where do I start

paulpaulson

Hello, I am trying to find a way out of my debts but I am struggling. I am trying to find out if bankruptcy, IVA or DMP ( if anyone would give me the best advice on finding resources on DMP etc). I have posted a SOA and trying to find out where to find the extra income from… (with no option etc)…..




Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget SummaryAmount(£)
Total monthly income1,500
Monthly expenses (incl. HP & secured loans) 1,131
Available for debt repayments369
UNsecured debt repayments900
Amount short for making debt repayments-531
Personal Balance Sheet SummaryAmount(£)
Total Assets (things you own)1,300
Total Secured & HP Debt-0Total Unsecured Debt-12,040
Net Assets-10,740

Household Information

Number of adults in household1
Number of children in household
Number of cars owned1
Income, Expense, Debt & Asset Details

IncomeAmount(£)Monthly income after tax1500
Partners monthly income0
Benefits0
Other income0
Total monthly income1500
ExpensesAmount(£)
Mortgage0
Secured/HP loan payments0
Rent520
Management charge (leasehold property)0
Council tax90
Electricity30
Gas20
Oil0
Water Rates0
Telephone (land line)0
Mobile phone19
TV Licence11
Satellite/Cable TV0
Internet services12
Groceries etc.100
Clothing20
Petrol/diesel150
Road tax20
Car Insurance32
Car maintenance (including MOT)20
Car Parking0
Other travel0
Childcare/nursery0
Other child related expenses0
Medical (prescriptions, dentists, opticians etc.)30
Pet Insurance/Vet bills0
Buildings Insurance0
Contents Insurance0
Life Assurance0
Other Insurance0
Presents (birthday, christmas etc.)0
Haircuts12
Entertainment25
Holiday20
Emergency Fund0
Total monthly expenses1131
Secured & HP Debt DescriptionDebt(£)Monthly(£)APR(%)
Mortgage0 (0) 0
Secured & HP Debt totals0 - -
Unsecured Debt DescriptionDebt(£)Monthly(£)APR(%)
CC20000 300 14
Loan 20000 400 10
Overdraft 12000* 200 14
Unsecured Debt totals 520000 900 - Asset DescriptionValue (£)
Cash0
House Value (Gross)0
Shares and bonds0
Car(s)1300
Other assets (e.g. endowments, jewellery etc) 0
Total Assets 1300

poorandindenial

OOps - it has gone a bit wonky, could you repost and make sure you use the format for MSE and paste everything including bits in square brackets etc and it should work OK then

Tixy

Hello

http://www.nationaldebtline.co.uk/
http://www.cccs.co.uk/
http://www.citizensadvice.org.uk/index/getadvice.htm
http://www.payplan.com/

These are the links to the recommended charity/free DMP organisations. There is usually a link at the top of the DFW forun but we are having a few technical changes today.
This also may be why your SOA has come out a bit jumbled.

Can you edit your post and enter returns at the end of each line so its a bit clearer. Then we can give you some advice or pointers.

paulpaulson

Hi tried to re-edit (I copied the SOA from a word document hence I guess it went a bit "waky" I will try and do a new SOA and I will make sure all will be back in working order. I know probably bankruptcy might be the best option as I do not own an house etc. But I would like ( i know some might think I am mad) to try and re-pay some of the debts back (regardless of what got me in this situation I would feel better with myself if I would be able to at least pay something back....) but I can not honestly find a way out of it........ I have looked at the IVA but the amount is owe is well too high (the interest alone are eating my whole wage each month, and I have borrowed just to pay some of the interest). The whole thing has just got out of control in the past 3 months (before it was maneagable) .......I am in total panic, but at least I have admited to myself that I would need to do something asap before anyone start knocking on the door.......

Horace

If there is only you - then your grocery bill can be cut in half at least, do without clothes for a month or so and maybe get rid of the entertainment for a while as well - look for freebie vouchers or instead of going out for a beer invite your friends round, staying in is the new going out.

I think you need to keep a spending diary noting down everything that you buy outside of normal bills. Looking at your income and outgoings - you should perhaps put the £20 that you save each month for a holiday towards your debts.

Good luck and keep posting.

Tixy

Hi Paul. Thats much easier to read thanks.

Like Horace has said Groceries could be cut a bit. Also the medical £30 seems fairly high. Is this something specific (contact lenses or similar) or is it prescriptions? If the latter you would be better with a prepay certificate.

Petrol/diesel if high - I assume that this is needed for working/commuting? Have you read Martins article on being fuel efficent? It might help you shave a bit off.
I don't think you have a lot of excess in your spending really. I notice you haven't put anything in for contents insurance? Do you have any? You should have some for your possesions even if you are renting.

I would recommend you look at the up your income board on here to see what might fit in with your work/ time. Do you have things you could sell on ebay? Would writing music/products reviews suit you? Maybe you can fit mystery shopping in with your work?

Good luck.

paulpaulson

Thanks for your comments. Work commuting is the only way as the place of work is in the middle of nowhere (I am even contemplating buying a bikecycle ....18 miles each way)......

The medical expenses are due to 1 dental cover which is required otherwise it would be 10 times as much
2 Medical prescription, everything which has happened in the past few years, not financialy (Run of bad luck to say the least... you name it it has happened.......business adventures, relationship, family etc....) left me in pieces and I was strongly advised by my doctor to go on antidepressant.

Apart from that I do not have many outgoings to be fully honest, I literally cut down everything to the extreme...... The main worry is the interest on anything and this is where 80% of the money goes towards....hence eventually everything would just collapse...

Once again thank you for your kind advice

GeorgeUK

Council tax 90
If paying over 10 months, can you ask to pay it over 12?

Electricity 30
Gas 20
This is pretty reasonable. You could try the comparison sites to see if you are getting the best deal though (uswitch, moneysupermarket)

Mobile phone19
PAYG?

Groceries etc.100
Should be able to cut this a little - have a look at the old style board and mealplans.

Car Insurance 32
Contents Insurance0
Life Assurance0
Again, i'd look at the comparison sites again for these to see if you are getting a good deal.

How many credit cards do you have? Or is that one card with a 20k limit?
Just wondering as you may be able to get some new cards with a lower or 0% APR, but you need to be careful as some cards don't allow you to transfer to others with the same card issuer.

Have you missed any payments yet?

paulpaulson

Hi,

Electrics and Gas I have literally cut down as much as possible (ie having cold showers).

CC are with different companies, I have missed a few payments in the past 5 months (until then everything was okish)

Groceries indeed I am going to review on everything and hopefully I would start to cut down on that as well. I have had a look at the DMP/IVA/Bankrupcy as well..... from a moral point of view I would want to pay things back, as it is money which was given to me in good faith. The only issues is the interest I pay on everything, as this is where everything is going. I have had to borrow more and more just to pay off the interest and instead of decreasing my bebts everything is increasing faster and faster. I am also looking for a second job (I know it is not the best time to find a job but thanks to my skills I should be ok) and hopefully this would not help (the only concern I have is that I have a chemical unbalance, ie depression and I am worried that (although it is under control now) it might be triggered again....

Hence I am ideally looking for the DMP, I do not have any possession or anything and therefore bankarupcy would be the "easy way out" however I am fully aware that there is not one.... If some of my creditors would agree on freeze the interest I would definetely go for the DMP (it would take years but at least I would be more than happy in the end)