My first posting.

skint-78

I have been looking on and around the website for about 2 months now but recent circumstances mean that I have to sort my self out pretty quickly or I will start to get more debt!

Yesterday I found out that I have dropped in income by £497 per month from £1426 to £929!

This is obviously NOT GOOD!
I have worked out my basic expenditure as £925.
This covers my rent, bills, food, petrol, car insurance, car loan and a loan payment to a family member.
It doesn't take into account anything else at all ie. No cash will have come out of the cash point at this stage.
I don't smoke or drink, and I don't have regular leisure costs. I do however (like everyone else) have some basic expenses like having a pay as you go mobile phone (I don't top up if I don't have the cash).

I have a long term illness which means that I am working part time as this is all I feel able to do at present. ( I have just had my D.L.A and disabled persons tax credit stopped, as my actual "physical function" is not impaired as such)
I am looking into all possibilities for me to increase my earnings, but this will be a slow process, and no quick fix.

I am also in debt:

*I have a student loan of approx £700 which I choose to ignore because of my low income and minimal interest charges.
*I owe my mum £3300 interest free which I pay £100 month. This will be paid off in January 2009. ( I was paying a considerably higher amount of this prior to the income drop).
*I have a car loan aswell. This (as at 14-02-06) settlement figure was £4500.96 and I pay £189.13 per month. The final payment is due on 16-12-07 if I continue with the loan as it is now. The interest rates are 13.7%. I once asked a member of staff in my bank branch if there would be an alternative to reduce the amount I end up paying, but she said no.

I live with my partner, and so I already only pay 1/3 of our joint total living costs, as thankfully she is understanding and earns enough to subsidise part of what I should rightfully pay.

I am hoping for some guidance I suppose, because I am scared of having to build more debt based on the fact that I can't stay in the black with the figures I have quoted above.

I don't have any credit cards because I cut them up after misadventure with then in earlier years!

I don't imagine I have a very good credit scoring because I have missed car loan payments alot in the past (approx 2 years ago), had alot of returned direct debits around the same time, overdrew more than I was entitled etc.
I also jointly owned a house with an ex who refused to move out or pay any of the mortgage for an extended period (over a year). The result was that we sold it and paid the mortgage off 1 working day before we were due in court for the first time for the bank to look at reposessing it.

I don't have an overdraft, and I am waiting for a credit score/check in the post from Experian (?).

Any help will be greatfully received.

MrsTinks

If you have been lurking on here you will know that we usually ask for an SOA to start helpign you with seeing how you can cust down on things etc

I would say that asking people in your bank about cutting down the APR on your loan is a laugh and a half! I had a loan with Lloyds at 12.9% apr and asked if that could be re-arranged so I pay less apr... nope. Ok I applied for a loan from them through their loan department = 9.9%apr... if I asked in branch for the same thing they said 18.9%... Hmmmm and I am a business customer with a business account that has ALWAYS been in credit!
Guess what... I applied with Egg and got a loan at 7.9% apr and no penalties for early repayment (ie I can pay of more than my monthly payments any time I like and they won't penalise me!) so try to see if you can get a loan elsewhere.
If you have PPI on any of your loans then seriously consider cancelling these and moving to another supplier (I just shaved over £2000 of my loan by doing this!)

Anyway I'm sure we can help you more once we have a detailed SOA

skint-78

Thanks. I will complete a S.O.A.
Do I need more details than I put before? I obviously haven't been reading the forum that well?!
Cheers.

CLAPTON

try this format


If you browse the bulletin board you will see examples but the general format is

: statement of income:

: statement of expenditure
this should be quite detailed but excluding debt repayment
: a subtotal to save us all having to add it up

: statement of all debts including:
for Credit cards show: outstanding amount, monthly repayment , APR
for loans/HPs show outstanding amount, monthly payment, APR and number of months still to pay;
Say whether you are paying PPI on your debts

a subtotal of the total debt and of the total repayments, to save us having to add it up

also add a brief details of your situation, partner, any children, rent or own property, value of house and mortgage, any special circumstances that are relevant

dudleyboy

Hi... this information is great, it just needs an easy to read format that's consistent with other SOAs so we can see items and figures at a glance and advise easily. when you break it down like that it may also be apparent to yourself where cutbacks can be made... and it's also quite a therapeutic exercise too.

Clapton's structure, above, should do it.. also check out southernscousers excellent first time posters thread.

skint-78

Thanks dudleyboy and CLAPTON. I have done a proper S.O.A now!

forsya

Hi SKint-78

Howcome your income dropped, is this because you went part-time? Sorry if I have misunderstood?

Don't worry yourself too much, there will be a way for you to manage your debts on your reduced income, like others have sadi we can look at your SOA's.

Nice of your ma to loan you with 0%!! Mum's are great aren't they! Welldone you for cutting up credit cards!

xx

skintchick

http://forums.moneysavingexpert.com/showthread.html?t=171766

Click that link for the SOA or this is going to get messy in two threads...

skint-78

Forsya,
I have 2 long term chronic health conditions, and up until yesterday was told I was entitled to Disability Living Allowance and Working Tax Credit, totalling nearly 500 quid a month.
Fortunately I got a transplant last year meaning my helth is much improved but still not great.
But because of this I have lost all my benefits, despite still only being able to work part time.
So I WANT to work more, but physically can't. But the benefits look at physical ability (ie how well you can function) and because I can walk, have a bath, make a meal etc, I can't claim.

Isn't my mum kind!

I've just realised I should have put my S.O.A here, and I haven't because I am rubbish with computers anyway!
My S.O.A is a new thread, not in bold. You might find it through the post before.

I hope I can find ways to manage. I dread getting credit cards again. My life was so out of control then!