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Why can't I do this? Please could someone look at my info and tell me what to do :(

edited 30 November -1 at 1:00AM in Debt-Free Wannabe
30 replies 3.4K views
twirlywoootwirlywooo Forumite
8 Posts
edited 30 November -1 at 1:00AM in Debt-Free Wannabe
I have got myself in a really big mess and I am struggling to sort it out. I am a lone parent and need to get my game together - please could someone look at my info below and just tell me what to do? Or point me in the direction of some info to help me? Thank you in advance.

Some background info, I have appalling credit rating but no ccjs. Don't think I could get any more debt though so no chance of moving cc debts about I don't think. I bought a franchise a year ago, and is was going really well - until I lost my biggest client last month and am now £700 down per month. I am tied into the franchise for another 4 years. My son starts nursery in Sept so I could potentially get an employed job then, but will still have franchise fees. Lastly, I currently live in a house owned by my mum. I can stay here with no over heads until April 2016 at the latest (so another 10 months) I then need to be in a position to pay rent and all general bills again.

Ok - thank you for reading this far!!!

My income is:

£153.09pw - working tax credit (663.39pm?)
£20.70pw - child ben (89.70pm?)
£250pm - Maintenance. my ex is putting aside an extra £150pm also, but I get this in a lump sum in April.
£134 - regular wage (reduced from £834 since I lost client)
£100 - this is aprox and is ad hoc wages from occasional work. Not reliable.

£1237.09 in total per month.

Outgoings:

£46.73 pm - car insurance
£12.68 - car tax
£9.43pm - life insurance
£10 - moorcroft for debt
£10 - lowell for debt
£12.80 - JD williams for debt
£300 - franchise fees
£50 - Virtual office costs (a binding requirement of my franchise)
£90?? - Capital 1 credit card
£70?? - Barclaycard cc
£70?? - Vanquis CC
£60 - vodafone mobile tied into for another 13 months

Total - 741.64 just on direct debits

I would say I spend aprox:

£20-30pw - petrol (130pm max)
£40 pw on food / incidentals for me and 3 year old (173.33 pm)
£30pw on entertaining the toddler and me (130pm) but it depends on if I have the money.

So an extra - £433 a month there.

Debts

Moorcroft - 980.77
Lowell - 442
Capital one card - £900 balance on £1000 card
Barclaycard - £830 balance on £800 card
Vaquis - £520 balance on £500 card.

I honestly feel so sick writing this down. My income comes in in weekly amounts, so one big bill wipes it all out and I never get a chance to get ahead of myself. I am always over drawn (I dont actually have an overdraft though) and it scares me that if my son needed something I would be totally up the creek without a paddle.

Please tell me what I should do next. I feel like I have got myself into such a mess and my son deserves better. I feel sick, it looks hopeless doesn't it?
«13

Replies

  • rockm87rockm87 Forumite
    847 Posts
    Wedding Day Wonder
    ✭✭✭
    Hi, and welcome.
    Don't despair you are in the right place, and the lovely people here offer great advice.
    I would however complete this http://www.stoozing.com/calculator/soa.php

    just to ensure you have thought about everything! and post it up and get some good feedback.
    Total Debt in Feb 2015 - £6,052 | DEBT FREE 26/05/2017
    Swagbucks £200 Valued Opinions £100
    Dave Ramsey Baby Step 2 | Mr Money Mustache Addict
  • Thank you, I will have a look at that now! I'm sat surrounded by bank statements and bits of paper with working outs on so no time like the present!
  • I think this is it? I have left car related expenses and birthday stuff blank - I currently have no household expenses in terms of rent / council tax / bills etc until April 2016 at the latest.

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household......... 1
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 234
    Partners monthly income after tax....... 0
    Benefits................................ 753.09
    Other income............................ 250
    Total monthly income.................... 1237.09


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 0
    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 60
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 173.33
    Clothing................................ 0
    Petrol/diesel........................... 130
    Road tax................................ 12.68
    Car Insurance........................... 46.73
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 130
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 9.43
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    contact lenses.......................... 20.5
    Total monthly expenses.................. 582.67



    Assets

    Cash.................................... 119
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 500
    Other assets............................ 0
    Total Assets............................ 619


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly...APR
    Moorcroft......................980.7.....10........0
    Lowell.........................442.......10........0
    JD Williams....................184.......12.8......0
    Barclaycard....................830.......70........0
    vanquis........................520.......70........0
    Capital one cc.................900.......90........0
    Total unsecured debts..........3856.7....262.8.....-



    Monthly Budget Summary

    Total monthly income.................... 1,237.09
    Expenses (including HP & secured debts). 582.67
    Available for debt repayments........... 654.42
    Monthly UNsecured debt repayments....... 262.8
    Amount left after debt repayments....... 391.62


    Personal Balance Sheet Summary
    Total assets (things you own)........... 619
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -3,856.7
    Net Assets.............................. -3,237.7
  • Oh Gosh, I'm so sorry - Missed franchise costs off the earlier copy. This one is updated. I'm sorry for confusion!

