Absolutely terrified and in a jam

amorge

I've been lurking for a while whilst summing up the courage to face my debt problems. I am currently in approx £20k worth of CC & store account debt, there is no one to blame but me and my shopping habits - I think I'm a shopaholic

I will post my SOA on here later this evening once home as I want to make sure I have accurate debt figures.

I'm a single parent with a child at Uni; currently home for the summer and a 17 year old who has just completed year 1 of her A Levels. I have been single for 4 years but still spend as if there are 2 wages coming into the household.

I was doing OK but 2 months ago found out my Working Tax Credit of £180 per mth had stopped, I am also paying back an overpayment of £2k to the tax credits people - they take £15 per week from me, I have been trying to negotiate this but gave up over 1.5 hours on the phone only to be cut off :mad:

I don't know whether to go down the DMP route or not, I am hoping once my SOA is posted someone might be able to advise. I went onto Stepchange website who advised I told assets; these being family heirloom jewelry that I can 100% not sell - my parents would be mortified.

Feeling awful, down the whole time, cancelling going out with friends which is a good thing as I'm not spending money. I'm so cross that I've allowed myself to get into this position. I tried a 0% BT card but was rejected due to the amount of credit I have in my name

Not sure there's a light at the end of the tunnel

Tixy

Hi and welcome to the forum.

Putting together the SoA will help you get a better picture on your finances and then people will be able to better advise on what options may be suitable for you.

In terms of family heirlooms of value, if you do end up entering a DMP then you could simply ignore it and its value. If you consider a IVA or bankruptcy then obviously the value of those assets will be relevant.

Once you have a plan in place I am sure you will feel better able to tackle your debt.

Bobarella

Hi amorge
Sorry to hear it's so hard for you. That must have been so frustrating for you trying to negotiate a deal only to be cut off. Can you take on any extra employment for a short while to try and sort things out a little or is that just not possible? Either way sounds rough.

Bob

rockm87

Hi, I agree, put together a SOA.

If you are an addict, try to get some help with that!

Alternatively try to get addicted to saving money, being on a budget and getting inspired to kick your debt to the gutter. trust me, that completely changed my outlook from spending!

amorge

rockm87 wrote: »

Hi, I agree, put together a SOA.

If you are an addict, try to get some help with that!

Alternatively try to get addicted to saving money, being on a budget and getting inspired to kick your debt to the gutter. trust me, that completely changed my outlook from spending!

Hi, I haven't spent a penny for over 2 weeks now on anything that's not necessary - I think it's just when I feel a bit rubbish I buy something to cheer myself up. I've cut up the cards now and don't actually want to spend

amorge

Household Information[/b]
Number of adults in household........... 1 most of the time - 2 at the mo while eldest at home from Uni
Number of children in household......... 1 - 17 year old so basically adult
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1333
Partners monthly income after tax....... 0
Child Tax Credit & Child Benefit........ 280
Other income............................ 0
Total monthly income.................... 1613

Monthly Expense Details
Mortgage................................ 250
Secured/HP loan repayments.............. 316
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 113
Electricity............................. 107 - I have questioned this with company as v high but I'm on the lowest tarrif & recently switched through energy club on here
Gas..................................... 0 - included with electric
Oil..................................... 0
Water rates............................. 50
Telephone (land line)................... 10
Mobile phone............................ 25.98 - x2 SIM only contracts
TV Licence.............................. 12.12
Satellite/Cable TV...................... 20 - Sky contract expires in Feb
Internet Services....................... 0 - on a free deal with Sky
Groceries etc. ......................... 250
Clothing................................ 0
Petrol/diesel........................... 70
Road tax................................ 1.75
Car Insurance........................... 60 - seems high but for me & 2 young drivers
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 20
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1405.85


Assets
Cash.................................... 0
House value (Gross)..................... 320000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 30000 - family heirlooms
Total Assets............................ 350000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 29640....(250)......1.5 - 11 years left
Secured Debt.................. 29672....(181)......3.5 - 24 years left
Hire Purchase (HP) debt ...... 7817.....(135)......0
Total secured & HP debts...... 67129.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................10000.....250.......0
Barclaycard (2)................4700......112.......18.9
Next Directory.................120.......5.........24.9
Shop Direct ...................2800......20........0
Barlcays Finance...............920.......71.5......14.9
Santander......................2487......30........0
Total unsecured debts..........21027.....488.5.....-


Monthly Budget Summary
Total monthly income.................... 1,613
Expenses (including HP & secured debts). 1,405.85
Available for debt repayments........... 207.15
Monthly UNsecured debt repayments....... 488.5
Amount short for making debt repayments. -281.35

Personal Balance Sheet Summary
Total assets (things you own)........... 350,000
Total HP & Secured debt................. -67,129
Total Unsecured debt.................... -21,027
Net Assets.............................. 261,844

amorge

went home at lunch and got all the debt details I know many of you will say sell the house but that's not an option due to trust fund etc. I also owe my parents £40k that I have to repay in 8 years time (0%) but haven't included that as it's far away and I will sell the house for that.
I have £0 equity in the car, went to the garage with it last weekend, there's 23 months left on the lease. I could hand back but I'd owe them money

Any thoughts?

