Help! Smothered

DC34

Guys,

Really stuck here don't really know what to do.

Wanted to treat myself for a few months went on holiday spent a lot of money that I didn’t really have.
No excuses totally my fault, cant blame the family or anyone else.


Couldn’t cope and ended up taking out a payday loan to cover myself, then paying it back on time no worries I thought.

This started two years ago and I am still using them, I now have 6 loans all at the same time!
I can just about pay my rent.
I end up rolling them over month after month.

Don’t know what to do; I can see my marriage ending soon if this goes on.

Any advice would be greatly appreciated

Regards

DC

wornoutmumoftwo

Can you post a statement of account so we can see your incoming and outgoings?

KingElvis

I feel for you, the payday loans trap is harsh.

Post up your details and I bet some of the clever people here can help :-)

podperson

Hi DC,
Payday loans can just be evil, trust me have been there! As mentioned above if you post an soa people may be able to offer advice on areas where you can make some savings and free up some extra money to go towards them.
Can you do anything to get some extra cash? Have a clear out and ebay/car boot, look at surveys or mystery shops, get any overtime at work? Would you be able to say pay one of them off this month and roll the others over, tackle them a little bit at a time.

pippitypip_2

Worst case, open a new bank account - have salary paid into that and DO NOT give out the details to any of the payday loan people.

You'll then default on the payday loans (so yes, this will affect your credit rating) and then need to arrange a payment plan with them to pay it pack over the short term - i.e. 3 - 6 months - but that may be more achievable than only having the rent money each month.

hth,
pippitypip

DC34

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.................... 0

Monthly Income Details
Monthly income after tax................ 2200
Partners monthly income after tax....... 0
Benefits................................ 110
Other income............................ 0
Total monthly income.................... 2310

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 900
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 30
Mobile phone............................ 20
TV Licence.............................. 8
Satellite/Cable TV...................... 40
Internet Services....................... 13.5
Groceries etc. ......................... 400
Clothing................................ 30
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 130
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 7.5
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1629


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................780.......40........39.9
Payday Loan....................300.......52.5......1737
Payday Loan....................425.......552.......2618
Friend.........................1000......500.......0
Payday Loan....................450.......130.......2338
Payday Loan....................330.......82.5......1737
Payday Loan....................250.......83........2278
Total unsecured debts..........3535......1440......-


Monthly Budget Summary
Total monthly income.................... 2,310
Expenses (including HP & secured debts). 1,629
Available for debt repayments........... 681
Monthly UNsecured debt repayments....... 1,440
Amount short for making debt repayments. -759

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -3,535
Net Assets.............................. -3,535

RAS

I am going to be harsh, because it is easy to see how you got in this mess

DC34 wrote: »

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.................... 0

Monthly Income Details
Monthly income after tax................ 2200
Partners monthly income after tax....... 0 - not working?
Benefits................................ 110
Other income............................ 0
Total monthly income.................... 2310

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 900 - this is very very high - London or around?
Management charge (leasehold property).. 0
Council tax............................. 0???
Electricity............................. 0???
Gas..................................... 0????
Oil..................................... 0????
Water rates............................. 0?????
Telephone (land line)................... 30 - this needs to be stopped - line rental only for a few months
Mobile phone............................ 20
TV Licence.............................. 8 - this is not enough
Satellite/Cable TV...................... 40 - you need to downgrade immediately and then get rid - freeview for a couple of years
Internet Services....................... 13.5
Groceries etc. ......................... 400 - this is ludicrious - halve it immediately and you may be able to reduce on that. Put the missus on the Old style forum immediately
Clothing................................ 30 - you cannot afford anything other than knickers in the next year.
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 130 what is this?
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 7.5
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 50 - this has to drop to £10 maximum
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1629


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................780.......40........39.9
Payday Loan....................300.......52.5......1737
Payday Loan....................425.......552.......2618 - why is the monthly payment so high on this one?
Friend.........................1000......500.......0 - this would be consider unfair preference - you need to ask to pay less for a few months.
Payday Loan....................450.......130.......2338
Payday Loan....................330.......82.5......1737
Payday Loan....................250.......83........2278
Total unsecured debts..........3535......1440......-


Monthly Budget Summary
Total monthly income.................... 2,310
Expenses (including HP & secured debts). 1,629
Available for debt repayments........... 681
Monthly UNsecured debt repayments....... 1,440
Amount short for making debt repayments. -759

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -3,535
Net Assets.............................. -3,535

DC34

Thanks for coming back to me.

