help?

jessie-jane

Need help and advice please, once again we find ourselves in this dire situation. Three and half years ago we were here and sold the house to release the equity and paid off MOST of the debts, we now rent what was our home and have ran up the credit cards again not through an expensive lifestle just day to day living. OH is working all the hous he can 7-7 6 days a week and i am working what ican. Have spoke to ccs and they have suggested IVA or dmp but the DMP would take 18 years to pay, the other option we have is my wonderful parents have offered to release my inheritance of 40,000 now, cccs said they could then negotiate full anf final payments .......what would u do ? I feel so guilty taking the money now to pay off our debts and feel like we should be punished for getting into this mess yet again., here is our soa.













[tt]Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 300
Partners monthly income after tax....... 1520
Benefits................................82
Other income............................ 42
Total monthly income.................... 1944
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 600
Management charge (leasehold property).. 0
Council tax............................. 99
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 28
Telephone (land line)................... 16
Mobile phone............................ 10
TV Licence.............................. 14
Satellite/Cable TV...................... 17
Internet Services....................... 0
Groceries etc. ......................... 400
Clothing................................ 15
Petrol/diesel........................... 60
Road tax................................ 10
Car Insurance........................... 23
Car maintenance (including MOT)......... 20
Car parking............................. 10
Other travel............................ 10
Childcare/nursery....................... 0
Other child related expenses............ 10
Medical (prescriptions, dentist etc).... 21
Pet insurance/vet bills................. 15
Buildings insurance..................... 0
Contents insurance...................... 8
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15
Haircuts................................ 21
Entertainment........................... 0
Holiday................................. 60
Emergency fund.......................... 20
Total monthly expenses.................. 1562

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 200
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 201

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
american express...............2200......64........0
littlewoods....................3500......88........0
rbs gold.......................4200......96........0
rbs overdraft..................3400......45........0
black horse....................5000......240.......0
tsb............................10300.....210.......0
tesco..........................6400......190.......0
capitol one....................6900......202.......0
egg............................3500......110.......0
rbs............................11000.....247.......0
mint...........................3800......96........0
Total unsecured debts..........60200.....1588......-

Monthly Budget Summary
Total monthly income.................... 1,820
Expenses (including HP & secured debts). 1,562
Available for debt repayments........... 258
Monthly UNsecured debt repayments....... 1,588
Amount short for making debt repayments. -1,330
Personal Balance Sheet Summary
Total assets (things you own)........... 201
Total HP & Secured debt................. -0
Total Unsecured debt.................... -60,200
Net Assets.............................. -59,999
[/tt]

tbourner

£1 for the car.

Sorry that's not much help.

dancingfairy

I think I would be looking at bankruptcy for maybe one or both of you. I'm confused as to why you were recommended an IVA? I thought they were for people who owned their own house?
It's not easy learning to budget - even with 2 earning in the household - your SOA doesn't look too bad -apart from maybe the groceries so I'm a little confused as to how it has got quite so bad for you.
Good Luck
df

jessie-jane

Thanks for the replies, sorry car should read 5000, not 1.

As i said before we never cleared the debt completely last time and have had to use the cards to live on and the interest is now crippling us.
To be honset i was thinking of the bankrupt route before parents offered the inheiretance but OH would lose the car ( very sore point ) as we still have 18 months left on this to pay.

LandyAndy

dancingfairy wrote: »

I think I would be looking at bankruptcy for maybe one or both of you. I'm confused as to why you were recommended an IVA? I thought they were for people who owned their own house?
It's not easy learning to budget - even with 2 earning in the household - your SOA doesn't look too bad -apart from maybe the groceries so I'm a little confused as to how it has got quite so bad for you.
Good Luck
df

Because the SoA is wrong or the money has been spent on things it doesn't cover (capital items).

My guess is the OPs actual expenditure is much higher.

That's over £60k of debt (minus what they didn't pay off last time) run up in 42 months, over £1400 per month.

The OP needs to take an honest look at where the money has gone and, above all else, take on board that when you pay off your debts you have to keep it that way regardless of how hard that is.

