Need Advice First

Dead_Eye_Dan

Hello,

I need some advice on my debt.

I am currently in debt to about £22000. I've come a long way - a few years ago I was at around £60k on loans and credit cards. LOTS of overtime and redundancy helped me out with a large proportion of that but some still remains, now without overtime in my current job I'm struggling.

Currently my affairs are as follows:

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................ 1256
Partners monthly income after tax....... 1080
Benefits................................ 80
Other income............................ 0
Total monthly income.................... 2416

Monthly Expense Details
Rent.................................... 550
Council tax............................. 120
Electricity............................. 30
Gas..................................... 80
Water rates............................. 20
Telephone (land line)................... 12
Mobile phone............................ 35
TV Licence.............................. 12
Satellite/Cable TV...................... 30
Internet Services....................... 20
Groceries etc. ......................... 250
Clothing................................ 40
Petrol/diesel........................... 250
Road tax................................ 22.5
Car Insurance........................... 50
Car maintenance (including MOT)......... 50
Car parking............................. 10
Other travel............................ 200
Childcare/nursery....................... (included in salary calc – tax free)
Other child related expenses............ 10
Medical (prescriptions, dentist etc).... 20
Contents insurance...................... 12
Presents (birthday, christmas etc)...... 25
Haircuts................................ 20
Entertainment........................... 25
Holiday................................. 20
Emergency fund.......................... 0
Total monthly expenses.................. 1913.5


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 2500

No Secured nor Hire Purchase Debts


Unsecured Debts
Description....................Debt......Monthly...APR
Cap 1..........................7708......265.......0 (0 APR due to debt being moved to Debitas I have an agreement to pay 265 until May after which I will try and reduce this)
HSBC CC........................2000......50........20.9
BARCLAYCARD....................5800......110.......20.9
Egg............................5133......135.......22.5 (took away spending on this card years ago)
HSBC loan......................1889......220.......12.6 (due to finish in Jan 2012)
Total unsecured debts..........22532.....780.......-


Monthly Budget Summary
Total monthly income.................... 2,416
Expenses (including HP & secured debts). 1,913.5
Available for debt repayments........... 502.5
Monthly UNsecured debt repayments....... 780
Amount short for making debt repayments. -277.5

Personal Balance Sheet Summary
Total assets (things you own)........... 2,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -22,532
Net Assets.............................. -20,052

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

This SOA calculator is not how I’ve been living – I currently have nothing for emergencies, holidays, entertainment, or car repairs each month. The SOA represents what I need to put by for living expenses. I currently scrape by somehow with pennies to spare and sometimes delay payments etc.

I do not want to declare bankruptcy – I’ve come too far for that now. I want to repay all of this debt somehow.

I do not know what my credit rating is like for sure but it must be awful because of late payments etc. I am pretty sure I would be refused a consolidation loan.

I’ve got the dilemma that I know if I can battle through for another few months, my HSBC loan will be cleared and I will have an extra 220 month to put towards debt.

What I really want to do is get my Barclaycard into an interest free agreement. With Cap 1 I was 3 months in arrears and then when I tried ringing to pay them they told me to contact debitas. Agreeing to £265 was a little foolish of me but it has meant next month I will have cleared £1590 of my original debt which is good.

Do you guys think the only way to get an agreement with Barclaycard is to stop paying? I am currently about 300 over my limit with that card and it has been like that for months – I have no way of getting it below the limit. After interest and charges I’m prob paying £5 a month off that debt – this can’t go on.

Sorry this post is a bit of a ramble. I’ll stop now for breath and see if there are any questions or suggestions.

kerrypn

Dead_Eye_Dan wrote: »

Hello,

I need some advice on my debt.

I am currently in debt to about £22000. I've come a long way - a few years ago I was at around £60k on loans and credit cards. LOTS of overtime and redundancy helped me out with a large proportion of that but some still remains, now without overtime in my current job I'm struggling.

