Debt is spiraling out of control

savingcaz

Hi all

I'M new to the boards, i've popped in a few times to try and sort out my debts but it's just not working I now need need need to get it sorted. Its got to the point where i have become so depressed about it i've even come close to ending everything just to try to escape (not helping by the fact i have postnatal depression.

I've just filled a cccs debt form in but don't know what to do it's suggesting paying token payment, but i'm worried that about everything. We are just about managing to pay our bills but have no money for food, etc and i do think were getting to the point were i think we are going to struggle to pay the bills

I just don't know what to do

It's all stemed from me leaving university and not being able to get a job, living of credit cards for 3 years and when i did get a job we managed to get on top again but sice having our baby and maternity pay stopping - and not being able to find another job that pays enough to pay childcare etc it's got horrendous agian! we are paying about £600 a month in credit cards :(

I'm so scared

VanillaDelia

Any chance you can do a SOA's - Statement of Affairs for us all to see and help further. I hope someone will post a link here for you to do this.

Tixy

Hi Caz and welcome to the boards :hello:

Here is the SOA link http://www.makesenseofcards.com/soacalc.html This is a financial statement of affairs, hopefully you will have most of the information from the CCCS website.

Hopefully between us all we may be able to find ways you can save money, cutback or increase your income.

Have you made an phone appointment to talk to CCCS? Are they sending you some template letters to send to your creditors with your token payments?

Try not to panic -which I know is ridiculously easy to say and hard to do but all debt problems can be solved.

You need to put buying food above repaying your unsecured creditors, if you don't have enough for everything then token payments are the way forward. (These will affect your credit rating but sometimes we have no choice in this).

We will try and give you as much support as we can and I hope you'll begin to feel more positive soon.

savingholmes

http://makesenseofcards.com/

You can do a statement of affairs at the site above and then copy and paste it into your thread here. This should list all your assets, liabilities (creditors), interest rates, monthly outgoings, how many people for etc....

I am sure that there will be solutions that can be found altho I appreciate it may not feel like that right now. Well done for posting....!

savingcaz

Thanks for the replies

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1(8 month baby!)
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 1900
Benefits................................ 160
Other income............................ 0
Total monthly income.................... 2060

Monthly Expense Details
Mortgage................................ 715
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 90
Gas..................................... 93
Oil..................................... 0
Water rates............................. 43
Telephone (land line)................... 15
Mobile phone............................ 30 (both mine & Hubby)
TV Licence.............................. 13
Satellite/Cable TV...................... 21
Internet Services....................... 5
Groceries etc. ......................... 150 (estimate at the min is prob more like 100)
Clothing................................ 0
Petrol/diesel........................... 200
Road tax................................ 25 (2 cars)
Car Insurance........................... 50 (2 cars)
Car maintenance (including MOT)......... 20 (can't afford to but this away at moment)
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 25
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 35 (contents included)
Contents insurance...................... 0
Life assurance ......................... 45 (both of us)
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 (have to struggle each time there is a birthday!)
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1665


Assets
Cash.................................... 0
House value (Gross)..................... 100000 (estimate)
Shares and bonds........................ 0
Car(s).................................. 3000 (estimate)
Other assets............................ 0
Total Assets............................ 103000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 125......(715)......0 (95 mort & 30 loan to do house up)
Total secured & HP debts...... 125.......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
HSBC...........................7500......185.......0
M&S............................7035......180.......0
AA.............................3500......52........0
Studen loan me ................13000.....0.........0 (not havin to pay as not earning)
student loan Hubby.............3000......100.......0
Argos..........................280.......11........0
Egg Hubby......................550.......25........0
Egg me.........................135.......25........0
Total unsecured debts..........35000.....578.......-


Monthly Budget Summary
Total monthly income.................... 2,060
Expenses (including HP & secured debts). 1,665
Available for debt repayments........... 395
Monthly UNsecured debt repayments....... 578
Amount short for making debt repayments. -183

Personal Balance Sheet Summary
Total assets (things you own)........... 103,000
Total HP & Secured debt................. -125
Total Unsecured debt.................... -35,000
Net Assets.............................. 67,875



It's so bad isn't it!

savingcaz

Also i was so nieve last year when i joined and did my signature!

Smashing

Gas and electric are huge! Does this include arrears? Do you need a car if you're not working?
Are you in contract with sky or can you cancel?

Tixy

Its not that bad Caz - it could be definatley be worse.

Just had a quick look through your costs, some areas seem to be costing you quite a lot.

Elec & Gas seem really high -are you paying off arrears? are these based on actual readings or estimates. If actual then firstly check out the comparison sites for a cheaper provider and secondly try to cut down quite a bit, tips include not using tumble driers (not easy with a toddler I imagine) not leaving an imersion heater on all day, a hour or 2 should be plently per day, making sure evrythin is switched off when not in use etc.

Petrol is quite high, is it all essential? Is it mostly OH commuting? can you reduce at all by efficent driving (read this as boring driving! - here's a guide, some tips are useful - http://www.moneysavingexpert.com/travel/cheaper-fuel)

Are you entitled to any tax credits? Are you recieving them? look at entitledto.co.uk website if you are unsure.

You say CCCS debt remedy suggested token payments? You appear to have sufficent funds to do a DMP, whereby you would pay the £395 you have for debt repayments across your creditors based on the balance. If you haven't made the phone appointment then that would be my advice. They'll talk through the downsides to doing a DMP (bad for your credit rating and you have to agree to not take on anymore credit) - but they'll also explain the upsides - like not having to struggle to find enough money to eat every month and not having so much to worry about.

Have you looked at up your income board for ideas of ways you can earn a bit of money from home and possibly vouchers which you can use towards presents. Online review & surveys sites can be good as well as signing up for mystery shopping (okay these things won't make you rich but every bit can help, especially as you are at home with your little one)

I'm sure others will be able to suggest other things. Good luck.

tallyhoh

Why is your life assurance so high?? I know its for 2 but mine is £8.25 a month for a 52 year old ex smoker in ill health & its for a fairly large amount. Was it sold to you with the mortgage? Look at the T&C's & if you can get out without big penalties have a shop round.
Consider selling one of the car's, I managed without when son was little, walked to childminders, 2 buses to work & was a lot fitter than now. OH drove me too shops once a week. TV subscription is not necessary, get freeview.
Gas & electric are huge, are there arrears? If not shop around using a comparison site.
How about selling some stuff on ebay or the like to try & pay off the smaller debts, which would free up more cash to chuck at the larger ones.

Good Luck!

Fire_Fox

Welcome to the board!

If your gas and electricity are not in arrears you should read through the energy message boards to get ideas on cutting back very hard on this. Also do you really need to run two cars of only one of you is working? And three phones for two people?

tyllwyd

Are you sure you can get all your food & groceries (including nappies probably?) for two people for £150 or less per month? Less than £40 per week? It doesn't look realistic to me. Great if you can do it, but if not it is best to use accurate figures or else you aren't making realistic plans.