Small Amount Of Debt - Advice Needed - Affordability

had_enough_4

Hello All,

First time poster on here but a long term browser.

I need some advice to help me work out a plan of action to get over my debt.

I'll make it S.S.S (Short, Sweet & Simple).

Until recently i was on a adequate wage and had a few debts. They were manageable and bearable. In July 09 i split up with the Ex-Missus which let to alot of financial problems. At the end of July i decided to leave my full time job as an IT engineer with my employer of 3 years because of extra stress and pressure to leave from another colleague of mine. I have had my own company (Registered with Companies House) for the last year so i could occasionally do freelance work. After leaving my full time employment i dedicated most of my time to my company.

Work has been very slow and the breakup combined with the stresses of starting a new company wore me out and led me to depression (Diagnosed by GP).

Now...

The issue i have is that i have managed to keep up all my payments and direct debits through savings etc. But the money has run out... And all my direct debits have bounced this month

Im not in alot of debt, ill add a list to the end of the message.

But my income now is not enough to pay for my debts, whereby ive been making reliable payments for over 3 years.

My income varies month to month but as an average i have been £400 short every month and hence why my savings have depleted.

Can someone offer me advice on what to do?
Should i contact CCCS or PayPlan?

I dont want to do anything to jeopardize my company(Even though it has no money) so im assuming bankruptcy isnt an option.

I think this is only a temporary phase and im hoping that in 6 months i can get back to how it was.

Anyway, Thanks for reading. Heres a list of my debts and outgoings :

Loans : £2800 Outstanding - £240/M (Very High Interest)
Credit Cards : £1900 Outstanding - £200/M
Laptop Finance : £800 Outstanding - £40/M
Life Insurance : £15/M
Mobile Phones : £80/M
Rent + Bills : £650/M

curlytop12

hi,am only a beginner myself,am sure one of the good people on here will be along shortly.
I was advised,as the first step,to complete a proper SOA (link at top of page) then look at where costs can be cut (you'll get loads of suggestions)
make sure you spend time with family or friends if you are still feeling depressed,
good luck to you.

Tixy

Hi and welcome

I think a detailed Statement of affairs is a good idea here. You say you are around £400 short per month and your unsecured debt repayments appear to be £440. Whilst I think seeking advice from CCCS or Payplan is a good idea you would need to have more than the £40 available for debt repayments per month (£100 is usually advised as the minimum but it does depend on your debts.

Mobile phones at £80 per month is a very high cost - especially as you mention them in plural. If one phone is business then that should be a limited company expense and paid from business money.

Are you drawing a set salary each month from the business? Is this under PAYE or as a dividends or directors loan? I ask to see if you are saving/paying the tax due on your income as you go along. (As an aside are you also saving for your first corporation tax bill if you are making a profit).

How much work are you getting through your company? is it keeping you busy full time? Is there any chance you could get a part time job to supplement your income until business improves.

What is your housing position? - could you get a lodger to help towards bills?

I'm sure if we see a detailed SoA then there'll be more suggestions for you. http://www.makesenseofcards.com/soacalc.html