i`m new, plz help me out of debt

helpmeoutofdebt

hi

Getting straight to the point:

My monthly income is less than my outgoings. to meet means end i have to ask for money from my parents,

i have been reading about IVA & debt management plan.

Any advice would be greatly appreciate it.

thanks

Mice_Elf

Hello.

First things first is to make a comprehensive list of ALL outgoings & income.
See where (if anywhere) you can cut back. For example changing utilities supplier, changing the contract on or cancelling your mobile phone, cancel Sky television, meal plan, use a slow cooker for cheaper cuts of meat etc.

Is there anything you can sell to make some cash? Old clothes, books, DVDs, anything you no longer need or want.

Do you have any hobbies you could use to start to make a bit of cash? For example, knitting scarves, crocheting cushions, book-keeping qualifications, website design etc.

Can you use your car less (if you have one) & walk, bike or use the bus to places.

Until we know a bit more about your situation, we can't really offer too much specific advice, but hope this helps a little.

bottleofred

Hi helpmeoutofdebt & welcome to the forum,

As Mice_Elf has already stated, more information is required on your financial situation. You should post your statement of affairs and you will get help and advice on how you can save money that can go towards the debts. The link for the statement of affairs is as follows: http://www.makesenseofcards.com/soacalc.html

dollybeads

Hi there, as bottle of red says, if you go on to this link for SOA (statement of affairs) and pots it back on here by clikcing on the MSE tab and then copying back into a post, you will be flooded (in a good way) with great practical advice and help to get things sorted. It is amazing the how small simple steps really work and make such a difference no matter how bad your sitatuation seems, someone on here has been there and can advise. Well done for posting it really is the first step and you will soon see how many people are on here offering help and support to you in getting things sorted. Its the first step but the most important, hang in there, things will shortly be chaning for the better, Dolly x:wave:

helpmeoutofdebt

Thank you all for your kind response.
I’m very embarrassed for this , here it goes:
Monthly income : £1750 (with overtime – not always the case £ 1900)
Mortgage = £840
Electricity = £40
Water = £30
Tv licence = £12
BT land line = £15
Broadband = £10
Mobile = £45
Council tax = £98
Ground lease = £12
Building insurance = £30
Service charges = £42
My problem started when the rate on the credit cards increased, I have 12 credit cards, debt worth of £33000. I pay about £970 each month [minimum ].
The extra money, to live on comes from borrowing of my family and friends.
Please help!
Thanks you

talana

It's best if you fill out an SOA from the link given in post 3 above. That way you won't forget anything.
Looking at what you've just posted there seems to be a lot missing: petrol, car maintenance, other travel, groceries, entertainment etc etc
If it's going to be of any use, it needs to be as complete and accurate as possible.

helpmeoutofdebt

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

Monthly Income Details
Monthly income after tax................ 1750
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1750

Monthly Expense Details
Mortgage................................ 840
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 42
Council tax............................. 98
Electricity............................. 40
Gas..................................... 0
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 20
Mobile phone............................ 50
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 10
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 46
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 30
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.................. 1319


Assets
Cash.................................... 0
House value (Gross)..................... 140000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 140000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 140000...(840)......0
Total secured & HP debts...... 140000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
CC1...........................4800......120.......0
CC2........................4000......90........0
CC3........................2250......56........0
OD......................3500......50........0
CC4...........................2450......54........0
CC5........................1500......30........0
CC6.........................4000......156.......0
CC7............................3500......102.......0
CC8............................7500......170.......0
CC9........................500.......20........0
CC10....................500.......20........0
CC11...........................2500......76........0
CC12............................2250......56........0
Total unsecured debts..........39250.....1000......-

Monthly Budget Summary
Total monthly income.................... 1,750
Expenses (including HP & secured debts). 1,319
Available for debt repayments........... 431
Monthly UNsecured debt repayments....... 1,000
Amount short for making debt repayments. -569
Personal Balance Sheet Summary
Total assets (things you own)........... 140,000
Total HP & Secured debt................. -140,000
Total Unsecured debt.................... -39,250
Net Assets.............................. -39,250


i have been lucky to have my friends & family help out.

sp1987

Some good news to start. Your income perfectly supports your living costs. Often this is a problem for some posters before any debt is taken into account. Only thing that pops out at me is £50 for mobile costs. Can you downgrade/move to pay as you go? Your other expenses are pretty reasonable.

I think you are going to have to negotiate payments on your cards. From your SOA you have £431 available for debt repayments which is in itself a large amount, so it isn't like you will be offering £1/month. The rates are obviously extemely variable (with a 4500 debt having a similar payment as a 7000 debt) and it would help if you could find the rates out of each card.

Don't panic, your situation can be fixed. There is £400+ a month to play with for payments. Imagine the debts are someone elses, what would you advise them to do and try? Often thinking of it without the 'emotion' when it's you helps with these sorts of things.

Someone with a non-tired brain and a lot of experience will have a proper look in the morning for you.

Have you taken advice from CCCS etc? I'm not sure whether they might discuss and recommend/entirely discount bankruptcy as an option for you.