Dont know were to start - help!!

Blue11_2

Hello, i have £16k on credit cards that i carried over from a business i shut 2 years ago. These cards are in my name and not the previous company name.
The minimum payments on these cards are now getting far to much for me to cope with as my new self employed income is only a fraction of what it used to be. The worry is really getting to me and something needs to be done, can anyone suggest a starting point please. I have even considered defaulting on these cards but i dont know the implications as i dont want to upset the balance of the family home.
Any suggestions are more than welcome as i dont know were to turn.

Blue11

Cleosmum

Fill out http://www.makesenseofcards.com/soacalc.html and post up the results, thats a good place to start, Im sure you will get lots of help and advice

Blue11_2

Statement of Affairs and Personal Balance Sheet

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 700
Partners monthly income after tax....... 545
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1245

Monthly Expense Details
Mortgage................................ 475
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 155
Electricity............................. 60
Gas..................................... 90
Oil..................................... 0
Water rates............................. 33
Telephone (land line)................... 18
Mobile phone............................ 30
TV Licence.............................. 15
Satellite/Cable TV...................... 45
Internet Services....................... 0
Groceries etc. ......................... 400
Clothing................................ 0
Petrol/diesel........................... 40
Car Insurance........................... 41
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Pet insurance/vet bills................. 10
Buildings insurance..................... 15
Contents insurance...................... 16
Life assurance ......................... 30
Other insurance......................... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1473


Assets
Cash.................................... 0
House value (Gross)..................... 185000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 188000


Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 147000....(475)......
Total secured & HP debts...... 147000.....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
visa...........................6000......212...... .29.9
visa...........................5758......120...... .18.9
master card....................4242......177.......29.9

Total unsecured debts..........16000.....509......- [/b]


Monthly Budget Summary
Total monthly income.................... 1,245
Expenses (including HP & secured debts). 1,982
Amount short repayments. -737

posted_2

Even without the debts, the books don't balance, suggest you cut back on the unnecessary expenditure, insurance, mobiles, satellite, and look at reducing the power bills - 1800 is a lot unless you are paying off a deficit. food is high also, should be able to cut £150-200 off that if you shop carefully. The full costs of running a car a probably much more than your soa estimate. Realistically, you can't afford to pay the debts at those interest rates, unless you can bring some more money in from somewhere - try http://www.cccs.co.uk/

Cleosmum

Blue11 wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 700
Partners monthly income after tax....... 545
Benefits................................ 0 Have you checked tax credit entitlement? Do you get any child benefit?
Other income............................ 0
Total monthly income.................... 1245

Monthly Expense Details
Mortgage................................ 475
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 155 Can you pay this over 12 months? Can you get any help from council tax benefit?
Electricity............................. 60 Can this be reduced? Have you checked you are with the cheapest supplier? If you change go via cashback site
Gas..................................... 90 This is really high! What gas apliances do you use? What size house? If you change go via cashback site
Oil..................................... 0
Water rates............................. 33
Telephone (land line)................... 18
Mobile phone............................ 30 Is this PAYG? Can you get this down?
TV Licence.............................. 15
Satellite/Cable TV...................... 45 Can you cancel this and get freeview til things are sorted?
Internet Services....................... 0
Groceries etc. ......................... 400 I know you can at least halve this. I manage to feed 5, and various animals on £200 (this month even cheaper as things are tight)
Clothing................................ 0
Petrol/diesel........................... 40 Can you walk or cycle places?
Car Insurance........................... 41 Are you getting the best deal? If you change go via cashback site
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Pet insurance/vet bills................. 10
Buildings insurance..................... 15 Are you getting the best deal? If you change go via cashback site
Contents insurance...................... 16 Are you getting the best deal? If you change go via cashback site
Life assurance ......................... 30 Are you getting the best deal? If you change go via cashback site
Other insurance......................... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1473


Assets
Cash.................................... 0
House value (Gross)..................... 185000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 188000


Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 147000....(475)......
Total secured & HP debts...... 147000.....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
visa...........................6000......212...... .29.9
visa...........................5758......120...... .18.9
master card....................4242......177.......29.9

Total unsecured debts..........16000.....509......- [/b]


Monthly Budget Summary
Total monthly income.................... 1,245
Expenses (including HP & secured debts). 1,982
Amount short repayments. -737

Have added my comments in red. Check out entitledto.com to check you are getting everything you are entitled to. I would also get someone to check there isnt an issue with your gas. My winter quarter worked out to £57 a month which covers water heating, hob cooking and central heating and I thought that was rather steep lol. If you cut right back Im sure you can get things to balance

Deep_In_Debt

Yep, with the heating - can you turn it down and wear a jumper? Also, make sure you switch lights off when not using, make sure that your immersion heater is not on all day (if you have one)

poorandindenial

Are you paying off arrears on the gas, leccy and council tax??

Get rid of the cable/sky TV, or bundle up trv, phone and internet to get includive calls package.

Can you do without the car? could you save if you got rid of it and used public transportinstead?

Blue11_2

Sorry forgot to add my benefits, well spotted.....thought it didnt look right.

Family Tax Credit £325.00
Child Benefit £125.00

Still leaves me almost £300 the wrong side the line. Yes i am paying gas arrears as my direct debit wasn't carried over to my new bank account.

I really need advice on my cards........If i default can they come and repo my house or take goods etc or will i just get a CCJ against my name and that be the end of it, as that sounds the better option at least i dont have to pay the bloody things and my credit file will be clear after 6 years

Honeybee_2

Your gas is very high - have you looked into the energy efficiency grants? They could fund insulation etc..

Blue11_2

what about defaulting on my cards

posted_2

What about the consequences. £300 savings is achievable.