Debt problem with a difference.

Smadga

Hi all been snooping in and out of the forum for a while and decided to pluck the courage and post my problem, i am currently £35,100 in debt which is made up of the following,
Northen Rock loan £17,000,
Alliance and Leicster loan £3,100,
Alliance and Leicster credit card £4,000,
Lloyds TSB loan £6,500 and a
Lloyds TSB Over draft £4,500 currently £4,350 od,
and a Lloyds TSB Credit Card £700,

the difference is due to a split with an ex girlfiend i live at home with my parents so only pay £70 a week to live here which covers food etc, my basic income for the month is £1136 so my outgoings are as follows,
Keep £280 a month
Car insurance £34 a month
Car Fuel approx £80 a month
Phone approx £20 a month.
Northern Rock £272 a month.
Alliance and Leicster loan £133 a month
Alliance and Lecister min payent on credit card £110 a month.
Lloyds TSB loan £141 a month
Lloyds TSB Credit card min paymetn approx £20
LLoyds TSB overdraft paying £25 a week to get it down.

So as you can see it doesnt balance out i'm paying out more than a earn and thats without even costs of new cloths or if i need anything else in that month, any suggestions please? I went to the citizens advice and all i was advised was to budget better as i have never missed any payments on any of the loans etc.

misspoppy

How have been coping up until now? Are these loans for things that you've bought together if so can your ex to be continue to contribute?

skint_spice

Maybe I worked it out wrong but I got incomings at £1136 and out at £1115 not much extra but at least it's less than you earn.

Eager_Elephant

Hi smadga,

I can see CAB's point of view but I also think you need to increase your income - is there anyway you could get a 2nd job?

I am concerned that you have no money for entertainment, presents, clothing .etc.

Your rent is also not the right amount, it would only be right if there were only 4 weeks in the month but that doesn't happen so do you pay £70 pw or £280pm. If you should pay £70pw then you need to pay your parents an average of £303.33 pm.

If you are struggling to pay your bills then you could contact Payplan or CCCS who offer advice and can set up debt management plans. The only problem would be that your credit rating will suffer and you may find it difficult in the future to get a mortgage (I assume you will not be staying with your parents forever)

EE

Eager_Elephant

skint-spice,

The OP says he is paying £25pw to overdraft making over £100 pm which is above his income. I assume therefore he pays overdraft what he can afford.

EEE

skint_spice

ahh, sorry I misread that.

rayday2

Is there an option of any payment breaks you can take in your loans to bang at the overdraft, second job possibly in the evenings if you get bar work it feels more social too. Can you ebay, or carboat anything again to throw at overdraft because that frees £100 and tackle the next one. What are the overdraft charges each month?

Storm

Smadga wrote: »

Northen Rock loan £17,000,
Alliance and Leicster loan £3,100,
Alliance and Leicster credit card £4,000,
Lloyds TSB loan £6,500 and a
Lloyds TSB Over draft £4,500 currently £4,350 od,
and a Lloyds TSB Credit Card £700,
What are the aprs on all these please and how long have the loans got to run?

basic income for the month is £1136

Keep £280 a month
Car insurance £34 a month This is high - make sure you shop around & go through Quidco to get the best deal when you renew
Car Fuel approx £80 a month Again, high - read Martin's article about cheapest driving to make sure you're getting the best deal on fuel & driving in the most fuel efficient way.
Phone approx £20 a month. This could come down - if you're on contract reduce the tariff or cancel & go onto PAYG
Northern Rock £272 a month.
Alliance and Leicster loan £133 a month
Alliance and Lecister min payent on credit card £110 a month.
Lloyds TSB loan £141 a month
Lloyds TSB Credit card min paymetn approx £20
LLoyds TSB overdraft paying £25 a week to get it down. = £100 pcm Is this an agreed figure with the bank or what you've decided yourself?

£1190 pcm

OK - the big question has got to be what has the money been spent on? Have you got anything you can sell to put towards debt repayments? Could you downgrade your car?

Put your debts into the snowball calculator at www.whatsthecost.com to see how long they will take to clear, and then what difference an extra few pounds each month makes (you'll be surprised!)

tostao

CAB should have advised you on all of the options, including advantages and disadvantages of bankruptcy, try another free advice service, start with national debtline, as a quick guide, if you can pay your debts off in 7 years, then DMP, if you have an asset to protect then IVA, 5 years, if you have nothing to lose then bankruptcy, 6 years. good luck