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advice needed with just about everything

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hi there iam new to this board so please excuse if i do or post anything were its not meant to be,
to cut a long story short im 22 and have around 40 thousand pounds worth of debt from really bad decisions bad money management never understanding the true value of money ive not too long been out of a really unhealthy long relationship, i have 2 children who are 4 and 1 and love them dearly anyhow, im here because im desperate for advice ive been considering bankruptcy recently but ive had this overwhelming sense of ??? well i cant really describe it its just a feeling i feel like id be just giving up and taking the easy way out of this mess ive created... PLEASE NOTE IAM NOT IN ANYWAY SHAPE OR FORM SUGGESTING THAT OTHERS WHO HAVE GONE BR HAVE TAKEN THE EASY WAY OUT AND I HAVE NOT SAID THIS WITH THE INTENTION TO OFFEND i guess its just because im a very strong willed person and have had my fair share of sh!!e to deal with. very recently i have really come to terms with the value of money i guess its since my daughter has started school and my current and devoted partner who may i add seems like carol vodermans lovechild shes that good with money and numbers ( shes as tight as a ducks a**e ) has come into my life however i just want different for my kids. i don't earn allot but i know somewhere deep down i can pay this off somehow i think i just need to pull my finger out and do a soa. i just really want to know if it seems impossible to pay off 40000 grands worth of debt in less than 7 years if i only earn 1200 per month thank you very much for taking the time to read this that anyone that does and i can only apologize im very illiterate due to not attending school much (went to work at te age of 13)
:eek::eek::eek:
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Comments

  • I would suggest you ring stepchange to get advice on your position and whether a DMP or BR would be better for you. Presumably at 22 you have no assets like a house or car?

    Clearing £40k can be done, many people have but on £1200 per month it would be challenging. Bankruptcy will affect your future though and as you say it is not an easy route. Is a second job an option? Post an soa to get more advice.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

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  • fatbelly
    fatbelly Posts: 22,944 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    hi there iam new to this board so please excuse if i do or post anything were its not meant to be,

    im 22 and have around 40 thousand pounds worth of debt

    i have 2 children who are 4 and 1

    ive been considering bankruptcy recently

    i know somewhere deep down i can pay this off somehow

    i think i just need to pull my finger out and do a soa.

    i just really want to know if it seems impossible to pay off 40000 grands worth of debt in less than 7 years if i only earn 1200 per month

    Hi and welcome to the friendly world of mse.

    I edited your post a bit so that we can get to the core of it.

    40k of debt in 7 years means repaying 40000/84 per month if interest is frozen. That's £476 per month. I would suspect that's unlikely, unless you do genuinely have £476 spare per month, but we won't know until you post a statement of affairs and here's the calculator

    http://www.stoozing.com/calculator/soa.php

    We'll also be able to tell from the soa if bankruptcy is the better option, or suggest some other strategy.

    Bankruptcy is a much more painless process since April this year so make sure you read advice that is up to date and doesn't talk about a 'day in court' or 'court fee' as it is now an online process with fees paid by credit or debit card. National Debtline are as good a place as any to read up on the essentials

    https://www.nationaldebtline.org/EW/factsheets/Pages/bankruptcy/how-to-go-bankrupt.aspx
  • sourcrates
    sourcrates Posts: 31,513 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    Hi,

    I can tell you now stepchange recommendation would be bankruptcy.

    On that wage, clearing 40k would take a very long time.

    Post up an SOA to see if there's another option.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • hi there thanks so much for replying and no i dont own any houses or have any assets at all i guess when i say debt the only item i havent included is a gurrantor loan which my previous mother in law gurrantored me and her daughter for the balance is around 14000 anyway without further or do here is my soa any advice would be greatly appreciated.
    Statement of Affairs and Personal Balance Sheet

    Household Information

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

    Monthly Income Details

    Monthly income after tax................ 1207
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1207


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 325
    Management charge (leasehold property).. 0
    Council tax............................. 72
    Electricity............................. 30
    Gas..................................... 55
    Oil..................................... 0
    Water rates............................. 17.5
    Telephone (land line)................... 0
    Mobile phone............................ 25
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 120
    Clothing................................ 10
    Petrol/diesel........................... 80
    Road tax................................ 13
    Car Insurance........................... 89
    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
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 35
    Haircuts................................ 0
    Entertainment........................... 15
    Holiday................................. 30
    Emergency fund.......................... 25
    Total monthly expenses.................. 971.5



    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
    capital one....................357.......0.........0
    wonga..........................657.......0.........0
    cls finanace ltd...............5649......0.........0
    yorkshire bank ................349.......0.........0
    benefit overpayment............780.......0.........0
    carphone warehouse.............125.......0.........0
    c4c............................7025......0.........0
    ee broadband...................465.......0.........0
    3 mobile.......................210.......0.........0
    jd williams....................204.......0.........0
    barclays bank..................44........0.........0
    ee limited.....................1504......0.........0
    lowell (o2)....................124.......0.........0
    motormile finance..............249.......0.........0
    Total unsecured debts..........17742.....0.........-



    Monthly Budget Summary

    Total monthly income.................... 1,207
    Expenses (including HP & secured debts). 971.5
    Available for debt repayments........... 235.5
    Monthly UNsecured debt repayments....... 0
    Amount left after debt repayments....... 235.5


    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -17,742
    Net Assets.............................. -17,742
  • fatbelly
    fatbelly Posts: 22,944 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    No Child Benefit or Child Tax Credit?

    No TV licence?

    Is £120 per month for food & housekeeping realistic?

    Are you actually making payment to any of these debts?
  • no i dont get any benefits or tax credits we share the custody of my children 50/50 and my previous partner recieves all the credits etc... and i dont have a tv as cant afford one
  • sourcrates
    sourcrates Posts: 31,513 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    Didn't you say your debts were £40,000 ?

    Your only showing 17k on your SOA ?
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • ahh sorry thats right cos i purposley left out a gurrantor loan i have at a cost of 37.13 per week
  • sourcrates
    sourcrates Posts: 31,513 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    I think you could easily add to that SOA.

    What about when you take your kids out, drinks, ice creams, bits an bobs, I have 3 kids and share custody, I easily get through £100 a month just on stuff like that.

    Your grocery spend isn't realistic either, mine is twice that figure! (single man). I like to scratch cook food, don't like cheap branded stuff like some on here eat !!!

    Basically you can add another £200 quid to that SOA, without much trouble, you may then qualify for a DRO (debt relief order).

    How much is your car worth ?
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • January2015
    January2015 Posts: 2,369 Forumite
    Eighth Anniversary 1,000 Posts Combo Breaker
    sourcrates wrote: »

    Basically you can add another £200 quid to that SOA, without much trouble, you may then qualify for a DRO (debt relief order).

    I thought to be eligible for a DRO you had to owe less than £20k. OP said he owed £40k. I know his SOA only quoted £17.7k but he acknowledged he hadn't included a guarantor loan.

    Have I missed something?
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k :eek: Now debt free and happy :j
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