Help needed! £70,000 owed

KatrinaC_2

SimplyBroke wrote:

I have tried for a few years now to repay it at frozen rate etc.

I've been with the CCCS for a while and they've advised me to go bankrupt.

I've not been in touch with them for months now though, after trying very hard to repay my debts (really didn't want to go bankrupt) with no joy I've stuck my head in the sand.

I'm definately going to do it, sick to the back teeth of it creeping up behind me everytime I forget about it and the endless letters and threatening phone calls!


My salary - £1,330.00


Total - £1,330.00

Monthly Outgoings:

Rent - £500
Council Tax - £90
Gas - £25
Electric - £20
Water - £20
TV License - £10.99
Sky £50
Phone - £30
Food - £300
Car Insurance - £65
Petrol - £50
Other car - £15
Tube - £85
Contact lens - £30
Medical - £12
Pet insurance - £25

Total: £1,327.99

If I actually wrote down who I owed what to I would be here all week, but it's around £70,000.00 - to be frank it's literally go up £100's by the week due to interest and fines.

Basically, even with cutbacks I'm only just breaking even every month.

You're not breaking even - for £70,000 your repayments must be at least £1400 per month. Even if you cut your outgoings to zero you'd still be £70 per month short.

Personally, I'd get back in touch with CCCS and reconsider the bankruptcy. Your debt is about three times your annual income and to try for an IVA or DMP with that amount of debt is probably unrealistic.

Kat

Bestthingsinlifearefree

Hi SB,

If the debt is going up hundreds every week due to interest / late penalties, it seems financially, like things are spiralling out of control and bankruptcy maybe the best option.

You have got somethings that can be cut out on the SOA e.g sky, but even with things cut down to the bone will this enable you to have enough left to reduce the debts and not just tread water.

There are lots of threads on here by ppl who have gone through bankruptcy and come out the other side in one piece and moved forward.

Just try to make an informed decision either way and stay positive.

Keep posting as you work through this.

I wish you well.

bluezone

As said before there have been a few of us that have had to go bankrupt so we completely understand hun. Stay positive and feel free to post to let us know how your getting on or if needs be PM any of us x

Mike_St_Helens

bluezone wrote:

As said before there have been a few of us that have had to go bankrupt so we completely understand hun. Stay positive and feel free to post to let us know how your getting on or if needs be PM any of us x

Im right behind Bluey on this one... Me and OH are also in the same boat, we owe £130k and im 29.

here are some great advice sites for you :

http://www.debtquestions.co.uk/debt_forum
http://myvesta.org.uk/media/video/bankruptcy/index.html This is V good
http://www.insolvency.gov.uk

Here is my last thread with a load of questions also...

http://forums.moneysavingexpert.com/showthread.html?t=239324
http://forums.moneysavingexpert.com/showthread.html?t=250085

Hope they help... Please Please PM any one of us if you want anything else

southernscouser

I know this doesn't quite help with your bankruptcy questions but I thought it important to comment.

With your current SOA I can see why you have gotten into debt. I can also see that you will get into more debt even after bankruptcy.

For example I reckon your car costs more than the £15 allowance you make for it's up-keep. Out of that you need tax, MOT, service, tyres, cleaning, windscreen wipers etc. This all adds up to more than £180 a year.

Then you haven't accounted for Christmas, birthdays, socialising that sort of thing.

I don't mean to sound harsh or anything but before you do anything you need to address the problems that have caused this debt in the first place.

But thats where we're to help! :beer:

mrs_mug_2

Simply broke - I have no answers for you I'm afraid, except to call CCCS again?

I wish you all the best with finding a solution to your debt problems.

goody2shoes_2

As some people have already suggested, I think you should really try and cut back on as many non-essentials as possible. E.g. Sky TV payment. 50 quid per month is a lot of money and, to be honest, most people who work all day don't really get that much time to watch TV. Sky fee of 50 quid a month must mean that you get nearly full package, which is a lot of channels, most of which you probably don't watch on a regular basis. If you absolutely must have it, try to compromise and see if you can change it to a lesser package. Or perhaps get cable TV such as NTL instead? Also, shop around for pet insurance. 25 quid a month sounds like a lot of money to pay. Go to the likes of Tesco, Asda etc and see if they make you a lower offer on that. Same goes for car insurance etc. The other obvious things would be cutting down on eating & drinking out. Medical ... is that insurance? Do you absolutely have to have it? While you're paying off your debts, perhaps, you should consider going NHS for a while? I'm not being funny but it's really not all that bad. You shouldn't buy insurance just because it sounds good. If you don't go to the doctor that often and you're reasonably young and healthy, maybe buying insurance "just in case" isn't always such a good idea?

Don't mean to be patronising or anything and hope you sort it out. We've all been there. Budgeting and planning is the key.

nearlyrich

BG Note

I have edited this thread as posts having a go at people for going bankrupt are not helpful to the original poster.

Please read Martin's notice at the top of the board which explains his intentions for the board and if you want a general discussion about debt please use the discussion board not DFW.

nearlyrich

Is it me or do some people still not understand what this board is for?

Please read the announcement and respect Martin's wishes.

If there any further posts of this nature please ignore and I will remove them.

Thanks

BG

whambamboo

SimplyBroke wrote:

I have tried for a few years now to repay it at frozen rate etc.

I've been with the CCCS for a while and they've advised me to go bankrupt.

I've not been in touch with them for months now though, after trying very hard to repay my debts (really didn't want to go bankrupt) with no joy I've stuck my head in the sand.

I'm definately going to do it, sick to the back teeth of it creeping up behind me everytime I forget about it and the endless letters and threatening phone calls!


My salary - £1,330.00


Total - £1,330.00

Monthly Outgoings:

Rent - £500
Council Tax - £90
Gas - £25
Electric - £20
Water - £20
TV License - £10.99
Sky £50
Phone - £30
Food - £300
Car Insurance - £65
Petrol - £50
Other car - £15
Tube - £85
Contact lens - £30
Medical - £12
Pet insurance - £25

Total: £1,327.99

If I actually wrote down who I owed what to I would be here all week, but it's around £70,000.00 - to be frank it's literally go up £100's by the week due to interest and fines.

Basically, even with cutbacks I'm only just breaking even every month.

Sounds like you can still cut back a lot.

Medical is obviously unnecessary. Contact lenses, you could get glasses for £50 from spec savers. Sky: unnecessary, £50/month is just obscene. £300 a year for pet insurance sounds like a lot too, what kind of pet is it that you can leave it all day at work but stil require £300/year insurance???

2 cars + tube is clearly ridiculous for one person. If you are going to work on the tube, you could SELL the two cars and save the money. When I earned that much I didn't even have one car.

It's very clear that you've been spending any amount without any reference to whether you have the income to pay it off, and you still need to cut back dramatically, these are not items that someone in your position can afford.

Food @ £300 sounds a bit expensive to me too.