I really need some help please

Toto

.....................................................

lynzpower

Hello there Toto,

Crikey you have really been through the mill havent you?

Sending you a massive hug accross the Ether x

Have you just done an SOA then? If you wanted to post it upwe can see where else there may be savings for you to help towards paying off the debts.

Why are you worried so much if you have 220 a month spare? Ill tell you thats a hell of a lot better than many of us so its not THAT bad. You have a business, a family, and the ability to ask for help when you need it - im sure all three will see you through

Welcome, your among freinds here xxxx

Emmzi

Quock thoughts.

- local enterprise council - got all the grants you can? hook up with venture capitalist?
- can one of you takle a job until business picks up so there is some steady income?
- 35k equity would halve your debt. How renting averse are you, if it buys you breathing space? (I've never understood why we brits are obsessed with buying, on the continent, its not such a big deal)
- do you have a proper business loan or is it all funded on personal credit cards? You need to sort out business debt vs personal debt or you might be in a right mess at the end of the tax year!
- do you have a good accountant? anything you can be claiming back like VAT etc?


My first stop would be free advice from local enterprise trust/ business gateway/ whatever they call it round your way.

And £220 is very liveable for a month, even for a family.

All the best, keep posting.

homersimpson_3

1. are all these personal debts or co debts- if co what is status of co? what does accountant suggest- do you have one?
2. if clients do not pay take recovery action against them. (it sounds harsh but you're 60k in debt)
3. post incomings and outgoings so we can see if we can save you some money- use spare £220 and target debt. put as much on 0% (if possible) and pay ones with highest apr first.
4. can one of you work for someone for short spell without business suffering- extra source of income. even if only part-time etc.
5. securing debts/taking out further debts on house is to be used as a last resort- it is not generally a good idea. your home is at risk and it's also possibly a legacy for your children.

Mrs_Sparkle

I can't add anything but just wanted to send you a big ((hug))

Welcome to the board- you will get support here.

Toto

Hi and Thank you for answering, it means a lot to me.

I did the SOA from the National debtline website today but I will post one here for your opinions and help.

My debt is all personal, we couldn't get a business loan when we started up because we were so new. All of our VAT is up to date and our tax is all fine, I am really strict with that. I do have an accountant who did look at some business finance options but by that stage some of my debts had got a bit hit and miss and we weren't too favourable. The only way we could be considered was by not only securing the house but also doing a lease finance agreement. This actually meant more credit and I don't want that. I want to reduce what I have.

I am more than happy to use the £220 to give to my creditors plus any more we have on a month to month basis depending on how good work is. I am also keen to keep some money in the business account though to cover the lean months to ensure the agreed payments are met and the mortgage is paid. Taking any more 0% cards isn't an option my credit file is already too messy and I couldn't willingly bring another new creditor into this mess.

My clients do pay, but they are paying really late. The worst offender is my most regular client. I did look at factoring the invoices but that was costly and the bank wasn't that interested because the amount wasn't huge.

I did suggest to our accountant at one point that I would consider selling my house and renting to free up some money for the debts. His advice was to try to find an alternative and only do that as a very last resort. He said the main concern was if things really did go belly up we wouldn't be re-housed if we couldn't pay rent in the same way as we would be if we were repossessed. I never want it to get to that stage and I will fight tooth and nail to prevent that happening but it did put a worry in my mind. Especially as my youngest child has a profound handicap. We are both working ourselves ragged trying to make this work. We never have downtime.

I will look at re-mortgage options. But I am unsure what I could do with half of the money I owe. Should I pay each creditor half of the amount? and then offer to pay the rest at a lower amount? Or pay a couple off in full? That doesn't sound fair. Either way I still wouldn't have a solution, but perhaps it would show them I really am trying. I would still have the worry that they would change their minds in a few months and go for bankruptcy anyway.

I suppose my biggest worry is my history and the fact that they will just write me off without knowing the full story. Hand on heart the first time was out of my control, I didn't spend a penny of the IVA debt myself willingly. The only part of it I did spend was the money to pay the solicitors and I didn't actually want that included but I had to. I have tried to make sure that all of this debt is in my name so if worst does come to the worst and I am forced into bankruptcy (by a creditor making me go bankrupt rather than wanting to work with me) at least my partner will still be able to run the business because I will have to step down as a director.

The worst part is the guilt, I feel so bad for my kids and so responsible. I know we have done this to give us all a better life but somewhere down the line I made some mistakes. Yesterday I watched my daughter playing outside with the kids from across the street, the ice cream man came and the other kids ran in to get their mum, they all got ice creams while my daughter just stood there watching. She didn’t come in to ask me, she knows we don’t have luxuries. I broke my heart watching her being the only one going without. I feel like I have let everyone down.

Thank you for listening.

Mrs_Sparkle

Aw, don't feel guilty about your daughter hun. You are doing the best you can and you're giving her a loving home and that's what counts. ((hugs)) again.

