Where can I cut back?

Gnomes

Hello all

After a relationship breakup (12 years) late last year, I had to move back in with my mum.
I'm desperate to move out, looking at house share, but with debts of £25,000 + thanks to my stupidity in my 20's and my exes gambling.

I pay her rent of £250 per month, this incs all bills but food.
I earn roughly £650 per month.
I got in touch with CAB and they have been great, with their help I'm no longer pay interest on my debts.
I need a car to get to work.

I really need to move out (different area) and find new job, how can I do this when in so much debt?
Then how do I start paying off my debts?

Thanks all

ellesbellesxxx

Hi,
Well done for wanting to tackle your debts...
To advise you properly it is best to see where else does your £400 money go each month?
If you could post a SOA (Statement of Affairs) people will advise you further.. is there any chance of earning more in your current job?
Once we have a clearer picture, it will be easier to advise you.

Gnomes

Thank you for the reply.
There is very little chance of me earning extra in the job I'm in, hence looking for a new one.
£400 goes on:
£125 petrol, mot, car tax etc.
£130 Food, Cat food, vets bills, mobile phone.
£108 on debts
This leave me with £37 per month ish, for clothes/shoes/ birthdays etc
I always try and buy in charity shops when I can.
I rarely eat out or go out, don't drink/smoke.
I feel like I have no life.

Thanks

HappyMJ

Gnomes wrote: »

Thank you for the reply.
There is very little chance of me earning extra in the job I'm in, hence looking for a new one.
£400 goes on:
£125 petrol, mot, car tax etc.
£130 Food, Cat food, vets bills, mobile phone.
£108 on debts
This leave me with £37 per month ish, for clothes/shoes/ birthdays etc
I always try and buy in charity shops when I can.
I rarely eat out or go out, don't drink/smoke.
I feel like I have no life.

Thanks

That's because you only earn £650 per month. To have a life in this country you need to earn an amount equivalent to over 25's JSA (£73.10 per week - £317 per month) plus enough to cover rent (£250 per month), council tax (included in rent) and travel costs (£125 per month) plus debt repayments (£108 per month).

Basically you need £800 per month just to survive very frugally. I would negotiate with your creditors to get your debt repayments lowered even further. I would pay £1 per debt per month until you can increase your earnings.

£25,000 is a lot of debt. I would consider bankruptcy. On your wages you won't be required to pay anything towards your debts. In a year all your debts will be written off and in 6 years your credit will be perfect again.

northerner999

Does your mother know about your debts?

How is her financial situation? It is fairly common for people to put money from their kids' rent aside to help pay for future events like weddings or a house deposit. Might she be willing to out some of your rent money (minus expenses) into a pot either for paying down debts or towards a bond to rent your own place. Preferably the latter if your sanity depends on it, but as we are all here for debt-busting anything which can be done to help that can only be good. You will have an idea if that is likely to be a goer,

Gnomes

I thought about bankruptcy but am I right in thinking it goes against the house?
If so, my mum said this is not an option, if just against my credit then no problem.
Yes my mum is aware and is not in a position to help me.

Wages and jobs in my area are rubbish.

Also if I do go for bankruptcy, will this hinder me with moving into a house-share and how do my wages get paid, wanting to start new job etc?

thegreenone

Erm... I don't want to be rude but isn't £250 a month a lot? If your Mum was on her own, I appreciate the council tax bill will go back up with you moving in, but using our household bills as a guide, I would be charging you no more than £150pm particularly as you buy your own food. Approx. £80 for CT, £50 for Gas and Electricity, £20 for water. Any TV packages were there anyway, so you using them shouldn't affect the cost. Have you thought about finding a live-in job somewhere else in the country?

Pixie5740

Unless you own the house it wouldn't be considered if you went bankrupt. From what you describe it sounds as though the house is in your mum's name so has nothing to do with your finances.

If job opportunities are so hard to come by in your area have you considered moving to a different area or getting some new qualifications as with an income of £650 a month you won't be moving out of your mum's any time soon.

poppasmurf_bewdley

To earn that amount each month, you must only be working about 20 hours per week.

That's part time, and you need to be working full time, or getting another part time job to go with the present one.

The amount you give to your mum is not over the top. It's almost what I charge my son, and he works away during the week, but I have to keep his room clean and heated, washing when he comes back at the weekend, etc.

Gazzafatcityboy

Hi there,

As said already 650 pcm is under minimum wage surely? After you get paid, erm how can you afford a car let alone have a cat? Unless you wage increases drastically to about 2k per month after tax , i dont think you will be able to pay it off.

Regards,

Gaz

andyfromotley

I agree with MJ. You should consider a formal debt solution.

Conatct either National Debtline, Stepchange or CAP. These are FREE and they will not charge you for advice.