unsecured debt - help pls

clab1508

Anyone offer advice or guideance on unsecured debt? i pay over £1000 each month to creditors totalling £45k, for 4 credit cards £11k and 3 loans £34k and its getting harder to manage. I'm going on maternity shortly and have tried my creditors for payment breaks etc and cant get any help from them. The last loan i got was over a year ago and was suppose to sort this out but just hasnt, i wish i hadnt done that. I cant see a way forward to getting rid of at least the credit cards and was thinking of an iva?

I earn £2500 a month but with a £900 mortgage payment plus other bills i dont have any spare cash to put towards the debts. With the low market prices my house would have negative equity as well so thats no help either.

slummymummyof3

Can you post a SOA so we can see where if possible you can make any cutbacks etc?

DarkConvict

By the sounds of it you took out a consolidation loan. It reduces repayments but does it over a longer term so costs you more money, consolidation is only suitable in a small number of cases.

As above, post up an SOA. IVA is only suitable if you have large assets (big house/car) to protect and is an alternative but very similar to bankruptcy. A DRO is not possible as debts are over £15,000.
If you have negative equity, no other assets and large debts, bankruptcy is an option, especially if your income is due to drop and the creditor aren't accepting lower payments. But always get professional advice first, give National debtline, CCCS, PayPlan, CAB a call and gather some opinions.

clab1508

here it is, hope its correct format...

Statement of Affairs and Personal Balance Sheet[/b]
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1934
Partners monthly income after tax....... 762
Benefits................................ 80
Other income............................ 0
Total monthly income.................... 2776
Monthly Expense Details
Mortgage................................ 875
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)................... 45
Mobile phone............................ 55
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 10
Groceries etc. ......................... 160
Clothing................................ 0
Petrol/diesel........................... 80
Road tax................................ 10
Car Insurance........................... 10
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 39
Contents insurance...................... 0
Life assurance ......................... 65
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1381

Assets
Cash.................................... 0
House value (Gross)..................... 150000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 151500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 177000...(875)......5
Total secured & HP debts...... 177000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
ccards.........................12500.....330.......0
loans..........................34000.....755.......0
Total unsecured debts..........46500.....1085......-

Monthly Budget Summary
Total monthly income.................... 2,776
Expenses (including HP & secured debts). 1,381
Available for debt repayments........... 1,395
Monthly UNsecured debt repayments....... 1,085
Amount left after debt repayments....... 310
Personal Balance Sheet Summary
Total assets (things you own)........... 151,500
Total HP & Secured debt................. -177,000
Total Unsecured debt.................... -46,500
Net Assets.............................. -72,000

churchrat

hi
I think you may need to look at the soa again, as I see nothing for council tax, gas or electricty, or have you put it in elsewhere?

clab1508

forgot to mention that on the soa - I get this taken off my wages as a credit union deduction before i get paid, so council tax gas elec and water are all paid for before i get my salary. i actually pay exactly the right amount over the 12 months at the minute to cover all of these expenses. i just take the bills into work and they get paid, ive been lucky so far that everything has been covered

clab1508

can anyone advise on this then pls?

DarkConvict

Groceries is good, £160 for 4 people.
It seems very tight already, My only suggestions are telephone/mobile are rather high. But you aren't going to be able to save much more.

I would ring national debtline & CCCS and see what take they have on your situation.
Overall you have £72k debt, and currently £1.5K (due to go down) a month to put towards it. I would probably try a DMP first, will wreak the credit file but so would going BR. If debts goto collection agencies it gives a better chance to settle for smaller amounts and generally interest stops been added. If it becomes a lost cause then consider going BR.

cutemum

Hi
I have similar outgoings & income as you do. Just wondering how your benefits are so low. I receive £132 child benefit & £30 child tax credits every 4 weeks for 2 children. Child benefit is not means tested therefore you should be on the same!!!

I am really impressed with your grocery bill. I would need some advice on how you keep that so low- well done!!:T

franwh

with so much debt, bankruptcy would be an option

clab1508

HI CUTEMUM.. thanks for your post - i currently get £80 as i have one 3 year old, my baby has only just came along so im waiting for the increase in benefit but it wasnt made clear when i rang how much that would be so its great news that its another £52 that will help alot.

As for the tax credits, i used to receive £38 a week when i was paying for nursery fees but now im on maternity leave ive been told that i will only be entitled to the bog standard £10 family element bit even though whilst on maternity leave my income is practically halved as i only get paid for the first few months and then its SMP which is shocking really. so hence the panic to pay bills, i dont know how the government expect you to manage on £124 a week when your used to a proper wage.