£30k in debt where do I start

simonlightbulb

Help!!!!!

I am £30k in debt and can only just scape by each month.

I've got loans of £10k, £7.2k, £5k and £3.2k all with barclays

A credit card of £2.7k maxed out

I've got odds and sods amounting to £500

So including interest a ball park of £30k. I earn £32k a year so I am in a bit of trouble. I've had a gambling habit which I have kicked but am now stuck with debts. I'll be clear in three years but each month have pennies to work with.

I've started doing lots of money making schemes ebaying etc etc, but I can't seem to be able to get ahead.

Can anyone give advice on where to start or where to go for advice or whether to approach barclays?

In anticipation

Simon

alastairq

Hi Simon...welcome to the forum....

More knowledgeable folk will be along later, but for starters, you should contact one of the Debt advice charities [stickies at the top].

This is essential, whichever way you chose to jump.

Secondly...if you bank with BArclays, you need to move your account elsewhere....as a preparatory move, I suggest opening a Co-op CAshminder account [or two].
[this is what's termed, a 'basic' account.....no overdraught facilities, no cheque book, but does has a Visa Electron cash card, and importantly does support internet banking.....useful considering the dearth of actual branches.]

Get any income paid into this account.

This action separates your income/expenditure, from the bank holding your debt...just in case that bank decides to 'hold on' to your income.

You don't mention whether you are actually in arrears with your re-payments?

Do you have a mortgage?

Do you have any 'secured ' loans?

Essentially, you have to determine whether you are 'solvent' or 'insolvent'....to do this you need to complete a budget list.....

this should list all your 'living' expenditure....mortgage/rent, food/housekeeping, power, council tax, etc...

[Whatever is left, from your income, is what you have to re-pay your loans.]

If this total figure exceeds your income, then you are 'insolvent''..and can proceed accordingly.

If not, you are still 'solvent', so need to explore other debt management methods.

simonlightbulb

Thanks for response

I do not have a mortgage and do not have arrears.

I am solvent, but am left with pennies every month after paying off all my bills

Simon

maxmycardagain

If you can stand a IPO (payment plan) for 3 years following declaring yourself bankrupt (70% of surplus income after £99 per month) then go for it

do a SOA here, but do it as if all debts have been wiped, leaving only secured debts (ifyou have property) to pay, and even those go if you give up the house (you say you dont have one tho)

£32K a year - living costs - should be quite a bit.....

dojoman

As Alistair says it is best to seek advice from one of the charities he mentions to see what your options are, until you do that there is not too much we can do to help you.

maxmycardagain

use this - DONT include HP/CC payments your gonna wipe away in bankruptcy

http://www.makesenseofcards.com/soacalc.html

copy the form back into here for appraisal



BTW, declaring your gambling habit could easliy get you a BRU for 3-15 years

Hippychick

You need to complete a statement of affairs and probably post this on the debt free wannabe board then people can help you with suggestions on your current budget.

Use http://www.makesenseofcards.com/soacalc.html and post it up.

maxmycardagain

Hippychick wrote: »

You need to complete a statement of affairs and probably post this on the debt free wannabe board then people can help you with suggestions on your current budget.

Use http://www.makesenseofcards.com/soacalc.html and post it up.

like what i said?.....:D:D:D:D:D:D

maxmycardagain

whats a BRU?...

http://www.insolvency.gov.uk/databases/ddirector/viewbrobrudetailslatest.asp

simonlightbulb

Here is my statement - i think

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned....................
Monthly Income Details
Monthly income after tax................ 1869
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1869
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 425
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 15
Gas..................................... 15
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 0
Mobile phone............................ 0
TV Licence.............................. 10
Satellite/Cable TV...................... 10
Internet Services....................... 0
Groceries etc. ......................... 50
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 200
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)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 830

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
loan...........................27000.....700.......15
credit card....................2700......120.......40
Total unsecured debts..........29700.....820.......-

Monthly Budget Summary
Total monthly income.................... 1,869
Expenses (including HP & secured debts). 830
Available for debt repayments........... 1,039
Monthly UNsecured debt repayments....... 820
Amount left after debt repayments....... 219
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -29,700
Net Assets.............................. -29,700
Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using IE browser.

maxmycardagain

you wont have any debts if you go br




No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly.. .APR
loan...........................27000.....700...... .15
credit card....................2700......120.......40
Total unsecured debts..........29700.....820.......-


£820+£219 = £1039 pcm for repayments

less £99 = £949 x 70% = £685 pcm for 3 years IPO/IPA