Help please! SOA and Corp Card Nightmare!

PJJ_2

Guys I am not in a good spot:

Came out of Uni oweing £12k on credit cards and £3k on Overdrafts. Consolidated them into a big loan and then spent the money again.I owe whats is below but to add to my wows I now have to pay a corporate charge card £5k and £1870 each in full. The £5k was from my previous job where they did me on expenses and I am liable, no way out of that. The second is from my current job. These are charge cards and you have to pay them off in full each month. The first one is threatening court action and wont take smaller monthly payments. I need help. My situation is below - I didnt know how to post a SOA or what it fully was.


Basically owe over £45k on credit cards and a loan and charge cards.


Credit Card Amount Minimum Payment
Goldfish 5120 100
Virgin 3475 100
BOS 3600 75
BOS 3600 75
Halifax 756 25
MBNA 488 25
Cone 200 25
HSBC 900 25
Bcard 2040 40

Loan
Egg Loan 17000 387

Charge Card

Amex 5034 Due immediately or I face court action
Diners Card 1875 Due immediately or I face court action

Overdraft
HSBC 1500 0
Barclays 780 10
unauth OD 500 Due next month or else


Total 46868 887


Wages per month after tax 2800


Minimum Payments on borrowing 887
Rent 500
Going out 400
Gambling (due to debt) 400
Food/eating 600
late fees / charges 150
Travel to work 300
Phone 100

3337
OVERSPEND!!!!!!!!!!!!!!!!!!!!!!!!!










I want to know what I should?
An IVA, bankrupcy, throw myself off a bridge? Debt Management?

I am guessing Bankruptcy would mean quiting my job and an IVA would mean I could not have a corporate charge card - so I will have cashflow problems again as I need to pay for hotels etc on a weekly basis!! HELP ME

redballoon_2

post a list of your income and outgoings, list all debts and repayments clearly. take your time! I can not understand what you have put.

I'm sure we all can chip in and help you then.

PJJ_2

Sorry I have reformatted as best I can.

It has what I owe and then the minimum payment the table didnt paste that well.

So for example I owe Goldfish £5120 and the minimum payment is 100

I am over my limit on a number of the cards ( BOS, BOS, BAR, Vir, Goldfish and Cone)

iamstacie

Hi PJJ,

Ignoring the CC debts for a second, the first thing I noticed was "Gambling (due to debt)" - I don't understand what you mean by this? Also, how many people are you feeding on the £600 a month? I've had to cut my spending from £600 for 2 people to £200 (and most people will still say thats too high) and it makes such a huge difference - I've paid off 2 off my smaller debts with the £1000 I've saved in 2 months. Re rent - can you get someone in to split costs if you're renting on your own, otherwise is it an option to move back home for a while? Going out needs to come down if you're ever go to pay off your debts, again my going out money was huge but now I limit it to once or twice a month and now its only a 1/4 of what it was - again thats £300+ a month you have to throw at debts. Can you change your phone tarriff at all? Also, you need to look at finding a cheaper way to get to work. One more thing, "late payments/charges" - if this is bank charges it may be worth writing a letter to see if you can claim some back.

Another problem is you havent accounted for things like clothes, car tax/ins if you have one, birthdays, xmas etc

IMO, the best and most productive thing you can do right now would be to get professional advise from either the CAB or the CCCS - both fee free councelling services, especially re the corporate cards.

Its not the end of the world, but it will mean cutting back quite a bit for the forseeable future - no-one can make you do it but its up to you whether you choose to tighten your belt and get out of the debt hell or carry on as you are.

tigtag02

PJJ wrote: »

Wages per month after tax 2800


Minimum Payments on borrowing 887
Rent 500
Going out 400 ~ this must be thrown at the debt
Gambling (due to debt) 400 ~ this has got to stop and be thrown at the debt. If you really feel such a compulsion to gamble I think you may benefit from GA. You will only end up in a deeper hole.
Food/eating 600 ~ woah there tiger how many is this for? A family of four can easily be fed and watered on £200 a month
late fees / charges 150
Travel to work 300 ~ how do you get there?
Phone 100 ~ how is this made up?

3337
OVERSPEND!!!!!!!!!!!!!!!!!!!!!!!!!

There is an extra £1200 straight off above to throw at your debt ~ thats cut back and be debt free in a little over 3 years

Welcome to MSE

There also seems to be a lot missing?
Gas
Electric
Water
Birthdays / Christmas
TV License

madmoney_2

the gambling has to stop - i was on internet bingo n it cost me dearly, havent gambled forover 3 months thanx to this site

PJJ_2

Thanks for your comments guys but what is the best option for me.

I had devised this budget to stick to:
Debts 900
Going out 250
Food 300
Rent 500

All other bills, insurance included in rent. Food covers all shopping bill for the month. I dont tend to buy new clothes but I was thinking of having an emergency fund for unexpected bills of 50 per month.

I was hoping to dedicate the rest to gettting rid of the highest bills first.

I have a lot of worries though as I am not sure if I will keep my job I will know more next month when my probation finishes but with all this hanging over me with the charge cards I have been far from good at work. So my question is what should I do if I lose my job I dont own anything but it is a bit young to go bankrupt at 24!

tigtag02

PJJ wrote: »

Thanks for your comments guys but what is the best option for me.

I had devised this budget to stick to:
Debts 900
Going out 250
Food 300
Rent 500

All other bills, insurance included in rent. Food covers all shopping bill for the month. I dont tend to buy new clothes but I was thinking of having an emergency fund for unexpected bills of 50 per month.

I was hoping to dedicate the rest to gettting rid of the highest bills first.

I have a lot of worries though as I am not sure if I will keep my job I will know more next month when my probation finishes but with all this hanging over me with the charge cards I have been far from good at work. So my question is what should I do if I lose my job I dont own anything but it is a bit young to go bankrupt at 24!

£300 & £250 are still way too much on food and going out if you are serious about clearing your debt.

How many is the shopping for? I feed a family of four (well) on £200 a month!

PJJ_2

3 of us on that

You think £250 is too much for a 24 year old? What am I supposed to do on a weekend?

tigtag02

PJJ wrote: »

3 of us on that

You think £250 is too much for a 24 year old? What am I supposed to do on a weekend?

This comment tells me that maybe your LBM is only partial.

You need to clear £45k's worth of debt ~ what you are supposed to do at a weekend is something cheap!! Hire a movie, get a cheap bottle of plonk and a pizza

RAS

This a a wind up, isn't it?

If not, then this is precisely how you acquired £45,00 of debt.

You will have to cut back drastically now because you have spent more than you earned in the past. It will hurt but that is what getting out of debt is like.

You can do it this way, or you could contact one of the debt charities and do it formally via a DMP or IVA. The other option will be to go BK, but whatever you do it will affect your credit rating. None of these options allow you to acquire more debt (have an overdraft, or a credit card).

If you go the IVA or BK route, you will have to declare them for the rest of your life when you apply for credit and other than a mortgage, you can kiss the idea of a loan or CC good bye for many years.

As for what you do at weekends.

If there are three of you, who else is in your household?

Go for a walk, or a cycle, play footie, get a few mates round for a barbie once in a while, have someone for a meal (neither have to cost much). get free tickets and go to the cinema.