in trouble and sinking fast HELP

OutOfOptions

I actually think i'm going to be sick with worry. really really sick. I have been tarting about credit card balances and now I have no where to go and a huge amount of debt. I had hoped to get another 0% deal but both my husband and I have been declined for 2 different lenders and I have realised I need to do something aboput this.

I am self employed but business is very very slow at the moment, I offer a service that is one of the first things to be cut when people are cutting back so i'm up against it. I have enough put away for my july 2011 tax payment but have not yet completed my 10/11 tax return, I suspect I will be due more come january 2012 as it has only been in the last 4 months that everything tailed off. Oh and we live 10 miles from 'civilisation' of our nearest town and 16 miles from a city.

I have realised slowely over the last 4-6 weeks that we are currently having to put our livingcosts onto a creditcard or overdraft and now I can't tart the balance away to a 0% deal income is falling month on month I just down know if we will even be able to make the minimum payments for much longer. :eek::eek:

I am trying not to panic but OMG i really really need help.

I need to go complete an SOA finding out exactly what debt we have which will be shocking but today, 14/04/11 is the day the impression of an ostrich ends. If only i could have a nerve steadying drink

cassidy0111

OoO you are doing the right thing. MSE is the place to get help/support/advice. Your SOA will give you a real chance to focus and get some input from the DFW crowd.

I know it is hard but try not to worry- it is a negative energy and you sound like the type of person with loads of energy so use it to get yourself back on track.

edinburgher

I need to go complete an SOA finding out exactly what debt we have which will be shocking but today, 14/04/11 is the day the impression of an ostrich ends. If only i could have a nerve steadying drink

Get started with this, take a deep breath and get yourself a good strong tea/coffee - far better for you than the booze

People will no doubt come up with a raft of helpful suggestions once you get the SOA up.

summerstreetallotments

I'm in exactly the same place...worried and feeling guilty so I know what it's like...hopefully we'll both get through it...over the last few days I've found the people that I've talked to on here to be really kind, helpful and non - judgemental...we just need to keep going and remember that it's only money...so...not really important...xx

happyhaddock_2

Hi all, just a few words of encouragement . This was us last year, in January the wheels came off! and we realised we could no longer meet the minimums. In April we started a DMP with CCCS, best thing we've ever done. Now a year on we are finally paying off what we owe, all interest and charges has been stopped and we feel we have been treated very fairly by our creditors. I know we've been lucky, but even if they don't stop interest it's still a much better option than digging a bigger hole for yourselves. Stay calm, it's scary at first but gets easier, good luck

OutOfOptions

Ok I've done it.. It is not pleasent reading and its obvious why our card balances are increasing month on month. I have put my income as the avarage amount over the last 3 months. Over the last year average is 1k a month more. things like clothes and birthdays, car tax etc we just pay as and when and with where we live both cars are essential unless we limit my hours which would make my income plummet more.

I visit clients in own homes nails, make up, hair extensions and the like. I have a seperate business account so the fuel costs etc on this SOA are personal usage

I will be sick now I knew it was bad but not sobad. Our overdraft limit is 6k and we are 3964 into it and we have slightly over 1k availible on our credit cards.

Somethings can't be changed like phone/tv/net is a package, 18 month contract with 10 months to go, they won't let us drop to anything lower. Mobile phones are essential for work DH contract is £35 ends Feb 2012 mined is £25 and ends August 2011 so it will go then.

Monthly payment on some cards is total guesses becuse the balance is hundreds higher than the month before.


Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 550
Partners monthly income after tax....... 1320
Benefits................................ 282
Other income............................ 0
Total monthly income.................... 2152
Monthly Expense Details
Mortgage................................ 704
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 147
Electricity............................. 45
Gas..................................... 50
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 10
Mobile phone............................ 60
TV Licence.............................. 13
Satellite/Cable TV...................... 20
Internet Services....................... 15
Groceries etc. ......................... 450
Clothing................................ 40
Petrol/diesel........................... 200
Road tax................................ 0
Car Insurance........................... 48
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 18
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 8
Life assurance ......................... 0
Other insurance......................... 63
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1901

Assets
Cash.................................... 0
House value (Gross)..................... 230000
Shares and bonds........................ 0
Car(s).................................. 7000
Other assets............................ 5000
Total Assets............................ 242000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 110000...(704)......6.99
Total secured & HP debts...... 110000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
overdraft......................4000......60........20
rbs card.......................6400......150.......18
capital one....................1147......60........34.9
ge loan........................7500......147.......13.78
zopa loan......................7600......476.......12.8
santander......................976.......38........21
Total unsecured debts..........27623.....931.......-

Monthly Budget Summary
Total monthly income.................... 2,152
Expenses (including HP & secured debts). 1,901
Available for debt repayments........... 251
Monthly UNsecured debt repayments....... 931
Amount short for making debt repayments. -680
Personal Balance Sheet Summary
Total assets (things you own)........... 242,000
Total HP & Secured debt................. -110,000
Total Unsecured debt.................... -27,623
Net Assets.............................. 104,377
Created using the SOA calculator at makesenseof cards Reproduced on Moneysavingexpert with permission, using IE browser.

Sun4

Hi,

Try not to worry. Our finances were in exactly the same state as yours a couple of months ago. We opted for a DMP with CCCS and are beginning to get everything on track (a few hiccups along the way). You will get here too. My advice would be to contact CCCS either online or by phone.

Good luck - and try not to worry - ther eis light at the end of the tunnel.