Currently my affairs are as follows:

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................ 1256
Partners monthly income after tax....... 1080
Benefits................................ 80
Other income............................ 0
Total monthly income.................... 2416

Monthly Expense Details
Rent.................................... 550 Can you get any help ie housing benefit
Council tax............................. 120 Council tax benefit?
Electricity............................. 30
Gas..................................... 80
Water rates............................. 20
Telephone (land line)................... 12
Mobile phone............................ 35 can you downgrade at all?
TV Licence.............................. 12
Satellite/Cable TV...................... 30
Internet Services....................... 20 seems a lot with cable-can you get a package deal that works out cheaper for cable landline and internet?
Groceries etc. ......................... 250 check out the old style board to trim this down-we are family of 5 I aim for 200 a month
Clothing................................ 40 you can make savings here
Petrol/diesel........................... 250 seems a lot-is this essential travel?
Road tax................................ 22.5
Car Insurance........................... 50
Car maintenance (including MOT)......... 50
Car parking............................. 10
Other travel............................ 200 what is this?
Childcare/nursery....................... (included in salary calc – tax free)
Other child related expenses............ 10
Medical (prescriptions, dentist etc).... 20
Contents insurance...................... 12
Presents (birthday, christmas etc)...... 25
Haircuts................................ 20
Entertainment........................... 25 what is this
Holiday................................. 20 would save here until in the clear
Emergency fund.......................... 0
Total monthly expenses.................. 1913.5


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 2500

No Secured nor Hire Purchase Debts


Unsecured Debts
Description....................Debt......Monthly...APR
Cap 1..........................7708......265.......0 (0 APR due to debt being moved to Debitas I have an agreement to pay 265 until May after which I will try and reduce this)
HSBC CC........................2000......50........20.9
BARCLAYCARD....................5800......110.......20.9
Egg............................5133......135.......22.5 (took away spending on this card years ago)
HSBC loan......................1889......220.......12.6 (due to finish in Jan 2012)
Total unsecured debts..........22532.....780.......-


Monthly Budget Summary
Total monthly income.................... 2,416
Expenses (including HP & secured debts). 1,913.5
Available for debt repayments........... 502.5
Monthly UNsecured debt repayments....... 780
Amount short for making debt repayments. -277.5

Personal Balance Sheet Summary
Total assets (things you own)........... 2,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -22,532
Net Assets.............................. -20,052

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

This SOA calculator is not how I’ve been living – I currently have nothing for emergencies, holidays, entertainment, or car repairs each month. The SOA represents what I need to put by for living expenses. I currently scrape by somehow with pennies to spare and sometimes delay payments etc.

I do not want to declare bankruptcy – I’ve come too far for that now. I want to repay all of this debt somehow.

I do not know what my credit rating is like for sure but it must be awful because of late payments etc. I am pretty sure I would be refused a consolidation loan.

I’ve got the dilemma that I know if I can battle through for another few months, my HSBC loan will be cleared and I will have an extra 220 month to put towards debt.

What I really want to do is get my Barclaycard into an interest free agreement. With Cap 1 I was 3 months in arrears and then when I tried ringing to pay them they told me to contact debitas. Agreeing to £265 was a little foolish of me but it has meant next month I will have cleared £1590 of my original debt which is good.

Do you guys think the only way to get an agreement with Barclaycard is to stop paying? I am currently about 300 over my limit with that card and it has been like that for months – I have no way of getting it below the limit. After interest and charges I’m prob paying £5 a month off that debt – this can’t go on.

Sorry this post is a bit of a ramble. I’ll stop now for breath and see if there are any questions or suggestions.

Hope these help a bit-I think you can make up some of that shortfall by cutting back-and do consider checking if you can get help with rent and council tax-it may only be a small amount but every penny counts! Also, do you claim tax credits? I notice benefits is only £80, I assume this is child benefit?

vka1

Just a wee note to say good luck with it all. You have come so far already! I'm a newbie still, so not best for advising but there will be a way to work this out. How many months does the loan have to run?

V

Dead_Eye_Dan

Thanks for the replies.

I need to redo the SOA it isn't right.

I do get child tax credits of £10 per week, however I'm a bit concerned that I shouldn't be getting those as I'm claiming child care vouchers. Does anyone know if that's right? I'm scared to lose them but I don't want a huge repayment bill either.

orangesmartie

the thing that jumps out is travel. You spend £250 on petrol and £200 on other travel - so £450 a month on travel expenses. Are all of these necessary? Is any reimbursed by work? Can you cut down/combine any of the journeys?

izzybusy23

Dead_Eye_Dan wrote: »

Thanks for the replies.

I need to redo the SOA it isn't right.

I do get child tax credits of £10 per week, however I'm a bit concerned that I shouldn't be getting those as I'm claiming child care vouchers. Does anyone know if that's right? I'm scared to lose them but I don't want a huge repayment bill either.

I think £10 a week is right even if you do claim childcare vouchers; I am pretty sure this payment its not for childcare but the child element of tax credits, so I am sure you will be fine; infact I am certain of it as I used to get it when DD was a baby and needed no childcare.

Dead_Eye_Dan

Ok I redid My SOA calc.

