Personal debts to friends and family

Sambella

Would friends 2 & 3 be agreeable to a slightly longer wait whilst you repay friend 1 who is being quite ridiculous in my opinion?

Courts are known to set smaller payments over a longer period as they take your outgoings into account so I cannot see them going that far. He is making threats. Tell him it's fine if he wants to take you to court

Goodwill payments can wait until this debt is cleared too perhaps? Maybe take everyone out for a nice dinner when it is all over?

shroomdoom

Friends 2 and 3 haven't pressured me at all to repay but I know they need it and I feel morally obliged to at least pay something. I discussed it with them and we met on the amounts stated above, I'd hate to lose more friends by asking to reduce it.

Unfortunately, my family are less reasonable and the best I was able to settle on was to be able to 'pay what I can, when I can' and as I was living abroad when employed, I had to come back and live with family.

In terms of assets, I literally have nothing. I sold everything I owned when I was struggling and use a very old phone, embarrassing clothes and no computer. However, I agree completely with the sentiment of the thread; Friend 1 needs to be paid as much and as soon as possible so I can move on with my life.

SophieLoui23

shroomdoom wrote: »

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................ 1688
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1688

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 350
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 40
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 300
Clothing................................ 50
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 45
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)...... 50
Haircuts................................ 15
Entertainment........................... 150
Holiday................................. 0
Emergency fund.......................... 100
Total monthly expenses.................. 1140


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
Friend 1.......................2000......400.......0
Friend 2.......................350.......100.......0
Friend 3 ......................300.......100.......0
Littlewoods....................300.......30........39.9
Total unsecured debts..........2950......630.......-


Monthly Budget Summary
Total monthly income.................... 1,688
Expenses (including HP & secured debts). 1,140
Available for debt repayments........... 548
Monthly UNsecured debt repayments....... 630
Amount short for making debt repayments. -82

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -2,950
Net Assets.............................. -2,950

Not included are unforeseen expenses and, most importantly, discretionary good will payments to family members that helped me too.

This is a great start

Few more questions - don't feel obliged to answer them as I know it can get personal but I want to help as much as I can:

- Is there a reason your partner doesn't have any form of income or have you kept their earnings separately?
- How much did your 'friend' want you to repay each month? Is it the €400 on your SOA or double it at €800?

I'm trying to remember that you are working in Euros as £300 seems a lot for groceries for 2 adults but I guess €300 isn't that high... (depending whether you want to go in to the whole exchange rate thing, which is an entirely different matter!)

SophieLoui23

Sorry assumed it was a partner but realised it may be a family member (parent or similar) who wouldn't be splitting bills with you?

Sambella

Could you also perhaps reduce the entertainment budget until this debt is repaid. Sometimes when you owe someone money and they then see you in the pub or cinema it enrages them further.

The debt is not huge and a fairly short period of cutting back as much as you can could end up being well worth it in the long run. I got the feeling that this needs to be sorted sooner than later.

shroomdoom

Thanks for the questions guys! I'll be happy to answer.

Firstly, my mother is on a Government scheme to get back into education and thus her income is 166 per week, 30 of which goes on rent. She is going through a divorce and it's complicating things financially for her but I'm not required to get involved in that area.

The bills in the SOA are already my half of what I would pay. Electricity is 80 per month (on average) of which I would pay 40.

Entertainment is mostly the cost of meeting my grandmother once a week, e.g. taxis for her, getting a cup of tea, collecting her prescriptions etc. She lives close but she's just outside of our town in the country side so I don't see how I could reduce this. I know it's not a time to get sentimental but she's mostly alone and I'd hate to tell her we couldn't still meet once a week.

If you have advice where I could cut this, please let me know.

SophieLoui23

How much does this guy want you to repay per month?

shroomdoom

He wants me to repay 400 per month

Sambella

Och you come across as a good soul I wouldn't deprive your grandmother her treat.

I still think, looking at your SOA that you could forgoe the €100 emergency fund. Addding that to the €400 means the debt could be paid in 4 months whilst still paying friends 2&3

Then in 4 months time you are €700 better off!!

shroomdoom

I know you're right but part of me thinks "what if, when you're still in probation, something goes wrong?". I'd be totally, completely and utterly up the creek then!