Help Please

Bigeviljimmy

Hi everyone, I’m posting to ask for some advice from the boards. At the moment I owe a grand total of £26500 to various lenders and I keep falling behind the payments and can’t seem to make any headway to pay it off. So I am considering bankruptcy. This month my situation has gotten worse as I have been thrown out of my parents home so I have to rent a flat on top of the money I all ready pay out. And to top it all off I received a default letter from black horse finance demanding the arrears by the 5th of April. I earn £1224 per month and I pay out now including rent and car insurance £1604. I have tried to ask the creditors for assistance but they don’t seem to be interested, can anyone give me some advice on what action I should pursue please?

Thanks

highguyuk

Right, firstly :hello: and welcome to MSE. com. Your in the right place.

So we can see a clear overview of your situation and help you completely you need to post a SOA - Statement of Affairs. You may not be able to do this off the top of your head and an SOA in rough will do for now - but you will need to be exact soon!

An SOA would look like this:

Income (Any income, benefits, child income ... anything)
Outgoings (Rent, Bills, Mobile Phone, Internet, Insurance, Tax, Car etc)
Debt (All debt, everything you can think of. This needs to be listed with the APR for each debt)
Anything else you can think of.

If you get this up as soon as possible and the lovely people on here will be able to see your situation and help you out. Depending on your situation, you may be best to talk to payplan or CCCS but again, other people on here will be able to give you more advise.

Don't panic - it'll be alwite in the end :-)

Bigeviljimmy

Income: Varies as I am self employed but between £1250 & £1450

Outgoings: Rent £450
Council Tax £120
Phone £10
Insurance Home £16
Insurance Car £180
Car £335
Loan £127
Radio £376
I don’t know the amount for food, gas or elec because I have been in my flat for 4 days

Debt Car £15674.96 @12.8%
Loan £7600 don’t know the apr at the mo
I put the wrong amount that I owe on the first post

Thanks

CLAPTON

hi

could you just clarify some things
is car insurance 180 a month ?
car 335 ..is that the monthly payment?
what does radio 376 mean?
although you may not know electicity& gas could you try to include all other expenses like petrol, going out, and even food (even if a best guess) any parking costs, do you pay water rates?

Rob_K

The first thing I'd do based on what you've said is sell your car- if it's worth £16K it must be a pretty good one.. you have to ask yourself if you need it to be that good? Once sold you could get a smaller car that does the job perfectly well for circa 2-3K. with the difference it seems to me you could almost halve your debt.. you'd also then be saving £335 a month on your car loan and you could probably get cheaper insurance too.. If you weren't forking out for the car every month you'd be able to pay off your loan within 2 years, and that's without making cutbacks in other areas..

Also, what's the radio that's costing you £376 a month? must be a good one!

sanfrancisco

If you go bankrupt they will take your car. From the massive loan you have I am guessing it is a pretty good car. If you sell it, you will be able to pay off a big chunk of debt and will get back in control. Cars just get us from A to B, nothing more.

What is the radio thing?

lynzpower

Is OP a taxi driver? that might explain the radio costs?

Peppa_Pig_5

Welcome Bigeviljimmy, I am sure you will get lots of great advice from everyone else, but I do notice your car costs seem to be very high, not just the finance, but the insurance. Maybe there is something that can be done about that. Is your car a necessity, can you travel by pubic transport, or get a cheaper car. Also what is Radio? That seems very high.

Peppa
x

Sorry seem to have crossed over with all the other replies, all seem to be saying the same thing though.

lynzpower

adn the insurance....

Has to be- is this right jimmy?

Bigeviljimmy

Hi I am a taxi driver so the radio money is the rent of the box that I use and that is why my insurance is so expensive. The car is another story its only worth between 2 and 4 grand as when I got my first car I traded it in a year later and the negative equity was carried on and I did the same again so I could buy my taxi. I don’t mind losing the car as there are people who can rent me a taxi for the same costs per month including insurance and all the repairs.

lynzpower

Well, if thats the case can you look into that?

Should save you repairs and everything in the long run.. whats the disadvantages of doing that?