Im in debt and Im taking the first step..

s_in_kent

Morning all

OK - Ive sat up this last week and admitted that im in debt and have an appointment with my bank today at 1PM to have a 'chat' as I dont know where else to start.

Off the top of my head, I owe .....

Car loan £4,500 (including the interest)
Overdraft £1000
Credit Card £650
Store card £250
Catalogue £100

Plus lots and lots of unpaid bills - good job my gas and electricity are paid on cards as I use them or they'd have both been cut off.

Any helpful advise would be appreciated..............

Cheers
S

Conor_3

Post an SOA with all incomes, expenses and including the interest rates on any borrowings.

You only owe just over £6500 so it's not got to the point where it's past the point of no return yet.

Do you pay the catalogue directly or through an agent?

s_in_kent

Sorry to sound really divvy but whats an SOA?

I pay the catalouge direct as it's my account.

floss2

Statement of Affairs - look at the sticky at the top of the forum to get some tips.

You'll need to have all your bills / repayment figures for what you pay out each month, also food / car maintenance / tv licence etc.

Then when you've posted that, more people will be along to help you.

Good luck!

mae

Its on this forum just above your post and it says "First time posters" follow the instructions on there and fill in all your details.

Don't do anything when you see the bank as I am sure they will talk you into more debt to clear your existing and it may not be the best solution for you so take their advice and tell them you need time to think it through then come on here and get more advice before you take any more steps. The people on here who have been through similar and larger debts have excellent advice so I am sure you will feel better very soon.

mae

Sorry Floss I think we posted at the same time.

s_in_kent

Oh thank you Floss & Mae :-)

I wasn't going to do anything rash today with the bank anyway - just a starting point for me.

I'll sit and write everything down later so I know exactly where I am.

To be totally honest - im as disorganised with my paperwork as I am with my finances so it may take me a while to find everything I owe *sigh*

Thanks for the help so far - I really appreciate it.

mae

Probably worth having as much information as possible before going to the bank so wizz round the house and put all relevant information in a folder then at the very least its all in the same place. Its a start, small steps and all that.

Good luck

s_in_kent

Ok here's my SOA

Incoming Monthly

IS £447.55
CHB £130.87
Maint £563.33

Total £1,141.75

Outgoing

Loan £120.32
CC £40.00
Ins £30.50
Petrol £43.33
Food £200.00
Gas £34.67
Elec £43.33
Water1 £21.86
Water2 £20.46
Telewest £45.00 (phone, tv, BB - thats the most my bill has been)
Next card £30.27
Freemans £44.00
TV Licence £21.67
Mobile £10.00 (average)

Total £704.43

DEBTS as of 6 Aug 07 £6,098.37

Car loan £3,729.92
Credit Card £683.65
Next Card £152.00
Freemans £107.16
Water1 £65.64
Water2 £360.00
Overdraft £1000 (at the limit most of the time)

I have opened another bank account - going to arrange to have CHB & Maint paid into it = £694.20 going in - all bills paid by direct debit or standing order £704.43 going out - so need to top it up by £10 per month.

Are my calculations right?

Does that look OK??

s_in_kent

Oh and I phoned my CC company and have agreed to pay them £40 per month.

As that is the highest is it worth me paying any extra i have left off on that?

floss2

s_in_kent wrote: »

Ok here's my SOA

Incoming Monthly

IS £447.55 Income support?
CHB £130.87
Maint £563.33
I guess no Tax Credits if on IS?

Total £1,141.75

Outgoing

Loan £120.32
CC £40.00
Ins £30.50 car? house? life?
Petrol £43.33 thats quite a bit - is it all essential?
Food £200.00 look on Old Style board for tips to reduce this
Gas £34.67
Elec £43.33
Water1 £21.86 ) why 2 accounts?
Water2 £20.46 )
Telewest £45.00 (phone, tv, BB - thats the most my bill has been) could get cheaper elsewhere - try Quidco for cashback
Next card £30.27
Freemans £44.00
TV Licence £21.67
Mobile £10.00 (average) is this PAYG?

Total £704.43

DEBTS as of 6 Aug 07 £6,098.37

Car loan £3,729.92
Credit Card £683.65
Next Card £152.00
Freemans £107.16
Water1 £65.64
Water2 £360.00
Overdraft £1000 (at the limit most of the time)

I have opened another bank account - going to arrange to have CHB & Maint paid into it = £694.20 going in - all bills paid by direct debit or standing order £704.43 going out - so need to top it up by £10 per month.

Are my calculations right?

Does that look OK??

I'm sure someone else will come along & add more but thats a start.