young and unrealisticlly lived

Ronaldo_Mconaldo

How did you manage to leave school at 13?

DawnW

aaronpeirson21 wrote: »

okay so here goes these debts are e and my partners please can i stress i dont want to be judged
please feel free to ask questions if it helps any kind person willing to give some advice and please i beg do not judge me as i feel solow with all of this currently
Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1260
Partners monthly income after tax....... 0
Benefits................................ 1046.46
Other income............................ 0
Total monthly income.................... 2306.46

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 538.4 What is this for? A car? In which case its value is an asset
Rent.................................... 442
Management charge (leasehold property).. 0
Council tax............................. 112
Electricity............................. 85 This is quite high - have you switched provider lately?
Gas..................................... 85 And this
Oil..................................... 0
Water rates............................. 33.8
Telephone (land line)................... 18
Mobile phone............................ 10
TV Licence.............................. 29 Are there arrears? It is usually about £12 per month
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 220
Clothing................................ 0
Petrol/diesel........................... 120
Road tax................................ 12
Car Insurance........................... 100 Can you get this cheaper?
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0 You should really have this
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15
Haircuts................................ 5
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1865.2


Assets
Cash.................................... 1.98
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 1.98


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 14961....(281.4)....46.9
Hire Purchase (HP) debt ...... 12000....(257)......33.9
Total secured & HP debts...... 26961.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
capital one....................278.......70.58.....34.9
shout visa card................481.......0.........0
provident financial............4200......280.......99999
jd williams no arrear..........109.......9.73......0
yorkshire bank arears..........334.......0.........0
three mobile(lowell)a..........246.98....0.........0
three mobile(lowell)a..........79.98.....0.........0
lowell portfolioa..............132.58....10........0
hb arrears.....................710.......2.5.......0
ct arrears.....................180.......0.........0
landlorda......................620.......10........0
lowell portfolioa..............563.48....0.........0
direct line car insur..........489.76....489.7.....0
b+s bailiffs parking...........420.......50........0
credit 4 cars..................2271.48...0.........0
wonga.com......................607.89....607.8.....1392
barclays bank..................44.82.....44.82.....0
ee (mobile bill ) arr..........290.......290.......0
morses club....................720.......37.5......99999

Hi Aaron
A few comments above. Just a thought, but how accurate is this? It would be good to keep a spending diary for a while, to see where the money really goes. This involves recording everything your family spends, even small amounts (especially small amounts - they mount up!) I have done this and it was a real eye opener

Could your partner work at all? This may not work for you as you might lose some benefits (?) but worth a thought.

As someone said above, bringing up children when you are young is hard (been there), so don't beat yourself up You realise that there is a problem and are trying to do something about it - there are plenty of people, including those who are much older and well educated, who haven't yet got to this stage!

anna_1977

Hi Aaron
Well done on facing up to it! I was a young parent too and know how hard it is!
Do you NEED a car? IT's costing quite a bit
Also, what is the HP cost, originally I thought maybe a car but with an APR of 33.9% I am sincerely hoping that is not the case!

Are you claiming the correct benefits? I was wondering if maybe you are eligible for Council Tax Benefit?

Good luck and do stay on the forums as you will find amazing support - ignore any negative comments

tlc678910

Hi,
can i just check some of your numbers with you.

You have listed your secured debt at 14,960. An APR of 46.9% and payments of 281.40 a month.

I'm no maths genius so if I am getting this entirely wrong please forgive me (and I'm sure others will put me right) but by a quick guesstimate that is going to be over £6K a year in interest and you would only be paying off around £3K so this debt would be growing even if you keep up the payments?

Is that the case or is there an error in your numbers (or mine!)?

I think now you have all your information to hand contacting one of the non fee debt support organisations should be your next step. (Step change, pay plan and Christians against poverty).

Wishing you all the best getting on top of this.
Tlc

Kitten868

Get all your paperwork together. Work out all your creditors. Go on clearscore and get your credit score as they should have all your creditors. Then get on the phone to stepchange. Anyone would find it a struggle to keep on top of all of that.
I would consider getting rid of the cars. Do you really need two? Stepchange will go through things you can cut back on anyway.
Living within a budget will be the best thing for you going forward. And paying it back at a rate you can actually afford.
Once you've done all this and got on top of it I would make complaints to payday loans as I don't think it was responsible to lend to you.

