Career change left me in dire straits!!

mattyglue

Hi... I recently left a job as Cabin Crew where the money seemed to roll in, even though my salary written down was £15,000 I was paid y the hour on top while away. So a week away could result in me being paid up to £2000 net a month. within this time and also through my OTT lifestyle in the past I have managed to build up debt.

I left the job to become a police officer the salary written down is a lot more and the job is worthwhile and I love it. I knew at first I would have to take a bit of a drop i money but in the long run the prospects and money will be a lot better.

I have debt of £11,000 loan
Credit cards £3000
and another load of £4000.

Flying has built up these debts using my credit cards here there and everywhere....but I could always afford the debt and still had money left and was gradually paying it off.

Since I started my new job I have found I am in dire straits!!! I thought I would be able to cope on what I would be paid but realise I cant. I am trying to live on £100 a month. I have cut back my spending enormusly but am finding it difficult.

I know i the long run I am doing the right thing as money will go up, but thats not for another 2 years. I am worried as I find I am relying on cards again at the end of the month.

Can anybody give advice on what to do....wondered about consolidating over a long period....but dont think I will get a loan and cannot secure on my property as I own the house with a frend. Are agencies a good thing.

Any ideas please!!

RAS

Hi

Stop. Breathe. make a cup of tea, or whatever and then start to fill in your Statement of Affairs.
Make sure you include your crwedit card limits as well as the APRs.

http://www.makesenseofcards.com/soacalc.html

Fergie76

Do the Police know about your debt problems? They could see you as a risk, to potential bribing?

How does being in debt work with the Police?

I am in the Forces and I know that in extreme cases, people can be dismissed for Financial Irresponsibility, I would imagine the Police would have a similar policy?

mattyglue

As long as you manage debt,have no CCJs its fine...they did the checks before I started.

Hence me trying really hard to sort out my problem.

Cloudy456

Put up a statement of affairs, as suggested above, and people will be along with hints and tips in no time. Have you got anything you can sell, anything that would bring in some extra cash on E bay? Its not a long term solution but can bring in a bit of a cash injection!

mattyglue

Hi done the soa....dont really understand it....can anybody help?[tt]Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 1330
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1330
Monthly Expense Details
Mortgage................................ 550
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............................ 45
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 120
Clothing................................ 0
Petrol/diesel........................... 40
Road tax................................ 11
Car Insurance........................... 60
Car maintenance (including MOT)......... 5
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 24
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 7
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 887

Assets
Cash.................................... 0
House value (Gross)..................... 111000
Shares and bonds........................ 0
Car(s).................................. 900
Other assets............................ 0
Total Assets............................ 111900

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(550)......0
Total secured & HP debts...... 0.........-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
CARDS..........................1600......30........0
CARDS..........................1500......40........0
LOAN...........................10075.....268.......0
LOAN...........................1500......42........0
Total unsecured debts..........14675.....380.......-

Monthly Budget Summary
Total monthly income.................... 1,330
Expenses (including HP & secured debts). 887
Available for debt repayments........... 443
Monthly UNsecured debt repayments....... 380
Amount left after debt repayments....... 63
Personal Balance Sheet Summary
Total assets (things you own)........... 111,900
Total HP & Secured debt................. -0
Total Unsecured debt.................... -14,675
Net Assets.............................. 97,225
[/tt]

RAS

Well done but do you have £63 left at the end of the month?

Nottoobadyet

Your SOA doesnt look complete - do you pay no CT or utilities?

dancingfairy

Monthly Income Details
Monthly income after tax................ 1330
Partners monthly income after tax....... 0
Benefits................................ 0 I've no idea about benefits but have you checked to see if you are entitled to anything?
Other income............................ 0
Total monthly income.................... 1330
Monthly Expense Details
Mortgage................................ 550
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0 No council tax
Electricity............................. 0 No electric or gas
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 45 Seems high - can you lower a tariff or 2?
TV Licence.............................. 0 None of these?
Satellite/Cable TV...................... 0 ?
Internet Services....................... 0 ?
Groceries etc. ......................... 120
Clothing................................ 0 You probably need to budget something here
Petrol/diesel........................... 40
Road tax................................ 11
Car Insurance........................... 60
Car maintenance (including MOT)......... 5
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 24 What's this for? if prescriptions you can get a season ticket.
Pet insurance/vet bills................. 0
Buildings insurance..................... 0 No insurance?
Contents insurance...................... 0 ditto?
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 7
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 887


At the moment your budget is showing you can make the minimum payments and have 63 a month left over but I guess that is easily swallowed up.
It might help if you explained your living situation? -do you live with family or friends? does your rent include your bills or do you have a partner who is paying these bills?
Any chance of any overtime yet?
Anything you can sell?
Ebay? car boots?
Depending on your cards - is there room on any with a lower interest rate to shift higher rate debts to? you could try calling them and see if any offer decent balance transfer rates.
With the loans - can you take any payment holidays at all?
If you loans/cards are at really hideous rates you may find a credit union can lend to you at a lower rate in order to pay off the higher interestr rate debts.
df

mattyglue

Sorry I own a house with my best friend all household bills, tv license, telephone, council tax mortgage etc come out of an account which we both pay £550....so I just put this as one mortgage payment as its hard to work out my half. We just put it into a seperate account and have about £10 left in it each month which we use on any housey things.

Hope this makes it clearer.

dancingfairy

Not sure what you mean by agencies? Sub-prime lenders will charge a premium or payday loan companies which will also charge an arm and a leg and give you more problems.
If you mean some sort of broker agency thing - then I imagine you mean the people who take a chunk of money and then try and find someone to loan to you
Secured loans also are a bad bad thing as they can put your home at risk. This is really not a good option.
I am not sure whether you would be able for a career development loan or anything? and whether they give you a few years to qualify before repayments start or not? Worth looking into though?
df