Need Help

niclj

I owe around £30,000 on credit cards, loan and to HMRC.
I have finally sat down and worked out my budget. After taking into account essential bills - mortgage, utilities, insurance - and estimates for food/car running costs etc, I have around £200 - £220 per month left over from my salary.

Currently paying £735 per month in credit card/loan repayments and only making minimum payments on the credit cards so not reducing the debt at all.

I'm thinking about an IVA but it scares me. I need to do something but I want to do the right thing. I am a homeowner and don't want to lose it.

Any ides?

BeautyandtheBeast_3

hi and welcome - i think that if you can fill in an SOA form and post it here then people maybe able to help you xxx

Shoe_Gal

Welcome - and good luck

Well done for taking the 1st step :A

GeorgeUK

If you are managing to currently make all your repayments, you may be able to get some 0% creditcards to transfer some of the higher APR debt to.

As suggested a SOA may be of use.
http://www.makesenseofcards.com/soacalc.html

niclj

Thank you for the replies.

Will fill in a SOA.

I owe on the following credit cards:

Yorks Bank - £4,136 Barclaycard - £3,323 M&S - £2,080 RBS - £2,861 Virgin - £7,450

Also have approx £8,000 outstanding on a loan with Liverpool Victoria.

Thought I had a £2,000 agreed overdraft limit with Yorkshire Bank. However it would seem that they have withdrawn the facility. I am £200 overdrawn and can not use my debit card for purchases or cash withdrawals. My last bank statement clearly shows the overdraft limit. Now having to write to them!

The good thing about this whole mess is that I have sat down and worked out a budget for the first time ever. Really looked at all my household bills and done something about reducing the ones I can.

Just need a way to keep my head above water and keep my house. There is hardly any equity in it otherwise I would look at a remortgage.

niclj

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1828
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1828

Monthly Expense Details
Mortgage................................ 810
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 75
Electricity............................. 23
Gas..................................... 45
Oil..................................... 0
Water rates............................. 22
Telephone (land line)................... 38
Mobile phone............................ 28
TV Licence.............................. 12
Satellite/Cable TV...................... 21
Internet Services....................... 0
Groceries etc. ......................... 120
Clothing................................ 10
Petrol/diesel........................... 130
Road tax................................ 15
Car Insurance........................... 40
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 35
Contents insurance...................... 0
Life assurance ......................... 11
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 20
Total monthly expenses.................. 1535


Assets
Cash.................................... 0
House value (Gross)..................... 125000
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 125500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 115000...(810)......0
Total secured & HP debts...... 115000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Yorks Bank.....................4135......125.......0
Barclaycard....................3323......67........0
M&S............................2080......52........0
Liverpool Victoria.............8000......228.......0
Virgin.........................7450......197.......0
RBS............................2862......64........0
Total unsecured debts..........27850.....733.......-


Monthly Budget Summary
Total monthly income.................... 1,828
Expenses (including HP & secured debts). 1,535
Available for debt repayments........... 293
Monthly UNsecured debt repayments....... 733
Amount short for making debt repayments. -440

Personal Balance Sheet Summary
Total assets (things you own)........... 125,500
Total HP & Secured debt................. -115,000
Total Unsecured debt.................... -27,850
Net Assets.............................. -17,350

I need to keep the car as to take public transport would involve 2 buses, take over an hour and cost £6 per day. The car journey takes around 20 - 30 mins. I also need to travel to clients.
I'm claiming the single person reduction for my council tax and my house is in the lowest band.

BeautyandtheBeast_3

niclj wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1828
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1828

Monthly Expense Details
Mortgage................................ 810 - could you look at reducing this payment - changing your mortgage for a while to perhaps interest only?
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 75
Electricity............................. 23
Gas..................................... 45
Oil..................................... 0
Water rates............................. 22
Telephone (land line)................... 38 have you thought about a package with internet tv and calls etc?
Mobile phone............................ 28
TV Licence.............................. 12
Satellite/Cable TV...................... 21
Internet Services....................... 0
Groceries etc. ......................... 120 this perhaps could ome down by £20 - batch cook and freeze maybe?
Clothing................................ 10
Petrol/diesel........................... 130
Road tax................................ 15
Car Insurance........................... 40 - is this the cheapet?
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 35 could you shop around my builing and contents is £15 permonth
Contents insurance...................... 0
Life assurance ......................... 11
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 20 is this really necessary
Total monthly expenses.................. 1535


