help! need some advice

donky_boy

When i was younger i got into a big mess with debt, anything from credit cards, loans, overdrafts you name it!

I stopped paying all creditors a few years ago..... I know it wasnt the grown up thing to do! (i was 19 when i made this decision)

Now a few years down the line i have looked at my credit report to try and see where i stand. from what i can see on there i estimate that i owe around 13-15k in total.

I have made the decision to deal with it now as it isnt going to go away. I know i have been foolish in trying to ignore it all this time.

I need to know what my best way forward is really. I have no assets to speak of. drive an old car. live in a rented house.

any advice would be appriciated!

kimminess

Hi Donky_boy,

Well done on facing up to your debt problems, thats the first step over and done with

You mention you stopped paying creditors a few years back - How many years exactly was it? What dates are your defaults on your credit report?

Are you in a position to start paying back your debts ie. have a steady income?

donky_boy

I have a steady income although do struggle by month to month with no savings to speak of.
Erm some i have ignored for 3 - 4 years. some only 2ish.

On my credit file there is just D'S (for deafult) everywhere! every month they put one on there saying deafulted.

i know i messed up. just want to get it sorted now so i can try and get some form of normal life without having a pile of letters hitting my doorstep most days.

kimminess

As your debts are so high and you are struggling each month it could be worth giving CCCS a ring to see what they think of your situation. They are a free debt charity who can help you get on a Debt Management Plan if thats the course of action you want to take.

http://www.cccs.co.uk/

One thing I can't stress strongly enough is when you start to communicate with the debt collection agencies, they will ring you and ring you if they have your number. Only deal with them in writing! That way you have 100% proof of what they you and they have both said. Theres a template letter around this board somewhere, I'll find it in a sec.

In the meantime, fill out a Statement of Affairs so we can all get an idea of your financial situation and see where you could save some money that could go towards your debt !!

http://www.makesenseofcards.com/soacalc.html

donky_boy

thanks, i will take a look at cccs and give them a call.

heres a bad month of working outs....

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................ 1400
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1400
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 750
Management charge (leasehold property).. 0
Council tax............................. 141
Electricity............................. 25
Gas..................................... 20
Oil..................................... 0
Water rates............................. 5
Telephone (land line)................... 20
Mobile phone............................ 40
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 80
Clothing................................ 0
Petrol/diesel........................... 200
Road tax................................ 0
Car Insurance........................... 40
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 30
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 6
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1370

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 400
Other assets............................ 0
Total Assets............................ 400

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 3000.....(0)........0
Total secured & HP debts...... 3000......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................1800......0.........0
loan...........................5000......0.........0
overdrafts.....................3000......0.........0
old phone......................500.......0.........0
Total unsecured debts..........10300.....0.........-

Monthly Budget Summary
Total monthly income.................... 1,400
Expenses (including HP & secured debts). 1,370
Available for debt repayments........... 30
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 30
Personal Balance Sheet Summary
Total assets (things you own)........... 400
Total HP & Secured debt................. -3,000
Total Unsecured debt.................... -10,300
Net Assets.............................. -12,900
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donky_boy

oh. i have exscluded my partners income as she has nothing to do with any of the debts etc as it is all from before we met.

I dont want her to have to worry about it - she knows about it all.

Her income is very low as she is on stat parternity leave at moment and will be for quite some time.

Scottishmummy

If you are not including your partners income or child benefits have you also excluded her costs/debts. Does she pay anything towards rent/food/mobile etc?

Bettingmad

donky_boy wrote: »

oh. i have exscluded my partners income as she has nothing to do with any of the debts etc as it is all from before we met.

I dont want her to have to worry about it - she knows about it all.

Her income is very low as she is on stat parternity leave at moment and will be for quite some time.

She may have nothing to do with your debts but does she not contribute to any of the household expenses? It is not a fair reflection of your SOA without including her income details.

donky_boy

i have not included her outgoings and at present becuase of her situation with work (being on parternity leave) she doesnt pay towards rent etc.
The money she recieves she uses to pay for her phone, car etc.

kimminess

Is the hire purchase debt for your car?
Could the mobile phone contract be reduced at all, are you actually using all of your minutes/texts?

As your debts are approx. 80% of your take home salary I think a DMP will be the best route for you. Don't go with a fee charging company for this, as charities will organise this with you for free and can hopefully get interest frozen. This will mean the money that goes towards your debts is actually paid OFF the debt

donky_boy

no. the hp was for a laptop a few years ago (i think it is secured against the laptop) however i've not made a payment on the account for some years and not heard anything in way of reposession.

i am very interested in talking to cccs tommorow and hoping they can help me to get everything sorted.