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DanFathers
Posts: 10 Forumite
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)
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)
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Comments
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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.0 -
ill follow the link thx
dan0 -
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.0 -
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].0 -
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 nothing0 -
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:0 -
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 7823After 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) 11/08/20110 -
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.0 -
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.0 -
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 :A0
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