Newbie looking for direction

Uptomeneck

Hi

After a seperation, flat move and a generous bout of mental health issues I have found myself in £30k debt.

Everything in life is now healthy and balanced, but now it's time to clear up the mess I find myself in.

I have talked to stepchange and they recommended going down the IVA route but i'am worried I will lose any access to emergency money which is oftern needed for my ex and my child as they oftern struggle as well.

If any one can give some direction or advice it'll really be appreciated.

I'm determined to beat this!

Debt details below

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 2450
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2450

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 950
Management charge (leasehold property).. 0
Council tax............................. 67
Electricity............................. 20
Gas..................................... 0
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 0
Mobile phone............................ 28
TV Licence.............................. 14
Satellite/Cable TV...................... 0
Internet Services....................... 31
Groceries etc. ......................... 80
Clothing................................ 30
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 300
Childcare/nursery....................... 0
Other child related expenses............ 390
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 24
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2009


Assets
Cash.................................... 460
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 460

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
FD loan........................19500.....261.......9.9
FD Overdraft...................500.......250.......0
FD Gold card...................975.......35........16
Barclaycard....................1700......30........18
John Lewis.....................500.......25........18
Halifax........................1400......40........18
B. Of Scotland.................4700......55........0
MBNA...........................4100......40........0
Total unsecured debts..........33375.....736.......-


Monthly Budget Summary
Total monthly income.................... 2,450
Expenses (including HP & secured debts). 2,009
Available for debt repayments........... 441
Monthly UNsecured debt repayments....... 736
Amount short for making debt repayments. -295

Personal Balance Sheet Summary
Total assets (things you own)........... 460
Total HP & Secured debt................. -0
Total Unsecured debt.................... -33,375
Net Assets.............................. -32,915

sourcrates

Hi,

£80 a month on food ? Really ? I spend 3 times that and i'm no way extravagant, the rest of your SOA looks ok, not much to cut there.

My initial thoughts are that a debt management plan would take a very long time, myself i'd opt for the IVA, you would not be able to borrow extra money, you and your family would need to learn to stick to a budget instead of borrowing your way out of trouble.

It can be done quite easily if you are determined enough.

Puddylove

Uptomeneck wrote: »

Hi



Debt details below

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 2450
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2450

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 950
This seems a lot - can you rent more cheaply or house share, flatmate perhaps?
Management charge (leasehold property).. 0
Council tax............................. 67
Assume you claim single person discount of 25%?
Electricity............................. 20
Gas..................................... 0
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 0
Mobile phone............................ 28
SIM only could halve that, I pay <£15
TV Licence.............................. 14
Satellite/Cable TV...................... 0
Internet Services....................... 31
Shop around? Can get for <£20
Groceries etc. ......................... 80
Clothing................................ 30
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 300
What is this? Commuting? Car share, bus, cycle?
Childcare/nursery....................... 0
Other child related expenses............ 390
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 24
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 40
Can you live like a hermit to reduce this?:p
Holiday................................. 0
Emergency fund.......................... 0
Need something here
Total monthly expenses.................. 2009


Assets
Cash.................................... 460
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 460

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
FD loan........................19500.....261.......9.9
FD Overdraft...................500.......250.......0
FD Gold card...................975.......35........16
Barclaycard....................1700......30........18
John Lewis.....................500.......25........18
Halifax........................1400......40........18
B. Of Scotland.................4700......55........0
MBNA...........................4100......40........0
Total unsecured debts..........33375.....736.......-


Monthly Budget Summary
Total monthly income.................... 2,450
Expenses (including HP & secured debts). 2,009
Available for debt repayments........... 441
Monthly UNsecured debt repayments....... 736
Amount short for making debt repayments. -295

Personal Balance Sheet Summary
Total assets (things you own)........... 460
Total HP & Secured debt................. -0
Total Unsecured debt.................... -33,375
Net Assets.............................. -32,915

Hi
Comments above in red. Can you restructure your debts, or have a strategy for which one you pay first? See snowballing for example. Second job? Tenant?

Good luck with your journey.

Uptomeneck

Thanks. It's £80 as it's only me 😊

Uptomeneck

Thanks, the £950 is renting in East Sussex in a place nice enough for my head but yes it's pricey. The £300 is commuting to london...and that's only 2 days a week...thank you Southern.

bobcat2

Contents insurance looks very high to me. That's £288 a year!
mine was under £80 for buildings and contents.

enthusiasticsaver

There is too big a deficit on minimum payments to do a dmp and very little to cut in your soa so sadly I think an IVA or bankruptcy is the way forward unless you can move to a cheaper area.

A credit card is not emergency money btw. Start up an emergency fund and use that for emergencies. I am assuming the debt came about by living beyond your means? Sadly living in the south east is not cheap and it must be depressing to see all your income either go in high rent, commuting costs and debt. I assume the £390 is maintenance?

I hope you sort something but I think at that level of debt, going bankrupt and living without credit will be the best thing for you.

ani*fan

Hiya

I noticed your FD overdraft is £500, and you're paying £250 to it monthly. Does that mean it will be gone in 2 months? Using that £250 and also making the changes Puddylove suggested, then you could be solvent quite soon.

You need to up your income. Get a second job (do you only work 2 days per week?), sell everything you don't need and look into getting a cheaper flat. Look on the make £10 a day thread and take their advice.

Best of luck. I admire your determination.

squiggle123

I'm no expert. However I have made some savings the last few months. Your contents insurance might be worth doing a comparison on. We have buildings & contents for £9. Previously paying £22!!

Internet also something you might be able to save on. I got it down to £18.99. Was paying similar to you. Worth doing a comparison online.

Clothing at £30 a month seems quite high to me for one person or is that also including your children?

Mobile phone is expensive. Have a look at mobile phones direct online. I plan to when my contract is up. Oh just changed to them at £12.50 per month plus cashback works out about £7 per month with cashback (though you have to claim at certain points in the tear) although even without cashback £12.50 is a bargain.