Light bulb moment, and it ain't gonna be pretty......

Faye449

OMG I am SUCH an idiot. Have got myself in a right mess with credit cards. I lost my job in June and have effectively lived off my credit cards and hand outs from my family (can you believe it? 28 years old and having to 'ask daddy' for money. Its absolutely mortifying and I desperately want to pay it back asap) I am SO cross with myself for being such a complete and utter div when I am 'the sensible one' in every other aspect of my life. And what have I got to show for it? A flash car? no a clapped out old banger that is going to die any minute. A perma-tan from countless lavish holidays? No, I have hadn't been on holiday for 2 years. A wardrobe full of designer clobber? No, I can't actually remember the last time I went shopping. I must go out and get rip roaring drunk every weekend and spend on booze and partying? No. I went out on 30th Jan for my best friends 30th birthday and spent the princely sum of 40 and the last time I went out before that was 30th May 2009 for another birthday. Then surely I must have a batcherlorette pad with all the latest gadgets and gizmos a girl could want? No, my poor little house has hardly been touched since I made the essential renovations before I moved in in 2003 and still needs to be replastered and decorated etc etc.
aaaarrgh!

Sorry about the rant, but it's been a loooong time coming. And thank you for reading it too. Also sorry my SOA is a bit all over the place but in the newbie sticky thread I read it said give ALL the info I can think of, so..........

One bit of good news is that I start a new job on monday. Thank goodness. But while I am in this 'face facts' mood, let's be honest it's not going to solve everything and make my credit cards disappear!

Statement of Affairs and Personal Balance Sheet

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................................ 536
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. I don't know yet **
Electricity............................. 56 for the next 6 months as I got into arrears then it will drop to 26
Gas..................................... 127 for the next 6 months due to arrears then it will be 46
Oil..................................... 0
Water rates............................. I don't know- I was paying quarterly and haven't had a bill lately
Telephone (land line)................... 0
Mobile phone............................ 60 (including internet)***
TV Licence.............................. 28.50 for 5 months
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 160
Clothing................................ 0
Petrol/diesel........................... 50
Road tax................................ 0 paid up until April
Car Insurance........................... 24
Car maintenance (including MOT)......... 0 it expired in November and isn't going to pass another one!****
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 40
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Pet Food................................ 30 for 2 large dogs which I don;t think is too bad
Total monthly expenses.................. 1111.50

Assets
Cash.................................... 1300 *****
House value (Gross)..................... 295000
Shares and bonds........................ 0
Car(s).................................. ? rusty clapped out old banger with loads wrong with it!
Other assets............................ 0
Total Assets............................ 295000

Secured Debts
Description....................Debt.........Monthly.. .APR
Mortgage...................... 100,054.97...536......6.08% fixed until Sept 2012
Secured Debt.................. 00000........0000......000
Total secured debts........... 100,054.97...536.......

Unsecured Debts
Description....................Debt......Monthly.. .APR
Egg Card.......................5335.03.....0.......19.9%
Barclay Card ..................3509.82.....0....... Don't know and I can't find a bill right this second :-(
Capital One Card...............?????.......0........Can't find any paperwork for it but I owe about 3500
Nationwide Card................3195.31.....92.72.....Same as Barclay Card
Egg Loan.......................534.44......35.16........7.66% This is the only thing thats up to date
HSBC Overdraft.................1179.........0...... I don't know******
* my basic salary is 20k per annum, I have an OTE of 35k however I don't know how to factor it in cos commission isn't guaranteed and I wont get the same amount each month.

** I'm having a nightmare with council tax at the moment, I have another thread on it somewhere but I have arrears of about 750 and before I got myself into this stupid mess I used to pay 120/month

***when I start my new job on monday I will get a phone, so when my contract runs out with T-mobile in July I will cancel it.
though I am stuck with them for my internet/dongle until Jan 2011 which is about 17/month

****I will be picking up my company car & fuel card on Monday so my personal car will only be used for transporting dogs to walks. If I thought I would get any money for it I would sell it but when I say it's a wreck I'm not exaggerating. I'd probably have to pay someone to take it!

*****I am trying to hang on to this for dear life as I when I get paid at the end of March 1, I wont have any commission and 2, I'll be missing a weeks pay as I start on the 8th and 3, when I get paid at end of April there wont be any commission either as even if I have done any deals they don't get paid until the following month.

******HSBC are livid with me but I cancelled all my DDs and stopped paying money in cos they just took it ALL in fees/charges and opened a new account with Lloyds.

Credit cards haven't been paid for a couple of months and all are in arrears, I wrote to them all on monday telling them I was having problems but would be able to start paying again asap. Don't know whether this was the right thing to do or whether they will listen or care but thought I ought to.......

