Some advice please regarding debts....

Margoose

Hi everyone!!

New to this forum and just wanted to ask any advice from any one. So sorry if i've posted this in the wrong space...!

Basically just needed some advice on what to do next.

I'm in around 26,000 worth of debts. 4 credit cards and one loan and in my overdraft with my bank (which is Natwest). I managing to pay off my cards and my loan on time every month (i have missed a few card payments, but only a few).
With the credit card payments i'm only managing to pay of the minimum so it's not getting me very far plus it's leaving me very short every month for other stuff. i have in the past re-spent on the cards to afford everyday items like toiletries and shopping etc...
I've recently been in touch with the national debt line regarding all of this and they gave me some options and really not sure what to do.....

this is my debt (wroughly)

Natwest loan £15,500 (£354 per month payment)
Natwest mastercard £1,550 (Around £35 per month)
Natwest mastercard £1,150 (Around £35 per month)
Capital one visa £2,250 (Around £100 per month)
Barlaycard visa £4,150 (Also around £100 per month)

Plus am around £2000 overdrawn with my bank which is also Natwest

Some of the things which were said were the routes of an IVA or even Bankruptsy!!

Now to be honest all this kinda scares me......!!! My credit is fairly good as it took me years to rebuild it after having a poor start when i was younger and am a little worried about how all this will affect me and my job. Just not sure what to do :-(

Any advice or questions would be a great help!!!!

Many thanks

dreamdreamer

If you can afford the repayments then I really don't see the point of an IVA or bankruptcy. I'm sure some very knowledgeable people will be along with some great advice but in the meantime:

Post a Statement of Affairs so they can advice where you can save some money to put towards your credit cards.
http://www.makesenseofcards.com/soacalc.html

And use the snowball calculator to work out which debt to pay off first:
http://www.whatsthecost.com/snowball.aspx

Margoose

Just leaving me with very little every month for things like petrol and food etc.

Currently get about £1550 after tax and pay £160 child maintenance £500 rent and bills £30 sky and £35 mobile

Margoose

Thanks will have a look at both of them :-)

Sparklyfairy

Did they mention a DMP (debt management plan) at all? That might be a much better option, but it will wreck your credit rating as you are essentially breaking your credit agreements. Many people go along that route because, like you, even the minimum payments become difficult to manage along with your every day living expenses.

It's worth noting that once you have a DMP set up many people find they actually have more spare money month to month than before.

Please do your SOA as mentioned above & people will help you find ways to cut back - it's a great way to start & get the ball rolling & feel better about taking control of your finances...you've already taken the first step - so well done!

Margoose

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

Monthly Income Details[/b]
Monthly income after tax................ 1550
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1550

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 500
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 35
TV Licence.............................. 0
Satellite/Cable TV...................... 30
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 20
Petrol/diesel........................... 170
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 7
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 27
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Child Maintenance Payments.............. 160
House keeping........................... 100
Total monthly expenses.................. 1129


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
Natwest Loan...................15872.....354.......0
Natwest Mastercard.............1146.2....26........0
Natwest Mastercard.............1531.78...35........0
Barclay Card Visa..............4362......100.......19.9
Capital one Visa ..............2087.14...100.......34.08
Total unsecured debts..........24999.12..615.......-


Monthly Budget Summary
Total monthly income.................... 1,550
Expenses (including HP & secured debts). 1,129
Available for debt repayments........... 421
Monthly UNsecured debt repayments....... 615
Amount short for making debt repayments. -194

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -24,999.12
Net Assets.............................. -24,999.12

Margoose

Sorry i may have to amend bit's at some stage

Margoose

I have an appointment with Nationwide on monday to open up a new current account with them and also have a appointment with my current bank Natwest so i can talk to them about all of this and see if they would suggest anything for me

Margoose

They did mention a DMP before when i contacted Payplan but haven't gone through it at all yet. Would you suggest me going down this route rather than the IVA or bankruptcy??

yorkshire-lad

It may be worth going on to the CCCS website and filling out their debt remedy form.

I would speak to them first before speaking to an adviser at your bank,they will probably suggest a consolidation loan which isn't always the answer. CCCS will give good honest advice instead of advice which will fill their pockets.

Good luck.
YL

msgnomey

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

Monthly Income Details[/b]
Monthly income after tax................ 1550
Partners monthly income after tax....... 0
Benefits................................ 0 no child benefit but 2 children?
Other income............................ 0
Total monthly income.................... 1550

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 500
Management charge (leasehold property).. 0
Council tax............................. 0why 0?
Electricity............................. 0why 0?
Gas..................................... 0why 0?
Oil..................................... 0
Water rates............................. 0why 0?
Telephone (land line)................... 0
Mobile phone............................ 35
TV Licence.............................. 0why 0?
Satellite/Cable TV...................... 30
Internet Services....................... 0
Groceries etc. ......................... 0why 0?
Clothing................................ 20
Petrol/diesel........................... 170
Road tax................................ 0why 0?
Car Insurance........................... 0why 0?
Car maintenance (including MOT)......... 0why 0?
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 50 what is this?
Medical (prescriptions, dentist etc).... 7
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0why 0?
Life assurance ......................... 0why 0?
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 27
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Child Maintenance Payments.............. 160
House keeping........................... 100 What's this for?
Total monthly expenses.................. 1129


Just my first thoughts...someone more knowledgeable will no doubt be along shortly