Going Slightly Mad

michelle2008

Just commenting on SOA as no expert on bankruptcy.

You car payments are very high - I assume it is a high end car! You really can't afford it so get a much cheaper car.

£100 per month on holidays is also a luxury you can't afford. This money should be going towards debt repayments or into en emergency fund.

Do you need cable tv? Could you get a free view box instead?

Groceries are actually relatively low - while I know you are living on your own at moment but are you sure you are spending less than £40 a week?

What are your credit card repayments? If you cut down on holidays, cable tv and got a much cheaper car could you not service this debt?

Did you buy anything with the credit cards you could sell?

TheGardener

You need to be clear about whether this is a household of 3 or 1 as that obviously has a huge impact. Have you given yours and your partners % of the bills or the whole cost?
The one that jumps out at me is the TV/Phone/Internet - over £100 for this seems very expensive - I have unlimited BB/TV/Phone inc line rental and daytime calls for £43 from one of the large providers - the OR will expect some economies there.
The motoring costs have been commented on elsewhere but the reality is you need to start looking for a much cheaper car and if you take the BR route, its highly likely the HP agreement will be cancelled anyway.
Presents/Entertainment are not usually allowed but an emergency fund is so move that around a bit.
Food is OK for one but on the low side for 3 inc a child.

Tafy1978

Thanks for the responses, much appreciated.


To clarify, the detail above isn't fully accurate i've noticed since completing it as there are more unsecured creditors than are listed. However, the detail that is included are just my bills but with both salaries.


I understand the comments on the car, its not a particularly high end car per se, its a 4 year old car of which I am 1 year into a 3 year HP agreement. Not sure what I can do about that now, unless I am missing something? It is a luxury and one that I need to change but how exactly given I have an agreement in place? Apologies if I am missing the obvious.


The TV/Phone/Internet is incorrect, I must have duplicated the phone and the internet as its £26 per month for both. The TV package is £47 per month which is a deal with Sky, giving a total of £73 per month for phone, TV and internet. Unfortunately they are both 2 year deals that I signed into to enable me to get the fastest or biggest package at a discounted rate.


Regarding the car, as its likely to be taken away, is it worth purchasing a car for around £1000- £1500 to be prepared? And to do that (as with the BR fee) I would need to stop paying my direct debits.


Again thank you all for your advice / feedback.

TheGardener

Once you are clear when you are going BR (if that is the case) then there is no point paying anything from then on - just stop paying for the car as soon as you know and at the point that you go BR - if you don't want the repo men at the door then just drive it onto the garage forecourt - tell them you are BR (take a copy of BR certificate to give them),hand them the keys - and get a signed receipt that the car has been returned. Buy yourself a £1000 motor in the meantime if you have the cash.
Same with the TV/internet etc - just stop all the DD's but I would line yourself up with a new, cheaper package/supplier in the meantime if possible - the OR might allow the £73 but there is a chance they wont. I found it didn't matter how many channels I had - there was still 'nothing on' now we just have the basic and its fine - I got 6mth free Netflix thrown in with my package so I didn't miss the TV channels.
I found that it took about 3 months for the cancelled DD's to start really catching up - I got away with telling them 'I'm so sorry - I'm switching banks and it must have got held up" for 8 weeks

Tafy1978

Thanks TheGardener, makes total sense now. Thank you very much for your detail, advice and replied.

TheGardener

TheGardener wrote: »

...then there is no point paying anything from then on ...

That was a sweeping statement - I meant there is no point paying any debt repayments - obviously its best to pay things like your rent - if there is a BR clause in your tenancy agreement - many Landlords will overlook BR as long as the rent is upto date.