I'm sinking now....can't manage the debt now...

debtCollector_3

Hello

I've had a read over some other post so thought now that I would post, cos I'm now starting to feel very anxious about the financial situation...

My debts have been rising for over ten years and now I'm in a mess...... first I had credit cards, then got rid of card by getting a loan to pay them off, then started using cards again, then got another loan, then started paying debt with debt and now I'm in a total mess!!!!.....

My outgoinig are more than what I have coming in, for the past 8 months my parents have been giving me money every week to live on.....

Ok... here goes...

Mortgage £209.00
ENDEAVOUR Secure Loan £205.43
Council TAX £100.00
CORNHILL Insurance!£5.99
CIS INSURANCE £11.76
CIS INSURANCE !£3.20
CORNHILL INSURANCE - mortgage insurance £23.98
SCOTTISHPOWER GAS £50.00
SCOTTISHPOWER PLC !£55.00
SOURCE INS SCHEME £7.64
T-MOBILE £40.00
TV LICENCE MBP £11.50
Car Loan £167.00
Car Insuranc £92.00
Abbey National Credit Card £96.00 - account frozen and on reduced payments
Barclaycard Credit Card £50.00 account frozen and on reduced payments
CAHOOT !£221.00 - Haven't managed to pay this month
Clydesdale Bank Mastercard £45.00 Haven't managed to pay this month
Egg Loan £50.00 account frozen and on reduced payments
Littlewoods £92.00 Haven't managed to pay this month
Northern Rock Loan £75.00 account frozen and on reduced payments


Total outgoings: £1,657.50

Total income: £1,288.14
Difference: -£369.36

I have just written letters to my all my creditors today, asking to reduce payments more and stating situation and all other debts and expenditure but I think I might be offering too little...

Abbey National Credit Card £29.53 - total debt £5400
Barclaycard Credit Card £25.71 - total debt £4700
CAHOOT ! £60.16 - total debt £11000
Clydesdale Bank Mastercard £7.95 - total debt £1453
Egg Loan £27.78 - total debt £5079
Littlewoods £5.41 - total debt £990
Northern Rock Loan £103.46 - total debt £18,917.00
this one is more than what I'm paying now but that's cos it's the biggest debt... I worked out what percent of debt was to who and came up with the manageable repayment.......

Total to creditors £260....... which will take me 15years to repay, ideally I'd be wanting to pay £700 out to creditors in total that way I'd be clear in 5.7 years

Total debts - £47,539.00

And if my creditors did agree then it still me nothing to live on, so I'm now looking for a part time job to live on....... I also get the ocassional one to one teaching job........

Should I contact a debt management company, I am willing to do anything to get out of this mess......

My mortgage is £28000 and the house is values at about £80,000 but I can't borrow on it cos of my mess!!

Help help help........ Pleeeeeease..

Thanks

loneranger

Ring payplan, thats what I did because I couldn't do the maths, they will take those same details that you have posted, tell you how much you need to budget to lead a normal life and tell you how much you have left to pay your creditors,even write the letters for you to send off. AND they do it all for free, they are a charity.

cathybird

I'm no expert on looking at SOAs and suggesting cuts, but I'm sure others will be along in a moment - there's no shortage of people on this website who can offer help. I think loneranger's suggestion about ringing payplan may be a good one though. your situation sounds tough but hang in there, there are always solutions

What are the different kinds of insurance for, as well? ... can you specify??

debtCollector_3

loneranger wrote:

Ring payplan, thats what I did because I couldn't do the maths, they will take those same details that you have posted, tell you how much you need to budget to lead a normal life and tell you how much you have left to pay your creditors,even write the letters for you to send off. AND they do it all for free, they are a charity.

I've done a spreadsheet to do calculation, I just feel that I couldn't offer any less to creditors.

Also creditor don't have to accept proposed offer, so now I'm thinking OMG what happens if they don't.

All my letter are going in the post on Monday......

I might wait and see what replies I get if not I'll contact Payplan, will have a look on their website tonite...

Thanks

debtCollector_3

Tustastic wrote:

Well done for posting debtCollector. You will get lots of practical advice and moral support on MSE - the best Xmas present you could possibly have.:)
One idea - is your home full up or do you have room for a lodger?

My house is only a 2 bedroom, and I have two children, I've thought about selling the house and renting somewhere, but I just couldn't do it to my kids, they love this house.

Thanks for reply

debtCollector_3

cathybird wrote:

I'm no expert on looking at SOAs and suggesting cuts, but I'm sure others will be along in a moment - there's no shortage of people on this website who can offer help. I think loneranger's suggestion about ringing payplan may be a good one though. your situation sounds tough but hang in there, there are always solutions

What are the different kinds of insurance for, as well? ... can you specify??

Contents, buildings, life, mortgage, actually I don't know what one of my insurances is??

Thanks to everyone for the replies....... when I look at what debts I have I feel very foolish.... where has all that money gone!!!!

loneranger

Payplan will calculate how much you should have to live on and how much a court would consider the right amount to offer your creditors, BEWARE if you send out letters now offering more than you can really afford you will be committing to something that is unsustainable and end up in a worse situation.I would not send any letters before contacting payplan. I am the biggest coward out and I did it and am very glad I did, It could get worse-be carefull.

bonnie_2

you need to do a proper budget, i.e water, car tax ,petrol, food, presents.
If your in it for the haul you can't rely on your parents bailing you out the cre
ditors if you go to cab or somewhere will eventually except your payments.The budget has to be doable, there's no point going with out for 7years because you will get fed up and fall of the wagon.
then subtract your total outgoings from your incomings and the debts share what is left i.e highest debt gets most money.

cathybird

debtCollector wrote:

Contents, buildings, life, mortgage, actually I don't know what one of my insurances is??

Thanks to everyone for the replies....... when I look at what debts I have I feel very foolish.... where has all that money gone!!!!

which is which tho, do you know?

don't feel foolish - whatever you've done someone else on this site has done it and probably worse too! No DFW knows where all the money's gone. I certainly don't have much to show for my debts. The main thing is that you're tackling it now, which is fantastic – congratulations. The first step in some ways is the main thing.

debtCollector_3

I'll think about it some more...... although if I was too offer my credits even less..... say £150 between them, then it would take me 26.4 years to be clear!! GULP!!!

The thing that worries me is that finances are so bad and what happens if I'm forced to sell my house!! I know I'm probably panicking!

debtCollector_3

cathybird wrote:

which is which tho, do you know?

don't feel foolish - whatever you've done someone else on this site has done it and probably worse too! No DFW knows where all the money's gone. I certainly don't have much to show for my debts. The main thing is that you're tackling it now, which is fantastic – congratulations. The first step in some ways is the main thing.

Thanks.......

CIS INSURANCE £11.76 - Contents
CIS INSURANCE !£3.20 - Saving plan, had it for years, not worth much
CORNHILL INSURANCE - mortgage insurance £23.98
SOURCE INS SCHEME £7.64 -Buldings
CORNHILL Insurance £5.99 - not sure what this one is???