Also there are a couple of things I am going to have to pay out shortly, both my dogs vacs are due, travelling expenses to a training course for work next week and the week after (which I can claim back on expenses).

What do you think I should do? Is there anything I CAN do?! I have managed to keep the mortgage up to date thus far thank god but I am also very aware and embarrassed that I owe my father 2k, my step-father 2k and my grandfather 450 and they aren't rich people- they need it back. They aren't putting pressure on me or anything but thats hardly the point :-(

happyhaddock_2

Hi Faye well done for posting, can't help with the SOA just wanted to say that I was in this position last Friday when I went on the CCCS website and completed their debt remedy plan. I didn't particularly think it would help but was astounded by the outcome. It has let me budget for all my priority debts (council tax, mortgage etc including any arrears you might have) my living expenses, food, clothes etc and the remainder then gets shared fairly between my creditors. They contact everyone for you and make the payments and hopefully the people you owe money to will freeze interest and charges, it also gives you a definate debt free date to work towards (you can also include money owed to family and friends and this will be added to your personal allowance).
It is the best thing I have done it's given me back MY money and taken away a lot of the pressure and stress, can't praise them enough. Good luck:)

heatherykins

Hi Faye,

I'm pretty new like you and don't have all the know-how that more experienced people will have. I wanted to congratulate you on the new job! That's an achievement in itself and focus on the knowledge that things WILL get better, but for the next few months you might be struggling!

I know how upsetting and embarrassing it will be owing money to relatives, but believe me, they wouldn't want to see you struggling and are probably all too aware that things have been difficult for you. I'm sure that they will be ok with you taking some time to get back on an even keel before starting to repay.

One thing I noticed and that rang true with me (I've started cutting back over past 3 weeks) is that it is relatively easy to cut your grocery bill from £160 if it's just you in the house. I've been 'dropping a brand' buying shop's own range or value ranges - I've found them to actually be pretty nice and the difference is not that noticeable. I'm now doing a weekly shop for me and my OH for just over £20 and that still includes his 'luxuries' like branded soft drinks (he won't compromise on this!). Even if you can get it down to £20 per week, that will leave you £80 to play with, then when you get into the swing of it, maybe further cuts will present themselves???

I've also been batch cooking and freezing stuff like soup, pasta, etc, which can last me the majority of the week - I even take them into work so i don't spend any money on lunches at work! There are some great recipe ideas on the Old Style Cooking Board here if you look!

Just want to add how brave you are to admit you need to sort this to yourself and posting on here - People on here are so nice and helpful - you should get lots of good ideas! And join in some of the weekly challenges boards to keep yourself motivated - I set myself a budget to stick to each week on one of these threads and it's great for motivating you NOT to open your purse and to think about whether you actually need the items or not.

Best of luck with the new job and hope you can work through this!

Heather xx

Faye449

happyhaddock wrote: »

Hi Faye well done for posting, can't help with the SOA just wanted to say that I was in this position last Friday when I went on the CCCS website and completed their debt remedy plan. I didn't particularly think it would help but was astounded by the outcome. It has let me budget for all my priority debts (council tax, mortgage etc including any arrears you might have) my living expenses, food, clothes etc and the remainder then gets shared fairly between my creditors. They contact everyone for you and make the payments and hopefully the people you owe money to will freeze interest and charges, it also gives you a definate debt free date to work towards (you can also include money owed to family and friends and this will be added to your personal allowance).
It is the best thing I have done it's given me back MY money and taken away a lot of the pressure and stress, can't praise them enough. Good luck:)

Thank You :-) I do feel better already even though I am still SO mad at myself and embarrassed my own stupidity. I have seen the CCCS mentioned a couple of times but don't really understand how it works or what it is.

Faye449

heatherykins wrote: »

Hi Faye,

I'm pretty new like you and don't have all the know-how that more experienced people will have. I wanted to congratulate you on the new job! That's an achievement in itself and focus on the knowledge that things WILL get better, but for the next few months you might be struggling!

I know how upsetting and embarrassing it will be owing money to relatives, but believe me, they wouldn't want to see you struggling and are probably all too aware that things have been difficult for you. I'm sure that they will be ok with you taking some time to get back on an even keel before starting to repay.

One thing I noticed and that rang true with me (I've started cutting back over past 3 weeks) is that it is relatively easy to cut your grocery bill from £160 if it's just you in the house. I've been 'dropping a brand' buying shop's own range or value ranges - I've found them to actually be pretty nice and the difference is not that noticeable. I'm now doing a weekly shop for me and my OH for just over £20 and that still includes his 'luxuries' like branded soft drinks (he won't compromise on this!). Even if you can get it down to £20 per week, that will leave you £80 to play with, then when you get into the swing of it, maybe further cuts will present themselves???