Here are my answers hope this helps you to understand my situation



Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 2200
Partners monthly income after tax....... 0 - not working? (She doesnt work she looks after my five year old)
Benefits................................ 110
Other income............................ 0
Total monthly income.................... 2310

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 900 - this is very very high - London or around? Yes London however this includes virtually all my bills
Management charge (leasehold property).. 0
Council tax............................. 0??? see above
Electricity............................. 0??? see above
Gas..................................... 0???? see above
Oil..................................... 0???? see above
Water rates............................. 0????? see above
Telephone (land line)................... 30 - this needs to be stopped - line rental only for a few months - i thought £30per month was cheap no?
Mobile phone............................ 20
TV Licence.............................. 8 - this is not enough (included in my rent)
Satellite/Cable TV...................... 40 - you need to downgrade immediately and then get rid - freeview for a couple of years (will do)
Internet Services....................... 13.5
Groceries etc. ......................... 400 - this is ludicrious - halve it immediately and you may be able to reduce on that. Put the missus on the Old style forum immediately (My missus says that she could not put food on the table for the three of us for less than £80 a week)
Clothing................................ 30 - you cannot afford anything other than knickers in the next year.(ok )
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 130 what is this? (Travel for me into work and the wife on the bus to kiddies school)
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 7.5
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 50 - this has to drop to £10 maximum (K)
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1629


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly.. .APR
Credit Card....................780.......40........39.9
Payday Loan....................300.......52.5......1737
Payday Loan....................425.......552.......2618 - why is the monthly payment so high on this one? (This payday loan must be paid off in full at the end of every month, i pay it then am left so short that i re-order it)
Friend.........................1000......500...... .0 - this would be consider unfair preference - you need to ask to pay less for a few months. (it;s my mum i needed it desperalty and promised i would pay it back in two months)
Payday Loan....................450.......130.......2338
Payday Loan....................330.......82.5......1737
Payday Loan....................250.......83........2278
Total unsecured debts..........3535......1440......-


Monthly Budget Summary
Total monthly income.................... 2,310
Expenses (including HP & secured debts). 1,629
Available for debt repayments........... 681
Monthly UNsecured debt repayments....... 1,440
Amount short for making debt repayments. -759

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -3,535
Net Assets.............................. -3,535

Help

podperson

Could I just clarify a few things on your soa. You haven't put any income for your partner - are they not working or have you not included this because I'm guessing from your initial post they aren't aware of the situation.
You haven't put anything for council tax, gas or electric - does someone else pay these or have you maybe included in the rent as that seems awfully high?
The major things that jump out are that you are paying over £80 a month for phone line, sky and internet which is really high. I pay £30 a month for all on a basic package so even if you can't give up some channels should be able to halve it.
Groceries are also really high, lots of tips on the old style boards for cutting down, eg dropping a brand, batch cooking, making more from scratch - if your partner doesn't work then should have time for this? But then would need to discuss with them.
Also clothes and entertainment could drop a little, lots of free or very cheap family days out you can look at.

Other thing that stands out is £500 a month paying back to your friend. Are they desperate for this money or could they take reduced payments or even let you off for a few months so you could clear the payday loans? Appreciate that you may not like asking but am sure if they don't need it back straight away they wouldn't want to think of you struggling this much.

DC34

My Partner doesn't work she looks after my 5 year old, she is looking for a part time job.
She knows about my debt and is at the end of her tether with me as i'm so crap with money.

The rent is so high as i live in London and it includes all bills.

I could cut the groceries down to £300 i guess.

With regards to the £500 its only for two months and its my mum cant let her down.

DC

chesky369

How hard is she looking? It has to be said that part-time work that fits in with school-time is pretty difficult to find. So you could do a deal with her - don't bother to find work but (a) SHE takes total responsibility for the finances (b) SHE has to manage on £275 per month. She has the time and she'd better develop the inclination.