Help scared and worried

SkintNScared_2

Not sure where to start

i lost my job two months ago and we r in debt to about 25k not includin the morgage. then yesterday my hubby also made redundant and revealed 2 me that he is in 75k!!!!!!!!!!!!!!!!! of debt i didnt realise before. now with no income not sure how we r goin 2 pay the bills or even live can anyone help :o:o:o:o

Jesthar

Hi, SkintNScared, and welcome to the wonderful world of MSE! You can now relax a little - you just landed in one of the BEST places on the internet for helping to chase the debt monsters away. *hugs*

Now, the first thing that is useful for us to help us help you is if you can put together what we call a Satement of Affairs (known as an SoA around here). This is a comprehensive summary of your financial position - you include absolutely EVERYTHING and post it up for us to see, so we can help you work out what to do next. Pop the kettle on, sit down with your hubby, hunt out your statements and bills, and you will find our favourite online page for doing one of these here:

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

If you use the 'MSE' button in the 'Format post...' section, it will produce a version you can copy and paste into a post here which is easy for us to read. Once we have this the really useful advice will start.

In the meantime, congratulations on having your Lightbulb Moment, and again - relax a bit. You've already taken the biggest step by facing up to the fact you have a problem and posting here, and whilst there might be a long road ahead you only have to do it step by small step - with your fellow MSE-ers for support!

*hugs* again,

~Jes

Tixy

Hi Skint n Scared

I am sure you are very worried and frightened. I think the things to do, in order of priority, are:

You need to open a new basic bank account with someone you don't owe money to (if you have an overdraft) you will need this as a backup account but it takes a few days to set up. Make sure you ask for a basic account.

Check you have applied for all benefits you are entitled to.

Cancel all direct debit to unsecured debts. Send a letter to these creditors with a £1 token payment (http://forums.moneysavingexpert.com/showpost.html?p=21937969&postcount=74)

Speak to one of the free debt advice charities (CCCS, Payplan, Citizens Advice)

Draw up a family budget (statement of affairs) of money coming in and priority expenses using this calculator - http://www.makesenseofcards.com/soacalc.html

Cancel any luxuries you can (such as sky, gym membership etc).

Post your SOA on here for some advice on your situation.

Good luck and do keep posting and asking for advice

SkintNScared_2

Thanks will do an S.O.S. I mean S.O.A now :money:

BeautyandtheBeast_3

welcome!! good advice here for you hope you can get it all sorted so you can relax a little

SkintNScared_2

Here you go

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 0 - Was £2,600
Partners monthly income after tax....... 0 - Was Just over £4k
Benefits................................ 0 - Not sure if we are entitled to any??
Other income............................ 0
Total monthly income.................... 0

Monthly Expense Details
Mortgage................................ 2935 (Repayment)
Secured/HP loan repayments.............. 1000 (Cars, figure is approx)
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 200
Electricity............................. 125
Gas..................................... 0
Oil..................................... 0
Water rates............................. 65
Telephone (land line)................... 25
Mobile phone............................ 70
TV Licence.............................. 12
Satellite/Cable TV...................... 45
Internet Services....................... 32
Groceries etc. ......................... 400
Clothing................................ 600
Petrol/diesel........................... 200
Road tax................................ 30
Car Insurance........................... 90
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 15
Buildings insurance..................... 65
Contents insurance...................... 15
Life assurance ......................... 60
Other insurance......................... 0
Presents (birthday, christmas etc)...... 75
Haircuts................................ 100
Entertainment........................... 500
Holiday................................. 400
Emergency fund.......................... 0
Total monthly expenses.................. 7059


Assets
Cash.................................... 2500
House value (Gross)..................... 440000
Shares and bonds........................ 0
Car(s).................................. 40000 1at £25k 1at £15k, both less than owed on HP.
Other assets............................ 0
Total Assets............................ 482500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 400000...(2935).....7.49
Hire Purchase (HP) debt ...... 21000....(400)......0<
Hire Purchase..................32000....(600)......0
Total secured & HP debts...... 453000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
HSBC Credit Card...............19000.....570.......17.9 << My debt
First Direct Credit............22000.....660.......0 << Partners debt
Store Cards....................6000......240.......0 <<My debt
Total unsecured debts..........47000.....1470......-


Monthly Budget Summary
Total monthly income.................... 0
Expenses (including HP & secured debts). 7,059
Available for debt repayments........... -7,059
Monthly UNsecured debt repayments....... 1,470
Amount short for making debt repayments. -8,529

Personal Balance Sheet Summary
Total assets (things you own)........... 482,500
Total HP & Secured debt................. -453,000
Total Unsecured debt.................... -47,000
Net Assets.............................. 3,500

:eek::eek:

newlywed

You spent £600 a month on clothes?