As it happens my Child tax credits have stopped. so thats 10 a week I'm missing.



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................ 1256
Partners monthly income after tax....... 1080
Benefits................................ 80
Other income............................ 0
Total monthly income.................... 2416

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 550
Management charge (leasehold property).. 0
Council tax............................. 120
Electricity............................. 30
Gas..................................... 80
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 0
Mobile phone............................ 45
TV Licence.............................. 12
Satellite/Cable TV...................... 72
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 15
Petrol/diesel........................... 190
Road tax................................ 22.5
Car Insurance........................... 50
Car maintenance (including MOT)......... 50
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 10
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 12
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1513.5


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 2000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Cap 1..........................7189......265.......0
HSBC CC........................2050......50........20.9
BARCLAYCARD....................5800......110.......20.9
Egg............................5500......135.......22.5
Hsbc loan......................1889......220.......12.6
Total unsecured debts..........22428.....780.......-


Monthly Budget Summary
Total monthly income.................... 2,416
Expenses (including HP & secured debts). 1,513.5
Available for debt repayments........... 902.5
Monthly UNsecured debt repayments....... 780
Amount left after debt repayments....... 122.5

Personal Balance Sheet Summary
Total assets (things you own)........... 2,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -22,428
Net Assets.............................. -20,428

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

As you can see I have got enough cash in theory however the reality is that my car tax was due this month along with 2 new tyres. Combine this with some bad planning/ overspending and I have not managed to pay HSBC CC, or Barclaycard or Egg this month. (£295)
This just seems to be how it always is.

I am pretty sure my council tax is in arrears but I wrote a letter to the council in March with a Direct debit form and have still not had a response.

Do I just plod on and wait until my loan is clear?

Do I tell Debitas that I cant afford to pay them 265 for the last month of my agreement so i can catch up with the others? Will they accept this?

Do I get a DMP from someone and try and lower my payments for everything?
Do I request CCA's from everyone to give myself breathing room?
I am just frustrated at always running out of cash the week after I get paid.

bobtail_5

I would call up some of the companies you have debts with and ask to reduce the monthly repayment, even if you reduce each one by £20 a month it should help to give you some extra cash for general living costs. Could you perhaps consider paying less for your mobile phone? I used to pay £30 a month but called up to say I was leaving at the end of the contract. The company wanted to keep me as a customer so reduced my bill to £10 a month threw in some free picture messages, unlimited texts and calls and sent me a new upgraded phone. Other things like cable TV is not necessary, if you have freeview that should get you by and if you buy a freeview box you can still record TV programs. TV subscriptions are an added luxury and you don't particularly need that extra cost. Also cutting back on food, clothing and holidays etc will help you out.

dancingfairy

Can you lower your mobile phone bill - even a 10 er a month would help. Sky - that's a luxury you can ill afford right now. Also petrol is very high - do you really need to spend that much each month? can you car share? clump trips together at all? Shop around for petrol in your area and try and drive as conservatively as possible, ditch all junk in boot/roof rack - anything that will affect fuel efficiency really.
Can you do a grocery challenge, using up stuff from the back of the cupboard etc in order to make at least some payments to the credit cards?
df

Dead_Eye_Dan

Thanks. yeah that mobile bill is for two mobiles, one payg £10 a month, the other is £35 maybe they would reduce that slightly.

Satelite TV includes my broadband and phone line rental. I don't have sports or movies but I could cut off multiroom to save a tenner a month. Good plan.

Petrol does seem a lot and I have to drive very conservatively. I suppose the very lowest we can go is £35 a week. But that means only essential travel to/from work and 2 40 mile round trips a week to drop/collect our son from the inlaws. (this saves us childcare costs) I would cycle to work but I need to collect my son from either one of the many grandparents or great-grandparents that help us out each week. I am thinking of getting a child seat for a bike. That might save me £15 a week in petrol to and from work and child collections!

The cupboard challenge will b on this month as it is! Tinned chilli con carne on toast anyone?:)

Hope I don't sound too negative I am not being negative.

shepherd06

hi D.E.D have you not rang a debt charity such as shelter or cccs? I am in a bit of a different situ than you as i have a mortgaged property and so on.....they ring all your debtors and liase with them so you don't have to, you have all unsecured loans and credit cards, as far as i know you can pay very little a month for these, also your list of expenses - the goverment giudelines are that you can pay £300 a month on shopping, £240 a year on presents for birthdays, christmas etc...its worth giving them a ring, they suggested this to us but we have our own home and are on the brink of losing this so we are looking at going BR ( hope you find a way out x