Debt help needed

strawberryblonde

Hi all

I really could do with some of your opinions on our situation.

My dh and I have debts totalling £30,000. He is employed albeit on a fairly low wage and I am self-employed.
For a variety of reasons we have quite a shortfall between our income and outgoings and have been living off credit to cover this. This credit has now run out. Because I am self-employed, my income has been pretty eratic although I do have regular clients that I work for.
We have contacted the CCCS but can't get an appointment until 5th October.
At present we aren't in arrears with anything which I know is good.

What I want to know is anyone or has anyone been in a similar situation? We aren't going to be in a position to pay our non-secured debts from now on. We are both trying hard to increase our income but that is proving to be quite difficult.

Any comments, advice opinions would be gratefully received.
I am feeling very stressed with it all.
Many thanks

WASHER

Welcome to MSE and the Debt Free board.

You have taken steps by contacting the CCCS - excellent.

Now if we are to help today we need an SOA (a list of incomings and outgoings) and a full list of your debts including APR's.

Your priority debts at this moment are, the mortgage, the council tax, ulilty bills and any secured loans, the rest will have to take a token payment of a £1. Write to each unsecured creditor and offer them a token payment, it will affect your credit rating and you will receive phone calls, DO NOT agree to anything over the phone, for that matter do not confirm your security details with them.

I will get templete letters for you to send to your creditors, I'll be back in a mo.

WASHER

http://forums.moneysavingexpert.com/showthread.html?t=963087

This thread has lots of very useful templete letters for you.

Have you read the CCCS website, it has a wealth of knowledge on there, so you know what to expect from creditors etc.

But first post an SOA and we will see if you can reduce your monthly outgoings in order for you to repay the creditors something while you await your CCCS appointment.
http://forums.moneysavingexpert.com/showthread.html?p=5491531&highlight=#post5491531

This is your SOA from 2007, you could amend this and copy it in on this thread, you would be better trying to keep anything related to your debts on one thread, it makes it far easier for us to help you if we have the full info.

strawberryblonde

The debts that we have are as follows;

Abbey Loan £3000 taken out over 4 years at 5.8%APR taken out in 05/02/07.

Lloyds TSB £4800 overdraft

Lloyds TSB Advance credit card 26.52 % APR £448.91

Lloyds Loan £15000 over 7 years 13.4% APR started November 2008

Cahoot flexible loan £9000 17.9% APR

His salary is still £18000
I am self-employed- average monthly earnings £361
Child Benefit £132
Tax credit £279.76 per month.

I estimate that our total net monthly income will be £1944

Our current outgoings are

Mortgage £876.92
Council Tax £ 159
Gas and electric £118
Mobile phones £90 business phones- on 2 yr contract so cant change
Car Insurances £21.11
Abbey Loan £69.98
Lloyds Loan £269.96
Cahoot Loan £ 202.00
Credit card minimum payment 2 % currently £10
Current account fee £25
Interest on overdraft (varies) £21.46 last month
Sky (includes broadband and phonecalls) £45
Contents Insurance £ 10.75
Buildings Insurance £15.05
Life Insurance (joint) £21.72
Hire of washing machine and tumble dryer £20
TV Licence £12.04
Water rates £56
Food (estimate) £300
Petrol £ 180
Pocket Money for kids £15

ShellyS

Someone will be able to advise you in regards to cutting some of these down I would imagine Strawberry, it looks like your outgoings exceed your income by quite a way - you are repaying quite a lot towards your debt which is great, but causing you to fall further into debt to keep up with day to day life.

WASHER

strawberryblonde wrote: »

The debts that we have are as follows;

Abbey Loan £3000 taken out over 4 years at 5.8%APR taken out in 05/02/07. - How much is outstanding?

Lloyds TSB £4800 overdraft

Lloyds TSB Advance credit card 26.52 % APR £448.91

Lloyds Loan £15000 over 7 years 13.4% APR started November 2008 - How much is outstanding?

Cahoot flexible loan £9000 17.9% APR - How much is outstanding

His salary is still £18000
I am self-employed- average monthly earnings £361
Child Benefit £132
Tax credit £279.76 per month.

I estimate that our total net monthly income will be £1944

Our current outgoings are

Mortgage £876.92
Council Tax £ 159
Gas and electric £118
Mobile phones £90 business phones- on 2 yr contract so cant change
Car Insurances £21.11
Current account fee £25
Sky (includes broadband and phonecalls) £45
Contents Insurance £ 10.75
Buildings Insurance £15.05
Life Insurance (joint) £21.72
Hire of washing machine and tumble dryer £20
TV Licence £12.04
Water rates £56
Food (estimate) £300
Petrol £ 180
Pocket Money for kids £15

Total: £1965.59


Abbey Loan £69.98
Lloyds Loan £269.96
Cahoot Loan £ 202.00
Credit card minimum payment 2 % currently £10
Interest on overdraft (varies) £21.46 last month

Total: £573.40

Overall total: 2538.99

Shortfall each month: £594.99

I have attempted to re do your SOA. By my calculations and they need double checking you are short by £594.99 each month.

You need to contact a debt charity like CCCS today, you need professional help, your priority outgoings other than mobiles/sky etc don't look too bad, and at this moment I am struggling to see where you can make up that shortfall. Why do you pay account fees on your bank account?

I am sure more experience people will be along soon, they may come up with a plan for you, but I'm struggling to find any real cutbacks to make up that shortfall if I'm honest with you.