You can do this and you can make it through to sleeping again and knowing what you're doing xxx

anna_1977

Sorry, a couple of other things - see below comments

Unsecured Debts

direct line car insur..........489.76....489.7.....0are you really paying the whole amount in one month? I assume this is arrears as you have already listed car insurance in your monthly spend?
credit 4 cars..................2271.48...0.........0 is this in addition to your HP? (assuming that was for a car?)
wonga.com......................607.89....607.8.... .1392 again, are you really paying this off over 2 months
barclays bank..................44.82.....44.82.....0 so this will be gone by next month?
ee (mobile bill ) arr..........290.......290.......0paying off in one month?

Looking at the above, if you are paying most of those in 1-2 months then you will be £900 a month better off - I suspect you're not making payments on the debts in which case you need to amend the SOA to show monthly payment as zero - it's very confusing at the start I know!

On_my_way

You're not illiterate so don't worry. Reading the posts will give you lots of advice about how to reduce your spending and address debts.

aaronpeirson21

hi again thanks for the replies and some wise words of wisdom there, basically the ee phone bill is outstanding balance ee want it paying off in 1 payment asap or face disconnection of the numbers for ever so that would be annoying direct line car insurance is from when i missed payments being intween jobs and had to have the policy cancelled so therefore they sent this to moorcroft debt recovery ,
credit 4 cars was car finance untill they went bst i october and my payments have been rejected since so i got a leeter explaining they have had the assets taken over by shoosmiths a debt recovery solicitors who say i owe 7000 on the car i bout for 4995 i have paid 3000 of to date but still owe 7000 sadly there apr made no sense to me at the time being yound and naieve or i can voluntary terminate it have the car repod and the shortfall i would only owe is 1700 which they would set a payment plan up for as for having a car yes its mandatory as i have to travell 14 miles to work and back daily and i love the job and pays me 18000 grand a year for myself who has no qualifications and has a young family thats good plus work is very few and far between uless its a zero hour contract here my secured loan payments are a personal loan a family memeber gurrantored me for i borrowed 7500 and pay back 16000 however this isnt reality as ive never missed a payment and never would, at the time i wasnt in the position to turn down the offer as its a george banco rate dropper loan and the 46.9 reduces to 33.9 i think after 12 months of never missing a payment then to 24.9 after 24 months of not missing a payment also after 2 years of not missing a payment they will remove my family member as a gurrantor from the loan and i have that in writing so i cant reduce that my current montly car insurance is 100 a month for me and my partner as for her working she is currently despratley seeking some work part time she can fit around the kids as if she would full time her wages would barley cover childcare costs any ideas on what i could reduce or pay off to save money and put extra into the budget would be much appreciated i sppke to step change who insisted a payment plan of £1 a week to each creditor and couldnt prioritise my personal loan that my gurrantor is co signer for as i cant miss 1 payment on that and a token payment plan is not ideal i want to pay these debts off asap i want to have a happier brighter future for me the oh and the kids im going to try and start a diary but have no idea how to so any feedback would be gratley appreciated x

anna_1977

Hey, you are doing so well to face up to this and wanting to pay your debts rather than running away.

How old are your kids?

As for Stepchange's idea seriously think about it, even if you do token £1 payments for a year and then rethink, I think your credit report is probably totally shot due to arrears etc. I'm not entirely sure how it works but I wonder if you do the £1 payments can you keep up the payments on the loan with your family member? When did you take that loan out...just wondering when you can remove your family members name?

Also I think it's pretty impressive you have a job that pays so well for 1) someone so young and 2) for someone who left school with no qualifications.

You are doing the right thing wanting to better your life for you family
How is your partner feeling about all this, have you spoken to her?

aaronpeirson21

hi thanks again and i just believe there must be a way to pay some debt off quicker ive just read a theroy on snowballing wer you pay your debt in decending order priorities 1st e,g bailiffs rent food coucill tac gas electric water tv licence then whats left pay your smallest debt straight off then again again and agin my partner is very good with money so i have my salry paid to her and she pays evrything else so i just get money for essentials however i she wants us to pay our debts off as quick as possible and save so one day we can be on the property ladder like her mum and dad are and was in a very similair situation to us at one time and were able to overcome it and start again