Time to grit my teeth, swallow my pride and face up to reality - 95k of debt

lcc86

I wish I could offer you some amazing advice but all I can do is echo what others have already said. You sound like an extremely determined person and clearly are successful as you wouldn't have set up a business and kept it running if you weren't.

All the best on your journey, I'm subscribing.

starting_again_4

Thank you so much for everyone's replies and support! It means so much!

I have been spending time updating my debt sheets, opening those letters thrown in the drawer and written everything down!

We're under the 90K mark, just! But it was almost 100k so we're down a little :-)

So everything is here in black and white. :eek::eek::eek:Now to work out what to do next?! I plan to sell off everything I do not need to lead a simpler life and use any money made to start clearing this down. Every penny counts as they say!

Company: Amount: Paid Off: Left to pay:

Debt - Borrowed Monies £5.00 £- £5.00
Debt - Borrowed Monies £10.00 £- £10.00
Debt - Wages/Expenses £16.99 £2.00 £14.99
Debt - Wages/Expenses £15.00 £- £15.00
Debt - Wages/Expenses £598.00 £578.49 £19.51
Debt - Borrowed Monies £20.00 £- £20.00
Tv Licence £25.00 £- £25.00
Debt - Wages/Expenses £86.00 £60.00 £26.00
Debt - Wages/Expenses £26.00 £- £26.00
Debt - Borrowed Monies £30.00 £- £30.00
Debt - Borrowed Monies £30.00 £- £30.00
Debt - Borrowed Monies £30.00 £- £30.00
Npower £31.09 £- £31.09
Debt - Wages/Expenses £34.38 £- £34.38
Debt - Business Expenses £35.00 £- £35.00
Debt - Business Expenses £35.25 £- £35.25
Debt - Business Expenses £43.50 £- £43.50
Debt - Business Expenses £45.00 £- £45.00
Debt - Business Expenses £776.75 £730.71 £46.04
Debt - Business Expenses £50.00 £- £50.00
Debt - Borrowed Monies £50.00 £- £50.00
Debt - Business Expenses £52.18 £- £52.18
Debt - Business Expenses £56.25 £- £56.25
HMRC - Late payment £59.00 £- £59.00
Water £59.88 £- £59.88
PPL Licence £61.15 £- £61.15
Overdraft Business 1 £62.98 £- £62.98
Licence £65.00 £- £65.00
Debt - Wages/Expenses £66.00 £- £66.00
NI £70.20 £- £70.20
Debt - Business Expenses £84.50 £- £84.50
XLN £93.72 £- £93.72
Buildings Insurance Business £93.75 £- £93.75
Aqua £97.60 £- £97.60
Debt - Business Expenses £98.39 £- £98.39
Debt - Business Expenses £327.88 £225.00 £102.88
Debt - Business Expenses £104.00 £- £104.00
Debt - Business Expenses £113.40 £- £113.40
Debt - Business Expenses £117.00 £- £117.00
Advantis Bt Telephone £117.51 £- £117.51
Debt - Business Expenses £117.54 £- £117.54
Overdraft Business 2 £133.72 £- £133.72
