£37000 of debt what would you do?

dancingfairy

Hi Chigs - here's what I would do:
1) do an SOA - the cccs will need this from you as well so you may as well get started.
2) do a spending diary and see where all those 10/20/30 pound withdrawls from the cash machine go - :eek::eek: - think chocolate/coke/coffees at work on the way to work/magazines/crisps/lunch out/takeaways/cd's etc
3) think about how you got in this mess so you don't repeat it in future (was it general overspending, relationship breakup, etc) - you don't have to tell us but might help you to think about it.
4) make sure your debts are not connected to your bank account as if you fall behind on credit card payments owned by the same people as your bank account they can just dip into your bank account and leave you with nothing and possibly an unathorised overdraft :eek: - if you owe money to your bank you will need to set up a new bank account completely unconnnected to anyone you owe money to.
5) Re the company that advertised on tv - it sounds like they may be offering an IVA - which a) I thought had to be accepted by the creditors based on your circumstances , b) could require you to release equity in your house and c) if you fail then you could be made bankrupt - this really is not something I would go into without knowing EXACTLY what I was signing up for and if you did then you would have heard from a CHARITY first that this is a good route for you to go down.
Good Luck
df

Chigs362

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 0, 2 vans, 2 trikes, 20+ motorcycles
Monthly Income Details[/b]
Monthly income after tax................ 1793 averidge worst case £0 best £3900
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1793
Monthly Expense Details
Mortgage................................ 636
Secured/HP loan repayments.............. 0
Rent.................................... 0.83
Management charge (leasehold property).. 0
Council tax............................. 129
Electricity............................. 110
Gas..................................... 0
Oil..................................... 0
Water rates............................. 27.89
Telephone (land line)................... 0
Mobile phone............................ 27
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 30 includes tv + home phone
Groceries etc. ......................... 17 This is correct
Clothing................................ 0
Petrol/diesel........................... 200 averidge best case £0 worst £1500
Road tax................................ 20 including bike
Car Insurance........................... 29 including bike
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 78.89 endowmwnt/life
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 80
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1405.61

Assets
Cash.................................... 0
House value (Gross)..................... 200000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 2000
Total Assets............................ 207000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 99000....(636)......5
Total secured & HP debts...... 99000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
c/card.........................13576.....305.......0
c/card.........................6596......172.......0
c/card.........................6293......108.......0
c/card.........................9772......97........0
Total unsecured debts..........36237.....682.......-

Monthly Budget Summary
Total monthly income.................... 1,793
Expenses (including HP & secured debts). 1,405.61
Available for debt repayments........... 387.39
Monthly UNsecured debt repayments....... 682
Amount short for making debt repayments. -294.61
Personal Balance Sheet Summary
Total assets (things you own)........... 207,000
Total HP & Secured debt................. -99,000
Total Unsecured debt.................... -36,237
Net Assets.............................. 71,763
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

dancingfairy

Hi - does your OH contribrute to the other bills? I presume they pay the food bill?
Also you will need to buy clothes etc at some point etc.
Are these all your debts or are some joint etc and who owns the house?
Also with 20+ motorcycles - is this your job? can you sell some to raise extra cash?
df

Chigs362

HI no she pays no bills and byes her own food that sum is for my food only,
And I never buy clothes I ask famly at xmass so not bought anything for years,
All my debt I own the house, the bikes are worthless unless I fix them first but have no money to spend on them and no time as I am doing five jobs.

Hannah_10

20 bikes and 2 trikes, net assets two grand, no way. Even a ropey trike out of a jap 250's worth a grand and that's with bits hanging off, so what are your assets really worth?

NorthernLas

Are your petrol costs part of your business as well?

Chigs362

@littel miss nice to know things can work out,
@pod I told them what I can aford they told me how long I had to pay it came out at that amount of time.
@hanna the contract is £450 a month for 43 months which is (used calk not head this time) £18900 you say I can go direct for full and final payment but do thay not need that in one sum? I need a payment plan and I am willing to pay extr for someone elce to do all the work, I am dyslexic not good with reading or writing and bad with forms if someone for a fee is willing to do the work its fine by me.

redsam

Hi

I recently joined DFW site....i am roughly the same as you in debt....I am thinking very carefully about DMP and IVA neither of which I can do without a permanent job BUT...I am being very careful not to spend unnecessarily, offers/bargains. I am selling what I can though ebay and gum tree and putting all that money to one side to either overpay debts or pay debts if i cant if i dont have a job. I am lucky that I have got an allotment so I am eating from that and storing what i can to make it last. I changed my gas/elec and house insurance. I have set a budget to stick to. I have offered to baby sit etc..for extra cash. Its not going to be easy and I know I am going to struggle..but i have confessed to friends and family so they know not to expect much from me.

I wish you all the luck I can.

I have found this site to be really useful and it helps that there are lots of other people who can support, give advice etc who have been or are in the same boat like me! I hope you find the same.

d3mon4ngel

What are the APR's on your cards?

A fairly obvious suggestion is to sell stuff you no longer use or need. Sure it's not a sustainable income as it depends on people buying, and at some point you will run out of stuff to sell, but it may help out in the short term.

Also, if you are in credit on your bank account, as an "every little helps" approach, you could round down your balance to the nearest £10 at the end of each week and put the difference towards one of your debts. So if you have £55.97 you would put £5.97 towards a card. I've been doing that each week that I've ended in credit for the past 2 months and putting it into a savings account, and have managed to save £29. Made the decision today to put it towards my credit card and help to bring my debts down like that.

BAILEYS6904

electricity seems way high, as does your entertainment bill if you are struggling. Life insurance, again, seems a little high?

You havent put your apr's up, might help, also if there are balances available on any low interest card? Might be an option?