Advice/Help needed please

mrdebtfree

Hi to everybody reading this and hopefully i can find the help/motivation i am looking for to sort out my current debts

Basically i am currently in my mid 20's and have accrued debts over the last 5 years totalling Approx £15,000

My biggest single debt is to my former mortgage company(now being dealt with by Optima Legal) and is for £6588.22, me and my ex-partner had a house that was repossessed in 01/08 , she has since claimed bankruptcy and the debt has been left to me.

All my other debts range between £100 up to £1500 and are mainly down to the fact that when i split with the above i moved into a rented property and lived beyond my means neglecting my elec,gas,water bills etc, In hindsight a very stupid idea but i have done it and now have to live with that!

It took approx 18months of living in my rented house for me to realise that i couldnt go on like this and so i moved out at xmas time and moved back in with my parents
although this isnt ideal it means that my debts are no longer growing and that i still have a roof over my head.

Soo i have £15000 worth of debt and i am sick of not answering my phone, not opening letters etc and i want to start repying these debts WHERE DO I START is the big question?

I am not currently working and my only income is £250 per month, I hope to be working soon but would like to start organising my debts asap rather than thinking 'it will be ok once i get a job'

Thanks in advance

DarkConvict

First step is to work out your income/outgoing, debts and assets.

Read this topic, fill in the SOA and post it up in MSE format - http://forums.moneysavingexpert.com/showthread.html?t=107280

mrdebtfree

Hi thanks for that i have completed the form below, i am not sure if all my debts etc are in the correct boxes, but everything i currently owe is there, I am not currently paying off my debts at all and i am living free of charge at my parents (only paying for my own food).My income is spent as described

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 254
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 254

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 15
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 30
Clothing................................ 30
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............ 100
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)...... 20
Haircuts................................ 0
Entertainment........................... 60
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 255


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
O2 Phone Bill..................213.......0.........0
1month Loan....................443.75....0.........0
Bt.............................133.79....0.........0
parents loan...................4000......0.........0
college fees...................430.......0.........0
council tax arrears............650.......0.........0
Optima Legal(mortgage..........6588.22...0.........0
Sky............................159.9.....0.........0
E-on...........................1535......0.........0
United Utilities...............236.22....0.........0
Total unsecured debts..........14389.88..0.........-


Monthly Budget Summary
Total monthly income.................... 254
Expenses (including HP & secured debts). 255
Available for debt repayments........... -1
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -1

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -14,389.88
Net Assets.............................. -14,389.88

RAS

Other child related expenses?

mrdebtfree

Yes i have a son who lives abroad with his mother i pay £100 per month into an account for him, thanks

RAS

You really cannot afford to do that, admirable as it is, with CT debts. You can get away with most other things but not CT debt.

With respect to the one month loan, are you referring to a payday loan? if so, have you ever given them a postdated chaeque or your bank details or your card number?

mrdebtfree

I see what you mean and you could well be right, The one month loan was a payday loan i took out in 2008, they had my old debit card details but not my current details, This debt has since been passed a debt management company (clarity) who i last heard from on 10/02/2010 saying that if we cannot come to a mutually acceptable payment plan then the next course of action will be to issue legal proceedings

Regards

mrdebtfree

Sorry RAS i forgot to add when you talk about CT debts do you mean these are the most important? Should i write to the CT people and offer them a repayment plan or will they just issue court proceedings against me for the outstanding debt?

RAS

Unfortunately, the CT people will not issue proceedings. They get a liability order, which you will only get notice of if they have your current address, and then send in the bailiffs, who start adding extra fees.

Ct is a priority debt and because of the way it is handled, causes more problems than other debts.

In the short-term, you could do a debt management plan and pay the other creditors £1 per month, which they may accept for a while if they knwo you are unemployed.

You should speak to CCCS or NDl but with your income, they cannot set up the DMP for you.

mrdebtfree

Ok thanks for your advice, If the CT issue me with a liability order and send in the baliffs like you say then where will i stand as i live with my parents and have no assets as such of my own for them to take?? I now intend to write to all my other debts and offer them £1 per month until such a time i gain employment, i would rather do this than wait until i have found a job,

thanks again

RAS

In that case, they cannot take you folks stuff but they will add £42.50 to the bill, legally and could try and increase it even more. if they do that come here for help.