Help! In real trouble.

LCSal

Hello. If you take the time to read this thank you. Any advice would be appreciated. I will try to keep it as brief as I can.

Basically I have a lot of unsecured debt that I am behind on. It all started last year after a bad break up I had a bad period of gambling and got loans out chasing. I was stupid and am currently receiving help for this problem which is going well. I have overcome this for a long time and now find myself feeling ashamed I have done this and cannot believe I have done it.

My current situation is.. Home Owner but do not live there.. (don't pay anything towards it) Ex is currently looking at getting my name of the mortgage. I rent privately with my flatmate.

Debt.. I have three loans (one isn't in my name)
Three Credit Cards..
Overdraft.
Two payday loans (I know how stupid I have been).

So, I do not get paid until Feb 29th. Currently I have nothing left and have a lot of things that are going to fall behind.. I have t pay out this month..

Rent - 295
Loans - 445
Credit Cards - 48
Payday loans - 490 plus 55 weekly for eight weeks.
Bills - Internet - 30. Phone - 70 (usually 45). Water 30. Bank Charge/interest 36. Others 20. Council Tax 280 (two payments of 280 due then it is cleared until June). Total 466.

Grand Total - 1965.

My loans are with my own bank so I assume they'll just take them out of my account and I will go over my allowed limit?

I need advice on what to do with the rest. Obviously when I get paid again I will be in the same position as most of my pay will be for the next month's outgoings. Rent is due in the next few days

I have been told I won't get another loan to consolidate so that isn't an option now. The other things is if I have an IVA or CCJ I would lose my job. This is seriously worrying me now. Nearly all of the unsecured debt will be gone in 2 - 2 1/2 years at current repayments so I know there is light at the end of the tunnel with that.

I have contracted on my flat until September.

I have got myself into this mess through stupidity but I am determined to clear all this debt and I have to start here and now. I am on my own and can't rely on others.I have plans for the future in how my money is handled. First thing is to sort out everything I owe and avoid losing my job if that is possible.

Thanks anyone who replies.

Below is my SOA if this helps. I haven't included the payday loans.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 1375
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1375

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 295
Management charge (leasehold property).. 0
Council tax............................. 65
Electricity............................. 60
Gas..................................... 0
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 0
Mobile phone............................ 45
TV Licence.............................. 10
Satellite/Cable TV...................... 0
Internet Services....................... 15
Groceries etc. ......................... 50
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 15
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 625


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card 1..................300.......8.........
Credit Card 2..................420.......15........
Credit Card 3..................900.......25........
Loan 3.........................3000......165.......
Overdraft......................2000......36........
Loan 2.........................1500......87........
Loan 1.........................4950......193.......
Total unsecured debts..........13070.....529.......-


Monthly Budget Summary
Total monthly income.................... 1,375
Expenses (including HP & secured debts). 625
Available for debt repayments........... 750
Monthly UNsecured debt repayments....... 529
Amount left after debt repayments....... 221

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -13,070
Net Assets.............................. -13,070

Sharon87

Don't panic is the first thing I would say!

What's your job if a CCJ or IVA would mean you lose your job? Also it won't happen for a long time and only if you keep ignoring your debt, so don't worry.

Are you not getting any wages in this month or have you just got them and they've already been spent?

You can ask lenders to freeze interest - especially the pay day lenders! Having defaults and CCJs are different things. You can organise a DMP using free debt advice services such as Stepchange or National Debt Line - don't pay for someone to organise your DMP!

A DMP means they will try and get the lenders to freeze interest and you pay a set amount a month to clear the balances. It means you will get multiple defaults, but it may be necessary.

I'm sure more people will come along with more advice soon

Good luck and don't panic, it's manageable without getting an IVA or CCJ!

Kitten868

Well done for coming through all that and coming here for help. Nothing is impossible. Yes, if you can pay these it'll be clear in 2 years but you can't afford to keep up the payments.
I would recommend a chat to step change. They can give you specialist advice according to your situation.
Whilst you're waiting for your ex to afford the old mortgage can you speed up them buying you out? I realise you aren't paying the mortgage now but you did and put some in to the deposit. If they were to give it to you monthly then you could use that to pay?
Also your internet bills seem high. And is that divided by 2?
Keep going

ViolaLass

£50 on food for two people. Really?

m4rc

Just wanted to say try not to be so hard on yourself, you are not stupid, you have or had an addiction, it's not something to be ashamed of, good for you for facing up to it and trying to sort it out. If you take only one piece of advice from me please let it be this - keep taking the gambling support, you can relapse at anytime. I have never gambled simply as I have a very addictive nature and I know if I did it once I wouldn't stop, I used to play fruit machines a little in the pub (fiver or so but could feel myself being drawn in), and I knew it could be dangerous. A very good friend of mine had a serious gambling habit, he gambled his parents home, it destroyed his life, but he got some serious help and is now married, settled and has kids and his own house. He always said he considers himself a gambler still and has to fight the urge every day.

Would your job be safe if you organised a debt management plan? Step Change are a free service and can help you a lot, they can help negotiate with creditors to freeze interest and sort out a sensible repayment plan. To be honest although your debt feels suffocating at the moment and cash flow is causing you difficulties of the interest was frozen and you put all your effort into clearing the debts they could be gone in a couple of years.

The important thing is you didn't hide and pretend it would all be ok, you've acknowledged the issues and want to get it sorted. Get in touch with Step Change or National Debt Helpline and see what they can help you with.

I wish you all the best of luck

m4rc

ViolaLass wrote: »

£50 on food for two people. Really?

He lives with a flatmate, I would think they pay for their own food, although I'm not sure I could live on £50 a month!

LCSal

Thanks for the replies.

The house is a new build.. there isn't any equity in it and the deposit wasn't mine unfortunately.

I do spend £50 per month on food.. mainly as I get meals made for me by my parents which I just freeze (not going to turn that down!).. and my mum does some shopping for me too.. so I mainly just buy veg milk bread etc.

For my job they do checks. which I have already passed before. I am uncertain if they keep doing them every so often.. I could try and find that out I don't think defaults would be an issue.. I think it is CCjs and IVAs and bankruptcy.

How long does a default last on your record?

So yes, for Jan pay it all went on clearing what I previously owed.. so I am now a full month and more behind as you can see..

I will looking into contacting the organisations mentioned when I get in from work. What exactly do they do?

I have an addiction I know. And the worst part is I overcame this for a long time and sorted myself and you're right it can come back at anytime, it doesn't go. It is something I will have to live with in regards to money as well..first thing is to get myself back on track.

Kitten868

They will explain your different options for clearing off this debt they will find a solution that works x