First Step

natlai

Hi All,

I've recently had a reducing in my wages due to no longer claiming expenses. I knew I had debt but not to this extent.

I took the first step today by e-mailing some creditors and asking to do a reduced payment for 6 months by then I should be back on my feet.

Does anyone have any advice on what I should do next?

I'm trying to e-bay things to make money to clear my feet.

Thanks

Phelpsie001

What is the extent of your debt, including APR, duration, minimum payments, income etc?

gargrave50

Welcome Natlai,

Wait to see what your creditors say - most will either ignore it or decline. I assume you know your credit rating will be trashed as a result.:cool:

Ebay everything that moves - any old books can be sold on either Green Metropolis or Amazon. Personally I have been selling old textbooks to Amazon - in return they give you a gift certificate for Amazon which is around 30% more than you would get for cash.

Any old gold you could sell to your local jeweller - great prices just now?

Why don't you post an SOA (Statement of Affairs) you can get these from the sticky and maybe we can point out areas for savings to be made?

Start a spending diary - write down everything you buy and how much. You will be amazed at the amount of miscellaneous cash spent every month!:D

Well done on facing your debts xxj

bargainbetty

The best way is to do a statement of affairs and list out everything you spend every month. The lovely people on here will then give you lots of hints and tips about how to reduce your outgoings, use up what you have rather than buy more, and generally be smart with the money you have!

Good luck x

natlai

Thanks for the replies so far.

I got a settlement from an accident in Feb of this year. Pay off credit cards and then re-spent on them.

I can't control my spending at all.

Oregon

Can someone please direct me to the link re this and explain why it's called that???!

Thx

natlai

Hi All,

Here is my SOA.

I've listed everything I can think of. I live with my parents so I don't pay food or council tax etc.

thanks

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 3
Number of children in household......... 0
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 979
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 979

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 228
Rent.................................... 100
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 15
Mobile phone............................ 80
TV Licence.............................. 0
Satellite/Cable TV...................... 90
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 0
Petrol/diesel........................... 40
Road tax................................ 2
Car Insurance........................... 30
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 615


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 14000
Other assets............................ 0
Total Assets............................ 14000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 14000....(228)......9
Total secured & HP debts...... 14000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Very...........................5000......220.......49
Next...........................1100......110.......29
Halifax........................500.......26.18.....27
Barclaycard....................828.......20.7......28
Capital one....................200.......7.16......31
Vanquish.......................500.......22.63.....39
Total unsecured debts..........8128......406.67....-


Monthly Budget Summary
Total monthly income.................... 979
Expenses (including HP & secured debts). 615
Available for debt repayments........... 364
Monthly UNsecured debt repayments....... 406.67
Amount short for making debt repayments. -42.67

Personal Balance Sheet Summary
Total assets (things you own)........... 14,000
Total HP & Secured debt................. -14,000
Total Unsecured debt.................... -8,128
Net Assets.............................. -8,128

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

throughtherain

Is it essential for you to have a £14,000 car? Why not get a cheaper one and then the money you were spending on that can go towards paying off debt?

Bored

How honest is your SOA - have you gone through your bank statements for the past few months in order to identify these figures? Do you really spend nothing on clothing and entertainment?

gargrave50

natlai wrote: »

Hi All,

Here is my SOA.

I've listed everything I can think of. I live with my parents so I don't pay food or council tax etc.

thanks

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 3
Number of children in household......... 0
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 979
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 979

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 228
Rent.................................... 100
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 15
Mobile phone............................ 80
TV Licence.............................. 0
Satellite/Cable TV...................... 90
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 0
Petrol/diesel........................... 40
Road tax................................ 2
Car Insurance........................... 30
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 615


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 14000
Other assets............................ 0
Total Assets............................ 14000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 14000....(228)......9
Total secured & HP debts...... 14000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Very...........................5000......220.......49
Next...........................1100......110.......29
Halifax........................500.......26.18.....27
Barclaycard....................828.......20.7......28
Capital one....................200.......7.16......31
Vanquish.......................500.......22.63.....39
Total unsecured debts..........8128......406.67....-


Monthly Budget Summary
Total monthly income.................... 979
Expenses (including HP & secured debts). 615
Available for debt repayments........... 364
Monthly UNsecured debt repayments....... 406.67
Amount short for making debt repayments. -42.67

Personal Balance Sheet Summary
Total assets (things you own)........... 14,000
Total HP & Secured debt................. -14,000
Total Unsecured debt.................... -8,128
Net Assets.............................. -8,128

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.:eek:

If you live with your parents, why are you paying so much for what looks like Sky TV and a telephone land line? Your mobile phone bill is horrendously expensive - what kind of tarriff are you on?

If I were you, I would contact your mobile contract provider and explain that you are currently experiencing some financial difficulty and rather than fall into arrears you would like to enquire whether they would consider changing your tarriff to a cheaper one for a period of 6 months or so to let you get back on your feet. Worth a try?! Although I am amazed that you spend £960 a year on mobile phone bills - you could just about get rid of your Next account with that!:eek:

gargrave50

I would suggest starting a spending diary, because you could easily shuffle your budget to accommodate a £43 overspend. Given your level of debt, I would suggest you are missing some major items from your SOA!

Keep a spending diary for a week - you will be amazed!