I don't feel qualified to answer your queries as there are much more savvy people on here than me, but just wanted to give you my support.

lynzpower

Darling dont feel like that, although I know why you do so sending a massive hug.

One thing I am thinking is, if your daughter has a disability, are you claiming all you are entitled to in the form of DLA, tax credits, etc. This money is yours and you are entitled to it. So do check out https://www.entitledto.co.uk , it relaly is an excellent resource..

pop up your SOA and lets have a nose over it.

The household one are the best place to start, then we can look at the business ones later.

Hugs some more
Lynz
xx

Toto

Ok here is my SOA.

We have to combine some business with personal so what I have had to do is put in the key can not do withouts. After all the storage unit needs paying even on a lean month otherwise we have our gear on the street. my motgage is a big expense. It is £167,000 but because my credit wasn't great I didn't get the best rate. I just came out of the discount period and it went up from £895, that and the rate rises. It was the final nail in the coffin really but I am kind of locked in because of high penalties to get out. Thanks again for all of your words and hugs. I have felt so alone. I have ben protecting my partner from it all too so don't really have anyone to talk to. We do get tax credits and DLA BTW.

Monthly Incomings:

Mine and Partners salary £2124

Benefits - £346

Total - £2,470

Monthly Outgoings:

Mortgage/Rent - £1027.81
Council Tax - £135
Gas - £35
Electric - £50
TV License - £10.99
Water rates - £32.68
Phone - £40.00
Food - £325 including necessary clothing etc we have 3 kids.
Car Insurance van - £66.33
Car insurance Car - £24.94 we really do need both for the business
Petrol - £100 van
Petrol car- £30
Car tax - £30
Buildings contents insurance - £34.84
Life Insurance £38
Rental of storage unit £265.99

Total: £2246.88

£223 spare each month


Egg CC – Balance £10,512 (limit £10,000) APR 12.9%

Sainsburys Loan – Balance £ 19,064 APR 8.9% Length of term 84 months, 60 months to go original loan was £18,000 total payments £3,710

Egg Loan £6,782.49 length of term 60 months original loan £8,000

Morgan Stanley - £4484 (limit £4,000) APR not sure.

Virgin MBNA Credit card £9,681 (Limit £10,000) Not sure APR

Sainsburys Credit Card £3,432 (Limit £4,000)

M&S credit card £6782.49 (limit £8,000)



Total £60,737.98
how do I even begin?

bargainbetty

Hi Toto,

OK, I'm going to echo a couple of the others comments first.

Can either of you take a second job, even part time to bring in some extra cash? If you are competent enough to run events, then the likelihood is you could get decently paid extra work, maybe through temp agencies.

Definitely start chasing those outstanding clients for the money. Even if they are regulars, they have to pay up. From now on, add a small clause in your contracts and on the invoices stating that a 1.5% charge will accrue on invoices that are not paid within 30 days, or something like that. It generally makes people perk up their ideas.

You should tell your partner what is going on. You do him no favours by hiding it from him, and you are crippling yourself. Honey, you'd be amazed how much better you would feel having him fighting this alongside you.

Looking at your SOA, your food bill is a little high, even for two adults and three kids. Check out the Old Style board for money saving ideas on that - I've saved a bundle in ways you wouldn't have thought possible!

Also check out the Uswitch sites for utilities and insurance etc. Think about going 3rd party on the vehicles until you are back on your feet, if your public liability insurance allows it.

Contact all your creditors and explain the situation. Ask for the interest to be frozen, and request that they accept reduced payments for a temporary period. Many will agree, simply because they would rather get something than nowt. If they refuse, contact the CCCS or Payplan (links at the top of the page), and have them do it. Once you have done this, you have to stick to the agreements, but it might give you some breathing room.

Take a deep breath, and take it one step at a time. You've taken a huge one by facing up to it!

I hope this helps, and that your situation improves soon.

xx

Toto

Ok yikes I forgot Public Liability Insurance which was £1500 (I had to pay that in full, I used a credit card) we also had to insure our equipment but most importantly the equipment we hire in to take on events (we don't own everything yet) all in all our annual insurance bill is £6,000.

My partner is doing some sub contract work at the moment to keep things tickng along (He is a sound engineer) We are both musicians and I am a lighting engineer. We both take work when we can as well as running the bussiness, but it's really hard to have us both out working elsewhere and no one looking after things here, so we tend to split it. Although being honest mostly it is him out working and me here just because I am whole lot beter at dealing with kids (disabilities) and running the business. But I will take this on board and see if there is something I can perhaps do from here with flexible hours. I will do anything.

First thing tomorrow I will start writing the letters. Should I just do it myself or go to someone like payplan? I am scared the creditors will push me to go bankrupt to punish me when all I really want to do is pay this money back, even if it does take me 20 years!