unable to repay CC and overdrafts:(

sh4un

Hi
I have recently changed banks. LloydsTSB to Halifax (to try and get a better mortgage). I had with LLoyds, 2 accounts both maxed to £1500 overdraft. 1 CC £15000, and a loan £13000. LLoyds have just cancelled 1 of my overdrafts and now require £1500 within 2 days ( I have already had their collection people on the phone and asked the for a couple of days to find out what I can do). I was already struggling with the CC payments and 6 months ago asked them to reduce it for a time.Now the CC payments are back up. I cannot afford to pay any of them..LLoyds did offer me a consolidation loan of £450/month/7years., unfortunately I can only afford £280:o/month. What can I do? Any assistance would be greatly appreciated.
Thank you
Shaun

Trollfever

Be aware that Halifax is part of the Lloyds Banking Group.

GeorgeUK

Have you done a SOA to see if your income exceeds your expenditure?
https://www.makesenseofcards.com/soacalc.html

If it doesn't, you may need to try a Debt Management Plan - CCCS or Payplan should be able to assist.

I take it transferring to a lower APR account is now out of the question?

sh4un

Hi
I am unable to jump CC to a lower apr as I have been declined.
I was using my CC as part of my income and . I then used the CC to pay the CC bills and it soon became unmanageable
I will complete a SOA tonight. Can I post it on this site for advice?
Thank you for any help...

Yargo1

hi sh4un, post the soa on here when you done it and people will come along and advise x

GeorgeUK

There should be a button at the bottom of the SOA so it will format it properly for this site (as well as some others). Just copy and paste the resulting text into you next post. We'll be able to look to see if there are any areas you can cut back on or make savings and hopefully advise you on the best way forward with this.

sh4un

Just completed my SOA. I didn't actually realise how bad it is

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1500
Partners monthly income after tax....... 0 (incapacity)
Benefits................................ 605
Other income............................ 0
Total monthly income.................... 2105

Monthly Expense Details
Mortgage................................ 380
Secured/HP loan repayments.............. 35
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 88
Gas..................................... 100
Oil..................................... 0
Water rates............................. 47
Telephone (land line)................... 21
Mobile phone............................ 47 (4 months into new 2yr contract)
TV Licence.............................. 13
Satellite/Cable TV...................... 37
Internet Services....................... 0
Groceries etc. ......................... 400
Clothing................................ 25
Petrol/diesel........................... 140
Road tax................................ 15
Car Insurance........................... 73
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 11
Pet insurance/vet bills................. 40 (pet had cancer, unable to cover it anywhere for the same condition)
Buildings insurance..................... 14
Contents insurance...................... 9
Life assurance ......................... 34
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 40
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1719


Assets
Cash.................................... 400
House value (Gross)..................... 90000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 95400


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 72000....(380)......0
Hire Purchase (HP) debt ...... 800......(35).......0
Total secured & HP debts...... 72800.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
lloydstsb Credit Card..........15000.....330.......0
lloydstsb Credit Card..........3000......65........0
tesco Credit card..............3300......65........0
catalogues.....................390.......20........0
lloydstsb overdraft............3000......150.......0
Total unsecured debts..........24690.....630.......-


Monthly Budget Summary
Total monthly income.................... 2,105
Expenses (including HP & secured debts). 1,719
Available for debt repayments........... 386
Monthly UNsecured debt repayments....... 630
Amount short for making debt repayments. -244

Personal Balance Sheet Summary
Total assets (things you own)........... 95,400
Total HP & Secured debt................. -72,800
Total Unsecured debt.................... -24,690
Net Assets.............................. -2,090

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

[Deleted User]

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1500 (Any way to increase? Overtime? Second job?)
Partners monthly income after tax....... 0 (incapacity)
Benefits................................ 605 (ensure you are recieving all that you are entitled to)
Other income............................ 0
Total monthly income.................... 2105

Monthly Expense Details
Mortgage................................ 380
Secured/HP loan repayments.............. 35