Assets
Cash.................................... 0
House value (Gross)..................... 125000
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 125500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 115000...(810)......0
Total secured & HP debts...... 115000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Yorks Bank.....................4135......125.......0
Barclaycard....................3323......67........0
M&S............................2080......52........0
Liverpool Victoria.............8000......228.......0
Virgin.........................7450......197.......0
RBS............................2862......64........0
Total unsecured debts..........27850.....733.......-


Monthly Budget Summary
Total monthly income.................... 1,828
Expenses (including HP & secured debts). 1,535
Available for debt repayments........... 293
Monthly UNsecured debt repayments....... 733
Amount short for making debt repayments. -440

Personal Balance Sheet Summary
Total assets (things you own)........... 125,500
Total HP & Secured debt................. -115,000
Total Unsecured debt.................... -27,850
Net Assets.............................. -17,350

I need to keep the car as to take public transport would involve 2 buses, take over an hour and cost £6 per day. The car journey takes around 20 - 30 mins. I also need to travel to clients.
I'm claiming the single person reduction for my council tax and my house is in the lowest band.

Hi just popped a couple of thoughts on there for you - i have noticed that you havent got the APRs down for the cards? In my signature you will notice various cards one is tesco who i have had for a while with zero balance on it - i wanted to move balance of one of the highest cards i have ever had - i called tesco and they gave me 7% LOB interet rate - very happy with Tesco - Try calling your CC providers see what deals they could do for you. xx

niclj

I am tied into a fixed rate deal with my mortgage company at the moment. I have written to them asking what my repayments will be once out of the deal and if I can move onto interest only for a short period of time.

Will shop around for better insurance prices and tv/phone/broadband. I'm afraid that I have always had good intentions when it comes to renewing insurance and then never actually looked for cheaper deals.

The APRs are as follows: Barclaycard - 17.9% M&S - 24% RBS - 2.5% pm Virgin - 2.5% pm Yorkshire Bank - 2% pm

Will certainly look into the Tesco card. It seems that because I am only making the minimum payment all of the companies have hiked up the interest rates. I have been wary of new credit cards because of the number of cards I have and the amount of debt.

Thank you for your advice so far. Already feeling a bit better even though I have a huge way to go and haven't actually started making inroads. I haven't wanted to tell anyone about my level of debt partly because I am ashamed that I have got myself into it and partly because I don't want to worry my family.

BEAT_THE_DEBT

Hi and welcome , please dont feel ashamed it happens to the best of us. I told my MIL after a year of struggling and she just kept saying she wishes i had told her sooner, people may surprise you! There are some friends of mine that just dont get it and will still say "oh you never come out" or "you always say no" but tough my family comes first!!

niclj

It is going to be hard to stick to a budget but kind of looking forward to it. Very strange!

I've always used shopping as a reaction to the bad times. Now I'll have to get the same buzz from sticking to a budget!

I'm very good at managing my clients money and helping them save and pay less to HMRC but after a 40+ hour week can't face sorting myself out.

GeorgeUK

How are you managing to make the minimum payments right now?

Mortgage................................ 810
Could you go interest only for a while?

Council tax............................. 75
If paying over 10 months, can you ask to pay over 12?

Electricity............................. 23
Gas..................................... 45
Have a look at the comparison sites to see if you can get a better deal and inform your current supplier of the meter readings - if you have overpaid, you should be able to reclaim this.

Water rates............................. 22
Is this metered? Do you use a water hippo in the cistern to use less water?

Mobile phone............................ 28
PAYG?

Telephone (land line)................... 38
Satellite/Cable TV...................... 21
Internet Services....................... 0
Is this a package deal?

Groceries etc. ......................... 120
Have a look at the oldstyle board for meal plan ideas and cooking in bulk.

Car Insurance........................... 40
Buildings insurance..................... 35
Life assurance ......................... 11
Again, i'd check the comparison sites for the best deal (uswitch, moneysupermarket)

Check your credit file (free at experian if you cancel within 30 days) to see if you have any old accounts open - you may be able to use these if they have not been closed. It is usually best to do balance tranfers onto a card with a nil balance but any saving in interest will help. You may also find that some of the life of balance (LOB) offers also require a smaller monthly payment.

Edit: Blimey, if those monthly interest rates are correct, those are horrendous APR's 2.5%pm is about 35%APR and 2%pm is 27%APR. Are these cash advances? We really need to find a way to deal with these asap.