great big hole, cant see the light.......

sparkysi

Hi there

I have a huge amount of unsecured debt, I am pretty sure I am right in the doo doo and am not convinced I am getting the best advice.

Basically, I have around £106000 of unsecured debt, plus about £6500 in unpaid tax. I take home about £1500 a month and most of that goes out leaving me with about £230 a month to pay off these debts.

I have gotten involved with a company called Kensington Financial Management. They have taken details of all the different companies etc and are negotiating with them a payment plan. This is for a fee of course of £39 a month, taken from the £230. Now by my reckoning I am more likely to die than I am to pay off these debts so I am not too sure how this is helping me out. Its still failrly early on in the process and as yet no responses have been made.

I just received a Warrant of Execution regarding my CCJ with Toyota, I have to pay up the £12k they want by Friday or the boys are coming round.

Frankly I dont see how I can get out of this hole without going bankrupt, nothing adds up and although Kensington make the right noises, I am just wondering if I am a cash cow for the next millenia for them, must be lots of us taking these steps so I guess there is profit in it.

Am I doing the right thing? Am I just a bit Cynical? Is this just a bit of Monday morning blues?

Help please, any comments gladly received, feel free to be abusive, I am fairly sure I have been extremely stupid so dont feel bad about calling me an idiot.

Thanks

Simon

southernscouser

Hi Simon! You're an idiot! I'm only joking mate!

First things first ditch those cowboys who are "acting on your behalf"! :mad:

You want to get in touch with either The CCCS or Payplan. They are both registered charities and their services are totally free.

If you can provide us with a SOA we can give you far better advice. Have a look at this thread for a guide and also it has contact details for The CCCS and Payplan on it!

Tr@cker

What are Kensington supposed to be doing Setting up an IVA ? With that level of debt i would think bankruptcy is the option, i take it you are or have been self-employed with 6.5k tax debts.

Tr@cker

I woudbn't agree ALL insolvency firms are cowboys as they can get actual debt reduction and some will the costs to their plans. But if you're going bankrupt you dont need pay any firm just the court fees and the CAB can advise you on this.

southernscouser

Tr&#64 wrote: »

I woudbn't agree ALL insolvency firms are cowboys as they can get actual debt reduction and some will the costs to their plans. But if you're going bankrupt you dont need pay any firm just the court fees and the CAB can advise you on this.

These lot are cowboys. They offer debt "services" that The CCCS and Payplan offer for free!

sparkysi

Monthly Incomings:

My salary - £1,500.00

Total - £1500.00


Monthly Outgoings:

Mortgage/Rent - £300
Gas - £40
Electric - £30.00
TV License - £10.99
Sky £36.00
Phone - £40.00
Food - £300
Car Insurance - £27.50
Petrol - £80
Maintenance - £400

Total: £1264.49

Amount left for debt - £235.51

My debts are listed below, Toyota are the only ones who have gone for CCJ, they seem quite keen and have issued warrant of execution pretty much on the first day possible.

southernscouser

Can you give us APR's on all your debts fella and things like credit limits and loan terms aswell?

How many people does that £300 a month on food feed? Some single people on here manage on £50 a month! :eek:

fairylights_2

I think you need to break down your debts, work out what the APRs are on them, and your monthly payments. Take a look at https://www.whatsthecost.co.uk/snowball.aspx to work out how long it actually will take you to pay this lot off.

As a quick thought, you could probably lose the sky and cut both the electric and the gas bills. They seem pretty high. Also, I assume from one income there's only you in the house - your food bill is HUGE. Can you try to cut that too? Every penny is going to clear that debt faster.

fairylights_2

Snap SS! Nice to see we both think the same!

Tr@cker

The CCCS do NOT get debt reductions southernscouser they can help negotiate repayment of the entire debt how ever long thta takes.

chevalier

Okay there are some obvious savings in there. As you will be earning more when you get the second job that I am suggesting (!), you won't need sky at 30 odd quid a month, so ditch this now.
Second turn off your heating or the thermostat down. £40 per month is too high. See if you can get a cheaper deal with another supplier, same for the electric and the mobile phone.
Third phone payplan or CCCS today and get an appointment for the call back.
Then write a letter to Toyota saying that you are dealing with one or another, and put in a token payment say of £5. This might slow them down a bit. Make sure the letter goes recorded, so you know someone has signed for it.

Your food shopping if it is just for you is very high. I feed 2 adults and 2 children on less than that!

If you have any time today, and things you could sell, ebay are having a 5p listing day tomorrow, which may be another way to get some money.

How much of your debt is business debt and personal debt? You need to do an SOA that shows which is which. And has been said we need the APR's of the credit cards, and how much owed, to give further help.

Is there any family from which you could borrow money? I know it is embarassing (been there and endured the lecture....!), but again it would only be a short term thing.

The main thing is to try and slow this process down, and show your creditors that you are making an effort.

The very best of luck on sorting this out