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Newbie currently abroad dealing with UK debt
ZenPanic
Posts: 7 Forumite
Hi all,
I've been reading MSE for years now but only just started looking on the forums. I hope it's ok for me to post here as I'm currently living abroad in another EU country, and some of my debt is in Euros. I've lived in the UK for most of my adult life and I feel it is my true home. I had to return to my native country for family reasons 2 years ago but my plan is to come back to the UK when it's possible, which is probably in 3-4 years time (partly due to those family reasons and partly due to not being able to afford another move for a while!).
Last winter I had my lightbulb moment when I realised that I had been going back and forth between my credit card limits and overdrafts to maintain all my debt. Most of it was amassed in my second marriage while living in the UK, and some of it when I moved here and had a lot of unexpected costs to cover. At first it felt insurmountable - I'm a single dad with no financial help from either of my ex partners. But I've taken the challenge on and I hope to be debt free by 2019 (when I'll be 42). That doesn't include my current mortgage, which is in a government scheme guaranteeing I get the full amount back when I move out without needing to find a buyer for the home (it's a Nordic model of part ownership) or my student loan which I am prepared to pay for longer.
My UK debts are (excluding my student loan):
Unsecured loan with Santander: £6,140 (orig. £13,000)
HSBC Mastercard: £3,355 (limit £3,500, APR 20,9%)
Nationwide Visa: £1,888 (limit £4,900, APR 15,9%)
Santander overdraft: £1,260 (limit £1,300, monthly overdraft fee £31 / £1 per day)
HSBC overdraft: £739 (limit £750, APR 19,9%)
And my Euro debts (excluding my mortgage):
Unsecured loan: 3,545€ (orig. 4,200€)
Visa with my bank: 1,475€ (limit 1,500€, APR 6,99%)
Ikea loan: 1,345€ (orig. 1,500€, APR 8,49%)
Altogether they come to around £18,000 depending on the exchange rate.
My main goals are obviously to pay the debts, but also to try to keep my UK credit score salvageable for when I return. Currently it's pretty low due to not being registered in any UK address and also for two missed payments on my unsecured loan last year. Since then I've always made sure I make at least the minimum payments somehow.
I haven't used my Nationwide CC in years, just paying it back from the full limit. All loans are just being paid back as I haven't wanted the option to raise the loan amount again. I have had to use my HSBC CC to make my student loan repayments several times, which is why it's so close to the limit, and my local CC is my emergency fund for food and the like so I haven't got it down yet. And my overdrafts are just going back and forth still, I send money to those accounts but then have to use the balance to pay for the CCs and loan, so they are constantly up to the limit.
It does feel hopeless at times, when I pay several hundred a month but the interest and fees keep racking up so the actual debt only goes down by a few hundred per month. I used my summer bonus to make extra payments to the credit cards and when I get my tax rebate (around 300€) that'll go on the CCs too. I am really trying to stop using the two CCs I still use because I know that that's really keeping the debt strong.
I don't know what my goal in posting this is! I guess I needed to write this all down and see if it's ok for me to be on this forum and if anyone can spot some really obvious things I should be doing that I haven't thought of....
I've been reading MSE for years now but only just started looking on the forums. I hope it's ok for me to post here as I'm currently living abroad in another EU country, and some of my debt is in Euros. I've lived in the UK for most of my adult life and I feel it is my true home. I had to return to my native country for family reasons 2 years ago but my plan is to come back to the UK when it's possible, which is probably in 3-4 years time (partly due to those family reasons and partly due to not being able to afford another move for a while!).
Last winter I had my lightbulb moment when I realised that I had been going back and forth between my credit card limits and overdrafts to maintain all my debt. Most of it was amassed in my second marriage while living in the UK, and some of it when I moved here and had a lot of unexpected costs to cover. At first it felt insurmountable - I'm a single dad with no financial help from either of my ex partners. But I've taken the challenge on and I hope to be debt free by 2019 (when I'll be 42). That doesn't include my current mortgage, which is in a government scheme guaranteeing I get the full amount back when I move out without needing to find a buyer for the home (it's a Nordic model of part ownership) or my student loan which I am prepared to pay for longer.
My UK debts are (excluding my student loan):
Unsecured loan with Santander: £6,140 (orig. £13,000)
HSBC Mastercard: £3,355 (limit £3,500, APR 20,9%)
Nationwide Visa: £1,888 (limit £4,900, APR 15,9%)
Santander overdraft: £1,260 (limit £1,300, monthly overdraft fee £31 / £1 per day)
HSBC overdraft: £739 (limit £750, APR 19,9%)
And my Euro debts (excluding my mortgage):
Unsecured loan: 3,545€ (orig. 4,200€)
Visa with my bank: 1,475€ (limit 1,500€, APR 6,99%)
Ikea loan: 1,345€ (orig. 1,500€, APR 8,49%)
Altogether they come to around £18,000 depending on the exchange rate.
