Thousands in debt-how can I clear it? Please help

RAS

MissLiz wrote: »

One problem is that I work at M&S and I have a credit card with them. I have always managed to make the minimum payments with them but as I am staff I can't default on that card, am sure thats in the terms and conditions somewhere. So what do I do? As far as I can see I can't take out an IVA because of this. Does anyone have any ideas as to what I can do where that is concerned? Apart from find a new job.

Hi

Please do not take out an IVA unless it is reccomended by a debt charity.


If you do a DMP they will treat your M&S debt as a priority debt, if that is necessary.

MissLiz

I got into debt over the last 10 years from when I moved out of my home to go to Uni. In the first couple of years, my student loan didn't even cover my rent, let alone books, travel, food etc so credit cards seemed an easy way to get by at the time, it just got worse over the years and is now at the point where I am at now.
I really don't have anything of any value, I don't even own my own tv or music system. My computer is years old so hoping it doesn't go bust anytime soon.

I really don't know what I can do about the M&S debt, it is the one that I have always managed to pay minimum payments to and not much interest is added compared to some of my other ones. I know I need to treat all my creditors fairly but the fact that they are also my employees mean that I can't default on the debt and I don't want to either.

There is overtime at the moment in the run up to Xmas so I am doing a few more hours a week now. Have cut down on my food shop and am buying more reduced items from my work which works out cheaper than Sainsburys etc with my discount card. This month I have spent about £80 on my food shopping and I have a couple of freezer draws full.

slevin

you sound a really nice and humble person, i hope that you get this sorted out

savingcaz

MissLiz wrote: »

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 950
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 950

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 281
Management charge (leasehold property).. 0
Council tax............................. 25
Electricity............................. 20
Gas..................................... 10
Oil..................................... 0
Water rates............................. 12
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 3 (are you sure? do you have a colour tv? cause it's normally £11.92 a month for DD tv lience?)
Satellite/Cable TV...................... 0
Internet Services....................... 15
Groceries etc. ......................... 150 Is this just for yourself? could this be reduced we have a budget of £150 for 2 adults and an 11 month old including Nappies - this month we did it on £125 (and didn't eat badly at all)
Clothing................................ 20 Do you need to spend £240 a year on clothes?
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 50 Seems quite high could you get like a montly ticket? (not sure on public transport so maybe this isn't high)
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20 Can you leave this for now? are they essential? is it worth explaining that you are skint, and just do cards this year - we are only buying for family children under 16 this year.
Haircuts................................ 20 Have you thought about changing to every few months? or how about goign to the college to have your hair done?
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 666


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Overdraft......................2300......0.........0
MBNA...........................4000......120.......0
HSBC Visa......................2500......70........0
M&S &More .....................2500......40........0
Amex...........................1700......40........0
RBS............................1300......30........0
Lloyds TSB.....................3000......60........0
Monument.......................3000......110.......0
Marbles........................3000......85........0
Total unsecured debts..........23300.....555.......-


Monthly Budget Summary
Total monthly income.................... 950
Expenses (including HP & secured debts). 666
Available for debt repayments........... 284
Monthly UNsecured debt repayments....... 555
Amount short for making debt repayments. -271

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -23,300
Net Assets.............................. -23,300

Hope you don't think i've been too harsh, have also only just faced up to our problems (lbm was 12.9.09) it's hard to adjust to not having cards etc but is there any chance you can get some help from family for a few months, so you can cut the cards up so your not spending on them again?

Well doen for poasting

Denis_UK

I read earlier in your thread you ran up your debt while studying at university. If you have qualifications talk to your manager about the possibility of promotion,let him know you are ambitious to get ahead with M&S.

Not an immediate solution to your debt problem but a step in the right direction for the long term.

MissLiz

Slevin, thats a really nice thing to say and made me smile so thank you for that.

Savingscaz, thought I would/should explain what you highlighted in my budget.

Monthly Expense Details

TV Licence.............................. 3 (are you sure? do you have a colour tv? cause it's normally £11.92 a month for DD tv lience?)
I share a house with 3 other people so it works out at £3 a month each.
Satellite/Cable TV...................... 0
Internet Services....................... 15
Groceries etc. ......................... 150 Is this just for yourself? could this be reduced we have a budget of £150 for 2 adults and an 11 month old including Nappies - this month we did it on £125 (and didn't eat badly at all)
I wasn't actually sure on this so I just guessed. This month I have spent £80 on groceries and that includes shared stuff for the house and quite a few goodies from M&S, also 2 takeaways so I know I can reduce this amount further.
Clothing................................ 20 Do you need to spend £240 a year on clothes?
Also this figure was a guess as well, I bought a new coat which cost £40 as my other one was falling to bits. It should have been £50 but I bought it on a 20% off day. I don't go clothes shopping and buy 'the latest' fashions, never really been interested in fashion, I tend to just buy things when I need them.
I probably buy one pair of workshoes a year. The ones I have now need replacing but I am making do for now but this can't last forever.

