Not sure where to start, help please!

smi85

Hi all

Fortunately my predicament is not as bad as many but enough to be a cause for concern, but lately it's just got on top of me and need to sort it out but don't where or how to start. All help is much appreciated.

This year I spent a considerable amount of time off on the sick, post operation, this has left me with quite a backlog of bills to pay.

Rent owed approx £900, moving out this weekend which is the end of the tenancy, this is my biggest worry. I've been kind of burying my head in the sand but I know this isn't going away, is it possible to setup some kind of repayment plan with the lettings agents?

Electricity and Gas - £65 and £100 respectively

Kwikfit Insurance - £158 - threatening CC on this one, planning to ring on friday to arrange payment plan.

Lloyds TSB - £525 - Payment plan in place at £50 a month with the option to settle for a discount in sept

Orange mobile- £112 - now at debt collectors who won't take less than the full amount

On paper this is all fairly manageable but I travel 80 miles a day for work so my car is my priority in terms of keeping it topped up with diesel (£50-£60 a week), car insurance and today it failed its MOT so this weeks wage, which was to cover outstanding gas and electricity before I move out, is now needing to be kept to pay for any repairs.

Where would you start and what options do I have please? I have the luxury of living rent free at my grans for a couple of month from next week so that is a big help. It's my intention to be debt free by the end of the year and to have put some money into an isa before I move into my own place again.

Thanks very much

happycamel_2

Please can you post an SOA, there is a link in the stickies at the top of the list of messages.

We can look that over and help you find the best way of dealing with your debts. Well done for posting, it's the hardest bit.

Given that you don't dispute any of the debts I think it would be a good idea to call your creditors, apprise them of the situation and offer a token payment. Then start paying off the highest interest debt first.

Tixy

Hi and welcome

You probably need to prioritise by working out first how much you need for essential living costs (so your fuel, food etc) and then how much is left for debt repayments after that each month. We usually do this by completing a statement of affairs.
Rent is usually the first priority, although you have an advantage because you are moving out. Have you spoken to landlord/letting agent to try to repay the arrears in installments? is there a deposit due back to you that will help?

The others you should all be able to offer to pay in monthly installments based on what you can afford - ignore that the orange debt collectors say they won't take less that the full amount, they will when it comes to it, because something from you is better than nothing.

If you could start with a statement of affairs people can probably advise better as to how you can best split your funds to these debts and how soon you should be able to clear them - http://www.makesenseofcards.com/soacalc.html (just leave blank the sections you don't have ongoing costs for such as rent etc). Put things like the arrears for rent & gas & elec in the debt section at the bottom.

smi85

Thanks a lot.

Here's the results of my SOA, I added in Road Tax at 118 a month but thats just because it's due next month and obviously can't be paid instalments.

Monthly income: £1180
Expenses (incl. HP & secured debts): £740
Available for debt repayments: £440
Unsecured debt repayments: £50
Surplus (shortfall if negative) £390

smi85

From october after I've paid my road tax, my SOA will be

Expenses (incl. HP & secured debts): £634.50
Available for debt repayments: £545.50
Surplus (shortfall if negative) £495.50

happycamel_2

Orange and Kwikfit are threatening action so this month I'd use your surplus to pay them off. Tell your other creditors you are having problems and offer them a pro rata payment plan tell them how long it will take you to pay them off.

Is there anythig you can sell to put towards your debts? Can you make any savings in your expenses? Also, can your employer offer you an advance of salary or any over time? Do you have a relative or friend you can borrow from and pay back.

It doesnt sound like you have been irresponsible, just unfortunate. Once you are back on track then make sure you save a good portion of your surplus.

I hope that helps with where to start.

smi85

This friday I will ring orange and kwikfit. Certainly can't pay full amounts but will offer them a small amount then a monthly payment? What are my grounds for argument here if they will only take substantial payments when substantial payments just aren't possible?

I dread speaking to the letting agency but I will speak to all creditors friday/saturday morning. That SOA has made me realise just how much I could pay and how much I could save when I've paid this off. I certainly don't want a CCJ.

smi85

I've just applied to open a basic santander bank account and I'm going setup any payment plans out of this and transfer weekly from the current account I get paid into, so I know the money needed is seperate from everything for day to day living. I have also opened a Northern Rock easy access ISA and plan to make the most of not having many outgoings once I have paid off the existing debt. Then can look forward to having my own place again with some put aside for a rainy day.

I think looking back at this thread I know whats needed to be done, I just feel better having likeminded people talk me through it and it's a place to vent. None of my friends or family are aware of this really.