My main goals are obviously to pay the debts, but also to try to keep my UK credit score salvageable for when I return. Currently it's pretty low due to not being registered in any UK address and also for two missed payments on my unsecured loan last year. Since then I've always made sure I make at least the minimum payments somehow.
I haven't used my Nationwide CC in years, just paying it back from the full limit. All loans are just being paid back as I haven't wanted the option to raise the loan amount again. I have had to use my HSBC CC to make my student loan repayments several times, which is why it's so close to the limit, and my local CC is my emergency fund for food and the like so I haven't got it down yet. And my overdrafts are just going back and forth still, I send money to those accounts but then have to use the balance to pay for the CCs and loan, so they are constantly up to the limit.
It does feel hopeless at times, when I pay several hundred a month but the interest and fees keep racking up so the actual debt only goes down by a few hundred per month. I used my summer bonus to make extra payments to the credit cards and when I get my tax rebate (around 300€) that'll go on the CCs too. I am really trying to stop using the two CCs I still use because I know that that's really keeping the debt strong.
I don't know what my goal in posting this is! I guess I needed to write this all down and see if it's ok for me to be on this forum and if anyone can spot some really obvious things I should be doing that I haven't thought of....
0
Comments
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Hi, and welcome
There is a link for a full SOA in the stickies thread. If you fill it in and post - people will offer suggestions. I'm quite new here myself but there are lots of really friendly, knowledgeable people around.Not giving up
Working hard to pay off my debt
Time to take back control
https://forums.moneysavingexpert.com/discussion/6290156/crazy-cat-lady-chapter-5-trying-to-recover-from-the-pandemic/p1?new=10 -
As crazy_cat_lady said you should do a statement of affairs..People on here (with more sense than me hopefully!) can give better advice when they have the full picture.
There's a few DFW's on here from different countries. Debt is debt whether it's Pounds, Euros or Krone!
I shouldn't laugh but your username did make me giggle. Hopefully you can get more zen and less panic soon enough.
Good luck!LBM-November 2019 - Total Debt £28,000/PAID!0 -
Hi there and welcome to MSE,
Dealing with debt abroad can be tricky and as you are struggling with debt outside of the UK too then I would suggest getting some free and reputable advice locally about those debts, what options you have and what the consequences of non-payment would be.
Once you have done your SOA if you find that there is not enough money to pay all of your minimum payments then you can consider reduced payment plans with the UK debts. I appreciate that you want to try and maintain your UK credit file, but if there is not enough money to pay everyone then you can only offer what you have, this will cause damage to your credit file but that can be rebuilt later…you will never really get debt free if you are using credit to pay for credit.
When you do reduced payments your creditors can consider suing you for the money owed (resulting in a CCJ). Please be aware that if your mortgage property is in the UK then your creditors can secure a CCJ on a property with a Charing Order – this does not mean you would lose your property. I would suggest speaking with a free UK based advice service about this in more detail before you begin any reduced payments.
Laura
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
Thank you for your replies! I'm so glad to be here
My mortgage/property is in my current country and my local debts are much easier to handle as there's much less of them (apart from the mortgage but even that is pretty low per month) - it's the payments to the UK that I struggle with partly because the exchange rate can be pretty horrid these days.
I did my SOA - I've converted the UK debts to euros as there were less numbers to convert that way, so this is all euros:
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.................... 0
Monthly Income Details
Monthly income after tax................ 2400
Partners monthly income after tax....... 0
Benefits................................ 240
Other income............................ 0
Total monthly income.................... 2640
Monthly Expense Details
Mortgage................................ 235
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 985
Council tax............................. 0
Electricity............................. 25
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 0
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 20
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 50
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 25
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 80
Haircuts................................ 30
Entertainment........................... 100
Holiday................................. 0
Emergency fund.......................... 0
Student loan............................ 150
Total monthly expenses.................. 2030
Assets
Cash.................................... 0
House value (Gross)..................... 41000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 41000
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 39500....(235)......1.755
Total secured & HP debts...... 39500.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Fellow Finance.................3545......135.......19.91
Ikea...........................1345......47........8.49
Local Visa.....................1475......45........6.986
HSBC overdraft.................1009......0.........19.9
Santander overdraft............1720......0.........2.5
Nationwide Visa................2576......60........15.9
HSBC Visa......................4576......120.......20.9
Santander loan.................8387......389.......11.9
Total unsecured debts..........24633.....796.......-
Monthly Budget Summary
Total monthly income.................... 2,640
Expenses (including HP & secured debts). 2,030
Available for debt repayments........... 610
Monthly UNsecured debt repayments....... 796
Amount short for making debt repayments. -186
Personal Balance Sheet Summary
Total assets (things you own)........... 41,000
Total HP & Secured debt................. -39,500
Total Unsecured debt.................... -24,633
Net Assets.............................. -23,133
Created using the SOA calculator at stoozing . com.