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household......... 1
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 234
    Partners monthly income after tax....... 0
    Benefits................................ 753.09
    Other income............................ 250
    Total monthly income.................... 1237.09


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 0
    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 60
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 173.33
    Clothing................................ 0
    Petrol/diesel........................... 130
    Road tax................................ 12.68
    Car Insurance........................... 46.73
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 130
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 9.43
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    Franchise costs......................... 350
    contact lenses.......................... 20.5
    Total monthly expenses.................. 932.67



    Assets

    Cash.................................... 119
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 500
    Other assets............................ 0
    Total Assets............................ 619


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly...APR
    Moorcroft......................980.7.....10........0
    Lowell.........................442.......10........0
    JD Williams....................184.......12.8......0
    Barclaycard....................830.......70........0
    vanquis........................520.......70........0
    Capital one cc.................900.......90........0
    Total unsecured debts..........3856.7....262.8.....-



    Monthly Budget Summary

    Total monthly income.................... 1,237.09
    Expenses (including HP & secured debts). 932.67
    Available for debt repayments........... 304.42
    Monthly UNsecured debt repayments....... 262.8
    Amount left after debt repayments....... 41.62


    Personal Balance Sheet Summary
    Total assets (things you own)........... 619
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -3,856.7
    Net Assets.............................. -3,237.7
  • edited 30 June 2015 at 2:13PM
    bexster1975bexster1975 Forumite
    1.6K Posts
    Part of the Furniture 1,000 Posts Photogenic Bake Off Boss!
    ✭✭✭
    edited 30 June 2015 at 2:13PM
    Hello

    I am by no means an expert here, they will be along shortly I'm sure. A couple of immediate initial thoughts. Sorry if these sound brutal, but you clearly need to reduce costs.

    You can't afford a £60 per month mobile phone. You need to talk to the provider and negotiate down ASAP.

    £170 odd pounds groceries for you and a little one will be easy to reduce. The old style board can help there.

    Just your fuel and car tax costs you about £177 a month. You earn £234 a month. Honestly, if my car cost me about 70% of my salary, I would quit work and sell my car!! Unless the car is vital for other than work you need to solve this one way or another.

    Commenting on your debts is hard without interests rates. You really need these to work out where to put the savings made from above ( I'm sure just looking at groceries and mobile you could save £100 a month without breaking a sweat, more if you are not on a contract with the phone and can/will cook from scratch.) Not sure what the franchise payment is all about as it's clear you are in receipt of benefits so not sure what to say there other than it takes more than 25% of your total income.

    At least it's a start. Hope it helps

    Good luck

    Bexster:)
  • amorgeamorge Forumite
    386 Posts
    twirlywooo wrote: »
    Oh Gosh, I'm so sorry - Missed franchise costs off the earlier copy. This one is updated. I'm sorry for confusion!

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household......... 1
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 234
    Partners monthly income after tax....... 0
    Benefits................................ 753.09
    Other income............................ 250
    Total monthly income.................... 1237.09


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 0
    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 60 - you said you have 12 months left, normally you can downgrade 1/2 way through your contract so can possibly be cheaper from next month?
    TV Licence.............................. 0 - do you not have a TV?
    Satellite/Cable TV...................... 0
    Internet Services....................... 0 - no internet?
    Groceries etc. ......................... 173.33
    Clothing................................ 0
    Petrol/diesel........................... 130 - very very high, can this be reduced?
    Road tax................................ 12.68
    Car Insurance........................... 46.73
    Car maintenance (including MOT)......... 0 car but no maintenance?
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 130what are these costs?
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0whats your housing arrangements as I imagine at least contents insurance is needed?
    Contents insurance...................... 0
    Life assurance ......................... 9.43
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    Franchise costs......................... 350
    contact lenses.......................... 20.5
    Total monthly expenses.................. 932.67



    Assets

    Cash.................................... 119
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 500
    Other assets............................ 0
    Total Assets............................ 619


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly...APR
    Moorcroft......................980.7.....10........0
    Lowell.........................442.......10........0
    JD Williams....................184.......12.8......0
    Barclaycard....................830.......70........0
    vanquis........................520.......70........0 have they frozen your interest?
    Capital one cc.................900.......90........0
    Total unsecured debts..........3856.7....262.8.....-



    Monthly Budget Summary

    Total monthly income.................... 1,237.09
    Expenses (including HP & secured debts). 932.67
    Available for debt repayments........... 304.42
    Monthly UNsecured debt repayments....... 262.8
    Amount left after debt repayments....... 41.62


    Personal Balance Sheet Summary
    Total assets (things you own)........... 619
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -3,856.7
    Net Assets.............................. -3,237.7


    Hi,

    Welcome :) I'm new too but have just put a few things down on your SOA. Are all your CC's interest free?