Council tax............................. 90 Can you spread this over 12 months instead of the usual 1? - Ask your council
Electricity............................. 88 This seems high, are you in arrears? - check comparison sites to ensure you are on the best tariff for your are - Try USwitch - if you're not see if you will get cashback for switching (Quidco, topcashback, Onepoll)
Gas..................................... 100 Again, this is very high - Are you in arrears, if so when will you have paid them back? - If not in arrears, again check comparison sites, often online and duel fuel is cheaper. Also, monitor consumption - turn off radiators in rooms you are not in, turn down the thermostat a degree or two etc)
Water rates............................. 47
Telephone (land line)................... 21 If this includes internet it's descent price, if not then shop around
Mobile phone............................ 47 (4 months into new 2yr contract) - see if you can reduce tariff (some will allow you to)
TV Licence.............................. 13
Satellite/Cable TV...................... 37 Cancel and go freeview
Groceries etc. ......................... 400 Very high, drop brands, batch cook, meal plan, shop with a list of only what you need, don't shop hungry, look at the old style board for ideas and tips on reducing
Clothing................................ 25 essentials only for now
Petrol/diesel........................... 140 are all journeys essential
Road tax................................ 15
Car Insurance........................... 73 high, shop around
Car maintenance (including MOT)......... 15
Medical (prescriptions, dentist etc).... 11 is this for prescriptions? Check to see if a pre-paid certificate would be cheaper
Pet insurance/vet bills................. 40 (pet had cancer, unable to cover it anywhere for the same condition)
Buildings insurance..................... 14 Check comparison sites
Contents insurance...................... 9 as above (Combined often cheaper
Life assurance ......................... 34
Presents (birthday, christmas etc)...... 25 reduce a alittle
Haircuts................................ 40 every month-go an extra week or so in between cuts, see if you have a college near by that offers trainee cuts for free/very little
Entertainment........................... 20 what does this cover?
Total monthly expenses.................. 1719


Assets
Cash.................................... 400 use to pay down most expensive debt
House value (Gross)..................... 90000
Car(s).................................. 5000
Total Assets............................ 95400


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 72000....(380)......0
Hire Purchase (HP) debt ...... 800......(35).......0 What's the APR?
Total secured & HP debts...... 72800.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR Need to find out the APR in order to know which ones to prioritise - need to prioritise any overpayments towards debt that's costing you the most
lloydstsb Credit Card..........15000.....330.......0
lloydstsb Credit Card..........3000......65........0
tesco Credit card..............3300......65........0
catalogues.....................390.......20........0
lloydstsb overdraft............3000......150.......0
Total unsecured debts..........24690.....630.......-


Monthly Budget Summary
Total monthly income.................... 2,105
Expenses (including HP & secured debts). 1,719
Available for debt repayments........... 386
Monthly UNsecured debt repayments....... 630
Amount short for making debt repayments. -244 I think with some cut backs you can probably make this amount up (Groceries, satellite TV, mobile, utilities etc)

Personal Balance Sheet Summary
Total assets (things you own)........... 95,400
Total HP & Secured debt................. -72,800
Total Unsecured debt.................... -24,690
Net Assets.............................. -2,090

Hi,

I have made some comments above - I think that you can make up the short fall quite easily. Your gas and electric expenditure especially needs your attention, and cutbacks can be made elsewhere pay-for-tv, groceries, mobile etc

HTH

D9

GeorgeUK

Mortgage................................ 380
Interest only or repayment?

Council tax............................. 90
If paying over 10 months, can you ask to pay over 12?

Electricity............................. 88
Gas..................................... 100
Check the comparison sites to see if you can get a better deal. Also take a note of your meter readings and see if you are owed anything from the utility companies.

Groceries etc. ......................... 400
You should be able to cut this down a little. Buy and cook in bulk and freeze meals. Check out the oldstyle board for tips. Have you moved downa brand on some items?

Car Insurance........................... 73
Again i would check the comparison sites for the best deal.

Buildings insurance..................... 14
Contents insurance...................... 9
Life assurance ......................... 34
Again, check the comparison site - uswitch, moneysupermarket etc

Haircuts................................ 40
Every month?

lloydstsb overdraft............3000......150.......0 (Is this 2 overdrafts? You mentioned 1500 earlier)

Total unsecured debts..........24690.....630.......
Yikes!!

Do you have any old credit cards that you no longer use, but may not have closed?

I can't really see where you would be able to make the savings you need to and still make payment to all the debts. Even a mortgage holiday wouldn't really assist you - you may be able to reduce by 150, but that still leaves you short.

Do not agree to a payment plan over the phone or take out a loan if they offer one. You can see from your figures that you can't afford it and this would be compounding your problem.

Would it be possible for you to get a 2nd job? Can you sell off old cd's and books? Can't see that there is really anything you can do on the short-term with regards the overdraft.

I would suggest you contact CCCS or Payplan for advice in setting up a Debt Management Plan.