£30k debts and now redundancy looms - help?

Wishful_Saver

Hi, I'm new posting here.

I'm on about £19k a year but owe £30k. Every month (for years) I've been going a teeny bit more into debt but have been reluctant to leave the job I love and fooled myself into thinking that as long as I made the minimum payments I'd be ok. Now I'm at the stage where I can only make the minimum repayments and need to use the credit card.

I found out last week that I'm at risk of redundancy and although there's about 6 months breathing space I've got myself into such a panic and stress that I can't get my head around job hunting.

I can see that I do need a better job, I'm qualified for it and can travel anywhere but does anyone have any advice on how to calm myself down? I've got no savings and I don't think I can use alcohol any more! Help?!?!

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned....................

Monthly Income Details
Monthly income after tax................ 1250
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1250

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 200
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 10
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 120
Clothing................................ 0
Petrol/diesel........................... 170
Road tax................................ 10
Car Insurance........................... 50
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 4
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 50
Total monthly expenses.................. 744


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 150
Other assets............................ 0
Total Assets............................ 150


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 5742.7...(0)........0
Total secured & HP debts...... 5742.7....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
M&S............................5381.68...134.5.....25.9
Barclaycard....................5360.09...120.......20.1
Halifax........................2897.77...47.32.....18.9
Mint...........................2639.58...59........12.22
Natwest........................1795.77...40........17.5
Virgin.........................6215.95...130.3.....26
Overdraft......................600.......5.27......17
Total unsecured debts..........24890.84..536.39....-


Monthly Budget Summary
Total monthly income.................... 1,250
Expenses (including HP & secured debts). 744
Available for debt repayments........... 506
Monthly UNsecured debt repayments....... 536.39
Amount short for making debt repayments. -30.39

Personal Balance Sheet Summary
Total assets (things you own)........... 150
Total HP & Secured debt................. -5,742.7
Total Unsecured debt.................... -24,890.84
Net Assets.............................. -30,483.54

Thanks! xxx:o

obay

Post an SOA down (I think it's called an SOA)

Wishful_Saver

What's an SOA?

Ta x

savingmummy

Hi and welcome
Well done for posting here thats the first step!
You need to do a statement of affairs http://www.makesenseofcards.com/soacalc.html include ALL incomings and ALL outgoings and include debts and APR`s of debts!
Once you have completed it press MSE and post it here and we can advise you.

STOP the credit cards, this is just adding to debt and making more stress for you!

IF your really struggling on your salary it may be worth you looking for a better paid job, especially with possible redunancy looming!!
If you were to be made redundant what would you do?
Do you have a working partner?children?

Do you have anything you can sell? what are you using the credit cards for?

Wishful_Saver

Think that's done it now... Thanks for the tips!

I'm in admin so if I was made redundant I guess I'd temp until I found something permanent. I know the job market's very competitive but if I could just focus there are good PA jobs out there. No partner or children.

I had a huge ebay push this month to pay for a massive dental bill so I'm a bit short on things to sell right now. I need to be just above water by August because my car's going to fail it's MOT big time!

savingmummy

Do your SOA and see where you can reduce outgoings to help!
You may be suprised how much you can save by looking through it, most people post it on here and most can save £100`s month!

Wishful_Saver

OK, SOA is completed.

(AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAARGH!!!!!!!!)

MyopicMoo

Hi, try not to panic. OH went through the same and, to be honest, it was almost a relief when it happened. It was tough and scary but we got through. My best advice would be to have a plan for how to deal with the debts if the worst happens and to revamp the CV and start looking for a new job. Best of luck.

kissjenn

Hi,

You've over £5k secured debts but no visible assets like a house. What is the money secured on?

KJ

dark^knight

Hi,

I agree with others, the best plan for you, and not just for the short term, would be to find a job that pays better.

The job market does look it is picking up, so I would make a concerted effort to brush up your cv and hit the market...start with jobsites and a couple of agencies to test the water.

Good luck.

gonzo127

Wishful_Saver wrote: »

Hi, I'm new posting here.

I'm on about £19k a year but owe £30k. Every month (for years) I've been going a teeny bit more into debt but have been reluctant to leave the job I love and fooled myself into thinking that as long as I made the minimum payments I'd be ok. Now I'm at the stage where I can only make the minimum repayments and need to use the credit card.

I found out last week that I'm at risk of redundancy and although there's about 6 months breathing space I've got myself into such a panic and stress that I can't get my head around job hunting.

I can see that I do need a better job, I'm qualified for it and can travel anywhere but does anyone have any advice on how to calm myself down? I've got no savings and I don't think I can use alcohol any more! Help?!?!

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned....................

Monthly Income Details
Monthly income after tax................ 1250
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1250

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 200
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 10
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 120 - this is MASSIVE for one person some people on these boards can feed a family of 4 on around £150 a month, i usually suggest to try and aim for about £60 per person per month
Clothing................................ 0
Petrol/diesel........................... 170
Road tax................................ 10
Car Insurance........................... 50 - this is huge when is renewal due? need to search for cheaper, maybe just go for third party or third party fire and theft
Car maintenance (including MOT)......... 50 - are you sure you are spending £600 a year on MOT and maintenance?
Car parking............................. 0
Other travel............................ 20 - what is this
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 4
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 50 - you have put a emergency fund in but have no savings?
Total monthly expenses.................. 744


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 150 - sure its only worth £150
Other assets............................ 0
Total Assets............................ 150


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 5742.7...(0)........0 what is this secured on as you have not listed any assets?
Total secured & HP debts...... 5742.7....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
M&S............................5381.68...134.5.....25.9
Barclaycard....................5360.09...120.......20.1
Halifax........................2897.77...47.32.....18.9
Mint...........................2639.58...59........12.22
Natwest........................1795.77...40........17.5
Virgin.........................6215.95...130.3.....26
Overdraft......................600.......5.27......17
Total unsecured debts..........24890.84..536.39....-


Monthly Budget Summary
Total monthly income.................... 1,250
Expenses (including HP & secured debts). 744
Available for debt repayments........... 506
Monthly UNsecured debt repayments....... 536.39
Amount short for making debt repayments. -30.39

Personal Balance Sheet Summary
Total assets (things you own)........... 150
Total HP & Secured debt................. -5,742.7
Total Unsecured debt.................... -24,890.84
Net Assets.............................. -30,483.54

Thanks! xxx:o

hi well i have put a few comments in the main ones i am seeing is your groceries seem very high for one person have you checked out the old style board, meal plan, batch cook and freeze the remaining and the drop a brand challenge should save you quite a bit

your car is shocking a £150 car costing £600 a year to insure and an extra £600 to keep running! i would seriously consider dropping to third party insurance only (guessing your fully comp at the moment) as the excess on fully comp is probably close to the worth of the car (usual excess is between £50-£150) so you probably wouldnt get any money from the insurance company if you was to write it off anyway! and bank the saving (i would phone them up as soon as you can and see if they will drop it to the lower coverage and bank the saving to try and save up to buy a new one) same with the maintanence can you get 'away' safely without doing some of it? and put it towards a new car fund?

you have budgetted a emergency fund however no savings so whats happened to the emergency fund? if you take out the emergency fund out of the budget you will actually have a budgetted surplus!