£51000 in debt and growing

Munki_2

apear2die4 wrote:

DFC

You are right I am slowly but surely getting deeper into the mire for want of a better word. The above does not include other business expenses which can easily put another £600 per month on top of what I need to turnover just to stand still no wonder I am suffering from depression. I have been able to keep my head just above water by using some savings in the hope it would turn around but I just cant see that happening.

Don't get too disheartened with it all. Maybe a new career direction is right, maybe it isn't. I mean, would you be able to get more money doing something else?

Have you considered renting out a spare room if you have one?

The priority in my view is to keep up with basic monthly costs - mortgage, council tax, gas, electric, food etc. But cut back on everythiing else. Absolutely everything. Live on the poverty line if need be and you're other half has to stick to this as well. Only once you've got rid of all unncessary costs can you really see if you are capable of saving any money each month, to throw at debt.

You say you have savings that you dip into to get by each month. Use all except a bit of the savings (for emergency e.g. boiler breaking suddenly) and throw it at debt. The less debt you have, the less you are throwing at your minimum payments.

Given your situation I feel the idea in my original post to sell a car is becoming crucial.

Please try not to get depressed about things though. A reality check is in order, true.. but you have done the hardest thing by accepting you have gone too far and things have to change. Now's time to do it. You and your family need to stick together and get through this... you can do it! :-)

Munki

Fran

Can she do some work from home?

Are you getting tax credits?

apear2die4

Hi Fran

Baby keeps most of the day occupied washing nappies/Making her food from scratch etc

We dont get tax credits I have visited a site called entitledto.co.uk snd they work out I am entitled to £960 pounds per year so the forms will be going in for that.

Thanks

apear2die4

Munki

Thanks

Debt_Free_Chick

apear2die4 wrote:

To rent aproperty in the area I live would cost just as much as the mortgage but I see what you are saying.

That the equity could pay off all or some of your debts and leave you with a budget you could live on.

the £2200- £2500 is net income after my deductions.

Phew! and you have your tax tucked away?

I am happy if necessary to default on the debts and enter into an arrangement with my creditors but would rather avoid Bankruptcy.

Any Ideas on this.

To make arrangements with your creditors, you send them your budget (let's make sure it's fully complete, first). You take whatever surplus income you have each month, after paying your essential bills, and you pro-rata this amongst your creditors. According to our first go at your budget, your surplus is £287.85 per month.

Full details in this self help pack

http://www.nationaldebtline.co.uk/england_factsheets/debt_advice_england_wales.php3#3

However, you need to be aware that some of your creditors are likely to issue a default notice and that this will be recorded on your credit file. How do the FSA view default notices? They are one step worse than debt. They mean that you have debt and you have not kept to the Credit Agreement. So, please, check this out before you go this route ... though, I think you don't have much of an option

apear2die4

I am in agreement with you on this. As I said the FSA will look bleakly on this but to be honest it has been a losing battle for some time despite shuffling from one company to another then consolidating some with Egg just to improve the monthly cash flow. I have been looking at a career change so now seems like a good time maybe some good can come of this mess.

Justin_Credit

£51,000 is a big overspend if you dont mind me saying. You must have amassed quite a few assets with it. Do you have anything that you can get by without that you can now sell to bring in some cash to help drive down the debt?

While we all would rather certain things, for instance, I would rather not work at all but I have to. I think you need to realise that you now need to face facts and that this predicament wont go away, unless you go bankrupt of course.

As others have said on these forums, there are only 3 ways to become debt free:
1 Reduce outgoings

2 Increase income

3 A combination of the other 2

JC

apear2die4

JC

I do have some assets to sell currently which will reduce the debt slightly but the debt has been amassed over a 7 year period. But again you are right. I do not blame anyone else for this but myself.

Debt_Free_Chick

apear2die4 wrote:

JC

I do have some assets to sell currently which will reduce the debt slightly but the debt has been amassed over a 7 year period. But again you are right. I do not blame anyone else for this but myself.

Don't beat yourself up. We've all done it .. .amassed debts on ... err... well, stuff, you know

Magentasue

I know it sounds harsh but I think you are going to have to reduce your outgoings to a minimum for a while:

Get rid of mobile phone, you can get a PAYG for emegencies (save £15pm)
Get rid of broadband and use library (save £18 pm)
Cut phone use to evenings/weekends (save £20pm)
Reduce gas bill to £25pm (save £39 pm)
Live on £120 pm housekeeeping (save £200 pm)
Get rid of one car (save £50pm?)

That's over £300 a month you could cut back even before you trim your £300+ daily spending to a fiver a day or something more realistic.

I understand wanting to stay at home with a baby because I chose todoit. But it did mean I couldn't have a car! Lots of people manage with one car per household and getting rid of one will save those annual MOT bills too.