Idem £134.73 £- £134.73
Debt - Business Expenses £137.00 £- £137.00
Debt - Business Expenses £463.13 £323.54 £139.59
British Gas £141.64 £- £141.64
Opus £146.00 £- £146.00
Debt - Business Expenses £146.25 £- £146.25
Debt - Business Expenses £250.00 £100.00 £150.00
Debt - Borrowed Monies £154.00 £- £154.00
Moorcroft £156.01 £- £156.01
Accountants £160.75 £- £160.75
McKenzie Hal £164.87 £- £164.87
Debt - Business Expenses £997.75 £832.01 £165.74
Water - Home £165.79 £- £165.79
Debt - Business Expenses £233.52 £58.00 £175.52
Debt - Business Expenses £180.00 £- £180.00
Vanquis £200.00 £- £200.00
Debt - Business Expenses £230.00 £- £230.00
Debt - Business Expenses £250.00 £- £250.00
Natwest £402.00 £144.83 £257.17
Debt - Business Expenses £281.00 £19.20 £261.80
LCS - EDF £265.43 £- £265.43
Water - Business 2 £276.00 £- £276.00
Debt - Business Expenses £293.00 £- £293.00
Debt - Borrowed Monies £300.00 £- £300.00
Debt - Borrowed Monies £390.00 £80.00 £310.00
Trade Waste £336.00 £- £336.00
HMRC £342.81 £- £342.81
Debt - Business Expenses £355.52 £- £355.52
Debt - Business Expenses £362.77 £- £362.77
British Gas - Business £476.60 £- £476.60
Lloyds £581.00 £- £581.00
Debt - Borrowed Monies £500.00 £- £500.00
Debt - Business Expenses £2,952.30 £2,440.41 £511.89
Debt - Borrowed Monies £537.42 £- £537.42
Debt - Business Expenses £1,412.80 £800.00 £612.80
Debt - Business Expenses £1,094.54 £441.84 £652.70
Debt - Business Expenses £667.88 £0.48 £667.40
Debt - Business Expenses £775.02 £- £775.02
Debt - Business Expenses £785.00 £- £785.00
Natwest 1 £900.36 £- £900.36
Barclaycard £900.36 £- £900.36
British Gas £903.15 £- £903.15
Debt - Business Expenses £949.95 £40.00 £909.95
Rent Arrears £1,110.00 £- £1,110.00
Business Rate Arrears £1,272.00 £- £1,272.00
Lloyds £1,375.00 £- £1,375.00
Very £1,414.55 £- £1,414.55
Debt - Business Expenses £1,490.20 £- £1,490.20
Interlink £1,704.64 £213.08 £1,491.56
Lloyds £1,500.00 £- £1,500.00
Rent Arrears £1,500.00 £- £1,500.00
Debt - Business Expenses £4,509.37 £3,007.84 £1,501.53
HMRC £1,787.53 £- £1,787.53
Halifax £1,800.00 £- £1,800.00
Debt - Borrowed Monies £1,982.57 £- £1,982.57
Barkers £2,022.47 £- £2,022.47
Debt - Borrowed Monies £2,177.13 £- £2,177.13
Rent Arrears £2,250.00 £- £2,250.00
Natwest £2,345.78 £- £2,345.78
Barclaycard £2,345.78 £- £2,345.78
HMRC £2,656.53 £- £2,656.53
Debt - Business Expenses £4,150.00 £- £4,150.00
Rent Arrears £4,308.26 £- £4,308.26
Rent Arrears £6,705.29 £1,138.21 £5,567.08
Debt - Borrowed Monies £8,800.00 £- £8,800.00
Natwest Loan £15,034.00 £- £15,034.00

