Debt Advice

kellbing

My boyfriend is struggling to keep up with payments on his debt and things are begining to snow ball. He has 2k on an AA credit card 1.5k on a barclay credit card and 2k overdraft with Halifax which is currently adding £30 a month on each month for charges. We have tried to get a loan to consolidate but we have been rejected a number of times including with our own banks and also via credit cards. He feels very down with the situtation and we would really do with some advice on where to go from here.
Thanks in advance
Kellbing

Gordon_Hose

Is he in arrears, or keeping up with minimum payments?

He could speak to his creditors and explain he's having trouble, they may be able to freeze interest for a bit to help.

Tixy

Hi Kellbing

Do you know why he is struggling to keep up with repayments? Has his income dropped at all or is it more that he just kept increasing the debts a bit until they are an unmanagable level?

The best first step for him is to work out a detailed statement of affairs http://www.makesenseofcards.com/soacalc.html to see exactly where his money is going each month and how much he should have left for debt repayments. Once you know that you can start deciding on a course of action.
If you/he post the statement of affairs on here people should be able to advise on what his possible options are and also if there are areas he could save any money to make the repayments easier.

kellbing

he is keeping up with the min payments but feels he is going no where in getting rid of the debt.

Gordon_Hose

Post up an SOA as Tixy suggested, we can see if there's possible money saving areas.

kellbing

hi all just spoken to my bf and this is what he is currently paying. I he pays the mortgage car related payments and any of his own debt and i pay for all other house payments i.e food c tax insurances tv utilities etc
I am unsure of most apr rates and what the current mortgage debt is so i have put the initial figure whcih we got in apr 2008 at 7.9 apr we are now tracking with the boe br with 1.99% added on top. Sorry if it is vague but im not v clued up Again all help appreciated.

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.................... 1

Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1400

Monthly Expense Details
Mortgage................................ 430
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 0
Petrol/diesel........................... 30
Road tax................................ 60
Car Insurance........................... 40
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................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 590


Assets
Cash.................................... 0
House value (Gross)..................... 80000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 84000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 93000....(430)......2.49
Total secured & HP debts...... 93000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
aa.............................3000......100.......0
halifax........................900.......0.........0
barclays.......................1400......50........0
car............................4200......130.......0
loan...........................5000......198.......0
Total unsecured debts..........14500.....478.......-


Monthly Budget Summary
Total monthly income.................... 1,400
Expenses (including HP & secured debts). 590
Available for debt repayments........... 810
Monthly UNsecured debt repayments....... 478
Amount left after debt repayments....... 332

Personal Balance Sheet Summary
Total assets (things you own)........... 84,000
Total HP & Secured debt................. -93,000
Total Unsecured debt.................... -14,500
Net Assets.............................. -23,500

Pollycat

Hi
Maybe check the car tax - £60 per month is £720 per annum.
Also, the figures in the SOA don't quite match up to what you say:

He has 2k on an AA credit card 1.5k on a barclay credit card and 2k overdraft with Halifax which is currently adding £30 a month on each month for charges.

Anyway, from the figures you've given, your BF should be able to do more than just keep up with the minimum payments.

So you need to find out where all that surplus is going each month and the key to that is for him to keep a spending diary and put down EVERY penny he spends that is not covered in his SOA.

I'll bet there'll be coffees, lunches, newspapers etc.
Once you identify where the money is going, he can stop spending it and start throwing it at his debts.

ETA
there's loads of things that I'd expect to be in the SOA (unless you pay it) such as haircuts, entertainment etc - maybe this is where the £332 per month is going.

Gordon_Hose

He's got money left over according to that SOA!

kellbing

hi pollycat
my mistake the tax is 60 every 6mths
the figures on the soa are defo the debt figures i hadnt spoken to him when i put the first message on got a little confused.

I suppose like everyone he wants to have fun and live his life but it seems he is spending more than he earns on some months and he gets really down about it tbh it puts strain on our relationship because all he seems to do is worry about money and most probably spends on him self to make him feel better.

kellbing

i cut his hair lol so he doesnt have to pay that we dont go out very often maybe 1 a month if that id say we spend about £20 oncea week on a takeaway but he also does like to gamble on a weekend.

MFWannabe

kellbing wrote: »

i cut his hair lol so he doesnt have to pay that we dont go out very often maybe 1 a month if that id say we spend about £20 oncea week on a takeaway but he also does like to gamble on a weekend.

this could well be where his problem exists then and could be the root of his debts. Do you know how much he gambles?
According to the soa he should have money left over and could pay more towards his debts but if he's gambling this amount then that's why he has nothing