Rock Bottom - Near £30k of Debt - Now to Tackle it

TheLostSheep

woody01 wrote: »

Just a quick question really......
How did you manage to get £30K of unsecured debt on a low income? You have borrowed over your income, so did you tell a few porkies or were banks just too lenient?

I didnt tell porkies. The main problem was/is a credit limit being raised from £2000 on a Lloyds Card to £7500 to £15000 by the bank. Not at my request but I should have asked for it to be revereted back.

The Barclaycard of £2900 is reflective of various balance transfers but now me just meeting minimum payments.

The loans were approved by Lloyds after my one and only loan finished with them 2 years ago which was for my car. Now only worth £1500.

KingElvis

Good luck mate, can't really offer any advice over what has been said but I hope you get it sorted out.

Hopefully, you coming clean means you and your GF can tackle this and stay together

Elvis

tbourner

woody01 wrote: »

Just a quick question really......
How did you manage to get £30K of unsecured debt on a low income? You have borrowed over your income, so did you tell a few porkies or were banks just too lenient?

Oh yes it's definitely the banks fault!!
We have £34k in loans/CC/finance, plus £29k as an unsecured together loan from Northern Rock to go with our £114k we owe secured on the mortgage. Together loan is joint but the others are in my name - it's been pretty easy to borrow money the last 10 years.

BTW, the first line was a joke, I know it's my fault.

TheLostSheep

I have amended the SOA. I am sorry if it is causing confusion.

SOA1 is reflective of IF I have to deal with this myself
SOA2 is reflective of both of us, where by I would still prefer to deal with most of debt myself.

£1000 is paid to a Joint Ac on a 60/40% split towards me as higher wage earner.

The Rent is the full amount. We have a very favourable private agreement in place. The C tax is paid over 10 months. It is a high ban we are in. C or D. I've included some ad hoc petrol costs as we obviously run two cars. There is then the travel to work which is around £300.

I guess there's two ways out it for me. On my own or with GF. The first is seeming likely currently!

charliesdaddy

Hi Craig

I did my SOA recently, after rather a big expensive few months (years) and my redundancy last year - I'm now thankfully in full time employment.

Mine is a similar story - at least in terms of the money situation anyhow.

It'll be a big change for us both over the next few years, I can see that! I'd be interested in keeping in touch if only to offer advice/support during this time?

BAILEYS6904

cg81 wrote: »

I have amended the SOA. I am sorry if it is causing confusion.

SOA1 is reflective of IF I have to deal with this myself
SOA2 is reflective of both of us, where by I would still prefer to deal with most of debt myself.

£1000 is paid to a Joint Ac on a 60/40% split towards me as higher wage earner.

The Rent is the full amount. We have a very favourable private agreement in place. The C tax is paid over 10 months. It is a high ban we are in. C or D. I've included some ad hoc petrol costs as we obviously run two cars. There is then the travel to work which is around £300.

I guess there's two ways out it for me. On my own or with GF. The first is seeming likely currently!

Hiya Fella

Still not sure SOA is right, or gives a good representation? For example, it appears that you drive the car, costing £40 per month, but also spend £200 on other transport? Also, you've cut it down to £120 for groceries, which seems reasonable, but stated before that you actually spend £240 a month, which can really be reduced...

Might be easier if you do amend you SOA, with your debts, the household expenses that come out of the joint account, and showing your GF £400 into the joint account, and obviously your wage. That way we can see exactly how much you have to play with, and the money situation doesnt change for your GF (ie, she is left with as much as she was before)

TheLostSheep

Will do Baileys! Sorry about this!

The other transport is bus/train to work.

Kepp

hey,

first of all, don't beat yourself up! We have all made 'bad' decisions and that's why we're in debt. But what's done is done, you have done the hardest thing of not only coming clean to your girlfriend but also of coming clean to yourself.

The most important thing is that from now, the only way is up. There are always solutions just sometimes they are harder to find, but it doesn't mean they aren't there.

A few things I would start with -

Cutting back where you can - the groceries bill jumps out as an obvious one. I once took mine down to £40 a month, it can be done!

Look at a part-time job - anything that gets the extra pennies in will help, even just another £25 a week could make all the difference.

Talk to your girlfriend - could she maybe pay just another £100 a month? Even if just for say 6 months and you pay her the money back at a later date, it would keep your head above water.

And get that £400 out the ISA now and pay it off your highest interest debt, it would help you dramatically.

Those few things could free up/earn you enough that there is no longer a deficit in your budget and even enough to try and even though small, overpay some debts and start chipping away at them.

The road for this will be long, but that is why we are all here

And you haven't ruined anyone's dreams of anything - maybe you'll need to delay these things a bit but then that's life, you never know how it's gonna go!

Hope that helps, there will be much cleverer people than me along to give you advice I am sure

black_taxi_2

cg81

on the gambling side of things---ive been there(horse racing/greyhounds)

in my trade as its cash in hand--theres plenty that have lost there marriage/house/large debts/depression/one suicide due to gambling.

in truth i havent stopped but budgeted

1. bet for fun not ruin(even £10 a day is £300 a month--alot)
2.never stay in bookies shop(im down to 1 day only--sat-watch on tv)
3.budget(i do a lucky 31 sat/horse racing tv)(60p unit £18.60)(win/lose its no problem)

there is a way out---it takes time--but you can do it

good-luck bud

debrag

cg81 wrote: »

I have amended the SOA. I am sorry if it is causing confusion.

SOA1 is reflective of IF I have to deal with this myself
SOA2 is reflective of both of us, where by I would still prefer to deal with most of debt myself.

£1000 is paid to a Joint Ac on a 60/40% split towards me as higher wage earner.

The Rent is the full amount. We have a very favourable private agreement in place. The C tax is paid over 10 months. It is a high ban we are in. C or D. I've included some ad hoc petrol costs as we obviously run two cars. There is then the travel to work which is around £300.

I guess there's two ways out it for me. On my own or with GF. The first is seeming likely currently!

SOA 2 only goes up by £100 so what bills does her other £300 you changed some items back to what they are on SOA 1.

Have I missed something?

EDIT: soory realised you'd up your rent onboth SOA's