Help, struggling with debt

krissy1984

Hi all,

I need help really, we're in debt badly to the tune of over £8000 :eek:It wasn't so bad a year ago as we were both working, but then I got ppregnant and got sacked for said pregnancy and what with bills and rent we got into debt. I feel so ashamed and disappointed in myself. I owe £5200 on Barclaycard and the minimum pament is £115 and the interest is £95, £1400 on Nationwide Credit card and the minimum is £42, and then £1500 on Barclays Overdraft which I pay into montly, they said they would like to see regular payments going in to avoid having to pay it of in one go. Our rent is £900 for a 2 bed maisonette and council tax is £140 pcm. My fiance is trying to get as many extra shifts as he can and I am looking for work and childcare also.

We are owed £900 from his family but that's never coming back so at the moment we are screwed. I didn't want to be made bankcrupt or anything as I had a perfect credit history before and my partners credit is rubbish.

Any advice at all would be great as I'm so confused as to how I let myself get into this and be so stupid, also sorry for the spelling mistakes I have a baby on my arm asleep.

Thank you

krissy1984

PS added a SOA

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 1500
Benefits................................ 80
Other income............................ 0
Total monthly income.................... 1580

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 900
Management charge (leasehold property).. 0
Council tax............................. 140
Electricity............................. 20
Gas..................................... 60
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 0
Mobile phone............................ 50
TV Licence.............................. 26
Satellite/Cable TV...................... 50
Internet Services....................... 0
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 30
Road tax................................ 60
Car Insurance........................... 38
Car maintenance (including MOT)......... 0
Car parking............................. 4
Other travel............................ 80
Childcare/nursery....................... 0
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 20
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1653


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 3000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................5200......115.......0
Nationwide.....................1400......42........0
Overdraft......................1500......20........0
Total unsecured debts..........8100......177.......-


Monthly Budget Summary
Total monthly income.................... 1,580
Expenses (including HP & secured debts). 1,653
Available for debt repayments........... -73
Monthly UNsecured debt repayments....... 177
Amount short for making debt repayments. -250

Personal Balance Sheet Summary
Total assets (things you own)........... 3,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -8,100
Net Assets.............................. -5,100

Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using Firefox browser.

I didn't put the APR as I dont have it to hand at the moment sorry, I'm also tied into my phone contract for another 6 months unless I buy out early :eek::(

NeverAgain_2

Rent seems very high, unless you live in Mayfair.

And even if you do, you should consider moving to the Old Kent Road.

dancingfairy

Hi - are you not entitled to any more benefits? check out the webstie entitled to .com I think it is and it will give you a arough idea if there is anything else you can claim.
There are some things on there that could probably be trimmed a bit:
ie mobiles - can you drop a tariff or go payg? even if in contract you can sometimes reduce by a 5 er at a time.
electric/gas look a wee bit high - hopefully they will come down now summer is coming but try and be as economical as possible and check you are getting a good deal.
Cable tv is a luxury you can't really afford right now - you need to get this down to the basic package or get shot altogether and get freeview - sorry.
60 pounds road tax - that must be a year right? surely it's not that much every month?
Your rent is high but there's not much you can do about that I guess?

Somethings seem a bit low on your SOA - food is very low and clothing - well you'll need some at some point.

Unless you are entitled to more benefits it doesn't look like you are going to find the required extra income/savings of 250 a month to be able to make the books balance.
It looks very much like you will need to offer your creditors a payment plan based on what you can afford. At the moment it looks like you will need to make them token payments of 1 pound until either you can find a job or your husband gets more hours. It's not ideal though.
Bankruptcy is not really a suggestion at the moment - sure it's possible but it would be like using a sledgehammer to crack a nut and frankly although your debts are probably huge to you to the banks they are very very small and they are highly unlikely to make you bankrupt over those sums - it'll cost them to do that so don't worry about that one.
df

Mikazaru

krissy1984 wrote: »

PS added a SOA

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 1500
Benefits................................ 80 Should also be entitled to CTC, maybe £50 a week?
Other income............................ 0
Total monthly income.................... 1580

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 900
Management charge (leasehold property).. 0
Council tax............................. 140 Can you pay over 12 months insteaad of ten?
Electricity............................. 20
Gas..................................... 60
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 0
Mobile phone............................ 50
TV Licence.............................. 26
Satellite/Cable TV...................... 50 Get rid or cut down to the very basic.
Internet Services....................... 0
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 30
Road tax................................ 60 Seems very high for tax?
Car Insurance........................... 38
Car maintenance (including MOT)......... 0
Car parking............................. 4
Other travel............................ 80
Childcare/nursery....................... 0
Other child related expenses............ 50 Whats this for?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 20
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1653


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 3000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................5200......115.......0
Nationwide.....................1400......42........0
Overdraft......................1500......20........0
Total unsecured debts..........8100......177.......-


Monthly Budget Summary
Total monthly income.................... 1,580
Expenses (including HP & secured debts). 1,653
Available for debt repayments........... -73
Monthly UNsecured debt repayments....... 177
Amount short for making debt repayments. -250

Personal Balance Sheet Summary
Total assets (things you own)........... 3,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -8,100
Net Assets.............................. -5,100

Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using Firefox browser.

I didn't put the APR as I dont have it to hand at the moment sorry, I'm also tied into my phone contract for another 6 months unless I buy out early :eek::(

Your car costs seem firly high if your arent using much petrol a month, can it be sold?

dancingfairy

Whilst you are at home with the little one can you cancel the car for a few months? by taking it off the road you will save on the tax and insurance and petrol - any journeys that are essential could perhaps be made by bus or even taxi? If you find you can manage without - great you can sell the car and put the money towards the debts but if not then at least you've tried it and can then go back to using the car when your circumstances have improved?
df

Pitlanepiglet

I'd echo checking your benefit entitlement, if you contact your local CAB they can do a quick benefits check for you to see if you're getting all that you are entitled to.

RAS

please go to www.turn2us.org and check out what benefits you can claim, as you are certainly not getting enough at the moment.

epsilondraconis

RAS wrote: »

please go to www.turn2us.org and check out what benefits you can claim, as you are certainly not getting enough at the moment.

http://www.turn2us.org.uk/

Link in post above didnt work.