OutOfOptions

Thank you Sun. I really reaally would like to avoid a DMP if possible but i really really see no other option other than consolodating debt if possible which is bad bad bad. Financial problems are classed as a misconduct issue by my husbands employers not sure if they class a DMP as financial difficulties or if its only CCJ's and actual defaults.

See if i am earning ok money we plod along ok chipping away at the loans we had and flipping credit card debt chipping away but we have been spending as if my earnings were what they were 5 years ago not taking into consideration we have 3 kids now and I don't earn what I did now.

RAS

Hi

If you do a DMP, you will get defaults and stand a good chance of getting CCJs.

We need a bit more information.

1. the zopa loan is killing you - when did you take it out and when does it end?
2. What is the limit on the RBS card?

Tixy

Hi

What industry is husband in? which debts are yours, which are his and which are joint? maybe there could be some scope for you to do a DMP and him not?

Your shortfall is high and I can't see you can make the cutbacks to get rid of it all, but there are certainly some cutbacks you can action and need to and things you can check out to see if you can get cheaper etc.

How many hours are you ending up working? any chance you could try to fit a part time job round your self-employed hours to increase your income a bit?

I appreciate in the past you have just paid for things like car tax presents etc but in your current financial situation and if you are even considering a DMP you need to budget them, as you would no longer be able to stick them on a card etc.

OutOfOptions wrote: »

Somethings can't be changed like phone/tv/net is a package, 18 month contract with 10 months to go, they won't let us drop to anything lower. Mobile phones are essential for work DH contract is £35 ends Feb 2012 mined is £25 and ends August 2011 so it will go then.

Monthly payment on some cards is total guesses becuse the balance is hundreds higher than the month before.


Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 550
Partners monthly income after tax....... 1320
Benefits................................ 282
Other income............................ 0
Total monthly income.................... 2152
Monthly Expense Details
Mortgage................................ 704 capital repayment or interest only? is it a fixed rate?
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 147
Electricity............................. 45 check the comparison sites to see if you can find a cheaper supplier or a better tariff
Gas..................................... 50 as elec
Oil..................................... 0
Water rates............................. 0 dont you pay this?
Telephone (land line)................... 10
Mobile phone............................ 60
TV Licence.............................. 13
Satellite/Cable TV...................... 20
Internet Services....................... 15
Groceries etc. ......................... 450 need to work on reducing this - hopefully you should be able to get it to £300, some people can get down to £250 for your family size. For tips on reducing check out the challenges on the oldstyle board.
Clothing................................ 40
Petrol/diesel........................... 200
Road tax................................ 0 budget for this
Car Insurance........................... 48
Car maintenance (including MOT)......... 0 budget for this
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 18
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 8
Life assurance ......................... 0
Other insurance......................... 63 what is this? have you shopped around?
Presents (birthday, christmas etc)...... 0 budget here?
Haircuts................................ 0 budget here unless you do your own.
Entertainment........................... 0 probably need a very small budget here to be realistic.
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1901

Assets
Cash.................................... 0
House value (Gross)..................... 230000
Shares and bonds........................ 0
Car(s).................................. 7000
Other assets............................ 5000 what are these? anything that could be sold?
Total Assets............................ 242000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 110000...(704)......6.99 is this fixed? for how long?
Total secured & HP debts...... 110000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
overdraft......................4000......60........20
rbs card.......................6400......150.......18
capital one....................1147......60........34.9
ge loan........................7500......147.......13.78
zopa loan......................7600......476.......12.8
santander......................976.......38........21
Total unsecured debts..........27623.....931.......-

Monthly Budget Summary
Total monthly income.................... 2,152
Expenses (including HP & secured debts). 1,901
Available for debt repayments........... 251
Monthly UNsecured debt repayments....... 931
Amount short for making debt repayments. -680
Personal Balance Sheet Summary
Total assets (things you own)........... 242,000
Total HP & Secured debt................. -110,000
Total Unsecured debt.................... -27,623
Net Assets.............................. 104,377
Created using the SOA calculator at makesenseof cards Reproduced on Moneysavingexpert with permission, using IE browser.

Just a few starting comments but unless you can increase your income then it looks like you are going to have to consider something. As I mentioned it would be useful to know who has which debt.

OutOfOptions

Thank you.

Mortgage is joint, fixed rate ends november 2012, it is a repayment mortgage.
No water rates we are in scotland so its in with council tax.
Gas and electric is a dual fuel tarrif a comparison site listing our current plan as lowest cost and usage is pretty much correct IE we had a credit of about £16 start of April so I don't think we can slice it any more. Old house and harsh scottish weather i'm afraid. Other insurances is life and criticle illness cover for us both. Plus income protection for husband to cover mortgage. We can't beat it as I have developed a health condition not classed as critical illness but declarable for life insurance purposes. The 5k asset is a guess I have 6 1oz 22ct gold krugerrands from 1973. Gifts I was given as a baby. Value a guess based on gold being around £950 an ounce.
My Husband works for a bank who also is where pretty much all our debt is.

Zopa loan ends may 2012 so 13 payments to go. amount utstanding a bit iffy i just used the figure outstanding last time he checked and wrote it down. It husbands
RBS card limit is 7500 and is husbands
GE loan is joint
Capital one and santander is mine. Santander is currently 0% but ends May 2011 and Capital one ended March 2011.
overdraft joint with rbs.

So you can see why i am keen to avoid a DMP. I have no idea how to get out of ths or even if we can. its all such a mess.