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The net has finally closed in

Now this may sound like a common storie and i feel a bit ahsamed to be asking for advice in my situation, but here goes.

3 years ago i was in a messy divorce, my wife got it all apart from my pension, i was left with a lot of debt, instead of sorting this out i went on a bit of a (i dont get care) life style, i can make the excuse of depression but what ever now im in trouble.

i Have loans and credit card totaling arround £50,000 and have had to use them to live over the past year, bad i know. I have reached the limit on all my cards!!!

so finally my question is there any companies out there who would consolidate my debts into one lump, i have now security but i do earn £27,000 a year which at the moment all goes to interest on my cards.

i would rather not go bankrupt if that is even an option to me, my new partner may be receving a settlement from her husband and that may help me out but i would rather sort it out if i can (in case you were wondering my ex left me for another man if that means anything)
«13

Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    there is zero chance of anyone giving you a loan of 50k on a salary of 27k unless secured on a property.. if so then remortgaging might be an option.

    have you now addressed the issues that lead to the overspending and now have a sensible budget.
    post up your details using http://www.makesenseofcards.com/soacalc.html
    as without knowing the debt details (amount, APRs, monthly payments ) and income and other spending its impossible to give any advice.
  • DanFathers
    DanFathers Posts: 10 Forumite
    ill follow the link thx
    dan
  • DanFathers
    DanFathers Posts: 10 Forumite
    Statement of Affairs and Personal Balance Sheet
    Household Information

    Number of adults in household........... 2
    Number of children in household......... 3
    Number of cars owned.................... 2
    Monthly Income Details

    Monthly income after tax................ 1600
    Partners monthly income after tax....... 380
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1980

    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 293
    Management charge (leasehold property).. 0
    Council tax............................. 73
    Electricity............................. 75
    Gas..................................... 75
    Oil..................................... 0
    Water rates............................. 20.77
    Telephone (land line)................... 0
    Mobile phone............................ 60
    TV Licence.............................. 24
    Satellite/Cable TV...................... 40
    Internet Services....................... 0
    Groceries etc. ......................... 600
    Clothing................................ 0
    Petrol/diesel........................... 125
    Road tax................................ 30
    Car Insurance........................... 25
    Car maintenance (including MOT)......... 25
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 240
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 15
    Life assurance ......................... 32
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 50
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 1802.77


    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 500
    Other assets............................ 0
    Total Assets............................ 500


    No Secured nor Hire Purchase Debts

    Unsecured Debts
    Description....................Debt......Monthly...APR
    northan rock...................10850.....108.......0
    hsbc cc........................4950......130.......17.9
    barcklay card..................3800......90........15.9
    virgin.........................7400......140.......30
    egg............................7927......203.4.....21.9
    lloyds tsb cc..................14300.....284.......18
    Total unsecured debts..........49227.....955.4.....-


    Monthly Budget Summary

    Total monthly income.................... 1,980
    Expenses (including HP & secured debts). 1,802.77
    Available for debt repayments........... 177.23
    Monthly UNsecured debt repayments....... 955.4
    Amount short for making debt repayments. -778.17

    Personal Balance Sheet Summary
    Total assets (things you own)........... 500
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -49,227
    Net Assets.............................. -48,727

    Created using the SOA calculator at
    Reproduced on Moneysavingexpert with permission, using IE browser.
  • Godders
    Godders Posts: 2,914 Forumite
    1,000 Posts Combo Breaker
    MOVING THREADS FOR BETTER RESPONSES


    Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere(please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL].
  • RAS
    RAS Posts: 33,776 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Doing a serious hatchet on this.

    DanFathers wrote: »
    Statement of Affairs and Personal Balance Sheet
    Household Information
    Number of adults in household........... 2
    Number of children in household......... 3
    Number of cars owned.................... 2
    Monthly Income Details
    Monthly income after tax................ 1600
    Partners monthly income after tax....... 380
    Benefits................................ 0 surely you are getting, CTC, WTC and or Child benefit? Check www.entitledto.com.
    Other income............................ 0
    Total monthly income.................... 1980
    Monthly Expense Details
    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 293
    Management charge (leasehold property).. 0
    Council tax............................. 73
    Electricity............................. 75 - massive - read the meter and learn to use less energy
    Gas..................................... 75 - ditto
    Oil..................................... 0
    Water rates............................. 20.77
    Telephone (land line)................... 0
    Mobile phone............................ 60 - reduce your packages and then go PAYG ASAP
    TV Licence.............................. 24 - should be half this
    Satellite/Cable TV...................... 40 - reduce the package and then go freeview
    Internet Services....................... 0
    Groceries etc. ......................... 600 - unless this is for 2 adults and 3 nealry adults, this can be cut to about £200. Go over to the Old Style Money Saving forum.
    Clothing................................ 0
    Petrol/diesel........................... 125 - cut out unneccessary journeys
    Road tax................................ 30
    Car Insurance........................... 25
    Car maintenance (including MOT)......... 25
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 240 - so you should be getting CTC
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 15
    Life assurance ......................... 32 - looks expensive.
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 50 - you need to cut this back
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 1802.77

    Assets
    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 500
    Other assets............................ 0
    Total Assets............................ 500