LandyAndy

jessie-jane wrote: »

Thanks for the replies, sorry car should read 5000, not 1.

As i said before we never cleared the debt completely last time and have had to use the cards to live on and the interest is now crippling us.
To be honset i was thinking of the bankrupt route before parents offered the inheiretance but OH would lose the car ( very sore point ) as we still have 18 months left on this to pay.

In which case your SoA must be wrong because it shows you well able to live day to day on what you earn?

jessie-jane

Unfortunately we did not cut the cards up after last time and used them to rob peter and pay paul because although is looks like we have money left over each month is just never happens.

charliemonkeyface

i am by no-means an expert but i would definately look towards going bankrupt, take a look at the bankruptcy forum.
i would leave your inheritance where it is until you can realise why you are spending so much and then learn reduce and control it

jessie-jane

thanks for the support!

WASHER

jessie-jane wrote: »

[tt]Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1520
Partners monthly income after tax....... 300 - NEEDS TO WORK FULL TIME
Benefits................................ 0 - YOU MUST RECEIVE SOME CHILD ALLOWANCE ETC
Other income............................ 0
Total monthly income.................... 1820
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 600
Management charge (leasehold property).. 0
Council tax............................. 99
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 28
Telephone (land line)................... 16
Mobile phone............................ 10
TV Licence.............................. 14
Satellite/Cable TV...................... 17 - GET RID OFF
Internet Services....................... 0
Groceries etc. ......................... 400 - LOWER TO £200
Clothing................................ 15
Petrol/diesel........................... 60
Road tax................................ 10
Car Insurance........................... 23
Car maintenance (including MOT)......... 20
Car parking............................. 10
Other travel............................ 10
Childcare/nursery....................... 0
Other child related expenses............ 10
Medical (prescriptions, dentist etc).... 21
Pet insurance/vet bills................. 15
Buildings insurance..................... 0
Contents insurance...................... 8
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15
Haircuts................................ 21 - YOU CAN'T AFFORD THIS EACH MONTH
Entertainment........................... 0
Holiday................................. 60 - YOU CERTAINLY CANNOT AFFORD THIS
Emergency fund.......................... 20 - WELL THIS IS THE EMERGENCY, ANYTHING IN THE FUND?
Total monthly expenses.................. 1562

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 200 - CAN YOU CASH THESE IN
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 201

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
american express...............2200......64........0
littlewoods....................3500......88........0
rbs gold.......................4200......96........0
rbs overdraft..................3400......45........0
black horse....................5000......240.......0
tsb............................10300.....210.......0
tesco..........................6400......190.......0
capitol one....................6900......202.......0
egg............................3500......110.......0
rbs............................11000.....247.......0
mint...........................3800......96........0
Total unsecured debts..........60200.....1588......-

Monthly Budget Summary
Total monthly income.................... 1,820
Expenses (including HP & secured debts). 1,562
Available for debt repayments........... 258
Monthly UNsecured debt repayments....... 1,588
Amount short for making debt repayments. -1,330
Personal Balance Sheet Summary
Total assets (things you own)........... 201
Total HP & Secured debt................. -0
Total Unsecured debt.................... -60,200
Net Assets.............................. -59,999
[/tt]

I have found £300 of saving each month. With child benefit/tax credits etc and the other person getting a full time job, you might just make up that shortfall of £1,330. But saying that, you will have no life to speak off, I would personally go with CCCS and leave the inheritance alone. It will probably not take 18 years to repay this debt, and in a few years time, if your parents are still offering the money then you can do full and final offers.

YOU must learn to curve your spending and cut up all cards, it isn't going to be easy repaying this.

I wish you well.

WASHER.x.

lalli_pickle

This may seem harsh but you're not facing up to the reality of your situation. You've sold your house to pay off your debts then run them up again on day to day living, you're now considering using your inheritance to pay them off again!
What I would like to know is how you plan on paying off the debts you run up in the next 3 years on day to day living when you won't have a house or your inheritance to fall back on?