HELP!!! New to MSE and in debt plz Help!!

andrewb4709

Hi Ppl,

I am new to MSE and alot of the advice on the debt post's i dont really understand, so was looking for some advice and tips for how to deal with my mess so would be really gratefull if anyone could help.....

Basically I am 26 with partner and 2 yr old boy, we rent our house privately, have a car on finance with welcome(bad i know lol)which i have not been able to pay for last 2 months and is supposed to be getting repossessed in 14 days, i owe £575 in council tax and to top things off got laid off yesterday, dont know where to start what to do just completley lost pls help if any1 can...................... Thank you Ppl......:eek:

looktothefuture

Right first off, breathe... now sit tight and wait for the brilliance that is the support of the MSE'ers on here!


Have a read through http://forums.moneysavingexpert.com/showthread.html?t=562271 ...it's kind of a starter guide! Within all that is the Statement of Affairs Calculator http://www.makesenseofcards.com/soacalc.html. Follow the instructions on the Calculator and then post it into a new message on this thread and you'll get some feedback from some of the more experienced debt buster MSE'ers!

In all honesty, this place was my lifesaver!

I wish you all the luck in the world!

boredofbeingathome

Hi andrewb and welcome to the boards.

First things first. Have you worked out a budget? There is an online debt remedy with cccs. User friendly and good advice.

Secondly sorry you have been laid off, always happens at the worst time doesn't it?
I am sure you can get some specialist advice regarding that.

How far have the car people gone with this? You say about reposessing, but there may be other options we can help with.

Fire_Fox

Sorry to hear about your job :mad: the first thing to do is to apply for as many benefits as possible - council tax benefit, housing benefit, Jobseekers Allowance, etc. I believe you can apply for some benefits online which you should try to do as your claim usually starts from the day you first make contact. The Benefits board will be able to help with this if you are unsure about anything.

Secondly if you can complete one of these, press the 'format for MSE' button and post on here we can see where you are at with your existing commitments:
http://www.makesenseofcards.com/soacalc.html

I would recommend you also write immediately to your landlord and inform them that you have been laid off and will be seeking alternative work and applying for benefits in the mean time. You might also find it helpful to write the same letter to the council tax office as they may be willing hold off taking any further action against you. If you have any proof of being laid off you should copy this and enclose it with the letter.

You have absolutely come to the right place, there is so much knowledge and support on here you will feel much better about this situation very soon. :A

andrewb4709

Thanks ppl, gunna get on with council tax and claiming benifits, welcome have said if the didnt have payment by next friday £150(which i cant afford) then within 7days car will be passed to collection and repossessed. As requested i filled in from of affairs here it goes lol.....

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................ 0
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 0

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 235
Rent.................................... 470
Management charge (leasehold property).. 0
Council tax............................. 144
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 74
Telephone (land line)................... 0
Mobile phone............................ 60
TV Licence.............................. 14
Satellite/Cable TV...................... 19.5
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 120
Road tax................................ 86
Car Insurance........................... 46
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 11.95
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 150
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1760.45


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


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 11950....(235)......39
Total secured & HP debts...... 11950.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................1800......50........NaN
Total unsecured debts..........1800......50........-


Monthly Budget Summary
Total monthly income.................... 0
Expenses (including HP & secured debts). 1,760.45
Available for debt repayments........... -1,760.45
Monthly UNsecured debt repayments....... 50
Amount short for making debt repayments. -1,810.45

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -11,950
Total Unsecured debt.................... -1,800
Net Assets.............................. -1,800

Horace

If you have a child then you must be getting some child benefit at least and although you have a partner listed there is no income listed for them - are they claiming anything?

Cut out the spends on birthday presents etc as that is extortionate and either make something or look on the freebies board as you may get something for free.

£200 on groceries is also high and you should be able to cut this back - look on the moneysaving oldstyle board for tips on meal planning. Make a shopping list of what you need before you hit the shops and only buy what is on the list. Cook from scratch and drop a brand in the supermarket - it all helps.

