the plugs at the switches and closing down the computer if its left on.
My electric is dear because I was only paying £30 when I moved in and then capped it and then got a letter 6 months later to say I was behind so they put it up to £88.

Thanks again to everyone who has replied.

Poppy9

I know times are hard but does your business have to be shop based. Have you looked into taking your shop on line as well? Ebay might be a good way to off load stale stock.

If you can't afford to employ or OH or DS then you have to let them go. There are jobs out there and it will be a learning curve for you DS to get his own job even if it is working nights stacking shelves in Tesco. Don't hide the realities of your business from him.

Are there any business advisory services run in your area who could give you some advice?

Can you take your stock to local markets/ car boot sales. If yes, then task your DS with this job. Pay him only commission on what he sells!

bookseller1980

Hi
I spotted this this morning and thought I'd bump you up the list. There ARE people on here to help you so hold on in there.

I'm in much the same position as you but haven't been brave enough to put all the details on here yet. That said I've had a lot of help and loads of support from lots of people.
Good luck - I'll keep watching your thread.