Have no idea where to start - Please Help if you can and be harsh I need to hear it

debtaghh

Hi,

I really feel for you as in similar situation. You seem to be doing the best you can with your outgoings, the only things that I noticed was the haircuts seem high- could you not cut this down?Your water rates seem slightly high and can you get rid of presents for now?Is there any way that you could stop paying your parents for a while?Your loans seems to have quite a high apr-if you have a good credit history could you not apply for another loan/cc with a much lower apr?

These are just a few ideas. You are showing to have a shortage each month of over £500 but if you got a better apr it should lower your monthly payment. Do you do surveys, mystery shopping, get cashback and sell stuff on ebay. I know you might not make a lot but all helps and could go towards xmas, bdays and shortage each month.

If you rang someone they might recommend an IVA ( not sure how much debt your allowed to have).

Good luck hope you manage to sort something out.

Ames

rethink wrote: »

I am not sure on my credit card and my husbands credit card interest rate, we both have debt in both our names more so in my husband as he has a better credit score than I do. What will these angencies do when we call them ?

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.................... 1
Monthly Income Details
Monthly income after tax................ 780
Partners monthly income after tax....... 1166.62
Benefits................................ 335.37
Other income............................ 0
Total monthly income.................... 2281.99
Monthly Expense Details
Mortgage................................ 211.8
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 119
Electricity............................. 36
Gas..................................... 42
Oil..................................... 0
Water rates............................. 41.94 This seems high, would you be better off with a meter? Your water supplier should have a calculator on their website.
Telephone (land line)................... 9 This is really good, but maybe you should use this more and mobiles less? Get PAYG mobiles as soon as you're out of contract, we managed without them for long enough! They're great for emergencies, but don't need to be used for anything else.
Mobile phone............................ 50
TV Licence.............................. 12.12
Satellite/Cable TV...................... 21 You could get all three of these (TV/Sky/Internet) for less in a package.
Internet Services....................... 15
Groceries etc. ......................... 173
Clothing................................ 0
Petrol/diesel........................... 80
Road tax................................ 12.91
Car Insurance........................... 39.19
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0 no school trips, clubs etc?
Medical (prescriptions, dentist etc).... 10 What's this? If it's a regular prescription you might be better of with a pre pay certificate.
Pet insurance/vet bills................. 17
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 28.37
Other insurance......................... 10
Presents (birthday, christmas etc)...... 30 This could be cut - only buy for kids, make as much as you can, do surveys for vouchers to spend...
Haircuts................................ 80 Every month? I pay £4 for a haircut at the local college, and £6 for a bottle of hair dye. Spread it out a bit further too, every 6 weeks instead of month for instance.
Entertainment........................... 0 Really nothing here?
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1078.33

Assets
Cash.................................... 0
House value (Gross)..................... 140000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 142000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 113511...(211.8)....0
Total secured & HP debts...... 113511....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................22152.....494.......24.9
Loan...........................0.........264.......0
Loan...........................12000.....210.......6.9
Credit Card....................0.........45........0
Credit Card....................0.........90........0
Loan...........................11000.....289.......21.9
Loan...........................15607.....319.......21.9
Total unsecured debts..........60759.....1711......-

Monthly Budget Summary
Total monthly income.................... 2,281.99
Expenses (including HP & secured debts). 1,078.33
Available for debt repayments........... 1,203.66
Monthly UNsecured debt repayments....... 1,711
Amount short for making debt repayments. -507.34
Personal Balance Sheet Summary
Total assets (things you own)........... 142,000
Total HP & Secured debt................. -113,511
Total Unsecured debt.................... -60,759
Net Assets.............................. -32,270
Created using the SOA calculator
Reproduced on Moneysavingexpert with permission, using IE browser.

I've made a few suggestions, but you've got a big shortfall. If you phone the charities they wont tell you where to go! They'll do everything they can to help, and as (I think it was) RAS said, even if you go bankrupt you'd probably be able to keep the house. As your debts are unsecured, your house really isn't at risk unless you can't keep up with the mortgage, unsecured debts can't take it away.

rethink

Thanks Ames to be really honest I have never ever sat down and added my monthly outgoings other than my bills so no I prob don't spend that much on hair anymore, I just can't get my head around it to be honest.

Ames

Don't worry about it, we all find it hard to start with. In fact, I redid my SOA the other month and really struggled! It's really important though to make sure the figures are right, otherwise you'll end up spending more and digging a deeper hole, I'm finding that out myself, again.