Reproduced on Moneysavingexpert with permission, using other browser.
I'm very lucky as my internet, cable TV and mobile phones are paid by my employer, I don't have a landline and there's no longer a TV license needed where I live. I also don't need to pay building insurance as it's taken care of by the part ownership scheme, water is included in the maintenance and there is no gas or oil. My son gets a free travelcard from school. And lastly no council tax listed as all taxes are taken directly from my salary.
As for the other stuff, I see right away that "entertainment" is taking too much. It's mostly eating out at work, so I need to start bringing lunches in more often... but even without that outgoing, I'm still falling short 0 -
Management charge (leasehold property).. €985 -
is that definitely each month?..like a service charge? Sounds so expensive!
LBM-November 2019 - Total Debt £28,000/PAID!0 -
dirtycredit wrote: »Management charge (leasehold property).. €985 -
is that definitely each month?..like a service charge? Sounds so expensive!
Yeah I debated whether to put it down as rent, it's the part ownership scheme my house is part of. I have a mortgage for 15% of the house price (which I pay 235€ per month), and the housing company owns the other 85%, on which I pay also into a shared mortgage that they hold on top of the service charges. I know it sounds stupid to take out a mortgage when already in lots of debt but actually with this scheme my monthly living costs are cheaper than if I were renting, and this way I have a big enough house for my sister to come stay when she needs help (she's partially paralysed).0 -
Oh yes I see. Definitely worth getting a mortgage if you would be paying the same in rent anway! I was the same with my mortgage/debt..I have loads of debt but I live in London so I'd be paying double what my mortgage is in rent for the same size property so I know what you mean.LBM-November 2019 - Total Debt £28,000/PAID!0
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I don't know where you're living, or whether the costs for food are generally high, but £300 pm for food for one adult and a child seems very high to me.
Consider buying a slow cooker, they're a great (and quick) way to make cheap cuts of meat plus a load of veg into cheap and tasty casseroles/stews.
Have a look on the Old Style Board for ideas on cooking from scratch and saving money. You should be able to cut £100 pm easily from your budget.I let my mind wander and it never came back!0 -
ZenPanic could you maybe give an idea of what a few things (eg some standard groceries) cost where you are? It's hard to say whether €300 is high or low without knowing the cost of living in your country.
Haircuts seem like a lot for a man and a child if that is €30 every month. Could you get a pair of clippers and cut your own, or go longer between them? Are there any budget barbers or hairdressing colleges around?
Presents seem really high at €80/month - are they actually necessary or could you cut back? That plus your entertainment is your monthly deficit.0 -
The 30€ is for one haircut for my son every month plus hair gel (at 25€ it's the cheapest barbers I've been able to find + 5€ hair gel, tho that's not needed every month). I shave my own head and I used to cut his hair but I'm not particularly good at it and he's 15 so starting to be very aware of his looks...
The presents are mostly from Christmas plus my son's birthday, I took the totals of those and divided by 12 to get it down as a monthly. I guess I should look at how much I'm spending on those, I tend to buy something big for my son and also for my sister every year...
As for food, it is pretty expensive in the Nordic countries (I'm in Finland) but I'm also not very good at forward planning so I should plan my shopping better. I think we do get treats like ice cream too often and my son (being a teenager) eats a lot as he's shot up to my height lately... The slow cooker sounds like a good idea, thanks!
Some groceries average prices:
Milk, 1 litre - 1€
Loaf of bread - 2-3€
Cheese per kilo - 10-15€
Butter/margarine, 400g tub - 2€
Orange juice, 1 litre - 1-2€ (1€!for the "tesco value" equivalent, 2€!for something more fresh)
White flour, 1kg - 1€
Tin of tuna - 2€
Carrots, 1kg - 2,5€
Sugar, 1kg - 1€
Packet of biscuits - 2-3€
Share bag of crisps - 2,5-3€
Toilet paper, 8 rolls - 3,5€
I rarely buy meat as I'm vegetarian, my son eats meat at school dinners and sometimes I'll buy some for him from the discounted bin.0
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