Releived

cado1

I am new to the site I only joined today but after reading some of the posts I now actually feel really releived and don't feel like a freak !

In the past 7 years I have managed to rack up nearly £30k in debt and have nothing to show for it!!

Credit card balances where paid off by personal loans and it just kept going. When I think of what I coudl have done with all that cash know I coudl kick my self.

I have finally reached rock bottom this month I can't even afford the minimum payments on my credit cards / mail order so I am writing letters to them and sending my SOA to see what they will accept.

My partner of 3 yrs knows nothing about and I can't bring myself to tell him. He is an accountant by trade and always a really carefull spender and I just can't face it especially when I am haveing second thoughts every other day about our relationship anyway, but then I think that if I didn't have all this debt on my mind things may start getting between us any way ?

I am setting up a new basic account with a bank other that the one I have my loan o/d with so I can have my salary paid to that instead !

Is there anything else I shoudl be doing ?

bottleofred

Hi Cado1 and welcome to the forum,

Don't beat yourself up about the debts as it's done now. However, you've finally realised you need to start getting out of debt and that's a very difficult thing to do. You are doing the right thing regarding the Bank Account. You could also post your statement of affairs on here so people can provide advice/assistance in how you can save extra money. I've put the link below.

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

I was in a similar situation to you (37K!) and eventually got out of debt, so stay positive and remember, life does go on without loans and credit cards. In fact for me, it was a relief.

Good luck

McKneff

Hello and welcome to the boards, there is so much help available to you here.

Well done for coming to a screeching halt and knowing (and doing) something about your debts.

Do your statement of affairs and sit back and wait.
(and dont forget if you get some good advice or helpful advice, hit the 'thanks' button.

saltnvinegar

Hi Cado

First of all congratulations on facing up to your debts and taking that first step on getting things sorted.

:T

I was in the same position as you only a few months ago. Rather than post a massive response have a read of my LBM thread which pretty much covers everything I would tell you anyway.

As already mentioned also post a statement of affairs as the really friendly peeps on here will have some good tips on how to bring down your outgoings.

Above all keep positive, its a long slog getting that debt mountain down but you will feel so much better now you are dealing with it.

SnV

NorthernLas

Well done for posting.

While it is a good idea to tell your creditors that you have financial issues, I would not recommend that you send them a SOA and ask them what reduced payment they will accept.

What you need to be doing is working out your SOA, putting in everything that you do spend, then from the amount that you have left, you offer your creditors a pro-rata payment.

It is also a good idea to seek impartial advice from CCCS or National Debtline (see the thread at the top of the forum called who to go to for impartial advice). Both CCCS and National Debtline have great websites that will help you see 'the wood for the trees'

saltnvinegar

NorthernLas wrote: »

Well done for posting.

While it is a good idea to tell your creditors that you have financial issues, I would not recommend that you send them a SOA and ask them what reduced payment they will accept.

Agreed, though although I sent my creditors a copy of my SOA I never asked them what reduced payment they would be willing to accept as we all know what the answer to that would be!! :rotfl:

I informed them of what I could afford to pay them and they could accept that offer or not. Even the two that haven't are still 'accepting' the payment anyway they just do not agree it is acceptable to them!

cado1

Hi again

Thanks all for the moral support. I am going to tell them what I can pay not what would they like me to pay !! Didn't explain it very well.

The only other problem I have is that I live in Jersey and all the rules and laws are different over here regarding debt problems!!!

Anyone else form the channle Islands ???

Also can anyone give me an idea of how long it took them to pay off their debts ?? I kind of need to make a plan, but a relaistic one at that ??

cado1

I dont own a car just use my boyfriends and pay for petrol
Pet insurance is high as I have a horse & dog ! horse is not worth selling and woudl break my heart !!!!

Rent is so high as £630 rent to my boyfriend which also helps with bills and the rest is a loan secured on my mums property !!!

SOA
Statement of Affairs and Personal Balance Sheet
Monthly Income Details[/b]
Monthly income after tax................ 1921
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1921
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 255
Rent.................................... 860
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 350
Clothing................................ 0
Petrol/diesel........................... 50
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 350
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 50
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1955

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

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 17000....(195)......0
Hire Purchase (HP) debt ...... 500......(60).......0
Total secured & HP debts...... 17500.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................4500......90........0
Mastercard.....................5000......150.......0
Loan HSBC .....................8000......265.......0
Total unsecured debts..........17500.....505.......-

Monthly Budget Summary
Total monthly income.................... 1,921
Expenses (including HP & secured debts). 1,955
Available for debt repayments........... -34
Monthly UNsecured debt repayments....... 505
Amount short for making debt repayments. -539
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -17,500
Total Unsecured debt.................... -17,500
Net Assets.............................. -35,000:rotfl:

Jinx

I would just add only contact your creditors in writing, never by phone and use recurring online payments, not DD....

You are in very good company here, most of us are chipping away at debts, youll learn sooo much just from reading posts. Good Luck