Debt Help - what to do now!

desperatetoditchdebt

Hi,

I have been looking through this board for weeks now trying to see if any one has similar problems to my self and I thought the time has come to post my own situation and ask for some advice!

I am 23 and in approx £23k of debt, I privately rent with my partner (who has his own load of debt) the only thing I own of value is my car which is on HP and I owe £4k still on that. I live 45mins away from work with no public transport (3 trains and 2 hours to work).

I am not sure what my best option is, I was thinking of an IVA however if circumstances change eg partner leaves/lose job I am worried I wouldn't have enough left to pay this monthly. The problem with bankruptcy is that they would make me give my car back and I have no money to be able to buy a cheaper one. A family member is thinking of paying the remainder off and transferring into her name but I don't think this is really allowed!

Any help much appreciated! I am pasting my SOA below - I HAVE over estimated on some parts but that is due to having rent arrears and council tax etc that I still owe.

Thanks for any help

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1242
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1242

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 375
Management charge (leasehold property).. 0
Council tax............................. 65
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 12
Mobile phone............................ 35
TV Licence.............................. 12
Satellite/Cable TV...................... 21
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 20
Petrol/diesel........................... 160
Road tax................................ 15
Car Insurance........................... 30
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 14.75
Pet insurance/vet bills................. 21
Buildings insurance..................... 0
Contents insurance...................... 20
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 20
Emergency fund.......................... 10
Total monthly expenses.................. 1145.75


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 4000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 4000.....(0)........0
Total secured & HP debts...... 4000......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................3384......72........0
Egg Card.......................1836......50........0
Egg Money Card.................1361......50........0
Tesco Credit Card..............3233......50........0
Natwest Overdraft..............3200......0.........0
Natwest Credit Card............1352......30........0
MBNA...........................1070......35........0
Halifax........................1710......40........0
Egg Loan.......................5763......350.......0
Total unsecured debts..........22909.....677.......-


Monthly Budget Summary
Total monthly income.................... 1,242
Expenses (including HP & secured debts). 1,145.75
Available for debt repayments........... 96.25
Monthly UNsecured debt repayments....... 677
Amount short for making debt repayments. -580.75

Personal Balance Sheet Summary
Total assets (things you own)........... 4,000
Total HP & Secured debt................. -4,000
Total Unsecured debt.................... -22,909
Net Assets.............................. -18,909

Created using the SOA calculator at .
Reproduced on Moneysavingexpert with permission, using Firefox browser.

fermi

Was going to move your other post into a new thread, but see you have it sorted now.

nelinuk

Hiya - two quick questions spring to mind looking at your info:

As you're renting, can you move somewhere where you can use public transport to get to work so you can deal with the car issue?

Groceries - your share £200 a month? That seems very high.

Good luck

desperatetoditchdebt

Well the thing is I now have defaults on all my cards/loan etc and can't get through the credit check. My partners is even worse I put down £200 for grocercies just judging from what others had put on the IVA SOA it's probably less

Tixy

Hi

You seem to have missed the car loan repayment off your figures.

Are all the household costs half the amounts? If so Elec at £60 is very high - does this include arrears? Are the bills estimated or actual? Gas is also quite high at £60 per month.

How much are your rent arrears and ct arrears? These are both priority debts and should be paid before you pay unsecured loans and creditors.

Have you had advice from one of the debt charities? CAB or CCCS? They may be able to advise you better although it appears you don't have the funds available to do a DMP with them. You could possibly do a self-managed dmp with their help.

In the meantime I would suggest you pay all you unsecured creditors just a token amount this month (say £5each) with a letter to say you are seeking advice from a debt charity. This should free up some money temporarily for you to not get into further debt this month.

Could you look at giving the car back to the finance company and they buying a cheap runaround car for a few hundred - would the family member loan you the money? Or you could look into if you could get a credit union loan to buy one.

Good luck

slig

desperatetoditchdebt wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1242 Can you increase this at all - eg an extra evening job, mystery shopping to bring in a few extra pounds?
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1242

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 375
Management charge (leasehold property).. 0
Council tax............................. 65
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 12
Mobile phone............................ 35 This is high, see if they'll let you drop down a tariff, and go on payg when your contract ends
TV Licence.............................. 12
Satellite/Cable TV...................... 21 Freeview instead?
Internet Services....................... 0
Groceries etc. ......................... 200 If this is just your half, you can reduce this by more than half - mine's about £80 max
Clothing................................ 20 Nothing for now
Petrol/diesel........................... 160
Road tax................................ 15
Car Insurance........................... 30
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 14.75
Pet insurance/vet bills................. 21
Buildings insurance..................... 0
Contents insurance...................... 20
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 20 Is this pre-booked? If not, no holiday for the moment
Emergency fund.......................... 10 Don't bother with this
Total monthly expenses.................. 1145.75


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 4000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 4000.....(0)........0
Total secured & HP debts...... 4000......-.........-

Unsecured Debts can you give us the aprs for these?
Description....................Debt......Monthly...APR
Barclaycard....................3384......72........0
Egg Card.......................1836......50........0
Egg Money Card.................1361......50........0
Tesco Credit Card..............3233......50........0
Natwest Overdraft..............3200......0.........0
Natwest Credit Card............1352......30........0
MBNA...........................1070......35........0
Halifax........................1710......40........0
Egg Loan.......................5763......350.......0
Total unsecured debts..........22909.....677.......-


Monthly Budget Summary
Total monthly income.................... 1,242
Expenses (including HP & secured debts). 1,145.75
Available for debt repayments........... 96.25
Monthly UNsecured debt repayments....... 677
Amount short for making debt repayments. -580.75

Personal Balance Sheet Summary
Total assets (things you own)........... 4,000
Total HP & Secured debt................. -4,000
Total Unsecured debt.................... -22,909
Net Assets.............................. -18,909

Created using the SOA calculator at .
Reproduced on Moneysavingexpert with permission, using Firefox browser.

Easier said than done, I know, but if you found a job within walking/cycling distance you could get rid of the car and save another £225 on petrol and car costs.

stumpjumper120

you have to be careful with ivas' as HP is not included and a lot of hp agreements have an insolvency clause which could mean that if you are in arrears with it then the finance co will repo it whether or not a third has been paid.
if your family pay the car off then the official recvr if bankrupt may ignore your car as you need for work and its not a dear one.

Fire_Fox

If you have rent and council tax arrears these must be listed on your SoA as a debt; they are priority debts so should be paid before any of your cards. Send a letter and £1 token payments while you get straight on the rent and council tax.