National_Debtline

Hi Amorge,

Your SOA looks well balanced, it’s good to check you have the best deals where you can and you seem to be budgeting well on your household bills. You are not required to sell your assets to deal with the debts – that is a choice - and if your car is affordable you don’t need to terminate it (if you do just make sure you follow the correct process in relation to the type of agreement).

So from what you have posted on this thread so far I would say your options could be to negotiate with your debts yourself or use a free Debt Management Plan. You will need to stay away from options like Bankruptcy and IVA’s because of your assets as Tixy said. To try and keep things in context - if you were able to get all of the interest and charges frozen and paid approximately £207pcm against £21,000 then it would take approximately 8.5 years to be debt free. I hope that helps,

Laura
@natdebtline

amorge

IS there a standard letter I can send to creditors to discuss payments if I negotiate the debts myself?
Thanks, I have had a look on the forum but couldn't see one.

MoneyMission2015

amorge wrote: »

Household Information[/b]
Number of adults in household........... 1 most of the time - 2 at the mo while eldest at home from Uni
Number of children in household......... 1 - 17 year old so basically adult
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1333
Partners monthly income after tax....... 0
Child Tax Credit & Child Benefit........ 280 - presumably this will stop in the next year or 2 so you really need to start thinking of how you're going to cover this
Other income............................ 0
Total monthly income.................... 1613

Monthly Expense Details
Mortgage................................ 250
Secured/HP loan repayments.............. 316
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 113
Electricity............................. 107 - I have questioned this with company as v high but I'm on the lowest tarrif & recently switched through energy club on here - go round switching things off, turn heating off at this time of year. Our gas & electric combined is £65 per month & we're a family of 4, in a detached house so no heat coming through from any adjoining neighbours.
Gas..................................... 0 - included with electric
Oil..................................... 0
Water rates............................. 50 - this seems high, we're family of 4 on water meter & pay 35 per month
Telephone (land line)................... 10
Mobile phone............................ 25.98 - x2 SIM only contracts
TV Licence.............................. 12.12
Satellite/Cable TV...................... 20 - Sky contract expires in Feb
Internet Services....................... 0 - on a free deal with Sky
Groceries etc. ......................... 250 - quite high for just 2 people most of the year, this can be cut down quite a bit. Your eldest is now home for the summer so could they work over the summer & contribute towards this.
Clothing................................ 0
Petrol/diesel........................... 70
Road tax................................ 1.75
Car Insurance........................... 60 - seems high but for me & 2 young drivers - as your kids are older could they get part time jobs to help towards paying this?
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 20
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1405.85


Assets
Cash.................................... 0
House value (Gross)..................... 320000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 30000 - family heirlooms
Total Assets............................ 350000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 29640....(250)......1.5 - 11 years left
Secured Debt.................. 29672....(181)......3.5 - 24 years left
Hire Purchase (HP) debt ...... 7817.....(135)......0
Total secured & HP debts...... 67129.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................10000.....250.......0
Barclaycard (2)................4700......112.......18.9
Next Directory.................120.......5.........24.9
Shop Direct ...................2800......20........0
Barlcays Finance...............920.......71.5......14.9
Santander......................2487......30........0
Total unsecured debts..........21027.....488.5.....-


Monthly Budget Summary
Total monthly income.................... 1,613
Expenses (including HP & secured debts). 1,405.85
Available for debt repayments........... 207.15
Monthly UNsecured debt repayments....... 488.5
Amount short for making debt repayments. -281.35

Personal Balance Sheet Summary
Total assets (things you own)........... 350,000
Total HP & Secured debt................. -67,129
Total Unsecured debt.................... -21,027
Net Assets.............................. 261,844

I made a few notes above just to give you some ideas. There doesn't seem to be many areas to cut & you have a big shortfall to cover, plus as I said above I assume in a few years you will no longer get child benefit or tax credits, so you will then have to find out how to replace that too. I don't know an awful lot about DMP's but I can see you can't continue the way you are as you are just going to get further in to debt.


Good luck


x

amorge

Thanks Moneymission2015
Tax credits will stop next summer, I'm hoping the youngest goes to Uni too, should reduce some bills.
The gas/electric is the bane of my life. We have no heating on the moment, water heated 2 hours in the morning & 3 in the evening. I think it's all the small things; phone/laptop chargers, music systems etc.
I am on a water meter, we pay one company £37 and one £13 so can't get any cheaper.
The groceries are for the 3 of us, I should have probably put £200 which is for the 2 of us, that includes all lunches and pet food.
I'm hoping the car insurance will decrease in September due to the removal of daughter going back to uni.

The eldest is working some of the summer but has to do a 3 week spanish intensive course in July, this is part of her degree, she has paid for herself to go to Costa Rica and all the money she's earning is going towards that. In September she is off to China for a year (also part of her degree) and is frantically saving for that, I can't ask her to contribute too much as she is 1) hardly here and 2) saving for her year living out there.
DD2 works a saturday job but off her own back is paying for braces on her teeth privately, most of her wage goes onto the braces and her petrol when using the car.