Help and Advice Please (SOA)

willy100_2

Dear all,

I've been a member of this site for a year or so and only now as I feel lower than I have ever done in my life can I find the strength to finally look the problem face on, to deal with it and try and regain my life. I have a disgusting amount of debt which is the result of a divorce, a subsequent failed relationship and house purchase and my own irresponsibilty. My situation now is that I have no property of my own, I am staying with my parents and nearly all of my income is used to repay what I owe. As you will see from my statement of affairs there is very little left over at the end of the month, so I am considering opting out of my Company Pension scheme until further notice to free up £250 per month, although I am a little concerned about doing this. The nature of my job means that I am unable to seek alternative secondary employment and also there is little or no overtime either. I spend a large amount of money on using my car for work as I have to travel 60 miles a day round trip, again due to the nature of my employment it is imperative that my vehicle is reliable and well maintained. I am hoping to transfer to a location of employment much closer to home in the future, but at the moment this is not possible. So here is my financial situation as it stands today;

Debts:

Loans;
HSBC Loan 6.9% (£337.03 p/m) £26625.37 (ends 01/05/2013)
NORTHERN ROCK 6.9% (£295.12 p/m) £13280.40 (ends01/05/2010)
EGG 6.7% (£356.44 p/m) £16443.52 (ends 01/03/2011)


Credit Cards;
Tesco 15.9% £162.00 (Min Payment) Balance £5414.00
Bank Scotland 4.9% £ 66.87 (Min Payment) Balance £3343.71

Others;
Inland Revenue (Backdated N.I. contribution) £418.30 To be Paid by 05/04/2009


Outgoings:

Loan HSBC £337.03
Loan NR £295.12
Loan EGG £356.44
Tesco C/C £162.00
BoS C/C £67.00
Life Assurance £52.12
Union Subs £12.00
Fuel £80 p/m approx.
Car Insurance £30 p/m
Car Maintenance £33 p/m
Child Maintenance £338.00

Income:

Gross Pay £2792.29
Inc. Tax £449.86
N.I. £208.17
N.I. Rebate £0.83
D.C.S. £24.00 (Compulsory Employers Sickness Scheme Contribution)
Pension £239.84
Brass £30.00 (Additional voluntary Pension contribution)
Nett Pay £1841.25

I think that's everything. Any advice that you can offer would be much appreciated.

Mark

gettingitsorted

Hi Mark and welcome

first well done for posting, the first step is the hardest.

cant offer you much in the way of advise but just know that there will be others along shortly that will be able to assist you.

rog2

It may be possible to 'freeze' your company pension.
Also worth talking to CAB, CCCS or PAYPLAN to consider a DMP.

dancingfairy

Just wanted to say hi and welcome. Sorry I don't have much advice for you though.

Do you have to pay any contribution to the household for food/rent etc?

Can you write to all your creditors and ask them to reduce the monthly repayments and stop the interest charges? - I know this will mean you will pay back longer but might make things a bit easier.

Storm

Hi Mark,

First, congratulations on facing up to your debts, it's the hardest step. People better than I will be along soon, but here's my tuppence for what it's worth!

I've totalled your outgoings to £1762.71, but that's not including rent/mortgage, utilities, food, clothes etc. You may feel guilty doing so, but I think in this situation you may need to speak to CSA about reducing your maintenance payments as you clearly can't afford the £338 a month at the moment.

With the pension thing - it's hard to say without knowing the scheme details whether pulling out for a while is viable or even possible - is there an option for a payment holiday? Would you risk losing some of the money you've already put in? How close are you to retirement? etc etc

Have you got anything you can sell via Ebay/Amazon/Car Boot to raise a lump of cash to throw at a couple of these debts? Can you transfer any of the Tesco CC to BoS as it's a much lower apr?

Storm

CLAPTON

apart from your loan repayments your outgoing are very small. this would not be sustainable if you were to move away from your parents house. if you had 'normal' living expenses you simply could not pay your debts at all. frankly, if you want any sort of live over the next 5 years then you may want be consider bankruptcy.

James&Shell

Not much to add im afraid but i just wanted to say good luck!

rog2

I'm afraid I am beginning to agree with CLAPTON here. I think that CCCS/PAYPLAN would probably reccomend Bankruptcy as you do not have a significant amount of disposable income - especially if you were to move out of your parents' house.