Debt Advice Please

jokemckay

Hi,

i currently have £15,000 in unsecured loans/credit cards, getting to the point where i cant afford monthy bills, quality of life is decreasing and causing problems at home, Partner and 4 year old son. Tried to consolodate into one loan but declined, really looking to get to one monthly repayment, and advise greatly appreciated, have calculated budget already but left with £9 per month after all bills taken into account.

Thanks

Joke

Tixy

Hi joke

Generally on here we don't recommend consolidation (because many of us have done that and ended up with more debt and more problems). We consolidation you are not really addressing the issue of spending more than you have coming in and adjusting your budget - and consolidations are often taken out over a longer period, increasing the amount you will repay in total. If you have already been declined for 1 loan then you are unlikely to get another with a competative APR.

Instead it might be worth you talking to one fo the free debt organisations - http://www.moneysavingexpert.com/loans/debt-help-plan#help - it may be that a DMP would be suitable for you (which is also one monthly payment per month)

Or you could post your budget on here and see if we can spot areas you can make savings or suggest where you could cut back to help free up more to pay towards debts - we use this calculator to make sure everything is included in your budget and to see the whole situation - http://www.makesenseofcards.com/soacalc.html

Verbatim

Hi and welcome,

If you could post your incomings and outgoings here you'll get a lot of help with ideas of how to get things more cheaply or alternatives etc.

Is the £9 left after food or just bills?

It's often not really a good idea to consolidate as it's more debt, often taking longer and costing more to pay off and is not tackling the problem but adding to it.
Well done on posting. it's a bit quiet now but the'll be more people around later. T.ry not to worry.
V

pwally2

Hiya joke,

Would have to agree with Tixy consolidation isnt the answer, your best way forward is to post your SOA to see what your spending is and then as they suggest get in touch with the CCCS or Payplan and see what your options are. I was really struggling getting the CCCS involved was the best thing I ever did asnd havent looked back.

good luck

LeeSouthEast

Another vote against consolidating. You're far better off attacking in order of highest APR first. Do post up your SOA as above, and we'll do our best to get you going in the right direction.

jokemckay

Hope this is right,

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1469
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1469
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 213.88
Management charge (leasehold property).. 0
Council tax............................. 119
Electricity............................. 42
Gas..................................... 42
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 15
Mobile phone............................ 27
TV Licence.............................. 12.12
Satellite/Cable TV...................... 30
Internet Services....................... 38
Groceries etc. ......................... 160
Clothing................................ 15
Petrol/diesel........................... 150
Road tax................................ 15
Car Insurance........................... 40
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 5
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 9
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 953

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 300
Other assets............................ 0
Total Assets............................ 300

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
HBOS...........................6476.34...220.......6.12
MBNA...........................2401.45...83.62.....15.9
Royal Bank Scotland............1665.8....37........16.9
bos............................200.......10........0
HBOS...........................100.......10........0
Very...........................250.......85........0
Tesco..........................2918.42...58........15.9
Bank Of Scotland...............1620.99...16.2......21.9
Total unsecured debts..........15633.....519.82....-

Monthly Budget Summary
Total monthly income.................... 1,469
Expenses (including HP & secured debts). 953
Available for debt repayments........... 516
Monthly UNsecured debt repayments....... 519.82
Amount short for making debt repayments. -3.82
Personal Balance Sheet Summary
Total assets (things you own)........... 300
Total HP & Secured debt................. -0
Total Unsecured debt.................... -15,633
Net Assets.............................. -15,333

jonewer

Joke, you need to understand why it is that you are living beyond your means. Until you address that point then you will simply end up in the same position again.

cb_999

Hi Joke, I noticed you have nothing in the "benefits" section, I think you can get an idea of your entitlement here http://www.entitledto.co.uk/.

Also I don't mean to sound blunt but does your partner know about the situation? Are there any possibilities of extra income there?

Tixy

Hi Joke

You just about breakeven at the moment according to your budget -is that correct? or have your debts been increasing? It looks like you are missing some costs such as haircuts, entertainment, and childrens costs pocket money etc.

Looking at your costs for telephone internet & satellite you are paying a total of £83 per month - you should be able to get this much cheaper. Can you reduce your sky package or get your internet free with your sky? Packages for all 3 can be got for around £40 per month, or could you switch to freeview instead and just combine telephone & internet?

Is you OH not working? what benefits is she getting in addition to child benefit - you need to include these on the income side. Are the debts listed both yours and hers or are these just yours and she has others?

Gas & elec seem quite high, especially elec if this is the true split - do you have any arrears? are you with the best provider? have you tried to reduce your usage?

Luckily your rent is pretty low and there doesn't look to be lots of other areas you can make big savings. But unless you can bring in more money you are going to struggle to be able to make any dents in your debts. Is you son now at school? can your OH start earning some money?

LeeSouthEast

jokemckay wrote: »

Hope this is right,

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1469
Partners monthly income after tax....... 0 ?
Benefits................................ 0 ?
Other income............................ 0
Total monthly income.................... 1469
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 213.88
Management charge (leasehold property).. 0
Council tax............................. 119
Electricity............................. 42
Gas..................................... 42
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 15
Mobile phone............................ 27 Cancel/Reduce?
TV Licence.............................. 12.12
Satellite/Cable TV...................... 30 Cancel. You cannot afford this right now.
Internet Services....................... 38 Insane. Combine with Sky/Landline or something.
Groceries etc. ......................... 160 You can reduce this to maybe £100 with good planning.
Clothing................................ 15 Stop.
Petrol/diesel........................... 150
Road tax................................ 15
Car Insurance........................... 40
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 5
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 9
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 953

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 300
Other assets............................ 0
Total Assets............................ 300

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
HBOS...........................6476.34...220.......6.12
MBNA...........................2401.45...83.62.....15.9
Royal Bank Scotland............1665.8....37........16.9
bos............................200.......10........0
HBOS...........................100.......10........0
Very...........................250.......85........0
Tesco..........................2918.42...58........15.9
Bank Of Scotland...............1620.99...16.2......21.9
Total unsecured debts..........15633.....519.82....-

Monthly Budget Summary
Total monthly income.................... 1,469
Expenses (including HP & secured debts). 953
Available for debt repayments........... 516
Monthly UNsecured debt repayments....... 519.82
Amount short for making debt repayments. -3.82
Personal Balance Sheet Summary
Total assets (things you own)........... 300
Total HP & Secured debt................. -0
Total Unsecured debt.................... -15,633
Net Assets.............................. -15,333

Food for thought

MrsTinks

What does your partner contribute to the household funds? If nothing then either get what benefits she's entitled to or tell her to get a job!
You as a family cannot afford for her to not work or have some source of income right now.
How did you get into debt? This is really important because as mentioned until you work that out then we're not getting to the root of the problem...