Needing Advice - I think so anyway.

NeedingAdvicePlease

Good Morning All


I'm currently in debt by around 16K.


I meet the minimum payments normally, but I tend to borrow from one to pay another. Or draw money from our business as my wages (from employment) will not cover it.


The business is in okay shape, but my drawing on it is impacting because sometimes it cannot cover it's own costs as a result.


I'm considering an IVA, I had a debt management plan before, which reduced my debt, I reshuffled everything and then started the whole process again, mainly because I was still in debt and not able to apportion money properly.


So my main question is, whilst I can still pay should I be looking for a debt remedy that involves IVA etc? I feel that I owe the money and should pay, but I also feel that I'll be dead before this happens and it will ruin our lives including my kids.


Thanks

rockm87

Hi and welcome.

It seems you need to address your debt issue head on , and not just 'pass the buck' as it were. No point in having DMP and then going back into debt.

You need to figure out why you are still in debt, you are obviously very happy to continually spend more than you earn.

You could always put together a statement of affairs, and let others on this forum advise you and how your can manage your money better?

That would be my immediate suggestion. http://www.stoozing.com/calculator/soa.php

NeedingAdvicePlease

Thanks I'll try and find some time to do that. I'm at work at the moment.


I considered going bankrupt because I just want to be free from the stress, but I have a house and don't want to loose it for obvious reasons.

rockm87

I can understand that, but some people on here have bounced back from worse, so I think before you consider drastic measures you need to look at your situation carefully.

I'm sure everyone would like to be'debt and 'stress free' but it doesnt always work like that!

NeedingAdvicePlease

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1650
Partners monthly income after tax....... 150
Benefits................................ 400
Other income............................ 0
Total monthly income.................... 2200
Monthly Expense Details
Mortgage................................ 200
Secured/HP loan repayments.............. 0
Rent.................................... 420
Management charge (leasehold property).. 0
Council tax............................. 120
Electricity............................. 100
Gas..................................... 85
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 45
Mobile phone............................ 50
TV Licence.............................. 12
Satellite/Cable TV...................... 40
Internet Services....................... 0
Groceries etc. ......................... 400
Clothing................................ 0
Petrol/diesel........................... 80
Road tax................................ 10
Car Insurance........................... 50
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 200
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 18
Buildings insurance..................... 0
Contents insurance...................... 25
Life assurance ......................... 35
Other insurance......................... 35
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1960

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 2000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 35000....(200)......0
Total secured & HP debts...... 35000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card ...................10000.....220.......0
Credit Card ...................4500......175.......0
Credit Card ...................1200......50........0
Credit Card ...................250.......15........0
Total unsecured debts..........15950.....460.......-

Monthly Budget Summary
Total monthly income.................... 2,200
Expenses (including HP & secured debts). 1,960
Available for debt repayments........... 240
Monthly UNsecured debt repayments....... 460
Amount short for making debt repayments. -220
Personal Balance Sheet Summary
Total assets (things you own)........... 2,000
Total HP & Secured debt................. -35,000
Total Unsecured debt.................... -15,950
Net Assets.............................. -48,950



Reproduced on Moneysavingexpert with permission, using other browser.[/i]

NeedingAdvicePlease

Just to note the children's expenses are after school clubs etc.

sourcrates

Hi,
First off, how old are the credit card accounts, do any of them pre-date April 2007 at all ?

aymz1983

your gas and electric seem way to high each month! We're on a pre-pay meter (notorious for being more expensive) and ours works out to about 86 a month. Gas is usually about 400 a year (33 month) (again, pre-payment meter) because there really isn't any need for heating on for a lot of the year. Even though the house isn't very economical with heating. Thats with 5 people in the house.
Grocieries could be cut down a little too - again, for 5 of us I spend about £300 a month and I'm still looking for ways to get it down further.
45 for a landline telephone seems steep - as well as the 40 for satellite. Is this altogether in practice, do you have all of it with with same provider? If so, and you're out of contract, have a look what else is out there. I know people mention talk talk or plusnet for broadband which is ridiculously cheap for new people. perhaps look at reducing satellite packages or going to freeview/freesat rather than paying month to month.
How long is left on mobile contract? Sim ony deals can be very low (around £7-8 a month) for all inclusive. Certainly better than £50 a month!

You do need to look at your spending habits though, and try to get into new habits, otherwise you will (as you've found out) be in the same position in another few years. DMP's/IVA's are only a short term solution. You need to address the cause to get to the root of it.

rockm87

I can definitely see room for improvement, and some useful suggestions already!

Is your partner in a position to earn more?

Do you have anything you could sell?

I'd switch out your tv and get internet and netflix....excellent for kids too!

compare all your bills online and see if you can get cheaper deals...my contents insurance is only £5 a month!

I honestly think if you put your mind too it you can snowball this debt out of here for good!!

National_Debtline

Hi there,


I think you are moving in the right direction but if you are having to draw more money out of your business than it can handle then I think you would benefit from speaking to Business Debtline.


You should make sure that your living and business expenses are manageable first - then, if there is not enough surplus money for the personal credit debts, you can look at negotiation options. Be careful of options like IVA and bankruptcy, especially if you have a home with equity in it (these options are most likely to put your home at risk).


I would suggest speaking to Business Debtline as they can look at the whole situation with you (business and personal) and help construct an even more detailed SOA and plan of action to deal with the debts. Their number is 0800 197 6026 or www.businessdebtline.org


Laura
@natdebtline