    No Secured nor Hire Purchase Debts
    Unsecured Debts
    Description....................Debt......Monthly...APR
    northan rock...................10850.....108.......0
    hsbc cc........................4950......130.......17.9
    barcklay card..................3800......90........15.9 - any spare capacity on this?
    virgin.........................7400......140.......30 - this is the priority
    egg............................7927......203.4.....21.9
    lloyds tsb cc..................14300.....284.......18
    Total unsecured debts..........49227.....955.4.....-

    Monthly Budget Summary
    Total monthly income.................... 1,980
    Expenses (including HP & secured debts). 1,802.77
    Available for debt repayments........... 177.23
    Monthly UNsecured debt repayments....... 955.4
    Amount short for making debt repayments. -778.17
    Personal Balance Sheet Summary
    Total assets (things you own)........... 500
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -49,227
    Net Assets.............................. -48,727
    Created using the SOA calculator at
    Reproduced on Moneysavingexpert with permission, using IE browser.


    Clothing? Children's activities, holidays, presents?

    With cuts and benefits, you should get this in the black.
    The person who has not made a mistake, has made nothing
  • talana
    talana Posts: 1,077 Forumite
    Ok, well you can make some substantial savings on your monthly outgoings, that will cut that deficit by 50% or more. That alone will go a long way to getting you back on an even keel.

    - your grocery bill is HUGE!! You could save £200-300 minimum here by cutting back.
    - elec and gas bills are high. Shop around and switch and you could halve them I would bet, saving £75 ish
    - swap satellite/cable TV for freeview/ Save £40
    - TV licence should be half that per month. Why so high?

    There's £400-ish of savings to be had I reckon.

    After that, look at transferring some of your high apr debts to cheaper ones.
    Don't consolidate though.

    Then check your benefit entitlements and look to supplement your income somehow. Even an extra £100-200 here will make all the difference.

    All is not lost. :rolleyes:
  • GeorgeUK
    GeorgeUK Posts: 7,737 Forumite
    Council tax............................. 73
    If paying over 10 months, can you ask to pay it over 12?

    Electricity............................. 75
    Gas..................................... 75
    Have a look at the comparison sites to see if you are getting the best deal (uswitch, moneysupermarket).

    Mobile phone............................ 60
    PAYG?

    Satellite/Cable TV...................... 40
    Internet Services....................... 0
    Is this a package deal?

    Groceries etc. ......................... 600
    This could be cut a bit - have a look at the old style board for meal plan ideas and cooking in bulk. Have you moved down a brand (shops own)?

    Clothing................................ 0
    Need something in here.

    Car Insurance........................... 25
    Contents insurance...................... 15
    Life assurance ......................... 32
    Have a look at the comparison sites for the best deal.

    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Nothing for these?

    Do you not get any child benefits or anything?

    I would advise keeping a spending diary so that you know exactly where you are spending your money.

    Having a defecit of £778 each month is totally unsustainable. You urgently need to contact one of the free debt charities for assistance. They will be able to talk through the possible options with you be it a DMP or IVA, but you should definately contact either CCCS or Payplan asap.

    (Taken from Fermi's signature)
    Professional, free and impartial advice on debt problems can be obtained from several charitable and 'not for profit' organisations. They never make a penny from the advice they give, which means it will be given with only your best interests at heart. You can contact:

    Your local CAB Office and ask to speak to a 'money advisor'
    The Consumer Credit Counselling Service (CCCS) - Tel: 0800 138 1111
    National Debtline - Tel: 0808 808 4000
    Payplan - Tel: 0800 917 7823
    After falling off the gambling wagon (twice): £33,600 (24,000+ 9,600) - Original CC Debt: £7,885.91

    Dad Gift 6k ¦ Savings & Inv Tst: £2,500
    Loan 10k: £0 ¦ Dad 5.5k: £2,270 ¦ LTSB: £0 ¦ RBS: £0 ¦ Virgin £0 ¦ Egg £0

    Total Owed: £2,270 (+6k) 11/08/2011
  • fatbelly
    fatbelly Posts: 21,554 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    All good suggestions but honestly Dan this looks like a bankruptcy situation to me. Run it past CCCS/National Debtline.

    ...I'm assuming you don't own property.
  • talana
    talana Posts: 1,077 Forumite
    fatbelly wrote: »
    All good suggestions but honestly Dan this looks like a bankruptcy situation to me. Run it past CCCS/National Debtline.

    ...I'm assuming you don't own property.

    It might still come to that, but if Dan's prepared to put in some work on the points suggested above, even a £778 deficit can be clawed back.

    We need Dan to come back on here with some feedback though, otherwise we can't take it further.
  • kissjenn
    kissjenn Posts: 2,358 Forumite
    Mortgage-free Glee!
    Dan,

    Reading between the lines of your rent, council tax and childcare would I be at all right in assuming that the 3 children don't actually live with you and the childcare is in fact a CSA or maintenance type payment you make to your ex-wife? I ask because in Scotland under £300 rent plus £73 Council Tax is at most 2 bed council property - however your area may be very different, hence the question.

    Knowing this lets us see what flexiblity there is in your budget eg you can face heavy penalties for not paying CSA but you can stop, change, find cheaper childcare, claim CTC - depending on what this amount actually is.

    Hope that makes sense.
    :A Let us be grateful to people who make us happy: they are the charming gardeners who make our souls blossom. Marcel Proust :A
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