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Help with debt

Hello forum, I am asking for some help and advice regarding my debt problem.The long and the short is that I owe 7,000.00 on a loan ( 22 months left to go) and a grand total of 27,000.00 on credit cards.For the last two years I have managed to keep up my repayments however I am now struggling ( every month is more difficult than the last )


Thank you for any help with this matter

Comments

  • Welcome to the forum. The experts on here will probably ask you to complete an SOA so they can see what bills you have to pay etc & where you can cut down.

    Someone will post a link shortly but if not, check out the sticky post at the top of this board

    x
  • Here's the SOA link:

    http://www.stoozing.com/msoc/soacalc.php

    If you can post a completed SOA it will allow the best advice to be given.
    Allypops
    Married with 2 children
    SPC5 # 1837- -
    DMP started April 2011 34.5% paid [STRIKE]£78800[/STRIKE]
    DFD: June 2019 DFW Long hauler #286
  • Allypops wrote: »
    Here's the SOA link:


    If you can post a completed SOA it will allow the best advice to be given.

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 3
    Number of children in household......... 2
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 1801
    Partners monthly income after tax....... 830
    Benefits................................ 42
    Other income............................ 0
    Total monthly income.................... 2673


    Monthly Expense Details

    Mortgage................................ 600
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 114
    Electricity............................. 100
    Gas..................................... 13
    Oil..................................... 0
    Water rates............................. 35
    Telephone (land line)................... 14
    Mobile phone............................ 20
    TV Licence.............................. 12
    Satellite/Cable TV...................... 28
    Internet Services....................... 30
    Groceries etc. ......................... 60
    Clothing................................ 40
    Petrol/diesel........................... 80
    Road tax................................ 15
    Car Insurance........................... 23
    Car maintenance (including MOT)......... 150
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 40
    Medical (prescriptions, dentist etc).... 10
    Pet insurance/vet bills................. 10
    Buildings insurance..................... 21
    Contents insurance...................... 11
    Life assurance ......................... 35
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 50
    Haircuts................................ 5
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 40
    Total monthly expenses.................. 1556



    Assets

    Cash.................................... 0
    House value (Gross)..................... 120000
    Shares and bonds........................ 0
    Car(s).................................. 1000
    Other assets............................ 0
    Total Assets............................ 121000



    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 79000....(600)......0
    Total secured & HP debts...... 79000.....-.........-


    Unsecured Debts
    Description....................Debt......Monthly...APR
    loan...........................6000......298.......6.63
    c card.........................8520......236.......20.9
    c card.........................4791......144.......23
    c card.........................2073......52........18
    c card.........................3403......78........24.44
    c card.........................5468......120.......26.9
    c card ........................2000......50........21
    c card.........................866.......21........3.9
    Total unsecured debts..........33121.....999.......-



    Monthly Budget Summary

    Total monthly income.................... 2,673
    Expenses (including HP & secured debts). 1,556
    Available for debt repayments........... 1,117
    Monthly UNsecured debt repayments....... 999
    Amount left after debt repayments....... 118


    Personal Balance Sheet Summary
    Total assets (things you own)........... 121,000
    Total HP & Secured debt................. -79,000
    Total Unsecured debt.................... -33,121
    Net Assets.............................. 8,879
  • Tixy
    Tixy Posts: 31,455 Forumite
    Hi benekli and welcome to the forum.

    As suggested above the best starting point for yourself, and for people on here to help is if you try to complete a statement of affairs form showing your monthly income & outgoings.

    This will help show how much you have for debt repayments, or how far short you are of being able to meet your payments and can then best advise you on what sort of options you may have.

    Edit - I see you have already done it whilst I was typing!
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • Tixy
    Tixy Posts: 31,455 Forumite
    Are you currently paying the minimums on your debts? Have you stopped using the cards for new transactions? or are you still using them?

    Obviously things do look tight at the moment - so some thoughts / questions below of things to consider

    benekli wrote: »
    Statement of Affairs and Personal Balance Sheet

    Household Information
    Number of adults in household........... 3 is the 3rd adult earning at all? do they contribute to the household? pay for their own living costs etc?
    Number of children in household......... 2
    Number of cars owned.................... 1

    Monthly Income Details
    Monthly income after tax................ 1801
    Partners monthly income after tax....... 830
    Benefits................................ 42 do you get child benefit for the 2 children?
    Other income............................ 0
    Total monthly income.................... 2673

    Monthly Expense Details
    Mortgage................................ 600
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 114
    Electricity............................. 100 this looks high - are you paying off any arrears? have you looked to see if it might be cheaper on a different tariff or provider?
    Gas..................................... 13
    Oil..................................... 0
    Water rates............................. 35
    Telephone (land line)................... 14
    Mobile phone............................ 20
    TV Licence.............................. 12
    Satellite/Cable TV...................... 28
    Internet Services....................... 30 could you combine this with satellite tv or landline to save money?
    Groceries etc. ......................... 60 this doesn't look right for a family of 5 for a month - is this a weekly figure?
    Clothing................................ 40
    Petrol/diesel........................... 80
    Road tax................................ 15
    Car Insurance........................... 23
    Car maintenance (including MOT)......... 150 this looks a lot a month - is it an annual figure?
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 40
    Medical (prescriptions, dentist etc).... 10
    Pet insurance/vet bills................. 10
    Buildings insurance..................... 21
    Contents insurance...................... 11
    Life assurance ......................... 35
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 50
    Haircuts................................ 5
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 40
    Total monthly expenses.................. 1556


    Assets
    Cash.................................... 0
    House value (Gross)..................... 120000
    Shares and bonds........................ 0
    Car(s).................................. 1000
    Other assets............................ 0
    Total Assets............................ 121000


    Secured & HP Debts
    Description....................Debt......Monthly...APR
    Mortgage...................... 79000....(600)......0 is this repayment or interest only? is it a fixed rate or variable do you know?
    Total secured & HP debts...... 79000.....-.........-

    Unsecured Debts
    Description....................Debt......Monthly...APR
    loan...........................6000......298.......6.63
    c card.........................8520......236.......20.9
    c card.........................4791......144.......23
    c card.........................2073......52........18
    c card.........................3403......78........24.44
    c card.........................5468......120.......26.9
    c card ........................2000......50........21
    c card.........................866.......21........3.9
    Total unsecured debts..........33121.....999.......-


    Monthly Budget Summary
    Total monthly income.................... 2,673
    Expenses (including HP & secured debts). 1,556
    Available for debt repayments........... 1,117
    Monthly UNsecured debt repayments....... 999
    Amount left after debt repayments....... 118

    Personal Balance Sheet Summary
    Total assets (things you own)........... 121,000
    Total HP & Secured debt................. -79,000
    Total Unsecured debt.................... -33,121
    Net Assets.............................. 8,879
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • Hi. You probably need to make a few adjustments to your budget as suggested by Tixy but it seems to me like you might need to consider a debt management plan (dmp) or possibly an IVA. I suggest you get in contact with one of the debt charities Martin recommends such as National Debtline, CCCS or your local CAB and have a chat through the various options available to you.
    If you allowed say 300 a month for groceries you would still have approx 700 pounds a month to enter a debt management plan. IF interest and charges were stopped then you could be debt free in under 4 years. It is unrealistic to think that the creditors will all just stop interest and charges straight away as many take several months to settle down into a plan but I reckon probably in about 6 years you could be debt free(possibly sooner).
    df
    Making my money go further with MSE :j
    How much can I save in 2012 challenge
    75/1200 :eek:
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