In a right mess

keir81

Hi mse,
Ive been on the site before but new to forums.
Im in a mess and dont know which way to turn. Im struggling paying all my outgoings and not got enough incomings.

I get paid around 1050 a month
My rent is 500 a month which is fine,
but 224 owning for council tax, 250 from mobile(few months), my car tax and insurance due, and on and on

My credit rating is bad, tried my bank but because of my credit rating they wont lend me anything.

Is the way out a loan or credit card or something else??

really appreicate any advice however small

thanks

poorandindenial

Hi there

Welcome to the boards :wave:

The first step is to put together a SOA (statement of affairs) of your current incomings and outgoings

If you post that up it will tell us a bit more about your situation and whether you can meet your financial committments

There is a handy calculator at www.makesenseofcards.com

10past6

Hi Keir

If you're having difficulties with your outgoing's firstly, you need to sort out your priority debts from non priority debts

Priority debts (These must be paid)

Rent / mortgage
Water
Gas / Electric
Council tax
Secured debts

No priority debts

Credit cards
Unsecured loans
Mobile phone
Etc,. etc.,

Take a look at my signature, use the link and take advice from one of the debt charities listed, in the mean time, send the following letter of to your creditors to enable to some breathing space

Your details

Creditor / DCA details

Dear Sir/Madam

Re:− Account Number XXXXXXXX

I am writing to inform you that I am seeking advice and assistance regarding our current financial difficulties.

To this end, I would appreciate if you could hold any action on the above account for a period of at least 28 days.

Also, during this period, could you please freeze interest and/or any other charges accruing on the above account.

I look forward to hearing from you as soon as possible.

Yours faithfully

keir81

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................ 800
Partners monthly income after tax....... 180
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 980
Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 495
Management charge (leasehold property).. 0
Council tax............................. 112
Electricity............................. 100
Gas..................................... 100
Oil..................................... 0
Water rates............................. 80
Telephone (land line)................... 30
Mobile phone............................ 60
TV Licence.............................. 11
Satellite/Cable TV...................... 20
Internet Services....................... 25
Groceries etc. ......................... 100
Clothing................................ 30
Petrol/diesel........................... 100
Road tax................................ 18
Car Insurance........................... 35
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 100
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 13
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1469

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

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................1000......90........0
credit card....................1100......30........22
provident......................800.......60........180
credit card....................2500......100.......39.9
provident......................1000......60........180
Total unsecured debts..........6400......340.......-

Monthly Budget Summary
Total monthly income.................... 980
Expenses (including HP & secured debts). 1,469
Available for debt repayments........... -489
Monthly UNsecured debt repayments....... 340
Amount short for making debt repayments. -829
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -6,400
Net Assets.............................. -6,400
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

keir81

thats an eye opener :-(

poorandindenial

Hi again keir

Thank you for postign your SOA - my first question is whether you are entitled to any benefits?? I think you probably should be and it is worth checking out on the entitledto website.

Can you tell us exactly what the £100 child related expenses covers too??

Is your gas and electric and water in arrears??

Mobiles need to be slashed, go PAYG and you may save quite a bit. Landline, internet and TV can be got combined for well under £30 (ideally get rid of TV altogether).

Right, I don't want to sound brutal but there is pretty much no way you will be able to free up enough to leave enough to make offers of monthly repayments for your debt repayments. I do think you should speak to one of the agencies in the link in 10past6's signature as soon as possible (tomorrow). As 10past6 said, you MUST pay your council tax and other priority debts so get in touch with them and talk them through your situation and see if you can arrange for a payment plan.

Don't worry though I know, easier said than done), whatever happens you will soon be closer to being in control and we will support you all the way. Now that you know what the situation is you can start to sort it out so you won't be in this place again.

Cleosmum

Check out entitledto as you should be getting some tax credits in there, and probably some housing and council tax benefit? Do you get child benefit?

keir81

the £100 is maintenance i pay to my ex for my daughter, i have her 3 nights & days a week my ex gets all benfits for my daughter.

i have checked and i might be able to get some benifits i shall go to the job centre to speak to someone about it.
gas electric and water is up to date

~Beanie~

keir81 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................ 800
Partners monthly income after tax....... 180
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 980
Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 495
Management charge (leasehold property).. 0
Council tax............................. 112
Electricity............................. 100 - Ridiculously high if you have no arrears, unless you live in a castle or something!
Gas..................................... 100 - As above
Oil..................................... 0
Water rates............................. 80 - Very high! Is this right?
Telephone (land line)................... 30
Mobile phone............................ 60 - this could be reduced
TV Licence.............................. 11
Satellite/Cable TV...................... 20
Internet Services....................... 25 - You are paying £75 for phone/TV/internet, you should be able to get it bundled together for far less
Groceries etc. ......................... 100
Clothing................................ 30 - Could cut this for while, wear what you have already got
Petrol/diesel........................... 100
Road tax................................ 18
Car Insurance........................... 35
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 100
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 13
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1469

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

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................1000......90........0
credit card....................1100......30........22
provident......................800.......60........180
credit card....................2500......100.......39.9
provident......................1000......60........180
Total unsecured debts..........6400......340.......-

Monthly Budget Summary
Total monthly income.................... 980
Expenses (including HP & secured debts). 1,469
Available for debt repayments........... -489
Monthly UNsecured debt repayments....... 340
Amount short for making debt repayments. -829
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -6,400
Net Assets.............................. -6,400
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

Can either of you get a second job? Sell stuff on EBay?

keir81

were going to look into changing suppliers for water, gas, electric phoone internet t.v

anyone know what sky are like for combining deals? a friend of mine joined utility warehouse and says they have saved her £200+ a month on electric gas,water, phone , internet and tv

Deep_In_Debt

Have you looked into getting a water meter? I got one fitted for free a couple of years ago and my bills have reduced from £32pm to £10pm. A meter is not suitable for all, but if you ring your local water authority, they will calculate it for you and let you know whether it would be worthwhile for you to do.

I agree with others, your electric and gas are enormous - do you leave stuff on standby? If so, switch it off. Turn down the heating if you can and wear jumpers. It all helps.