£99,638.06 £11,235.64 £88,402.42

Bobarella

Hi there
You have certainly been thorough in your list making. What is your strategy regarding what to pay first?

Bob

dawnybabes

Are the companies that aren't making you any money costing you any money ? What's to stop you cutting your losses and closing them down ?

(I know this is easier said than done, we poured money into our business for over 7 years before we sold it)

starting_again_4

Well, I have explained my situation to all "people" (by people I mean staff/people I have borrowed money from rather than credit cards), however some are far less understanding than others. I have told them I am trying rather than go bankrupt and be able to pay back nothing.

My strategy is the following;

1. Pay off wage arrears/nagging people. They cause me a lot of stress. I suffer very badly with panic attacks and anxiety so this will help reduce this also.
2. Write to the other creditors, explain situation and offer a monthly payment of £1 a month and ensure this is paid.
3. Whilst paying the £1 a month, I will focus on one debt at a time - rent arrears/rate arrears and anything made after expenses will go to this debt and then move onto the next


Does this sound a good plan in your opinion?

Dawnybabes - Yes, they are, I will post my monthly outgoings tomorrow. I have closed one buisiness already and about to do another but am still stuck in leases which cost me, for just those two alone £2666 a month !!

Bobarella

Hi Starting Again
I do agree that paying off 'real people' is very important. I have struggled to pay wages too and it is a horrible horrible feeling. Especially when you aren't paying yourself either and yet there is still not enough to pay them. I was fortunate that I had 2 very reasonable people who I was dealing with and was 1 month behind on wages not months I can't say how things are for you and am not judging. I focused on clearing my debts to them first. I also didn't want to get a bad reputation because people do talk. If you've had a very bad time but done your best to fix it I think people take a more sympathetic view.
I then paid priority accounts where I knew there was a liklihood I'd want to use the account again.
I made an agreement with HMRC by ringing the business debt helpline and asking their advice. One useful bit of advice I was given before calling them was not to take on any more of the business debt as personal. So don't go saying you have room on a card as HMRC will just expect you to use it to clear the debt. I am currently repaying overdue PAYE on a 12 month deal which if I miss 1 payment of I lose the right to and would have to repay in full immediately. I just had to make 1 payment to get it started, they won't agree it if you don't have that.

Anyway I hope there is some useful information in there somewhere. I think you are doing an amazing thing by taking responsibility for it all.

bob

in_need_of_direction

You truly have been through the mill. Well done for coping so far and improving matters. Do you have a good accountant who is making sure you offset losses, etc.? Also, have you spoken to a local development agency? They can be a source of good, free advice.

starting_again_4

Thanks for your replies.

Yes, it is extremely hard owing people money. The worst is when it comes between feeding my children and paying off these people. I have lost over 2 stone in the last two months because I only eat one meal a day now :-( It's awful.

Thanks for the useful info Bob, will keep that noted

Have paid £142.50 off one debt today, feeling completely under the weather and pretty rubbish. I just see such an enormous task ahead. My anxiousness is at an all time high at the moment and not coping with it very well.

Bobarella

starting_again wrote: »

Thanks for your replies.

Yes, it is extremely hard owing people money. The worst is when it comes between feeding my children and paying off these people. I have lost over 2 stone in the last two months because I only eat one meal a day now :-( It's awful.

Thanks for the useful info Bob, will keep that noted

Have paid £142.50 off one debt today, feeling completely under the weather and pretty rubbish. I just see such an enormous task ahead. My anxiousness is at an all time high at the moment and not coping with it very well.

Your very welcome. I am so sorry to hear how much all this has affected you. I don't know how comfortable you are with the idea of benefits etc but you must be entitled to some help as there are children involved. On a practical note have you ventured into the old style section of the board at all? There's a thread there with suggestions for feeding your family on £20 a week.
It may also be worth your while going to your GP if you haven't already & explain how much stress you are under. As this is a long term haul situation not a sprint & if you aren't well then it all folds. And your health is so important.

starting_again_4

I have tried to go down the benefits route - I receive child tax credits and working tax credits and of course child benefit. I am trying to claim housing benefit but due to being self employed it is difficult. I am not entitled to anything else I don't believe, unless anyone knows otherwise?

I will have a gander at the OS board, thank you! I think taking a trip to the GP would be a good idea, I did go before and try and explain my situation and how I was feeling but was told I was being a hypercondriac by the doc!


As promised, my monthly outgoings....


Monthly bare minimum Outgoings:

Home:

Rent - £750
Council Tax - £113
Water - £42
Gas - £75
Electricity - £50
Telephone/Broadband/TV - £51
Food - £30
School Dinner Money - £44
Bank Account Fee - £17

Total -


Business 1 – (almost closed)

Rent - £1916.66
Rates - £405
Telecoms - £57
Card Terminal - £47
Wages - £1350


Business 2 – (Closed)

Rent - £750
Rates - £166

Business 3 –

Rent - £315
Rates - £15
Telecoms - £25
Wages - £550

Business 4 -

Wages - £900