Get on ebay and see how many you can sell!!

Is your £400 a month holiday booked? You really can't afford it otherwise and need to postpone that thought till another time.

grahamlaw

Your bills are massive. £600 for clothing every month? Entertainment £500? I'm sure people here can help you. It's not the end of the world.

May I ask what kind of entertainment? I am very shocked.

£100 for haircuts? Here's a tip, clippers £15 from argos and that's one of you sorted. I do it.

LeeSouthEast

SkintNScared wrote: »

Here you go

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2 Sell 1/both?

Monthly Income Details
Monthly income after tax................ 0 - Was £2,600
Partners monthly income after tax....... 0 - Was Just over £4k
Benefits................................ 0 - Not sure if we are entitled to any??
Other income............................ 0
Total monthly income.................... 0

Monthly Expense Details
Mortgage................................ 2935 (Repayment)
Secured/HP loan repayments.............. 1000 (Cars, figure is approx)
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 200 Contact council for help here
Electricity............................. 125 Cut this and switch provider
Gas..................................... 0
Oil..................................... 0
Water rates............................. 65 Why so much?
Telephone (land line)................... 25
Mobile phone............................ 70 Stop. Go PAYG
TV Licence.............................. 12
Satellite/Cable TV...................... 45 Cancel
Internet Services....................... 32 Cancel. Go with a package (e.g. TalkTalk)
Groceries etc. ......................... 400 Reduce to £200.
Clothing................................ 600 STOP! No new clothes at all.
Petrol/diesel........................... 200 I presume you can stop this now
Road tax................................ 30 Sell car(s).
Car Insurance........................... 90 Sell car(s).
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 15
Buildings insurance..................... 65 Haggle.
Contents insurance...................... 15 Haggle
Life assurance ......................... 60 Haggle
Other insurance......................... 0
Presents (birthday, christmas etc)...... 75 Stop!
Haircuts................................ 100 Stop!
Entertainment........................... 500 Stop!
Holiday................................. 400 Stop!
Emergency fund.......................... 0
Total monthly expenses.................. 7059


Assets
Cash.................................... 2500
House value (Gross)..................... 440000
Shares and bonds........................ 0
Car(s).................................. 40000 1at £25k 1at £15k, both less than owed on HP.
Other assets............................ 0
Total Assets............................ 482500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 400000...(2935).....7.49
Hire Purchase (HP) debt ...... 21000....(400)......0<
Hire Purchase..................32000....(600)......0
Total secured & HP debts...... 453000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
HSBC Credit Card...............19000.....570.......17.9 << My debt
First Direct Credit............22000.....660.......0 << Partners debt
Store Cards....................6000......240.......0 <<My debt
Total unsecured debts..........47000.....1470......-


Monthly Budget Summary
Total monthly income.................... 0
Expenses (including HP & secured debts). 7,059
Available for debt repayments........... -7,059
Monthly UNsecured debt repayments....... 1,470
Amount short for making debt repayments. -8,529

Personal Balance Sheet Summary
Total assets (things you own)........... 482,500
Total HP & Secured debt................. -453,000
Total Unsecured debt.................... -47,000
Net Assets.............................. 3,500

:eek::eek:

Hi! Welcome to MSE.

You're SOA is out of control. The good news is, there's tones of wiggle room there. You can cut your monthly outgoings by thousands, with very little work. Speak to your mortgage provider and tell them of the situation urgently. Also send your unsecured creditors notification with £1 token payments.

I'm sure others will be along soon with some better ideas

newlywed

Even when you had both your incomes - you were still living beyond your means - your income was approx £6,600 whereas your monthly outgoings are £7k, not even including debt payments.

catspaw

£100 for a haircut every month...that can go or be cut drastically
and groceries can be cut

.....ah see my post has crossed with LeeSouthEast