I've also been batch cooking and freezing stuff like soup, pasta, etc, which can last me the majority of the week - I even take them into work so i don't spend any money on lunches at work! There are some great recipe ideas on the Old Style Cooking Board here if you look!

Just want to add how brave you are to admit you need to sort this to yourself and posting on here - People on here are so nice and helpful - you should get lots of good ideas! And join in some of the weekly challenges boards to keep yourself motivated - I set myself a budget to stick to each week on one of these threads and it's great for motivating you NOT to open your purse and to think about whether you actually need the items or not.

Best of luck with the new job and hope you can work through this!

Heather xx

Ahh thanks Heather. You are right, 40/week is literally 'worst case scenario', sometimes and usually its about half that. You name the tesco value product and I have probably used or eaten it!

happyhaddock_2

www.cccs.co.uk Click on debt remedy and it will ask a couple of easy questions to see if you qualify:). You'll need to know your incomings and outgoings and how much you owe and who to. Just work through the pages, there are 6 altogether and at the end it gives you a debt repyment figure and helpful advice. It's then up to you wether you want to accept the plan, best thing I've ever done:T

Oh forgot to say it's a free service

Faye449

happyhaddock wrote: »

Click on debt remedy and it will ask a couple of easy questions to see if you qualify:). You'll need to know your incomings and outgoings and how much you owe and who to. Just work through the pages, there are 6 altogether and at the end it gives you a debt repyment figure and helpful advice. It's then up to you wether you want to accept the plan, best thing I've ever done:T

Oh forgot to say it's a free service

Thank you so much.
I've had a quick look and saved it in my 'favourites', will have a proper read tomo (its late and I've given myself a headache looking at everything I owe!) just wondering how much control they take? like if I manage to scrape some extra money together from anywhere can I choose which debt it goes towards or do they decide? Also will they tell my employer? I also wonder what to do about my commission payments as they wont be regular.............

happyhaddock_2

They pay all your creditors the same amount as you're not supposed to favour one over the other, I think you are also allowed to hold some money for emergencies and unexpected expenses, something we've never been able to do:o. Don't think they have to tell your employer, but can't say re-the commission:)

Faye449

happyhaddock wrote: »

They pay all your creditors the same amount as you're not supposed to favour one over the other, I think you are also allowed to hold some money for emergencies and unexpected expenses, something we've never been able to do:o. Don't think they have to tell your employer, but can't say re-the commission:)

Hmmm I was just thinking about paying off my family (namely my 82 year old grandfather) first because thats the one thats really killing me plus my family don't actually know how bad my situation is and I don't want to tell them either. I have spoken to my step father briefly and said how bad I felt about owing him and could I try and pay him whatever I can per month but he said no, he would rather wait and have it all in one go.

Poosmate

Hi Faye and welcome to DFW.

You seem to be in a real precarious position at the moment and possibly for a few more months to come. I notice your basic salary will only just cover your current outgoings without even paying your credit cards, loan and overdraft.

That being said, in less than 6 months you should be able to get on to an even keel and be able to meet your financial obligations probably even on basic salary.

Can you pay your tv license over 12 months(?) bringing the monthly cost down to £13.00?

I have a seperate current account which all of my household bills are paid from by standing order/direct debit. It's with the same bank my salary is paid into so on pay day a set amount is paid into it to cover all those bills (+ a few quid extra). It's fab because, as some bills are paid over 8 months (water rates) or 10 months (Council Tax) you can build up a small emergency fund in there from December to March. (Handy for your road tax next April!).

Also, if you enter into a Debt Management Plan with CCCS or any of the other non fee charging organisations, they may be able to get the interest and charges stopped on your credit cards but it will wreck your credit rating for quite a few years to come.

If you can sort out your regular payments now, (even if you can't make all of the payments to your creditors yet), you may be able to start restoring your credit record sooner, which will be better for you if you need to remortgage at the end of your fixed deal.

Regarding your car, it does have some value, even if it's only £100 to the scrapman - phone around and get some prices and sell it!

Hope that helps a bit.

Poo

hettiecarro

Hi Faye. Just been reading your thread.

Can't add much to what has already been said except that you say the value of your home is £275k. with an outstanding mortgage of £100k +.

As you live alone, is it not possible to sell and buy somewhere cheaper?

Just a thought - (and yes I do realise that is not an easy thing to do).

Good luck