Time to change

desperatio

Ok, new here, time for me to get my head out of the sand and sort my life out. Ive been reluctant to acknowledge the situation Im in but the pressure of struggling is getting to me.

Basically, though the amounts may be comparitively small, Im struggling with debt built up since my divorce nearly 2 years ago now Im living alone and paying maintenance. I rent a small house, pay maintenance for 3 children and these together wipe out half my income. So been living off the cards................indebtedness is a total of £5500 between 2 credit cards and an overdraft, I earn about £1400 a month but the rent and maintenance come to £765 alone. Cant get a council place, need somewhere for them to stay when they visit, earn too much for any help. Not missed any payments but the balance is building and building and the house of cards will soon come crashing in on me. I dont know what to do, have suffered with stress which is getting worse and worse. I work hard and just want a fair go but I feel like im being slowly dragged under and dont know what to do. Im sad and unhappy a lot of the time. Any support and advice would be welcome. Thinking of appraching CCCS or Payplan via my union but scared of defaults/ccj's/debt collectors. I have no assets to realise.

Over to the board.........

Verbatim

Hi,
Don't panic. I'd suggest putting up your statement of affairs which is a list of all income and outgoings. Once you have this budget in black and white it's much easier to plan how to proceed and where savings can be made.
V

bottleofred

Hi desperatio,

This is the web address for the Statement of Affairs. If you complete it and post it on the thread you'll get loads of advice on how to save some cash.

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

desperatio

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 3-weekend visits, one lives 30 miles away so transport essential
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1460
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1460

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 90
Rent.................................... 425
Management charge (leasehold property).. 0
Council tax............................. 70
Electricity............................. 20
Gas..................................... 20
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 0
Satellite/Cable TV...................... 33-inc broadband/phone/basic tv/calls
Internet Services....................... 0
Groceries etc. ......................... 140
Clothing................................ 0
Petrol/diesel........................... 120
Road tax................................ 10
Car Insurance........................... 38
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 340-maint. for 3 kids
Medical (prescriptions, dentist etc).... 8-Blood pressure meds!!!essential
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 12
Life assurance ......................... 54
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 5
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 10
Total monthly expenses.................. 1455


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 3500
Other assets............................ 0
Total Assets............................ 3500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 3500.....(90).......0
Total secured & HP debts...... 3500......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
C Card 1.......................2000......60........18.8
C Card 2.......................2400......40........16.9
overdraft......................900.......10........0
Total unsecured debts..........5300......110.......-


Monthly Budget Summary
Total monthly income.................... 1,460
Expenses (including HP & secured debts). 1,455
Available for debt repayments........... 5
Monthly UNsecured debt repayments....... 110
Amount short for making debt repayments. -105

Personal Balance Sheet Summary
Total assets (things you own)........... 3,500
Total HP & Secured debt................. -3,500
Total Unsecured debt.................... -5,300
Net Assets.............................. -5,300



So theres my story of woe. Some amounts may come down next year, 2 small pay rises on way and occasional small amounts of overtime. Some steps taken so far;

advice of cccs/Payplan (via Union) - offer 3 creditors informal token payment arrangement £1/month each by standing order from Neutral bank account

Have set up neutral account with co-operative bank. Need to time wage switch, too late for our HR to do it for next pay so things should start to kick off about september....

Looking to trim spending. Hard on your own when over half pay goes on rent and maintenance alone. Look for overtime or even part time job? I feel a bit hard done by - the marriage split wasn't my choice in the first place though near 2 years ago now and the house belonged to my ex, only married 2 years and have a nominal stake (2k) in the equity. The maintenance is ok according to Government guidlelines I think. Kids are 5,7 and near 12 (first marriage) who lives away from me so I need transport. I'm stressed and scared and upset by all this. All ive ever done is work and try my best, never asked for any help off anyone. Been off work last year with stress and now need tablets for high blood pressure. Its a mess alright

RAS

How many nights a wekk do the children spend with you?

desperatio

over a month its 5 or 6 nights (2 double and a single weekend)

RAS

Ok

You should be looking for a slight reduction in your CSA payment if the children spend more than 52 days a year. Do you get this?

You appear to have a very tight budget except

1. life insurance. Sounds harsh but if you are not paying a mortgage and you are currently single, why are you paying out on life insurance?
2. What do you do with the kids when they stay? Do you end up buying bits and pieces that add up? If so, you need to add somehting to your SOA
3. You have nothing in for clothing. I often suggest that people use free/cheap sources and only buy shoes and knickers, but you need something.

I know as a single renter you have probably already cleaned out a lot of stuff, but do you have anything that could go on e-bay, amazon etc.

RAS

Have a look here for ideas in raising a little extra money https://forums.moneysavingexpert.com/discussion/2132075

desperatio

L insurance under review........... kids spend about 6o nights a year, not done via CSA but done with their calculations via the court.

RAS

Di the court calculations include the deduction for time with you (do you have then for holidays as well)?

desperatio

Yes they do. Have them for a week in summer. BAsed on my earnings I calculated it at £360 a month so Im slightly on the better side.