    Good luck
    x
    LBM 18/06/15 - [STRIKE]£20,276.64[/STRIKE] :eek:
    01/07/15 - £19,897.02
  • glentoran99glentoran99 Forumite
    5.8K Posts
    Debt-free and Proud!
    ✭✭✭✭
    Hello

    I am by no means an expert here, they will be along shortly I'm sure. A couple of immediate initial thoughts. Sorry if these sound brutal, but you clearly need to reduce costs.

    You can't afford a £60 per month mobile phone. You need to talk to the provider and negotiate down ASAP.

    £170 odd pounds groceries for you and a little one will be easy to reduce. The old style board can help there.

    Just your fuel and car tax costs you about £177 a month. You earn £234 a month. Honestly, if my car cost me about 70% of my salary, I would quit work and sell my car!! Unless the car is vital for other than work you need to solve this one way or another.

    Commenting on your debts is hard without interests rates. You really need these to work out where to put the savings made from above ( I'm sure just looking at groceries and mobile you could save £100 a month without breaking a sweat, more if you are not on a contract with the phone and can/will cook from scratch.) Not sure what the franchise payment is all about as it's clear you are in receipt of benefits so not sure what to say there other than it takes more than 25% of your total income.

    At least it's a start. Hope it helps

    Good luck

    Bexster:)

    Just Over £40 a week? for an adult and a child? Not sure there would be much room for saving there
  • Oh Thank you!

    Ok, hang on and I will go through the points!

    I am in receipt of working tax credits - my wage was £700 higher up until a few weeks ago but my biggest client has just left. I am tied into this franchise business for another 4 years and I need my car to get to clients house or I would love to get rid of it!

    I don't know what car maintenacne costs are..... it broke down last month and cost me £600 to repair, but I wouldn't know on a monthly basis what to say for this category?

    Tv / council tax / internet / house insurance/ all bills are included at the moment until April 2016 - I am living in a relatives house while they are away. I am really so fortunate right now, but need to be in a better position for April as I will need to move out then.

    Mobile phone: I would love to reduce this. Do I just call them and explain I am struggling?

    Interest rates on cc's..... I don't actually know. God this is shameful. I know they are all high in the 30% regions, but am not sure what exactly. I will see if I can dig this out.

    Food: I cook from scratch at the moment - I have included babywipes / shampoos / cleaning products in with this. I still think I can get it down a bit though, I was trying to be honest about what it was currently rather than taking just a good week.

    Petrol: I need the car for work so this, if anything, will go up as I try and get new clients. My son is at nursery school 30 mins away too, so from Sept this will be an additional cost, until I can manage to move us in April.

    Additional Child care cost as £130pm is really incidentals. My mum does my childcare for free so I try and take her for a meal, pay back soft play costs etc. It is cheaper than official childcare, but could be cut back to a degree too.

    Right, i will try dig out interest rates and call vodafone. Thank you all so much. I am feeling so scared. I hate being self employed!
  • bexster1975bexster1975 Forumite
    1.6K Posts
    Part of the Furniture 1,000 Posts Photogenic Bake Off Boss!
    ✭✭✭
    Hi

    I would add on a more positive note, can you do anything to attract more custom? I realise it would need to be small financial cost and without knowing more about the franchise it's hard to be specific but there must be some things you can do. Do you know why you lost a big client? Any chance of getting them back?

    Bexster :)
  • bexster1975bexster1975 Forumite
    1.6K Posts
    Part of the Furniture 1,000 Posts Photogenic Bake Off Boss!
    ✭✭✭
    I agree car maintaince costs are a pig to work out just using the example you give though means £50 per month across a year for £600 bill ( nightmare!) also MOT ( about £50) plus any other servicing/ ongoing maintenance. A spending diary helps with these sorts of things.
    I don't think I would tell mobile company I was struggling, just that you need to reduce spending and need a better package ( fewer mins/texts/less data). Re interest rates, don't be ashamed, you would be astonished how many people come on here and don't know. I assumed that rather than the optimistic assessment by amorge! Quite right about being honest about grocery spends. Good that you cook from scratch. I'm certain old stylerrs can help you cut the bill by £50 a month minimum!
    Don't be scared, you've done the hard part! Weird as I plan to be fully self employed within the next 6 months!!
    Good luck with Vodafone

    Bexster:)
This discussion has been closed.