Debt's getting worse, help!

pugzy

I'm in a bit of a pickle and I need to sort my finances out for good, have been trying sensibly for months, but now it's serious and I'm not going to let it get me depressed.

I'm 25 and have the following debt...
- £3.6k loan with Lloyds TSB and pay £118 p/m (2.5 years left roughly)
- £1.6k on a Barclays Credit Card which I've just shifted on a 0% APR balance transfer until Oct 11 (I only got this as when I moved from previous job to this one, I had to wait for 7 weeks to get paid)
- £3.5k student loan and pay about £15 p/m (not an issue though really right now)
- £772.32 now owed to a previous employer after losing my case in Court yesterday and will be registered as a CCJ very soon if I don't get it sorted (pay within 28 days to remove, correct?)

Income is about £1070 p/m and after paying my half of the bills with my partner, I pay £500, around £200 then goes towards the set in stone repayments in my personal life as said above, plus the variable credit card repayments of around £35-£40.

This leaves me with around £250 to last me the month.

Around £75-£100 p/m on fuel which I use just for work generally.

So after all that, my partner has just cleared all her debts and is currently saving for our wedding which is planned for Sept 2011, having already put it off this year due to issues.

I don't know where to start. I'm now selling my car and won't get much for it, but I'm adament to not get this CCJ against me.

What can I do?

traycee

Hi Pugzy

Welcome please post you full SOA (Statement of affairs) using this layout and the good people of MSE will endevour to help.

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

Traycee

pugzy

Thanks Traycee, all new to me so I apologise

Will get that sorted ASAP.

Any ideas in the meantime?

pugzy

Ok, have done a quick rough version, it's not totally knuckled down, but the main figures are for now...

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.................... 2

Monthly Income Details
Monthly income after tax................ 1070
Partners monthly income after tax....... 750
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1820

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 118
Rent.................................... 475
Management charge (leasehold property).. 0
Council tax............................. 82
Electricity............................. 89
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 12
Mobile phone............................ 35
TV Licence.............................. 11
Satellite/Cable TV...................... 0
Internet Services....................... 17.5
Groceries etc. ......................... 150
Clothing................................ 0
Petrol/diesel........................... 140
Road tax................................ 0
Car Insurance........................... 79
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...................... 9
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1222.5


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 2000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 3714.....(118)......0
Total secured & HP debts...... 3714......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclays Credit Card...........1600......37........0
Total unsecured debts..........1600......37........-


Monthly Budget Summary
Total monthly income.................... 1,820
Expenses (including HP & secured debts). 1,222.5
Available for debt repayments........... 597.5
Monthly UNsecured debt repayments....... 37
Amount left after debt repayments....... 560.5

Personal Balance Sheet Summary
Total assets (things you own)........... 2,000
Total HP & Secured debt................. -3,714
Total Unsecured debt.................... -1,600
Net Assets.............................. -3,314

pugzy

The parts I couldn't add are that my partner is a part time waitress and receives a variable amount of tips. She saves all these and puts them towards the savings (which I haven't included on the form). She saves around £300 per month too from her own income to go towards the wedding.

podperson

I'm guessing you're not actually seeing over £500 spare every month? Looks like a few things might be missing on your soa, nothing for road tax/maint, entertainment, presents, clothes so these are the areas where it might be disappearing to. Would suggest keeping a spending diary to see where this is going to as obviously if you had this money could clear the debts reasonably quickly. Are you going to have the money to pay the ccj off within the timeframe? If not is there any chance your gf might be able to help you out with this? I appreciate she probably doesn't want to dip into her wedding fund but think this is a priority as if you're wanting to look at a mortgage at some point after the wedding you don't want a ccj messing up your credit rating.

pugzy

Yeah, I didn't include random bits like that as we rarely do buy those things, just once in a blue moon if cash is free, so didn't know how to sensibly break it down?

But no, not seeing the £500 as bits are variable as said like her tips and how many hours she does at her other part time job (which has been full time for the last 6 weeks).

I think she will help with the CCJ if needed, but appreciate that it's the hard work she's done that would be bailing me out, and I feel seriously bad thinking she has that pressure on her.

We both really want this wedding next year but I need to be debt free in the next couple years.

We need two cars as even though we both work local (within 10 miles), it's opposite hours and in opposite directions in the sticks, not ideal.

Dellers

You are much better off putting the money for the wedding into the debt. I know its hard delaying a wedding but they are so expensive and you will be worse off than you are now. You can go to the registry office now and later have the big wedding later.

JasX

Echo the comments above, saving while paying 20%+ on debt interest is the hight of financial folly, clear the debt and you'll find you're able to save much faster without the burden of paying interest.

Definitely use savings op pay off the credit card, you'll need to look at the small print on the loan to see if its front loaded (ie you've been charged all the interest already) or would save money paying that off too.

If you live <10 miles from work can you cycle? perhaps start in the spring rather than winter, get a cheap <£100 bike.

if you have less than £500 spare at the end of each month start a spending diary to see where the money actually goes -don;t just put it down to 'oh it must be variable tips' you need to pin it down and might well be suprised.

Your groceries bill is quite high for 2 ppl, could probably shave £30-50 off that (ddepending on how mugch it includes alcohol/wine to offset the entertainment budget, in which case it's not too bad)

Moneybot

Agree with the above about using the savings you have to pay off debts first and then save for the wedding. If you are prepared to make the commitment to get married and presumably spend the rest of your life together you need to get your priorities sorted out now. A wedding which you can't really afford with your debts or starting a life together debt free? Why not look at the costs of the wedding and see how you could do it as cheaply as possible but still get what you want out of the day.

pugzy

Well, productive couple of days regarding the CCJ.

Still not had the Court paperwork come through yet, but my gramp died 3 years ago and left a will which £1k was meant to be coming to me. My uncles did nothing since and always disputed where it was all going, however, my mum and aunty now told them my situation and they've agreed to release the money I need to pay off the CCJ. If it's going to take more than 28 days to release, then to ensure I don't miss the CCJ 28 day deadline, my uncle will lend me the money. So one way or another, that debt will be out the way. The wrong reasons I lost in Court have finally put an end to the 3 year family dispute instead which is good I suppose

Now, pay day today.

Put £500 into the joint account where our bills come from ready for the month.
Pay off my credit card repayments.
Claim my dental expenses back.

I agree with you guys about the wedding, but my partner is adament that with this CCJ out the way, then she can continue saving and her mum plans to put X-amount of cash towards it too. It's really not ideal to do it but we have cut our wedding budget massively, as like I said in an earlier post, it was issues with weddings and me getting stressed about money which made us temporarily break up months ago.

And no, can't cycle, I live in the sticks as said, up massive hills and riding through 5 miles of woods in the pitch black in a suit at 12am won't be ideal I don't think :P cheers for the suggestion though.

The groceries budget - £120 on shopping per month, £40 or so on going out for meals (we're cheap skates and only go for places with deals), that's for 2 of us.

Will do a spending diary, starting today. I do know where most go as I track my online banking like a hawk and have all my payments dates and structures on the wall next to the computer, so I am organised and have never missed a payment in my life, despite the problems.

Thanks guys, any more suggestions?