Those red debt blues

dannyboyyyyyyyyy

Hi Guys

Just wondering is anone can provide any advise before I approach cccs or cab. I have just come out of three years of studying where my personal debts have spiralled. I have taken bad advice from credit companies (eg they cant stop interest but I pay a minimum payment) and as a result this has made the situation worse.

I have consolidated all debts into 2 big loans in which I am so scared about.
I owe £7000 on one load
£10500 on another
£1000 to parents
£200 on credit card
student loans £15000
mortgage £53000 (half of)

I currently only work 8 hours a week (and overtime when available) so I have no real money, however In2 months time i will have ajob with take home pay off £1100...this requires me to have a car.

my outgoings will be

mortage 125
insuranes and bills approx £100
council tax £75
personal loans £400
car insurance £76
car maintenance etc (????)
car tax approx £15??
tv license £5 p.m (my half)
broadband and telephone £20 (my half)
mobile £30
food etc £150
petrol £80

I am sure there are other commitments eg when things go wrong or having any kind of life, birthdays, christmas (visiting family etc).

I also have problems with my house. Salford council are proposing to possibly demolish it and offer market value (the markey value has dropped because they are bording up houses everywhere and it looks awful) They are dragging there heels and not giving answers and am worried they may drag this out for years. It may be good (if it is regenrated) but it is looking bad, very upsetting the uncertainty.

I share my house with another student. He is talking of bankruptcy next year, if he does it I will be in trouble with the mortgage company i think they will want the money for the house?.

I also have a loving supportive girlfriend who I want to marry but I can not risk her being involved in any of this, its just not fair on her (as she has a small property she has just bought and cant afford to lose it).

I just dont know what to do.

1)bankruptcy, iva or cccs? I am not bothered about my credit rating......i can only see that as some0ne who is in this much debt the last thjing i need is credit again.

ANyone who can offer advice i would much appreciate it. I know my situation may not be as bad as others but i find this so hard to cpe with. It has taken a lot to write this and I hope you can help.

I do not mind losing my home because if salford council do CPO is for less than its worth i will have to bankrupt myself anyway. I dont mind any of the "repercussions of bankruptcy" as I am more scared of spending the next ten-15 years paying of this lot.

Thank you for reading this...

God bless

Danny

Broken_hearted

Brankruptsy won't wipe out your student loans or pay your parents back. It will also stop you working in certain areas.

Sea78

Ok,

now, can you get another job now - for the next two months? Are you still studying/is there a reason why you can only work the 8 hours?

I'm sure someone will be along in a min to help out. Well done for posting and welcome to the board. You'll find supportand advice here.

How much will you have to earn before paying off student loan? Will this start immediately?

Sea xx

all_hours

hi,

your share of the mortgage is £26.5k? and what is the market value of the property now?

what are the APRs on the loans and credit card and break down the insurance and bills into individual amounts.

with a take home pay of £1100 you should be able to defer repayment on your student loans

other than the issue with your house your situation looks manageable. I make that to be total outgoings £1076 including loan repayments. so at present leaving £24 for car maintenance, repaying the credit card and repaying your parents.

you could cut your food bill by at least £50 and will probably be able to cut down on insurance and other bills. look on the old style board for advice on keeping food and cleaning bills to a minimum.

CLAPTON

just a few points :

can you edit your post and add the monthly payments on the two loans and how many months left to pay.

can you break down 'insurances and bills'

is council tax really £75 per month each?

do you actually own a car or are you going to have to buy one?

can you replace the mobile with a PAYG and use only sparingly.

the student loan only becomes payable when your gross monthly pay exceeds 1,250 and then at only 9% of the amount over so your payment should be either zero or very little ...not worth worrying about.

there are things missing from the SOA but it doesn't seem totally un manageable, if you can cut back a bit then you'll just about break even.....will your new job allow you to get a second part time job : maybe you could start now ...even a couple of hundred a month will make a big difference.


as far as the house is concerned have you contacted your local councillors ?

with no knowledge of your house mates circumstances....but if he does go bankrupt...and its only an if, if there is no equity in his share of the house he will probably be allowed to keep it as long as he can continue the mortgage payments...but thats a problem for another time.

can you increase your current hours...presumably Uni has finished now

Mrs(no)money

dannyboyyyyyyyyy wrote:

I also have a loving supportive girlfriend who I want to marry but I can not risk her being involved in any of this, its just not fair on her (as she has a small property she has just bought and cant afford to lose it).

I am not sure if you mean your girlfriend is unaware of your situation but honesty has to be the best policy here - if you havent told her, then please do, the sooner the better.

beanielou

Hi & welcome to MSE.
One day you will look back & this will all seem like a bad dream.
Sure others will be along to help soon

dannyboyyyyyyyyy

Thamks guys for all your help

I am dealing with all these things and will certainly come back on. Getting house valued tomorrow (so fingers crossed). Girlfriend does know about position by the way! thank you all for all your supportive comments.....

Danny

Annie_Fanny

Danny - why are you only working 8 hrs a week? I live in Manchester and am totally certain that if you get down to some of the employment/temp agencies in Manchester they will find you work no problem. OK it may not be 'glam' work but hey getting two months money would be cool right? Try Adecco, Brook Street etc...

Annie

dannyboyyyyyyyyy

I have been working only 8 hours per week, because I have been working in a hospital (40 hours per week) oon a placement (which is unpaid) also doing dissertation. I have finished Uni (today!) so I am hoping to get a paid job, i will take your advice re: temping in the mean time

thank you!

Dan

lynzpower

Let us know how you get on