A new start but some help needed

ANewStart

Afternoon all,

I would appreciate anyone taking their time to read this as im in a pretty dark and lonely place right now when it comes to my financial situation.

At the end of last yet my wife walked out on my for someone from her work which left me in financial trouble with existing debt and then having to pay my way out of the contract which was in my name for our rented property.

I have now moved on but its time I got strict with myself to try and sort my debts out as soon as possible.

I have read about payment plans but I would honestly rather have thoughts and help from people on here. My mum is the only person that knows and she is willing to lend me some money but I don’t even know where to allocate that money against my debts.

If anyone on here is interested in looking at my situation to give their thoughts I will happily add a breakdown of my income each month and the breakdown of debts to different parties with minimum payment and interest.

Any help would be so much appreciated more than you will know

henrryyyy

Hi, welcome to the forum, I'm quite new here too so cant really offer any great advice, I just know what its like waiting for a reply and wondering if anyones reading your post.

What I can say is it would help the more knowledgeable forumites if you filled your statement of affairs in on here:
http://www.stoozing.com/calculator/soa.php
Then click format results for MSE and paste it here

then when they get round to reading your post they will already have that to work with

believe me this forum will be a beacon of light to bring you out of your dark and lonely place(in a matter of weeks or even days), most of us here have been there.

sourcrates

Hi,

Welcome to the forums.

SOA (statement of affairs) is the first step, here is the link :

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

Don't forget to format for MSE.

Then you will get the best advice for your situation.

atush

You need to post an SOA so others can help with the levels of your outgoings, the do a spending diary starting from May1st, incl every pound you spend, even on parking, coffee etc.

I dont know anyone who has ever done one, not find waste in the daily spend.

Third, look up Snowballing.

How you start with debt is you list each one, and the interest rate. Hit the highest rate debt first, paying min on all the others and slapping every extra penny on the highest rate debt. Once that is gone, hit the next. And so on.

Save the money from your mother (in her pocket not yours) for emergencies so your debt doesnt increase.

MakeAChange_2

hi, im also not the best person to give financial advice at the moment as im still learning myself but henrryyyy is right about the stoozing link thing and the more experienced members can advise you.

But i just wanted to say dont get down, stick around and you will find all the support you need because if you bury your head in the sand (like i have done on and off for years) then when you come up for air the problems still there, so if theres one piece of advice i can give you its keep reading on here, stick around and dont ever suffer in silence with it, it will get you nowhere.

good luck x

ANewStart

Thank you all for the quick replies.
This month is the last month of me making payment for the property I moved out of so I start fresh to tackle my debts from the end of the month so my spending will be different then to what it has been.


Just don't know where to start about which card/loan to prioritise over the others which is why I was hoping if I list them or something then people can help.
I will have a look on that site to see if I can fit my situation to it.

anna_1977

Hey,
If you've managed to do an SOA as advised that would really help - there is a section in there for listing debts and their APR's. People on here will definitely be able to help once they know the full picture - I know it can be daunting writing it down but worth it

Prioritise the debts with the highest interest first.

enthusiasticsaver

The main rule in prioritising debts is pay the one with the highest interest first and pay minimums on the rest. If they are on 0% then pay the one which expires first.

As others have said though posting an soa is a good start. Another good thing to do when starting to repay debt is to keep a spending diary and set up a realistic budget including allowing a monthly amount for an emergency fund. If you are paying high interest on your debts (ie payday loans) then if your mum is willing to help that would be good. Make sure you set up a payment plan to repay her though.

Loads of people will help you so don't be afraid to ask.

ANewStart

Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1400
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 75
TV Licence.............................. 0
Satellite/Cable TV...................... 30
Internet Services....................... 20
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 100
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)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 325

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
M&S............................8200......202.......15.9
BARCLAYCARD....................6500......145.......18
MBNA...........................5220......63........20.9
HSBC OVERDRAFT.................1800......0.........15
LOAN...........................10930.....232.5.....0
TESCO..........................5275......165.......23.65
Total unsecured debts..........37925.....807.5.....-

Monthly Budget Summary
Total monthly income.................... 1,400
Expenses (including HP & secured debts). 325
Available for debt repayments........... 1,075
Monthly UNsecured debt repayments....... 807.5
Amount left after debt repayments....... 267.5
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -37,925
Net Assets.............................. -37,925

ANewStart

I have posted above my details from that website.


I'm happy if I can get a plan in place now that it will start on July the 1st as that's when my mum has told me she can lend me £15,000 and I have to pay her back £500 per month for 30 months.


If anyone can have a look at this and come up with a plan of:


- where you would allocate the £15,000 in July.
- Where then I would pay off the rest of the money I have available.


I know it may be time consuming for people to look into this but come on please help a desperate man in need.


I will try and lay it out a bit better below....




Unsecured Debts
Description....................Debt......Monthly.. .APR
M&S............................ 8200......202...... .15.9
BARCLAYCARD....... 6500......145...... .18
MBNA...........................5220......63....... .20.9
HSBC OVERDRAFT...1800......0......... 15
LOAN...........................10930.....232.5.... .0
TESCO..........................5275......165...... .23.65
Total unsecured debts.37925.....807.5.....-


Monthly Budget Summary
Total monthly income.................... 1,400
Expenses 325
Available for debt repayments........... 1,075
Monthly UNsecured debt repayments....... 807.5
Amount left after debt repayments....... 267.5

sourcrates

No rent or mortgage ? No electricity, gas or water ? Council tax, tv licence, no car ? No emergency fund, haircuts, or entertainment ?

You need to put something in each applicable category.

I wouldn't be borrowing the 15k either, you need to cure the reasons why your in debt, not get another loan.

Further borrowing is not the answer to this !!!!!!!