What do I do now???

moneymaker2

My husband has just been made redundant which has cut our monthly income as he was earning nearly £1200 per month.

We were already in arrears with our mortgage, secured loan and gas/electric over the last few months so we wrote to all of our unsecured creditors making token payments of £1.00 per month.

We are now getting harrassed by them asking for their money back but there are still bigger priority arrears to clear and I am sure that I will not be able to cope with it all on my £1166 salary.

What are the stages?? Will they send baliefs round first or do i default on unsecured credit first?

Your advice would be greatly appreciated whilst I go off and browse the job sites again... for the 3rd time today... lol

Thanks in advance.

MM2

gfplux

Hello monymaker2,

Sorry to hear about your husbands bad luck.

Have you done a SOA. If not why not do so, and post it here.
here is the link http://www.makesenseofcards.com/soacalc.html

You will get a lot more help and advise if you do so as people will be able to see what suggestions they can make to help you

Good Luck, Looking forward to your next post.

RAS

Also check out www.entitledto.com

And check whether you have PPI on any of the loans or cards? Will they pay out? If not, then recalim the whole sum.

moneymaker2

hiya,

no I have no ppi on anything.

I will do a SOA a bit later and post.

Thanks again.

MM2

savingholmes

mm2 sorry to hear about your husband's job... will he get some benefits at least... Will look out for the soa

moneymaker2

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2 (Although if husband doesn't get another job then we will sell one of the cars)

Monthly Income Details
Monthly income after tax................ 1166
Partners monthly income after tax....... 0
Benefits................................ 245 (What we get at the moment, would need to check if we were entitled to more)
Other income............................ 0
Total monthly income.................... 1411

Monthly Expense Details
Mortgage................................ 840.2 (Normal payment £720.27)
Secured/HP loan repayments.............. 384.39999999999986 (Normal payment £329)
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 97
Electricity............................. 70 (Normally £35)
Gas..................................... 70 (Normally £35)
Oil..................................... 0
Water rates............................. 16.32
Telephone (land line)................... 6 (Lowest package with Talk Talk)
Mobile phone............................ 100 (Tied in till next year with both)
TV Licence.............................. 12.01
Satellite/Cable TV...................... 28.25
Internet Services....................... 19.99 (Tied in till January 2010)
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 160
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 240 (Dependant on what happens this may go)
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 28 (For 3 Rabbits)
Buildings insurance..................... 27.91 (Expires in October 2009)
Contents insurance...................... 0
Life assurance ......................... 21.01
Other insurance......................... 27.06 (Car insurance for 1 car, other has been paid up till October 2009)
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 28.86 (Movie Rental and cinema passes)
Holiday................................. 0
Emergency fund.......................... 0
mobile insurance........................ 11.99 (For husbands iphone)
Education............................... 21.33 (Science GCSE Course that I am studying to become a teacher)
Total monthly expenses.................. 2410.33


Assets
Cash.................................... 0
House value (Gross)..................... 130000 (Not sure if this is right but brought the house for £139,999
Shares and bonds........................ 0
Car(s).................................. 3000 (for 2 cars)
Other assets............................ 0
Total Assets............................ 133000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 150000...(840.2)....0
Secured Debt.................. 32000....(384.4)....12.9
Total secured & HP debts...... 182000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Next...........................1900......5.........0
House Of Fraser................250.......10........0
Capital One....................530.......1.........29.9
littlewoods....................800.......5.........0
First direct od................500.......0.........0
hsbc...........................1270......25........0
HSBC...........................22000.....1.........6.9
Citifinancial..................6000......1.........15.9
Alliance and Leiceste..........750.......50........0
Vanquish.......................250.......5.........49.9
Barclaycard....................2300......1.........16.9
Barclaycard....................3600......1.........16.9
Total unsecured debts..........40150.....105.......-


Monthly Budget Summary
Total monthly income.................... 1,411
Expenses (including HP & secured debts). 2,410.33
Available for debt repayments........... -999.33
Monthly UNsecured debt repayments....... 105
Amount short for making debt repayments. -1,104.33

Personal Balance Sheet Summary
Total assets (things you own)........... 133,000
Total HP & Secured debt................. -182,000
Total Unsecured debt.................... -40,150
Net Assets.............................. -89,150

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

moneymaker2

Just bumping up.

moneymaker2

and again

angel81

Hi there

Sorry you haven't had any replies - I think it's because the normal response of cutting a few pounds here and there won't help in your case

You should visit CAB asap to see what they recommend - you may be entitled to additional benefits or mortgage help. Alternatively, bankruptcy may be an option, but CAB are definately best placed to advise.

If your husband doesn't got a new job very quickly, you should definately sell the car and stop the nursary fees like you have already mentioned. Also, can you ask the mortgage company to drop to interest only, if you aren't already?

Sorry I'm not much help - I just didn't want to read and run

Good luck!

Bismarck

seconding angel81 really...what are the prospects of your OH getting another job soon - was there any payoff for him - if os can he use that to sort out your priority debts in any way?...you won't get bailliffs for the unsecured debts so they are not in the picture as far as things to worry about go - you need to fix your thoughts on the mortgage, secured loan and utilities / council tax...have you sold everything you can lay your hands on through ebay and AMazon marketplace?

take care

InDeepPoo

As a New person here, I can only say try and talk with CCCS as they seem to be one of the best people to talk to, Good luck