In_my_dreams

Hello there, I'm fairly new to all of this and like you have significant debts.

I think the comments about your income/expenditure have already been made and I think the next step is for you to call a debt charity for some help and assistance as there is a big shortfall every month.

Presumably you have kept payments up to date until now? It may be worth contacting your creditors and explaining the situation to see if they can assist in anyway? A phone call will never harm a situation - if they say no, at least you asked.

I do hope you feel better for positing this, the very worst thing is thinking it will go away as sadly it doesn't and just gets worse. You are not alone though and there are plenty of people who will help you. Hopefully you might sleep tonight as although the problem is still there, it is shared.

Presumably your OH knows about this situation, what does he say? Is there much chance of overtime in your employment as a way to try and ease the stress short term?

Also you say you have two kids, which means clutter, do you have things around the house that you could ebay? Even kids clothes etc can make a few pounds.

I do understand how you are feeling, it is frightening having such debt but you are doing the best thing and facing up to it and you should feel proud of yourself.

Hope you do manage to contact a debt charity tomorrow and try and have a good night's sleep x

rethink

'In my dreams' thank you for you lovely post my husband is aware of everything and although he could have probably taken control of the situation years ago I just fobbed him off but he know everything and we are in this together. I am an E-Bay nut and we will be selling a lot of toys to make money for christmas toys for the Girls this Dec so we know this will help. I have made an enquiry to Payplan and I think an IVA will the route we will have to go well unless they advise otherwise. I do feel a little better as I know I have now confronted my demons and admit I have a spending problem I don't drink and I don't smoke I just spend money so this is my addiction sad I know.

Knowing that there is help from everyone here really does make me realise the situation can be put under control with will power, I have a very good friend who has debt too so understands where I am coming from and will help me with budgeting as I am rubbish at it. I don't spend lots of money on me its more the girls and other people like gifts on birthdays and christmas etc, I don't go out every weekend I spend the money on the girls taking them to the cinema or out to eat or soft play etc that where all the money goes.

I feel sick thinking what I could have done with £80K its nuts and very scarey indeed I am so disappointed in myself but I need to draw a line enough is enough and sort it once and for all, I want my Girls to be able to go on school trips when they are older etc and want to be able to go on nice holidays without parents/inlaws paying etc.

Thanks again sorry if I went on it feels good to write down my feelings

A x

In_my_dreams

I feel like saying "welcome to my world" but in a nice way. The comment about your OH knowing about the situation and fobbing him off, I also honestly believe I have a spending problem and really have to train myself to not spend and hope it works. I have some idea where some of our money has gone but not all of it, it is a culmination of loans being consolidated and leaving way beyond our means.

I don't know much about IVA's or DMP's but you have to do whatever is right for you and your family and will help you sleep at night. I have spent months not sleeping whilst OH snores next to me, oblivious of the mess in my head.

I really think you will feel in control now, for the first time in months (maybe even years), I'm not scared of checking our bank balance or opening bills and want to talk to OH about what I "haven't" spent today.

A spending diary has really helped me see where the money goes and as OH sees it I feel like I am reporting to him. It might be worth a try for you?

Don't be disappointed in yourself, you are facing up to it and that is the most important thing, but stick at it. I could have been debt free many years ago if I'd kept debt busting so I'm here to stay for a LONG time!

Good luck!

charlie2517

Hello!

Just to say welcome, and believe it or not it will all be ok, may not be easy but you will find a solution and a way to cope.

Most importantly as others have said, in my humble opinion you need to chat to a debt charity. They wont send you away, their function is to provide advice and guidance. You need that right now, once you have that, you will start to gain control. Day by day, you'll have the information you need to find a way forward that suits your family.

We've all been where you are at some point, all I can promise is this feeling will ease, you will gain control and there is light at the end of the tunnel. It will involve tough choices both in the next few weeks and going forward (resisting that temptation for things you want rather than NEED) and proactively fighting the debt.

Most of the advice I'd have given on your SOA (statement of affairs) has been said by those who post above me, at the moment it's about you finding a way through and getting used to the new way of living. You've come to the right place, you have your partner's support (not everyone does) and you want to rectify the situation. It WILL happen. Hang on there, get advice, make choices and change things. Big hugs!!!!

Charlie x

rethink

In my dreams and Charlie thank you so much, am trying to stay very positive and hope that tomorrow brings some long awaited help and answers.

Thanks again

A xx

rethink

Just one thing, I don't really want to tell my parents if we go into an IVA as we pay them money each month for a loan so would I still be able to pay this too them ?