Are you in arrears with your council tax as it seems a little high?

Keep a spending diary so that you know where the money is going.

Deep_In_Debt

Your water seems high too. Are you on a meter? If not, may be worth looking into.

looktothefuture

andrewb4709 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 Are you entitled to any benefits? Does your partner not earn an income?
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 0

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 235
Rent.................................... 470
Management charge (leasehold property).. 0
Council tax............................. 144
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 74
Telephone (land line)................... 0
Mobile phone............................ 60 Seems a little high, could you renegotiate your tariff?
TV Licence.............................. 14
Satellite/Cable TV...................... 19.5
Internet Services....................... 0
Groceries etc. ......................... 200 Visit the moneysaving Old Style boards for great ideas on recipes.
Clothing................................ 0
Petrol/diesel........................... 120 Martin has posted up a petrol checker (somewhere) on the site, it lists the cheapest petrol rates near your home. Brilliant!
Road tax................................ 86 Every month? Work it out Monthly if you do save for it through the year.
Car Insurance........................... 46
Car maintenance (including MOT)......... 30 Every month? Work it out Monthly if you do save for it through the year.
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 11.95
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 150 Cut down on this as soon as possible. Use the money for this more wisely.
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1760.45


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


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 11950....(235)......39
Total secured & HP debts...... 11950.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................1800......50........NaN
Total unsecured debts..........1800......50........-


Monthly Budget Summary
Total monthly income.................... 0
Expenses (including HP & secured debts). 1,760.45
Available for debt repayments........... -1,760.45
Monthly UNsecured debt repayments....... 50
Amount short for making debt repayments. -1,810.45

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -11,950
Total Unsecured debt.................... -1,800
Net Assets.............................. -1,800

Hi,

I've commented in PINK and I hope they can help you sort this minefield of comments!

Please check which benefits you may be entitled to... Martin has a linky thing somewhere on the site...! I think it's www.entitledto.co.uk

elfen

Don't forget WTC if your partner is working. If he's working and you're not, it should go up a bit to allow for the lowered income

andrewb4709

Hi,

I've tried to drop down on mobile phone but wont let me go any lower at mo, also the amount for pressies is for year, cause we struggling we just get every1 small presents i hate it but needs justify the means, i am in arrears with council tax it works out that i have to pay £144 a month till march 10, my partner is not working, but she cannot claim jsa either because she did a 4 apprenticeship and then fell pregnant with our son they are saying that she has not payed enough ni stamps so she cannot get any benifit, we do get child benifit £80 a month, have tried with the shopping to bring it down included though is nappies and wet wipes and baby creams as well, the 50 a week covers our food shopping and sons stuff as well. personally i feel that the car is the problem but cannot work out what my best options are?

thansk for replying ppl anything is helpful.............trust me lol................

Fire_Fox

You should be able to get income-based JSA as a couple now you have no income: make sure you apply for you both of you. Presumably you won't need to spend much at all on petrol whilst you are not working? Your water rates are enormous, ring up and ask to be transferred to a meter ASAP. You should be charged the cheaper rate from the date you request a meter, so keep a note of the date and name of person you spoke to - I'd expect this to go down to £25ish!!

Even with stuff for your little one, you should be able to get your groceries down to maybe £100 for a month or so, then £150 a month longer term. Join the 'Grocery Challenge' and 'Storecupboard Challenge' threads on the Old Style board. Basically just buy Value/ Smartprice everything for a bit, try not to waste any food at all (e.g. make soup with dodgy veg), use less meat and more beans, lentils and eggs for protein, write an inventory of your copboards and see what you can invent to cook with the contents.

Definitely write to your landlord and the council tax people as advised, explain the situation and they will probably be very understanding as a lot of people are in your shoes right now. The important thing is to keep them in touch with what is going on rather than just missing payments.

Keep posting, I promise you in will feel less scary as you take control of the situation.