What is the best way to clear my debts???

bethg2009

Hi everyone, been reading this forum for a little while now nad have at last now joined after ( rather reluctantly) admitting I am in a hole with nowhere to hide from my debts any longer. I had a bit of a breakdown in September of last year which resulted in me losing my job as I foolishly abandoned it, as well as ignoring phone calls and letters from my creditors I also ignored letters and phone calls from my employer too and because of that they held a disciplinary hearing in my absence the result being dismissal.
I am feeling a lot better now and want to move on with my life and the first step I realise I need to sort out my debts, and then try and get a new job. So here is a list of everything I owe

Littlewoods 4777.00
Amex 3280.87
Barclaycard 898.63
Capital one 383.47
JD Williams 1184.00
Next 984.63
Empire 968.17
Barclays OD 555.62
CCJ Fine 876.00

All of the above apart from the CC's balances are all arrears as I have not made any payment to anyone at all since losing my job, I really have just ignored everything and just paid my essentials gas, electric and so on. On reflection stupid I know but that's what mental health issues do sometimes.


I have submitted a copy of my income and expenditure to all companies offering a pro rata payment to all of them, explaining that I am left with 122.50 for all my creditors.

Question is : Is this the best way to deal with it or to focus on one debt at a time???
Does anyone have any better solutions?

Any advice would be really really greatly appreciated thanks!!

gargrave50

Hi, well done on finally facing up to your debts. Can you post an SOA for us so that we can see if there are obvious savings to be made which would free up some cash. What is your income now, and also in order to prioritise which to pay off first you need to know the APRs on each of your creditors! Some homework but worth it!

clarence83_2

Well done on trying to sort everything out, it is empowering to know that you are going to get it into order and that you don't have to fear every letter that drops through your door or phone call that rings, day in day out.

I hope you are feeling better now.

I think everyone will come back asking for a full breakdown of your expenditure so we can analyse where you can cut back and make savings, to contribute further to your debt.

Have you considered going back into employment anytime soon? Obviously not back to the same place, but even something part time? Are you claiming benefits?

here is the calculator: copy and paste the results....

http://www.makesenseofcards.com/soacalc.html

Tixy

Agree with Gargrave - we can advise better if we see either your income & expenditure account you sent to creditors or better still use this link to make sure you have included everything.
http://www.makesenseofcards.com/soacalc.html

I hope you are feeling better now than at the end of last year (aside from your debts). In view of the problems you have had you may find that it would suit your better to use one of the free organisations (CCCS, Payplan, CAB, National Debtline or Christians Against Poverty) rather than deal with your creditors yourself. Which should save you from being hassled and bullied by the creditors.

But if we see your statement of affairs first we'll try to point you in the right direction

bethg2009

Hi, tried to upload a copy of my SOA it won't allow me as I'm a new user any ideas???

*Jellie*

sorry don't have any idea why but thought I'd bump the thread in the hope someone else can help!

Good luck with getting sorted

tyllwyd

I've been looking around for a guide on what the restrictions are on new users but I can't find anything. [Anyone else know where to look?] Anyhow, the easiest thing is probably to join in with the discussions, and try again when it doesn't say 'Newbie' under your username.

lyndsey80

When you go to the SOA calculator it should have a button somewhere to format it in MSE format then copy and paste onto here.

RAS

More importantly, at the end of the SOA there is a how load of stuff including a web address. As a newbie, you are not allowed to post links. So delete that off and you can post your SOA.

bethg2009

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 412
Partners monthly income after tax....... 1480
Benefits................................ 121.45
Other income............................ 0
Total monthly income.................... 2013.45

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 585
Management charge (leasehold property).. 0
Council tax............................. 81
Electricity............................. 80
Gas..................................... 90
Oil..................................... 0
Water rates............................. 23
Telephone (land line)................... 31
Mobile phone............................ 15
TV Licence.............................. 8.5
Satellite/Cable TV...................... 0
Internet Services....................... 5
Groceries etc. ......................... 240
Clothing................................ 40
Petrol/diesel........................... 60
Road tax................................ 18
Car Insurance........................... 52
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 100
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 14
Pet insurance/vet bills................. 10
Buildings insurance..................... 23
Contents insurance...................... 18
Life assurance ......................... 15
Other insurance......................... 27
Presents (birthday, christmas etc)...... 15
Haircuts................................ 30
Entertainment........................... 30
Holiday................................. 80
Emergency fund.......................... 40
Total monthly expenses.................. 1745.5


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Catalogue......................4777.33...327.......0
Credit Card....................3280.87...85........17.9
Credit card....................898.63....24........32.9
Magistrates fine...............876.17....125.......0
Overdraft......................555.......0.........6.9
Store card.....................984.......39........36.9
Catalogue......................968.17....15........0
Catalogue......................1184......15........0
Credit Card....................383.47....15........29.9
Total unsecured debts..........13907.64..645.......-


Monthly Budget Summary
Total monthly income.................... 2,013.45
Expenses (including HP & secured debts). 1,745.5
Available for debt repayments........... 267.95
Monthly UNsecured debt repayments....... 645
Amount short for making debt repayments. -377.05

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -13,907.64
Net Assets.............................. -13,907.64

Pooky

bethg2009 wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 412
Partners monthly income after tax....... 1480
Benefits................................ 121.45 Are you claiming everything you can?
Other income............................ 0
Total monthly income.................... 2013.45

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 585
Management charge (leasehold property).. 0
Council tax............................. 81
Electricity............................. 80 Seems high - arrears?
Gas..................................... 90 Seems high - arrears?
Oil..................................... 0
Water rates............................. 23
Telephone (land line)................... 31
Mobile phone............................ 15
TV Licence.............................. 8.5 This is low - it's normally around £12 per month
Satellite/Cable TV...................... 0
Internet Services....................... 5
Groceries etc. ......................... 240 This could be cut - visit the OS board
Clothing................................ 40 Make do for now - only buy essentials
Petrol/diesel........................... 60
Road tax................................ 18
Car Insurance........................... 52 Seems very high
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 100 What does this include?
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 14
Pet insurance/vet bills................. 10
Buildings insurance..................... 23 You don't need this if you're renting
Contents insurance...................... 18 This is high - my policy was only £22 for the year.
Life assurance ......................... 15 Not strictly needed if no mortgage
Other insurance......................... 27 What's this for?
Presents (birthday, christmas etc)...... 15
Haircuts................................ 30 That's a lot per month
Entertainment........................... 30
Holiday................................. 80 You can't really afford one
Emergency fund.......................... 40 What's this used for and how much do you have put by?
Total monthly expenses.................. 1745.5


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Catalogue......................4777.33...327.......0
Credit Card....................3280.87...85........17.9
Credit card....................898.63....24........32.9
Magistrates fine...............876.17....125.......0
Overdraft......................555.......0.........6.9
Store card.....................984.......39........36.9
Catalogue......................968.17....15........0
Catalogue......................1184......15........0
Credit Card....................383.47....15........29.9
Total unsecured debts..........13907.64..645.......-


Monthly Budget Summary
Total monthly income.................... 2,013.45
Expenses (including HP & secured debts). 1,745.5
Available for debt repayments........... 267.95
Monthly UNsecured debt repayments....... 645
Amount short for making debt repayments. -377.05

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -13,907.64
Net Assets.............................. -13,907.64

I've put some comments in red - Are you looking to do a DMP?