Other travel............................ 50 Seems quite high could you get like a montly ticket? (not sure on public transport so maybe this isn't high)
I know this says 'other travel' but really it is just travel. My bus pass is £11 a week but sometimes I need to get a bus with another company that my bus pass doesn't cover so I added on another £6 for this a month. The £11 a week is the cheapest way to do it as it is £1.90 one way and I work 5/6 days a week.

Presents (birthday, christmas etc)...... 20 Can you leave this for now? are they essential? is it worth explaining that you are skint, and just do cards this year - we are only buying for family children under 16 this year.
This figure is mainly made up of what I give to my mum for Xmas and her birthday. I don't tend to buy for anyone else for their birthday unless its a 21st, 30th, 40th etc.
Haircuts................................ 20 Have you thought about changing to every few months? or how about goign to the college to have your hair done?
You haven't seen my hair! Its pushing it leaving it 2 months, really it could do with being braided every month to six weeks.

Denis_UK, the manager courses (which is definitely not what I want to do long term) have all been cut right down, there is just not the budget for them at work at the moment. I have 4 friends at work who are more qualified than me, 3 of them with Masters degrees and one studying for a PHD, and they have not been able to get onto any as they are so few and far between these days.

Thanks again to everyone that has replied and contributed to my thread. I already feel a lot more positive than I did when I first posted it. Always grateful for replies.

MissLiz

Hello again everyone, need some more advice please. I got a phone call from one of my creditors saying I missed the two payments. I told them that I was experiencing financial difficulties and they said how much could I afford to pay now, I said nothing and they said when will you be able to pay something and I said when I next got paid.
This was a few days ago and now in the post I have just received a letter from them saying they were sorry to hear of my recent financial difficulties and "in order to come to an arrangement for the above account, please can you provide us with a full list of creditors and the balances owed to each, along with your income and expenditure and a monthly offer of payment which you can afford."
Also they want me to forward confirmation of income and forward my last 3 salary slips.
Should I do what they ask?

RAS

The only people who are entitled to this information are the courts.

Have you spoken to any of the debt charities?

If you do a DMP, you will be allowed to pay the full minimum payment to your employer and divide the remaining £240 between your other creditors, pro rata.

I am going to pick holes in some of your comments above. Your debt is nearly twice your annual net income.

The basic is that you do not have any money with which to buy new clothes or entertain yourself or run a mobile.

You need to downgrade your mobile package, reduce the ents and restrict clothing to new knickers and undies and then use e-bay, second hand and charity shops for clothes, or do swapsies with your friends.

Could you move back in with your parents in the short-term?

Tixy

Hi Miss Liz

I would suggest you do need to send them an income & expenditure form (at some point) but I would not send confirmaiton of your income or payslips - you are under no obligation to give them this money. Have you spoken to one of the free debt organisations yet? do you intend to? - if so you can send this letter offering token payments whilst you seek advice - http://forums.moneysavingexpert.com/showpost.html?p=21937969&postcount=52

If you are intending to manage this without a charity then you will need to compile an income & expenditure to send to them, Some people do give a list of creditors (without naming each one, so CC1, CC2, Loan 1, Loan 2 etc) others just give a total debt figure. This letter may help - http://forums.moneysavingexpert.com/showpost.html?p=26103815&postcount=89

james32_uk

RAS wrote: »

Hi

Please do not take out an IVA unless it is reccomended by a debt charity.


If you do a DMP they will treat your M&S debt as a priority debt, if that is necessary.

Very important that you don't take out an IVA unless recommended by a charity, but just to clarify any debt you have that could adversely affect your income can be set aside from an IVA. It will need to be paid off as per contracted and no more debt can be added to it.

Miss Liz, the best advice anyone can give you is to contact a debt charity for their advice. They deal everyday with new clients and nothing you could say to them would be shocking. Just be open and honest, explain the situation and they will advise the best options for you in as much detail as you want. Personally I recommend Payplan who have dealt with me for 4 years. CCCS are also recommended by many on this forum.

Good luck!